Bp2 pipeline throughput was 316,000 barrels per day during the quarter – the highest throughput on the pipeline since the IPO. While a shortage agreement covers an entire business, it may be indicated to protect a minor aspect of the business. For example, a new project may have unstable cash flows and cannot generate any revenue until it reaches a certain level of operation. To avoid the project`s failure, a default agreement could provide it with enough money until a source of income is put in place. The oil and gas industry mainly uses flow contracts, although there are periods when flows are used between manufacturers and materials suppliers. In both cases, debits are specialized agreements that define a product or service, use and service life. For example, an oil company could operate an oil pipeline for one year by entering into flow contact with the pipe carrier. In the third quarter, the pipeline`s crude throughput was more than 1.6 million barrels of oil equivalent per day, slightly lower than in the second quarter of 2019. The portfolio`s rate of return remained high during the quarter, with a record rate at which the rate was the highest since the IPO of BPMP. Once the debit contract is signed between the oil company and the pipeline owner, the oil group has the right, in this example, to pump its oil through the pipeline for the duration of the contract. The pipeline company guarantees the oil company a form of pipeline transportation for a certain fee and therefore provides the oil company with equipment — the pipeline — to produce its fuel.
The conclusion of a contract with such strict restrictions has its drawbacks, but there are also advantages for these restrictions. By entering into a debit contract with the pipeline, the oil company has a form of transportation guaranteed at its discretion for one year; The pipeline has a form of guaranteed payment for one year. Regardless of the actual use of the pipeline throughout the year, this is a win-win situation for both parties, as equipment and funding are provided for both parties. CEO Rip Zinsmeister commented on the third quarter results as follows: «The strong operational and financial development of our asset portfolio during the quarter, despite the division`s headwinds on Enbridge`s main line and the weather in the Gulf of Mexico, continues to demonstrate the resilience and stability of cash production in our portfolio. We have reached the highest throughput of our BP2 pipeline since BPMP`s IPO. Based on the continued dynamics we see in the evolution of the underlying asset value and our confidence in the outlook until the end of the year, we expect us to be available for the 2019 distribution forecast at the top of our year. We have now achieved seven consecutive quarters of increased distribution, and with our next quarterly distribution, we expect teen distribution to grow in mid-2019. Flow on Proteus and Endymion increased in the third quarter due to the Appomattox rush, despite the effects of Hurricane Barry. Caesar, Cleopatra and Ursa all reported lower throughput during the quarter due to Hurricane Barry and offshore producer maintenance activities. The crude flow of Hurricane Barry on the offshore portfolio was about 100 thousand barrels of oil equivalent per day.
There was no property damage to our assets as a result of the hurricane. Within the oil and gas industry, debit contracts can often include a component of debit and default agreements to facilitate indirect financing alternatives. A deficit agreement is an agreement whereby a party makes funds available to an entity to cover any deficits resulting from cash or cash constraints allowing the entity to repay its debts.