EPD » Topics » 5. Inventories

This excerpt taken from the EPD 8-K filed Mar 14, 2008.

Note 7. Inventories

 

Our inventory amounts were as follows at December 31, 2007:

 

Working inventory (1)

$    342,589

Forward-sales inventory (2)

11,693

Total inventory

$    354,282

 

 

(1)    Working inventory is comprised of inventories of natural gas, NGLs and certain petrochemical products that are either available-for-sale or used in the provision for services.

(2)    Forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts.

 

Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market.

 

In those instances where we take ownership of inventory volumes through percent-of-liquids contracts and similar arrangements (as opposed to actually purchasing volumes for cash from third parties,), these volumes are valued at market-related prices during the month in which they are acquired. We capitalize as a component of inventory those ancillary costs (e.g. freight-in and other handling and processing charges) incurred in connection with volumes obtained through such contracts.

 

21

 


Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value.

 


This excerpt taken from the EPD 8-K filed Nov 16, 2007.

Note 5. Inventories

 

 

Our inventory amounts were as follows at September 30, 2007:

 

Working inventory (1)

$    496,030

Forward-sales inventory (2)

13,858

Total inventory

$    509,888

 

 

(1)   Working inventory is comprised of inventories of natural gas, NGLs and certain petrochemical products that are either available-for-sale or used in the provision for services.

(2)   Forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts.

 

Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market. Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value.

 

 

11

 


This excerpt taken from the EPD 10-Q filed Nov 9, 2007.

Note 5. Inventories

 

Our inventory amounts were as follows at the dates indicated:

 

 

 

 

 

 

September 30,

December 31,

 

 

 

 

 

2007

2006

Working inventory (1)

$    496,030

$    387,973

Forward-sales inventory (2)

13,858

35,871

Total inventory

$    509,888

$    423,844

 

 

 

(1)   Working inventory is comprised of inventories of natural gas, NGLs and certain petrochemical products that are either available-for-sale or used in the provision for services.

(2)   Forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts.

 

Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market.

 

Operating costs and expenses, as presented on our Unaudited Condensed Statements of Consolidated Operations, include cost of sales amounts related to the sale of inventories. Our cost of sales was $3.5 billion and $3.2 billion for the three months ended September 30, 2007 and 2006, respectively. For the nine months ended September 30, 2007 and 2006, our cost of sales was $9.9 billion and $9.0 billion, respectively.

 

Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value. These non-cash charges are a component of cost of sales in the period they are recognized. For the three months ended September 30, 2007 and 2006, we recognized LCM adjustments of approximately $0.2 million and $5.7 million, respectively. We recognized LCM adjustments of $13.3 million and $17.7 million for the nine months ended September 30, 2007 and 2006, respectively.

 

 

 

 

 

 

16

 


This excerpt taken from the EPD 8-K filed Aug 22, 2007.

Note 5. Inventories

 

 

Our inventory amounts were as follows at June 30, 2007:

 

Working inventory

$    325,539

Forward-sales inventory

10,083

Inventory

$    335,622

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and certain petrochemical products that are available-for-sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market.

 

Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value.

 

 

 

 

 

10

 


This excerpt taken from the EPD 10-Q filed Aug 8, 2007.

Note 5. Inventories

 

 

Our inventory amounts were as follows at the dates indicated:

 

 

 

June 30,

December 31,

 

 

2007

2006

Working inventory

$      325,539

$      387,973

Forward-sales inventory

10,083

35,871

Inventory

$      335,622

$      423,844

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and certain petrochemical products that are available-for-sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market.

 

Operating costs and expenses, as presented on our Unaudited Condensed Statements of Consolidated Operations, include cost of sales amounts related to the sale of inventories. Our cost of sales was $3.6 billion and $3.0 billion for the three months ended June 30, 2007 and 2006, respectively. For the six months ended June 30, 2007 and 2006, our cost of sales was $6.4 billion and $5.7 billion, respectively.

 

Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value. These non-cash charges are a component of cost of sales in the period they are recognized. For the three months ended June 30, 2007 and 2006, we recognized LCM adjustments of approximately $2.1 million and $0.3 million, respectively. We recognized LCM adjustments of $13.1 million and $12.0 million for the six months ended June 30, 2007 and 2006, respectively.

 

 

 

 

 

 

15

 


This excerpt taken from the EPD 8-K filed May 25, 2007.

Note 5. Inventories

 

 

Our inventory amounts were as follows at March 31, 2007:

 

Working inventory

$      451,641

Forward-sales inventory

9,274

Inventory

$      460,915

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and certain petrochemical products that are available-for-sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market.

