EX-99.2 4 a04-1640_1ex99d2.htm EX-99.2

Exhibit 99.2

 

ENBRIDGE ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF INCOME

 

 

 

Three months ended
December 31,

 

Year ended
December 31,

 

(unaudited; dollars in millions, except per unit amounts)

 

2003

 

2002

 

2003

 

2002

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

759.5

 

$

543.0

 

$

3,171.4

 

$

1,185.5

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Cost of natural gas

 

609.6

 

408.6

 

2,611.8

 

770.7

 

Operating and administrative

 

54.3

 

53.1

 

211.8

 

144.2

 

Power

 

16.2

 

13.4

 

56.1

 

52.7

 

Depreciation and amortization

 

27.1

 

24.5

 

97.4

 

79.9

 

 

 

 

 

 

 

 

 

 

 

 

 

707.2

 

499.6

 

2,977.1

 

1,047.5

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

52.3

 

43.4

 

194.3

 

138.0

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(20.7

)

(17.5

)

(85.0

)

(59.2

)

Other income (expense)

 

0.7

 

0.1

 

2.4

 

(0.2

)

Minority interest

 

—

 

—

 

—

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

32.3

 

$

26.0

 

$

111.7

 

$

78.1

 

 

 

 

 

 

 

 

 

 

 

Net income per unit

 

$

0.54

 

$

0.52

 

$

1.93

 

$

1.76

 

 

 

 

 

 

 

 

 

 

 

Weighted average units outstanding (millions)

 

50.3

 

42.7

 

47.7

 

36.7

 

 

1

 

ENBRIDGE ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

 

 

December 31,

 

 

 

2003

 

2002

 

 

 

(unaudited, dollars in millions)

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

64.4

 

$

60.3

 

Receivables, trade and other, net of allowance for doubtful accounts of $2.9 in 2003 and $3.7 in 2002

 

61.1

 

35.0

 

Accrued gas receivables

 

242.1

 

182.9

 

Other current assets

 

41.2

 

19.3

 

 

 

408.8

 

297.5

 

 

 

 

 

 

 

Property, plant and equipment, net

 

2,465.6

 

2,253.3

 

Goodwill

 

257.3

 

241.1

 

Intangible and Other assets,

 

98.2

 

43.0

 

Total Assets

 

$

3,229.9

 

$

2,834.9

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

 

 

 

 

 

Current liabilities

 

 

 

 

 

Due to General Partner and affiliates

 

$

1.8

 

$

63.1

 

Accounts payable and other

 

107.6

 

99.1

 

Accrued gas purchases

 

206.2

 

142.1

 

Interest payable

 

6.8

 

7.0

 

Property and other taxes payable

 

18.3

 

16.3

 

Current maturities and short-term debt

 

246.0

 

31.0

 

 

 

586.7

 

358.6

 

 

 

 

 

 

 

Long-term debt

 

1,155.8

 

1,011.4

 

Loans from General Partner and affiliates

 

133.1

 

444.1

 

Commitments, contingencies and environmental liabilities

 

7.9

 

5.6

 

Deferred credits

 

33.1

 

23.2

 

Minority interest

 

—

 

0.4

 

 

 

1,916.6

 

1,843.3

 

 

 

 

 

 

 

Partners’ capital

 

 

 

 

 

Class A common units (Units authorized and issued — 40,166,134 in 2003 and 31,313,634 in 2002)

 

914.8

 

604.8

 

Class B common units (Units authorized and issued — 3,912,750 in 2003 and 2002)

 

64.3

 

48.7

 

i-units (Units authorized and issued — 10,062,170 in 2003 and 9,228,655 in 2002)

 

370.7

 

335.6

 

General Partner

 

27.5

 

18.8

 

Accumulated other comprehensive loss

 

(64.0

)

(16.3

)

Total liabilities and partners’ capital

 

1,313.3

 

991.6

 

 

 

$

3,229.9

 

$

2,834.9

 

 

2

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

Net Income per Unit

 

Net income per unit is computed by dividing net income, after deduction of Enbridge Energy Company, Inc.’s (the “General Partner”) allocation, by the weighted average number of Class A and Class B Common Units and i-units outstanding.  The General Partner’s allocation is equal to an amount based upon its general partner interest, adjusted to reflect an amount equal to incentive distributions and an amount required to reflect depreciation on the General Partner’s historical cost basis for assets contributed on formation of the Partnership.  Net income per unit was determined as follows:

