UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___  to  ___.

Commission file number:  1-14323

ENTERPRISE PRODUCTS PARTNERS L.P.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
 
76-0568219
(State or Other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
 
1100 Louisiana Street, 10th Floor
Houston, Texas 77002
    (Address of Principal Executive Offices, including Zip Code)
(713) 381-6500
(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each Class
Trading Symbol(s)
Name of Each Exchange On Which Registered
Common Units
EPD
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☑  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer 
Accelerated filer
Non-accelerated filer   
Smaller reporting company
Emerging growth company   
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes    No  

There were 2,179,249,380 common units of Enterprise Products Partners L.P. outstanding at the close of business on July 29, 2022. 


Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
TABLE OF CONTENTS

 
 
Page No.
PART I.  FINANCIAL INFORMATION.
Item 1.
Financial Statements.
 
 
Unaudited Condensed Consolidated Balance Sheets
2
 
Unaudited Condensed Statements of Consolidated Operations
3
 
Unaudited Condensed Statements of Consolidated Comprehensive Income
4
 
Unaudited Condensed Statements of Consolidated Cash Flows
5
 
Unaudited Condensed Statements of Consolidated Equity
6
 
Notes to Unaudited Condensed Consolidated Financial Statements:
 
 
1.  Partnership Organization and Operations
9
 
2.  Summary of Significant Accounting Policies
10
 
3.  Inventories
10
 
4.  Property, Plant and Equipment
11
 
5.  Investments in Unconsolidated Affiliates
12
 
6.  Intangible Assets and Goodwill
13
 
7.  Debt Obligations
14
 
8.  Capital Accounts
16
 
9.  Revenues
19
 
10.  Business Segments and Related Information
20
 
11.  Earnings Per Unit
24
 
12.  Business Combinations
24
 
13.  Equity-Based Awards
26
 
14.  Hedging Activities and Fair Value Measurements
27
 
15.  Related Party Transactions
33
 
16.  Income Taxes
34
 
17.  Commitments and Contingent Liabilities
35
 
18.  Supplemental Cash Flow Information
37
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
38
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
65
Item 4.
Controls and Procedures.
67
 
 
 
PART II.  OTHER INFORMATION.
Item 1.
Legal Proceedings.
67
Item 1A.
Risk Factors.
68
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
70
Item 3.
Defaults Upon Senior Securities.
71
Item 4.
Mine Safety Disclosures.
71
Item 5.
Other Information.
71
Item 6.
Exhibits.
71
 
 
 
Signatures
80

1


Table of Contents

PART I.  FINANCIAL INFORMATION.

ITEM 1.  FINANCIAL STATEMENTS.

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)

   
June 30,
2022
   
December 31,
2021
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
 
$
231
   
$
2,820
 
Restricted cash
   
166
     
145
 
Accounts receivable – trade, net of allowance for credit losses
of $54 at June 30, 2022 and $53 at December 31, 2021
   
8,421
     
6,967
 
Accounts receivable – related parties
   
29
     
21
 
Inventories (see Note 3)
   
3,234
     
2,681
 
Derivative assets (see Note 14)
   
332
     
237
 
Prepaid and other current assets
   
548
     
399
 
Total current assets
   
12,961
     
13,270
 
Property, plant and equipment, net (see Note 4)
   
44,129
     
42,088
 
Investments in unconsolidated affiliates (see Note 5)
   
2,374
     
2,428
 
Intangible assets, net (see Note 6)
   
4,056
     
3,151
 
Goodwill (see Note 6)
   
5,608
     
5,449
 
Other assets
   
1,222
     
1,140
 
Total assets
 
$
70,350
   
$
67,526
 
 
               
LIABILITIES AND EQUITY
               
Current liabilities:
               
Current maturities of debt (see Note 7)
 
$
1,889
   
$
1,400
 
Accounts payable – trade
   
803
     
632
 
Accounts payable – related parties
   
132
     
167
 
Accrued product payables
   
10,815
     
8,093
 
Accrued interest
   
435
     
453
 
Derivative liabilities (see Note 14)
   
345
     
254
 
Other current liabilities
   
559
     
626
 
Total current liabilities
   
14,978
     
11,625
 
Long-term debt (see Note 7)
   
26,892
     
28,135
 
Deferred tax liabilities (see Note 16)
   
556
     
518
 
Other long-term liabilities
   
898
     
760
 
Commitments and contingent liabilities (see Note 17)
   
     
 
Redeemable preferred limited partner interests: (see Note 8)
               