 

Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value.

 

 

 

 

 

 

 

 

 

 

 




 

9

 


This excerpt taken from the EPD 8-K filed Mar 21, 2007.

Note 7. Inventories

 

 

Our inventory amounts were as follows at December 31, 2006:

 

Working inventory

$      387,973

Forward-sales inventory

35,871

Inventory

$      423,844

 

Our regular trade (or “working”) inventory is primarily comprised of inventories of natural gas, NGLs and certain petrochemical products that are available-for-sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes, terminal and storage fees, vessel inspection costs, demurrage charges and other related costs. We value our inventories at the lower of average cost or market.

 

In those instances where we take ownership of inventory volumes through percent-of-liquids contracts and similar arrangements (as opposed to actually purchasing volumes for cash from third parties), these volumes are valued at market-related prices during the month in which they are acquired. We capitalize as a component of inventory those ancillary costs (e.g. freight-in and other handling and processing charges) incurred in connection with volumes obtained through such contracts.

 

Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market (“LCM”) adjustments when the carrying value of our inventories exceed their net realizable value.

 

 

 

 

 

 

 

 

 

 

 

 

 



20


 
This excerpt taken from the EPD 8-K filed Nov 29, 2006.

5. Inventories

 

 

At September 30, 2006, our inventory amounts were as follows:

 

Working inventory

$      397,939

Forward-sales inventory

64,339

Inventory

$      462,278

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and certain petrochemical products that are available for sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

 

10

 


This excerpt taken from the EPD 10-Q filed Nov 8, 2006.

5. Inventories

 

 

The following table shows our inventory amounts at the dates indicated:

 

 

 

September 30,

December 31,

 

 

2006

2005

Working inventory

$    397,939

$    279,237

Forward-sales inventory

64,339

60,369

Inventory

$    462,278

$    339,606

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and certain petrochemical products that are available for sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

Costs and expenses, as shown on our Unaudited Condensed Statements of Consolidated Operations and Comprehensive Income, include cost of sales related to the sale of inventories. For the three months ended September 30, 2006 and 2005, such consolidated cost of sales amounts were $3.2 billion and $2.7 billion, respectively. We recorded $9 billion and $7.1 billion of such consolidated cost of sales amounts for the nine months ended September 30, 2006 and 2005, respectively.

 

Due to fluctuating commodity prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market adjustments when the carrying values of our inventories exceed their net realizable value. These non-cash charges are a component of cost of sales in the period they are recognized. For the three months ended September 30, 2006 and 2005, we recognized $5.7 million and $0.5 million, respectively, of lower of cost or market adjustments. We recorded $17.7 million and $17.5 million of such adjustments for the nine months ended September 30, 2006 and 2005, respectively.

 

 

 




14


 
This excerpt taken from the EPD 8-K filed Aug 14, 2006.

5. Inventories

 

 

At June 30, 2006, our inventory amounts were as follows:

 

Working inventory

$     406,169

Forward-sales inventory

45,068

Inventory

$     451,237

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and petrochemical products that are available for sale or used by us in the provision of services. Our forward sales inventory consists of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

 

 

 

 

 

 



9


 
This excerpt taken from the EPD 8-K filed Jun 26, 2006.

5. Inventories

 

 

At March 31, 2006, our inventory amounts were as follows:

 

Working inventory

$      237,783

Forward-sales inventory

17,632

Inventory

$      255,415

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and petrochemical products that are available for sale or used in the provision of services. Our forward sales inventory is comprised of segregated NGL and natural gas volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

 

 



8


 
This excerpt taken from the EPD 8-K filed Feb 27, 2006.

6. Inventories

 

Our inventory amounts were as follows at December 31, 2005:

 

Working inventory

$    279,237

Forward-sales inventory

60,369

Inventory

$    339,606

 

A general description of our inventories is as follows:

 

 

Our regular trade (or “working”) inventory is primarily comprised of inventories of natural gas, NGLs and petrochemical products that are available for sale or used in the provision of services. This inventory is valued at the lower of average cost or market, with “market” being determined by industry-related posted prices such as those published by Oil Price Information Service (“OPIS”) and Chemical Market Associates, Inc. (“CMAI”).

 

 

The forward-sales inventory is comprised of segregated NGL volumes dedicated to the fulfillment of forward sales contracts and is valued at the lower of average cost or market, with “market” being defined as the weighted-average sales price for NGL volumes to be delivered in future months on the forward sales contracts.