 

 

 

Three months ended
December 31,

 

Year ended
December 31,

 

(in millions; except per unit amounts)

 

2003

 

2002

 

2003

 

2002

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

32.3

 

$

26.0

 

$

111.7

 

$

78.1

 

 

 

 

 

 

 

 

 

 

 

Net income allocated to General Partner

 

(0.6

)

(0.6

)

(2.2

)

(1.1

)

Incentive distributions and historical cost depreciation adjustments

 

(4.7

)

(3.4

)

(17.4

)

(12.0

)

 

 

(5.3

)

(4.0

)

(19.6

)

(13.1

)

 

 

 

 

 

 

 

 

 

 

Net income allocable to Common Units and i-units

 

$

27.0

 

$

22.0

 

$

92.1

 

$

65.0

 

 

 

 

 

 

 

 

 

 

 

Weighted average units outstanding

 

50.3

 

42.7

 

47.7

 

36.7

 

 

 

 

 

 

 

 

 

 

 

Net income per unit

 

$

0.54

 

$

0.52

 

$

1.93

 

$

1.76

 

 

Segment Information

 

The Partnership’s business is divided into operating segments, defined as components of the enterprise about which financial information is available and evaluated regularly by the Partnership in deciding how to allocate resources to an individual segment and in assessing performance of the segment.

 

The Partnership’s reportable segments are based on the types of business activity and management control. Each segment is managed separately because each business requires different operating strategies.  The Partnership has four reportable business segments: Liquids Transportation, Gathering and Processing, Natural Gas Transportation and Marketing.

 

Due to the purchase of natural gas assets in October 2002, the Partnership changed the organization of its business segments effective in the fourth quarter of 2002.  Prior to the fourth quarter of 2002, the Partnership reported Transportation as one segment, which consisted of receipt and delivery of crude oil, liquid hydrocarbons, natural gas and natural gas liquids.  These activities are now reported within 3 segments – Liquids Transportation, Gathering and Processing and Natural Gas Transportation.  Prior period segment results have been restated to conform to the Partnership’s current organization.

 

3

 

The following tables present certain financial information relating to the Partnership’s business segments.

 

 

 

As of and for the three months Ended December 31, 2003

 

 

 

Liquids
Transportation

 

Gathering and
Processing

 

Natural Gas
Transportation

 

Marketing

 

Corporate

 

Total

 

 

 

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

93.2

 

472.9

 

25.8

 

167.6

 

—

 

759.5

 

Cost of natural gas

 

—

 

431.4

 

13.1

 

165.1

 

—

 

609.6

 

Operating and administrative

 

24.3

 

22.5

 

5.8

 

0.9

 

—

 

54.3

 

Power

 

16.2

 

—

 

—

 

—

 

—

 

16.2

 

Depreciation and amortization

 

16.2

 

7.2

 

3.6

 

0.1

 

—

 

27.1

 

Operating income

 

$

36.5

 

$

11.8

 

$

3.3

 

$

1.5

 

$

(0.8

)

$

52.3

 

Interest expense

 

—

 

—

 

—

 

—

 

(20.7

)

(20.7

)

Other income (expense)

 

—

 

—

 

—

 

—

 

0.7

 

0.7

 

Minority interest

 

—

 

—

 

—

 

—

 

—

 

—

 

Net income

 

$

36.5

 

$

11.8

 

$

3.3

 

$

1.5

 

$

(20.8

)

$

32.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,511.1

 

$

1,085.9

 

$

404.6

 

$

189.6

 

$

38.7

 

$

3,229.9

 

Capital expenditures
(excluding acquisitions)

 

$

16.2

 

$

17.1

 

$

1.0

 

$

—

 

$

2.2

 

$

36.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the three months Ended December 31, 2002

 

 

 

Liquids
Transportation

 

Gathering and
Processing

 

Natural Gas
Transportation

 

Marketing

 

Corporate

 

Totals

 

 

 

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

88.2

 

305.8

 

19.8

 

129.2

 

—

 

$

543.0

 

Cost of natural gas

 

—

 

273.1

 

8.6

 

126.9

 

—

 