    Series A cumulative convertible preferred units (“preferred units”)
        (50,412 units outstanding at June 30, 2022 and December 31, 2021)
   
49
     
49
 
Equity: (see Note 8)
               
Partners’ equity:
               
Common limited partner interests (2,179,249,380 units issued and outstanding at
     June 30, 2022, 2,176,379,587 units issued and outstanding at December 31, 2021)
   
27,003
     
26,340
 
Treasury units, at cost
   
(1,297
)
   
(1,297
)
Accumulated other comprehensive income
   
177
     
286
 
Total partners’ equity
   
25,883
     
25,329
 
Noncontrolling interests in consolidated subsidiaries
   
1,094
     
1,110
 
Total equity
   
26,977
     
26,439
 
Total liabilities, preferred units, and equity
 
$
70,350
   
$
67,526
 


See Notes to Unaudited Condensed Consolidated Financial Statements.
2


Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
 (Dollars in millions, except per unit amounts)

 
 
For the Three Months
Ended June 30,
   
For the Six Months
Ended June 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
Revenues:
                       
Third parties
 
$
16,041
   
$
9,441
   
$
29,033
   
$
18,582
 
Related parties
   
19
     
9
     
35
     
23
 
Total revenues (see Note 9)
   
16,060
     
9,450
     
29,068
     
18,605
 
Costs and expenses:
                               
Operating costs and expenses:
                               
Third party and other costs
   
14,004
     
7,767
     
25,086
     
14,996
 
Related parties
   
337
     
300
     
652
     
624
 
Total operating costs and expenses
   
14,341
     
8,067
     
25,738
     
15,620
 
General and administrative costs:
                               
Third party and other costs
   
24
     
19
     
49
     
40
 
Related parties
   
38
     
33
     
75
     
68
 
Total general and administrative costs
   
62
     
52
     
124
     
108
 
Total costs and expenses (see Note 10)
   
14,403
     
8,119
     
25,862
     
15,728
 
Equity in income of unconsolidated affiliates
   
107
     
161
     
224
     
310
 
Operating income
   
1,764
     
1,492
     
3,430
     
3,187
 
Other income (expense):
                               
Interest expense
   
(309
)
   
(316
)
   
(628
)
   
(639
)
Interest income
   
2
     
1
     
3
     
2
 
Other, net
   
     
     
2
     
 
Total other expense, net
   
(307
)
   
(315
)
   
(623
)
   
(637
)
Income before income taxes
   
1,457
     
1,177
     
2,807
     
2,550
 
Provision for income taxes (see Note 16)
   
(17
)
   
(31
)
   
(36
)
   
(41
)
Net income
   
1,440
     
1,146
     
2,771
     
2,509
 
Net income attributable to noncontrolling interests
   
(28
)
   
(33
)
   
(62
)
   
(54
)
Net income attributable to preferred units
   
(1
)
   
(1
)
   
(2
)
   
(2
)
Net income attributable to common unitholders
 
$
1,411
   
$
1,112
   
$
2,707
   
$
2,453
 
 
                               
Earnings per unit: (see Note 11)
                               
Basic and diluted earnings per common unit
 
$
0.64
   
$
0.50
   
$
1.23
   
$
1.11
 













See Notes to Unaudited Condensed Consolidated Financial Statements.
3


Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED
COMPREHENSIVE INCOME
(Dollars in millions)

 
 
For the Three Months
Ended June 30,
   
For the Six Months
Ended June 30,
 
 
 
2022
   
2021
   
2022
   
2021
 
 
                       
Net income
 
$
1,440
   
$
1,146
   
$
2,771
   
$
2,509
 
Other comprehensive income (loss):
                               
Cash flow hedges: (see Note 14)
                               
Commodity hedging derivative instruments:
                               
Changes in fair value of cash flow hedges
   
39
     
(291
)
   
(60
)
   
(752
)
Reclassification of losses (gains) to net income
   
(108
)
   
(99
)
   
(63
)
   
517
 
Interest rate hedging derivative instruments:
                               
Changes in fair value of cash flow hedges
   
     
     
     
183
 
Reclassification of losses to net income
   
6
     
10
     
14
     
18
 
Total cash flow hedges
   
(63
)
   
(380
)
   
(109
)
   
(34
)
Total other comprehensive loss
   
(63
)
   
(380
)
   
(109
)
   
(34
)
Comprehensive income
   
1,377
     
766
     
2,662
     
2,475
 
Comprehensive income attributable to noncontrolling interests
   
(28
)
   
(33
)
   
(62
)
   
(54
)
Comprehensive income attributable to preferred units
   
(1
)
   
(1
)
   
(2
)
   
(2
)
Comprehensive income attributable to common unitholders
 
$
1,348
   
$
732
   
$
2,598
   
$
2,419
 
  


























See Notes to Unaudited Condensed Consolidated Financial Statements.

