Enterprise Products Partners Q2 2007 Earnings Call Transcript

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2007-07-26 22:24:18.0

Tags: Enterprise Products Partners L.P.

Question-and-Answer Session

Operator

[Operator Instructions]

Our first question does comes from Mark Reichman. You may ask your question.

Mark Reichman - A.G. Edwards

Good morning. Just really three questions. The first is, in the release it talked about the Independence Trail volumes increasing throughout the year. How do you expect those to materialize to where they -- to the point where the pipeline reaches its maximum capacity?

Ralph S. Cunningham - President and Chief Executive Officer

I assume you're asking specifically the ramp-up volumes?

Mark Reichman - A.G. Edwards

Right. How do you expect that to materialize?

James H. Lytal - Executive Vice President of Enterprise

Independence Hub is connected to Independence Trail. And there's 15 existing wells that the producers have connected to the Independence Hub. Three of those are on so far, doing, as Ralph said, around 150 million a day. The producers have those additional 12 wells staged to come on over the next several months. So that will give us the ramp-up in volume. They will ramp-up on the Hub, and the same volume goes into the Trail.

Mark Reichman - A.G. Edwards

Also, for Mike Creel, where do you expect sustaining CapEx to fall out for both Enterprise Products and then Duncan Energy Partners for the remainder of the year?

Michael A. Creel - Executive Vice President and Chief Financial Officer

For Enterprise, we've got budgeted about $157 million in total. So we've got probably another 84 million or so for the balance of the year. For Duncan Energy Partners, we expect maintenance CapEx for the balance of the year to be roughly $5 million.

Mark Reichman - A.G. Edwards

Lastly, if you could comment a little bit on your strategy for Enterprise Products Partners increasing their exposure, or I guess Enterprise GP Holdings increasing exposure to interstate pipelines. I know that there's the potential partnership with Boardwalk and the Gulf Crossing pipeline, and then also the GP Holdings investment in Energy Transfer Partners. But could you comment a little bit on your plans there?

Michael A. Creel - Executive Vice President and Chief Financial Officer

I hate to get too far out in front. We do have an Enterprise GP Holdings conference call coming up on Monday. So I'd really prefer to wait until then for that question to come up.

Mark Reichman - A.G. Edwards

Fair enough. Thank you.

Michael A. Creel - Executive Vice President and Chief Financial Officer

 

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