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Nice Part-time Work if You Can Get it!

Fall quarter finals are over, I—m celebrating my 21st birthday today, and Christmas is right around the corner. Consequently, the only thought that comes to my mind is —HOORAY!

I—m looking forward to catching my breath, relaxing, and enjoying some time with my friends and family. Yet while the next three weeks will provide a nice hiatus from classes, I—ll also be working a few part-time jobs to make some of the extra cash that every college student needs — especially around the holidays.

For most of us who juggle part-time jobs, there’s generally not a lot left over after we pay the bills. Maybe that’s why I got a sour taste in my mouth after reading the 8-K that Enterprise Products Partners, L.P. (EPD) filed recently. Weighing in at a whopping 322 pages, the document’s length relates in part to the late October mergers between the company’s wholly-owned subsidiaries with TEPPCO Partners L.P. and its general partner, Texas Eastern Products Pipeline Company LLC. According to an analyst cited in this article, the merger will create —a larger, more stable and more diversified company.

But the filing also provides some details about one of the company’s part-time employees, Arlen B. Cenac Jr. After a little digging, we learned (on page 76) that in February, 2008, Enterprise Products Partners:

“…entered the marine transportation business for refined products, crude oil and condensate through the purchase of 42 tow boats, 89 tank barges and the economic benefit of certain related commercial agreements from Cenac Towing Co., Inc., Cenac Offshore, L.L.C. and Mr. Arlen B. Cenac, Jr., the sole owner of Cenac Towing Co., Inc. and Cenac Offshore, L.L.C. (collectively, ‘Cenac’), for approximately $444.7 million in cash and newly issued TEPPCO units. Additionally, we assumed $63.2 million of Cenac’s long-term debt. We financed the cash portion of the acquisition consideration and repaid the assumed debt with borrowings under the TEPPCO Short-Term Credit Facility.

Thus, that deal produced almost $508 million in cash, stock, and debt relief for Cenac’s company. But 18 months after Cenac sold his company, the deal got even sweeter.

The filing says that effective August 1, 2009, the transitional operating agreement was terminated and Mr. Cenac became an employee of EPCO. And then it said:

“Concurrently with the termination, our marine services business entered into a two-year consulting agreement with Mr. Cenac and Cenac Marine Services, L.L.C. under which Mr. Cenac has agreed to supervise our marine services business— day-to-day operations on a part-time basis and, at our marine services business— request, provide related management and transitional services. The agreement entitles Mr. Cenac to $500,000 per year in fees, plus a one-time retainer of $200,000.

For a student who’s about to spend much of her winter break babysitting, working at a reception desk, and digging through SEC filings in order to defray the costs of college, the thought of a part-time job that pays $1.2 million over two years is unfathomable – especially in light of the fact that the three jobs I—m working will only make me a tiny fraction of that.

This post was written by footnoted.org intern Kristen Scholer who is a junior at Northwestern University.

Image Source: Tugboat Enthusiasts Society of the Americas