4


Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Dollars in millions)

 
 
For the Six Months
Ended June 30,
 
 
 
2022
   
2021
 
Operating activities:
           
Net income
 
$
2,771
   
$
2,509
 
Reconciliation of net income to net cash flows provided by operating activities:
               
Depreciation and accretion
   
891
     
852
 
Amortization of intangible assets
   
86
     
74
 
Amortization of major maintenance costs for reaction-based plants
   
25
     
10
 
Other amortization expense
   
115
     
123
 
Impairment of assets other than goodwill
   
19
     
84
 
Equity in income of unconsolidated affiliates
   
(224
)
   
(310
)
Distributions received from unconsolidated affiliates attributable to earnings
   
224
     
262
 
Net losses attributable to asset sales and related matters
   
2
     
11
 
Deferred income tax expense
   
16
     
24
 
Change in fair market value of derivative instruments
   
94
     
(39
)
Non-cash expense related to long-term operating leases (see Note 17)
   
27
     
19
 
Net effect of changes in operating accounts (see Note 18)
   
218
     
399
 
Other operating activities
   
     
(1
)
Net cash flows provided by operating activities
   
4,264
     
4,017
 
Investing activities:
               
Capital expenditures
   
(731
)
   
(1,301
)
Cash used for business combinations, net of cash received (See Note 12)
   
(3,204
)
   
 
Investments in unconsolidated affiliates
   
     
(1
)
Distributions received from unconsolidated affiliates attributable to the return of capital
   
55
     
37
 
Proceeds from asset sales
   
14
     
50
 
Other investing activities
   
(2
)
   
(14
)
Cash used in investing activities
   
(3,868
)
   
(1,229
)
Financing activities:
               
Borrowings under debt agreements
   
42,112
     
9,797
 
Repayments of debt
   
(42,872
)
   
(11,122
)
Monetization of interest rate derivative instruments
   
     
75
 
Cash distributions paid to common unitholders (see Note 8)
   
(2,026
)
   
(1,965
)
Cash payments made in connection with distribution equivalent rights
   
(17
)
   
(15
)
Cash distributions paid to noncontrolling interests
   
(82
)
   
(71
)
Cash contributions from noncontrolling interests
   
4
     
18
 
Repurchase of common units under 2019 Buyback Program
   
(35
)
   
(14
)
Other financing activities
   
(48
)
   
(38
)
Cash used in financing activities
   
(2,964
)
   
(3,335
)
Net change in cash and cash equivalents, including restricted cash
   
(2,568
)
   
(547
)
Cash and cash equivalents, including restricted cash, at beginning of period
   
2,965
     
1,158
 
Cash and cash equivalents, including restricted cash, at end of period
 
$
397
   
$
611
 









See Notes to Unaudited Condensed Consolidated Financial Statements.
5


Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022
(Dollars in millions)

 
 
Partners’ Equity
             
   
Common
Limited
Partner
Interests
   
Treasury
Units
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Noncontrolling
Interests in
Consolidated
Subsidiaries
   
Total
 
For the Three Months Ended June 30, 2022:
                             
     Balance, March 31, 2022
 
$
26,610
   
$
(1,297
)
 
$
240
   
$
1,104
   
$
26,657
 
   Net income
   
1,411
     
     
     
28
     
1,439
 
   Cash distributions paid to common unitholders
   
(1,014
)
   
     
     
     
(1,014
)
   Cash payments made in connection with
      distribution equivalent rights
   
(9
)
   
     
     
     
(9
)
   Cash distributions paid to noncontrolling interests
   
     
     
     
(40
)
   
(40
)
   Cash contributions from noncontrolling interests
   
     
     
     
2
     
2
 
   Amortization of fair value of equity-based awards
   
41
     
     
     
     
41
 
   Repurchase and cancellation of common units under
      2019 Buyback Program
   
(35
)
   
     
     
     
(35
)
   Cash flow hedges
   
     
     
(63
)
   
     
(63
)
   Other, net
   
(1
)
   
     
     
     
(1
)
     Balance, June 30, 2022
 
$
27,003
   
$
(1,297
)
 
$
177
   
$
1,094
   
$
26,977
 



 
 
Partners’ Equity
             
   
Common
Limited
Partner
Interests
   
Treasury
Units
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Noncontrolling
Interests in
Consolidated
Subsidiaries
   
Total
 
For the Six Months Ended June 30, 2022:
                             
     Balance, December 31, 2021
 
$
26,340
   
$
(1,297
)
 
$
286
   
$
1,110
   
$
26,439
 
   Net income
   
2,707
     
     
     
62
     
2,769
 
   Cash distributions paid to common unitholders
   
(2,026
)
   
     
     
     
(2,026
)
   Cash payments made in connection with
      distribution equivalent rights
   
(17
)
   
     
     
     
(17
)
   Cash distributions paid to noncontrolling interests
   
     
     
     
(82
)
   
(82
)
   Cash contributions from noncontrolling interests
   
     
     
     
4
     
4
 
   Amortization of fair value of equity-based awards
   
79
     
     
     
     
79
 
   Repurchase and cancellation of common units under
      2019 Buyback Program
   
(35
)
   
     
     
     
(35
)
   Cash flow hedges
   
     
     
(109
)
   
     
(109
)
   Other, net
   
(45
)
   
     
     
     
(45
)
     Balance, June 30, 2022
 
$
27,003
   
$
(1,297
)
 
$
177
   
$
1,094
   
$
26,977
 














See Notes to Unaudited Condensed Consolidated Financial Statements.  For information regarding Unit History and
Accumulated Other Comprehensive Income (Loss), see Note 8.
6


Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021
(Dollars in millions)

 
 
Partners’ Equity
             
   
Common
Limited
Partner
Interests
   
Treasury
Units
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Noncontrolling
Interests in
Consolidated
Subsidiaries
   
Total
 
For the Three Months Ended June 30, 2021:
                             
     Balance, March 31, 2021
 
$
26,109
   
$
(1,297
)
 
$
181
   
$
1,078
   
$
26,071
 
   Net income
   
1,112
     
     
     
33
     
1,145
 
   Cash distributions paid to common unitholders
   
(983
)
   
     
     
     
(983
)
   Cash payments made in connection with
      distribution equivalent rights
   
(8
)
   
     
     
     
(8
)
   Cash distributions paid to noncontrolling interests
   
     
     
     
(41
)
   
(41
)
   Cash contributions from noncontrolling interests
   
     
     
     
5
     
5
 
   Amortization of fair value of equity-based awards
   
41
     
     
     
     
41
 
   Cash flow hedges
   
     
     
(380
)
   
     
(380
)
   Other, net
   
(2
)
   
     
     
(1
)
   
(3
)
     Balance, June 30, 2021
 
$
26,269
   
$
(1,297
)
 
$
(199
)
 
$
1,074
   
$
25,847
 



 
 
Partners’ Equity
             
   
Common
Limited
Partner
Interests
   
Treasury
Units
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Noncontrolling
Interests in
Consolidated
Subsidiaries
   
Total
 
For the Six Months Ended June 30, 2021:
                             
     Balance, December 31, 2020
 
$
25,767
   
$
(1,297
)
 
$
(165
)
 
$
1,073
   
$
25,378
 
   Net income
   
2,453
     
     
     
54
     
2,507
 
   Cash distributions paid to common unitholders
   
(1,965
)
   
     
     
     
(1,965
)
   Cash payments made in connection with
      distribution equivalent rights
   
(15
)
   
     
     
     
(15
)
   Cash distributions paid to noncontrolling interests
   
     
     
     
(71
)
   
(71
)
   Cash contributions from noncontrolling interests
   
     
     
     
18
     
18
 
   Amortization of fair value of equity-based awards
   
79
     
     
     
     
79
 
   Repurchase and cancellation of common units under
      2019 Buyback Program
   
(14
)
   
     
     
     
(14
)
   Cash flow hedges
   
     
     
(34
)
   
     
(34
)
   Other, net
   
(36
)
   
     
     
     
(36
)
     Balance, June 30, 2021
 
$
26,269
   
$
(1,297
)
 
$
(199
)
 
$
1,074
   
$
25,847
 








See Notes to Unaudited Condensed Consolidated Financial Statements. For information regarding Unit History and
Accumulated Other Comprehensive Income (Loss), see Note 8.
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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

KEY REFERENCES USED IN THESE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unless the context requires otherwise, references to “we,” “us” or “our” within these Notes to Unaudited Condensed Consolidated Financial Statements are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries.  

