Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Note 15.  Related Party Transactions

The following table summarizes our related party transactions for the years indicated:

	For the Year Ended December 31,
	2023		2022		2021
Revenues – related parties:
Unconsolidated affiliates	$	61	$	59	$	80
Costs and expenses – related parties:
EPCO and its privately held affiliates	$	1,353	$	1,289	$	1,156
Unconsolidated affiliates		188		209		265
Total	$	1,541	$	1,498	$	1,421

The following table summarizes our related party accounts receivable and accounts payable balances at the dates indicated:

	December 31,
	2023		2022
Accounts receivable - related parties:
EPCO and its privately held affiliates	$	–	$	1
Unconsolidated affiliates		7		10
Total	$	7	$	11
Accounts payable - related parties:
EPCO and its privately held affiliates	$	183	$	221
Unconsolidated affiliates		16		11
Total	$	199	$	232

We believe that the terms and provisions of our related party agreements are fair to us; however, such agreements and transactions may not be as favorable to us as we could have obtained from unaffiliated third parties.

Relationship with EPCO and Affiliates

We have an extensive and ongoing relationship with EPCO and its privately held affiliates (including Enterprise GP, our general partner), which are not a part of our consolidated group of companies.  

At December 31, 2023, EPCO and its privately held affiliates (including Dan Duncan LLC and certain Duncan family trusts) beneficially owned the following limited partner interests in us:

Total Number of Limited Partner Interests Held	Percentage of Common Units Outstanding
702,209,694 common units	32.4%

Of the total number of Partnership common units held by EPCO and its privately held affiliates, 62,976,464 have been pledged as security under the separate credit facilities of EPCO and its privately held affiliates at December 31, 2023.  These credit facilities contain customary and other events of default, including defaults by us and other affiliates of EPCO.  An event of default, followed by a foreclosure on the pledged collateral, could ultimately result in a change in ownership of these units and affect the market price of the Partnership’s common units.

The Partnership and Enterprise GP are both separate legal entities apart from each other and apart from EPCO and its other affiliates, with assets and liabilities that are also separate from those of EPCO and its other affiliates.  EPCO and its privately held affiliates use cash on hand and cash distributions they receive from us and other investments to fund their other activities and to meet their respective debt obligations, if any.  During the years ended December 31, 2023, 2022 and 2021, we paid EPCO and its privately held affiliates cash distributions totaling $1.3 billion, $1.3 billion and $1.2 billion, respectively.

We lease office space from privately held affiliates of EPCO at rental rates that approximate market rates.  For each of the years ended December 31, 2023, 2022 and 2021, we recognized $13 million of related party operating lease expense in connection with these office space leases.

EPCO ASA

We have no employees.  All of our administrative and operating functions are provided either by employees of EPCO (pursuant to the ASA) or by other service providers.  We and our general partner are parties to the ASA.  

Under the ASA, EPCO provides us with the administrative and operating services deemed necessary to manage and operate our businesses, properties and assets (all in accordance with prudent industry practices). Our operating costs and expenses include amounts paid to EPCO for the actual direct and indirect costs it incurs to operate our facilities, including the compensation of its employees.  Likewise, our general and administrative costs include amounts paid to EPCO for management and other administrative services, including the compensation of its employees.  In general, our reimbursement to EPCO for administrative services is either (i) on an actual basis for direct expenses it may incur on our behalf (e.g., the purchase of office supplies) or (ii) based on an allocation of such charges between the various parties to the ASA based on the estimated use of such services by each party (e.g., the allocation of legal or accounting salaries based on estimates of time spent on each entity’s business and affairs).  In addition, we have agreed to pay all sales, use, excise, value added or similar taxes, if any, that may be applicable from time to time with respect to the services provided to us by EPCO.

The ASA allows us to participate as a named insured in EPCO’s overall insurance program, with the associated premiums and other costs being allocated to us.  See Note 18 for additional information regarding our insurance programs.

The following table presents our related party costs and expenses attributable to the ASA with EPCO for the years indicated:

	For the Year Ended December 31,
	2023		2022		2021
Operating costs and expenses	$	1,189	$	1,124	$	1,011
General and administrative expenses		141		146		135
Total costs and expenses	$	1,330	$	1,270	$	1,146

Since the vast majority of such expenses are charged to us on an actual basis (i.e., no mark-up is charged or subsidy is received), we believe that such expenses are representative of what the amounts would have been on a standalone basis.  With respect to allocated costs, we believe that the proportional direct allocation method employed by EPCO is reasonable and reflective of the estimated level of costs we would have incurred on a standalone basis.

Relationships with Unconsolidated Affiliates

Many of our unconsolidated affiliates perform supporting or complementary roles to our other business operations.  The following information summarizes significant related party transactions with our unconsolidated affiliates:

• For the years ended December 31, 2023, 2022 and 2021, we paid Seaway $27 million, $20 million and $104 million, respectively, for pipeline transportation and storage services in connection with our crude oil marketing activities.  Revenues from Seaway were $25 million, $15 million and $43 million for the years ended December 31, 2023, 2022 and 2021, respectively.

• For the years ended December 31, 2023, 2022 and 2021, we purchased $80 million, $107 million and $94 million, respectively, of NGLs from VESCO.

• We pay Promix for the transportation, storage and fractionation of NGLs.  Expenses with Promix were $36 million, $41 million and $27 million for the years ended December 31, 2023, 2022 and 2021, respectively.  In addition, we sell natural gas to Promix for its plant fuel requirements.  Revenues from Promix were $11 million, $22 million and $12 million for the years ended December 31, 2023, 2022 and 2021, respectively.  

• For the years ended December 31, 2023, 2022 and 2021, we paid Texas Express $27 million, $31 million and $28 million, respectively, for pipeline transportation services.  

• We perform management services for certain of our unconsolidated affiliates.  We charged such affiliates $11 million, $12 million and $13 million for the years ended December 31, 2023, 2022 and 2021, respectively.