408.6

 

Operating and administrative

 

30.1

 

18.0

 

4.5

 

0.5

 

—

 

53.1

 

Power

 

13.4

 

—

 

—

 

—

 

—

 

13.4

 

Depreciation and amortization

 

16.8

 

4.9

 

2.8

 

—

 

—

 

24.5

 

Operating Income

 

$

27.9

 

$

9.8

 

$

3.9

 

$

1.8

 

$

—

 

$

43.4

 

Interest expense

 

—

 

—

 

—

 

—

 

(17.5

)

(17.5

)

Other income (expense)

 

—

 

—

 

—

 

—

 

0.1

 

0.1

 

Minority interest

 

—

 

—

 

—

 

—

 

—

 

—

 

Net income

 

$

27.9

 

$

9.8

 

$

3.9

 

$

1.8

 

$

(17.4

)

$

26.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,502.4

 

$

730.9

 

$

426.7

 

$

134.9

 

$

40.0

 

$

2,834.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures
(excluding acquisitions)

 

$

30.3

 

$

5.6

 

$

0.6

 

$

—

 

$

0.4

 

$

36.9

 

 

4

 

 

 

As of and for the Year Ended December 31, 2003

 

 

 

Liquids
Transportation

 

Gathering and
Processing

 

Natural Gas
Transportation

 

Marketing

 

Corporate

 

Total

 

 

 

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

344.2

 

1,846.8

 

116.8

 

863.6

 

—

 

3,171.4

 

Cost of natural gas

 

—

 

1,693.3

 

67.6

 

850.9

 

—

 

2,611.8

 

Operating and administrative

 

104.1

 

81.0

 

21.3

 

2.2

 

3.2

 

211.8

 

Power

 

56.1

 

—

 

—

 

—

 

—

 

56.1

 

Depreciation and amortization

 

59.5

 

24.1

 

13.6

 

0.2

 

—

 

97.4

 

Operating income

 

$

124.5

 

$

48.4

 

$

14.3

 

10.3

 

(3.2

)

194.3

 

Interest expense

 

—

 

—

 

—

 

—

 

(85.0

)

(85.0

)

Other income (expense)

 

—

 

—

 

—

 

—

 

2.4

 

2.4

 

Minority interest

 

—

 

—

 

—

 

—

 

—

 

—

 

Net income

 

$

124.5

 

$

48.4

 

$

14.3

 

$

10.3

 

$

(85.8

)

$

111.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,511.1

 

$

1,085.9

 

$

404.6

 

$

189.6

 

$

38.7

 

$

3,229.9

 

Capital expenditures
(excluding acquisitions)

 

$

69.3

 

$

51.0

 

$

4.4

 

$

0.1

 

$

4.5

 

$

129.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Year Ended December 31, 2002

 

 

 

Liquids
Transportation

 

Gathering and
Processing

 

Natural Gas
Transportation

 

Marketing

 

Corporate

 

Totals

 

 

 

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

334.3

 

702.2

 

19.8

 

129.2

 

—

 

1,185.5

 

Cost of natural gas

 

—

 

635.2

 

8.6

 

126.9

 

—

 

770.7

 

Operating and administrative

 

104.7

 

34.5

 

4.5

 

0.5

 

—

 

144.2

 

Power

 

52.7

 

—

 

—

 

—

 

—

 

52.7

 

Depreciation and amortization

 

64.8

 

12.3

 

2.8

 

—

 

—

 

79.9

 

Operating Income

 

$

112.1

 

$

20.2

 

$

3.9

 

$

1.8

 

$

—

 

$

138.0

 

Interest expense

 

—

 

—

 

—

 

—

 

(59.2

)

(59.2

)

Other income (expense)

 

—

 

—

 

—

 

—

 

(0.2

)

(0.2

)

Minority interest

 

—

 

—

 

—

 

—

 

(0.5

)

(0.5

)

Net income

 

$

112.1

 

$

20.2

 

$

3.9

 

$

1.8

 

$

(59.9

)

$

78.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,528.0

 

$

734.5

 

$

435.1

 

$

137.3

 

$

—

 

$

2,834.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures
(excluding acquisitions)

 

$

202.6

 

$

11.1

 

$

0.6

 

$

—

 

$

0.4

 

$

214.7

 

 

5