References to the “Partnership” or “Enterprise” mean Enterprise Products Partners L.P. on a standalone basis.

References to “EPO” mean Enterprise Products Operating LLC, which is an indirect wholly owned subsidiary of the Partnership, and its consolidated subsidiaries, through which the Partnership conducts its business.  We are managed by our general partner, Enterprise Products Holdings LLC (“Enterprise GP”), which is a wholly owned subsidiary of Dan Duncan LLC, a privately held Texas limited liability company.

The membership interests of Dan Duncan LLC are owned by a voting trust, the current trustees (“DD LLC Trustees”) of which are: (i) Randa Duncan Williams, who is also a director and Chairman of the Board of Directors (the “Board”) of Enterprise GP;  (ii) Richard H. Bachmann, who is also a director and Vice Chairman of the Board of Enterprise GP; and (iii) W. Randall Fowler, who is also a director and the Co-Chief Executive Officer and Chief Financial Officer of Enterprise GP.  Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as managers of Dan Duncan LLC.

References to “EPCO” mean Enterprise Products Company, a privately held Texas corporation, and its privately held affiliates.  The outstanding voting capital stock of EPCO is owned by a voting trust, the current trustees (“EPCO Trustees”) of which are: (i) Ms. Duncan Williams, who serves as Chairman of EPCO; (ii) Mr. Bachmann, who serves as the President and Chief Executive Officer of EPCO; and (iii) Mr. Fowler, who serves as an Executive Vice President and the Chief Financial Officer of EPCO.  Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as directors of EPCO.

We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees.  EPCO, together with its privately held affiliates, owned approximately 32.2% of the Partnership’s common units outstanding at June 30, 2022.

With the exception of per unit amounts, or as noted within the context of each disclosure,
the dollar amounts presented in the tabular data within these disclosures are
stated in millions of dollars.

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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1.  Partnership Organization and Operations

We are a publicly traded Delaware limited partnership, the common units of which are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “EPD.”  Our preferred units are not publicly traded.  We were formed in April 1998 to own and operate certain natural gas liquids (“NGLs”) related businesses of EPCO and are a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals and refined products.  We are owned by our limited partners (preferred and common unitholders) from an economic perspective.  Enterprise GP, which owns a non-economic general partner interest in us, manages our Partnership.  We conduct substantially all of our business operations through EPO and its consolidated subsidiaries.

Our fully integrated, midstream energy asset network (or “value chain”) links producers of natural gas, NGLs and crude oil from some of the largest supply basins in the United States (“U.S.”), Canada and the Gulf of Mexico with domestic consumers and international markets.  Our midstream energy operations include:

natural gas gathering, treating, processing, transportation and storage;

NGL transportation, fractionation, storage, and marine terminals (including those used to export liquefied petroleum gases, or “LPG,” and ethane);

crude oil gathering, transportation, storage, and marine terminals;

propylene production facilities (including propane dehydrogenation (“PDH”) facilities), butane isomerization, octane enhancement, isobutane dehydrogenation (“iBDH”) and high purity isobutylene (“HPIB”) production facilities;

petrochemical and refined products transportation, storage, and marine terminals (including those used to export ethylene and polymer grade propylene (“PGP”)); and

a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. 

Like many publicly traded partnerships, we have no employees.  All of our management, administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement (the “ASA”) or by other service providers.  See Note 15 for information regarding related party matters.

Our results of operations for the six months ended June 30, 2022 are not necessarily indicative of results expected for the full year of 2022.  In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring accruals necessary for fair presentation.  Although we believe the disclosures in these financial statements are adequate and make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

These Unaudited Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with the Audited Consolidated Financial Statements and Notes thereto included in our annual report on Form 10-K for the year ended December 31, 2021  (the “2021 Form 10-K”) filed with the SEC on February 28, 2022.




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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2.  Summary of Significant Accounting Policies

Apart from those matters described in this footnote, there have been no updates to our significant accounting policies since those reported under Note 2 of the 2021 Form 10-K.

Allowance for Credit Losses

We estimate our allowance for credit losses at each reporting date using a current expected credit loss model, which requires the measurement of expected credit losses for financial assets (e.g., accounts receivable) based on historical experience with customers, current economic conditions, and reasonable and supportable forecasts.  We may also increase the allowance for credit losses in response to the specific identification of customers involved in bankruptcy proceedings and similar financial difficulties.

The following table presents our allowance for credit losses activity since December 31, 2021:

Allowance for credit losses, December 31, 2021
 
$
53
 
Charged to costs and expenses