 

Our inventory values reflect payments for product purchases, freight charges associated with such purchase volumes and other related costs including terminal and storage fees, vessel inspection and demurrage charges and processing costs.

 

In those instances where we take ownership of inventory volumes through percent-of-liquids contracts and similar arrangements (as opposed to actually purchasing volumes for cash from third parties), these volumes are valued at market-related prices during the month in which they are acquired. As with inventory volumes we purchase for cash, we capitalize as a component of inventory those ancillary costs (e.g. freight-in and other handling and processing charges) incurred in connection with volumes obtained through such contracts.



14


 

Due to fluctuating market conditions in the NGL, natural gas and petrochemical industry, our inventory balances are subject to lower of average cost or market (“LCM”) adjustments when the cost of our inventories exceed their net realizable value.

 


This excerpt taken from the EPD 8-K filed Nov 14, 2005.

4. INVENTORIES

 

Our inventories consisted of the following at September 30, 2005:

 

Working inventory

$      399,351

Forward-sales inventory

173,740

Inventory

 

$      573,091

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and petrochemical products that are available for sale or used in the provision of services. The forward sales inventory is comprised of segregated NGL volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 


This excerpt taken from the EPD 10-Q filed Nov 4, 2005.

4. INVENTORIES

 

 

Our inventories consisted of the following at the dates indicated:

 

 

 

September 30,

December 31,

 

 

2005

2004

Working inventory

$      399,351

$      171,485

Forward-sales inventory

173,740

17,534

Inventory

$      573,091

$      189,019

 

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and petrochemical products that are available for sale or used in the provision of services. The forward sales inventory is comprised of segregated NGL volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

Costs and expenses, as shown on our Unaudited Condensed Statements of Consolidated Operations and Comprehensive Income, include cost of sales related to inventories. For the three months ended September 30, 2005 and 2004, such consolidated cost of sales amounts were $2.7 billion and $1.8 billion, respectively. We recorded

13


 

$7.1 billion and $4.8 billion of such consolidated cost of sales amounts for the nine months ended September 30, 2005 and 2004, respectively.

 

Due to fluctuating prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market adjustments when the carrying values of our inventories exceed their net realizable value. These non-cash adjustments are charged to cost of sales within operating costs and expenses in the period they are recognized. For the three months ended September 30, 2005 and 2004, we recognized $0.5 million and $0.1 million, respectively, of such adjustments. We recorded $17.5 million and $6.1 million of such adjustments for the nine months ended September 30, 2005 and 2004, respectively.

 


This excerpt taken from the EPD 8-K filed Aug 16, 2005.

4. INVENTORIES

 

Our inventories consisted of the following at June 30, 2005:

 

Working inventory

$       254,012   

Forward-sales inventory

111,791   

Inventory

 

$       365,803   

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and petrochemical products that are available for sale or used in the provision of services. The forward sales inventory is comprised of segregated NGL volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

7

 

 



 

This excerpt taken from the EPD 10-Q filed Aug 5, 2005.

4. INVENTORIES

 

Our inventories consisted of the following at the dates indicated:

 

 

 

June 30,

December 31,

 

 

2005

2004

Working inventory

$       254,012   

$       171,485   

Forward-sales inventory

111,791   

17,534   

Inventory

$       365,803   

$       189,019   

 

Our regular trade (or “working”) inventory is comprised of inventories of natural gas, NGLs, and petrochemical products that are available for sale or used in the provision of services. The forward sales inventory is comprised of segregated NGL volumes dedicated to the fulfillment of forward-sales contracts. Both inventories are valued at the lower of average cost or market.

 

Costs and expenses, as shown on our Unaudited Condensed Statements of Consolidated Operations and Comprehensive Income, include cost of sales related to inventories. For the three months ended June 30, 2005 and 2004, such consolidated cost of sales amounts were $2.2 billion and $1.5 billion, respectively. We recorded $4.3 billion and $3 billion of such consolidated cost of sales amounts for the six months ended June 30, 2005 and 2004, respectively.

 

Due to fluctuating prices in the NGL, natural gas and petrochemical industry, we recognize lower of cost or market adjustments when the carrying values of our inventories exceed their net realizable value. These non-cash adjustments are charged to cost of sales within operating costs and expenses in the period they are recognized. For the three months ended June 30, 2005 and 2004, we recognized $7.4 million and $1.9 million, respectively, of such adjustments. We recorded $17 million and $6 million of such adjustments for the six months ended June 30, 2005 and 2004, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

 



 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki