UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) |
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For the quarterly period ended June 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) |
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For the transition period from to |
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Commission file number 1-10934 |
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ENBRIDGE ENERGY PARTNERS, L.P.
(Exact name of registrant as specified in its charter)
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Delaware |
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39-1715850 |
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(State or other jurisdiction
of |
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(I.R.S. Employer |
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1100 Louisiana |
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(Address of principal executive offices and zip code) |
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(713) 821-2000 |
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(Registrant’s telephone number, including area code) |
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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 ý No o
Indicate by checkmark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act
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The Registrant had 35,166,134 Class A Common Units outstanding as of August 14, 2003.
TABLE OF CONTENTS
This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. They use words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “position,” “projection,” “strategy” or “will” or the negative of those terms or other variations of them or by comparable terminology. In particular, statements, expressed or implied, concerning future actions, conditions or events or future operating results or the ability to generate sales, income or cash flow or to make distributions are forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results are beyond the ability of Enbridge Energy Partners, L.P. (the “Partnership”) to control or predict. For additional discussion of risks, uncertainties and assumptions, see the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002.
1
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ENBRIDGE ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
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Three
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Six months
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(unaudited; dollars in millions, except per unit amounts) |
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2003 |
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2002 |
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2003 |
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2002 |
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Operating revenue |
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$ |
755.3 |
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$ |
223.1 |
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$ |
1,651.4 |
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$ |
404.9 |
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Operating Expenses |
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Cost of natural gas |
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623.4 |
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130.8 |
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1,376.9 |
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220.4 |
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Operating and administrative |
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52.3 |
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30.9 |
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104.9 |
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58.7 |
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Power |
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13.0 |
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12.4 |
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25.7 |
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26.0 |
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Depreciation and amortization (Note 7) |
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23.5 |
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18.6 |
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46.9 |
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36.9 |
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712.2 |
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192.7 |
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1,554.4 |
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342.0 |
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Operating income |
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43.1 |
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30.4 |
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97.0 |
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62.9 |
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Interest and other income (expense) |
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1.8 |
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0.1 |
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1.8 |
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0.2 |
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Interest expense |
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(21.6 |
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(13.5 |
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(42.9 |
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(28.2 |
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Minority interest |
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— |
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(0.2 |
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— |
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(0.4 |
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Net income |
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$ |
23.3 |
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$ |
16.8 |
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$ |
55.9 |
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$ |
34.5 |
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Net income per unit (Note 2) |
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$ |
0.39 |
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$ |
0.39 |
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$ |
1.01 |
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$ |
0.82 |
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Weighted average units outstanding (millions) |
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46.8 |
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35.2 |
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45.7 |
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34.4 |
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The accompanying notes to the Consolidated Financial Statements are an integral part of these statements.
2
ENBRIDGE ENERGY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
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Three
months ended |
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Six months
ended |
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(unaudited; dollars in millions) |
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2003 |
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2002 |
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2003 |
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2002 |
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Net income |
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$ |
23.3 |
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$ |
16.8 |
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$ |
55.9 |
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$ |
34.5 |
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Unrealized loss on derivative financial instruments |
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(41.9 |
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(3.6 |
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(63.6 |
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(18.1 |
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Change associated with ineffectiveness of current period hedge transactions |
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0.5 |
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— |
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0.5 |
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— |
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Comprehensive income (loss) (Note 6) |
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$ |
(18.1 |
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$ |
13.2 |
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$ |
(7.2 |
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$ |
16.4 |
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The accompanying notes to the Consolidated Financial Statements are an integral part of these statements.
3
ENBRIDGE ENERGY PARTNERS, L.P.
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(unaudited;
dollars in millions) |
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2003 |
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2002 |
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Cash provided by operating activities |
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Net income |
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$ |
55.9 |
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$ |
34.5 |
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Adjustments to reconcile net income to cash provided by operating activities: |
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