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EPD · ENTERPRISE PRODUCTS PARTNERS L.P.

29 filings

10-K

EPD 10-K Annual Reports

ENTERPRISE PRODUCTS PARTNERS L.P. - 29 annual reports

Filing record · 2016–202610-K1110-Q328-K128

2025
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2025
Enterprise Products Partners L.P. (NYSE: EPD) reported full-year 2025 results that held steady at the operating line despite lower commodity prices. Revenues fell to $52.6 billion from $56.2 billion, driven by lower marketing prices, while operating income was essentially flat at $7.27 billion versus $7.34 billion. Total gross operating margin (non-GAAP) rose slightly to $10.03 billion, with growth in Natural Gas Pipelines & Services (+$281 million) and NGL Pipelines (+$181 million to pipelines/storage) offsetting weaker Octane Enhancement and Crude Oil marketing. Net income attributable to common unitholders was $5.81 billion, or $2.66 per unit, versus $2.69 in 2024. Distributable cash flow reached $8.0 billion, covering common distributions 1.7x, and the quarterly distribution was raised to $0.55 per unit. The balance sheet remains strong, with investment-grade ratings of A-/A3/A- on EPO's senior notes and $5.2 billion of consolidated liquidity. Total debt principal is $34.7 billion, about 98% fixed-rate at a 4.7% weighted-average cost. Capital spending rose to $5.6 billion, including $632 million for the Oxy gathering acquisition, and management guides 2026 organic capital investment of $3.1 to $3.5 billion. About $600 million of 2026 asset-sale proceeds is expected, mainly the second installment from the 40% Bahia NGL Pipeline sale to ExxonMobil. The company also has $3.6 billion of remaining capacity under its expanded $5 billion buyback program. Key watch items for investors include a softer 2026 price outlook (EIA projects WTI averaging about $53), reduced Octane Enhancement margins, and continued exposure to FERC index-rate and environmental regulation. Growth is supported by roughly $4.8 billion of projects scheduled through 2027, including the Athena processing train, Ref 4 at the Houston export terminal, and the Bahia expansion.
Feb 27, 2026
2024
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2024
Enterprise Products Partners L.P. (NYSE: EPD) reported 2024 revenues of $56.2 billion, up from $49.7 billion in 2023, driven mainly by higher marketing volumes across NGLs, crude oil and petrochemicals. Operating income rose 6% to $7.3 billion, and net income attributable to common unitholders reached $5.9 billion, or $2.69 per unit versus $2.52 in 2023. Total non-GAAP gross operating margin grew to $9.98 billion from $9.40 billion, with the NGL Pipelines & Services and Natural Gas Pipelines & Services segments leading the gains, while Crude Oil and Petrochemical & Refined Products margins declined. Cash flow strengthened, with operating cash flow of $8.1 billion and distributable cash flow of $7.8 billion. Distributions to common unitholders were $2.10 per unit for 2024 (up from $2.005), giving a distribution coverage ratio of 1.70x. Capital investments reached $5.5 billion in 2024, including $4.5 billion of capex and $949 million for the Pinon Midstream acquisition. Management guides to $4.5-5.0 billion of 2025 capital investment, with roughly $7.6 billion of growth projects scheduled through 2026, including Frac 14, Orion, Bahia NGL Pipeline and EHT Ref 4. Leverage and liquidity remain solid. Total debt principal was $32.2 billion, about 98% fixed-rate at a weighted-average cost of 4.7%, and EPO's credit ratings are A- (S&P), A3 (Moody's) and A- (Fitch). Liquidity was $4.8 billion at year-end. Key risks include commodity price volatility, rising capital costs, FERC index-rate changes for regulated pipelines, cybersecurity exposure without dedicated cyber insurance, and the ongoing refinement of the SPOT crude export terminal, which remains subject to a final investment decision.
Feb 28, 2025
2023
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2023
Enterprise Products Partners L.P. (NYSE: EPD) reported a solid 2023 with net income attributable to common unitholders of $5.53 billion, up from $5.49 billion in 2022, and operating income of $6.93 billion. Consolidated revenues fell about 15% to $49.7 billion, driven almost entirely by lower marketing prices for NGLs, natural gas and petrochemicals, while total non-GAAP gross operating margin rose to $9.40 billion from $9.31 billion. Distributable cash flow was $7.60 billion, covering the $2.005 per-unit annual distribution about 1.73x, and the Partnership's distribution rate was raised to $0.515 per quarter for Q4 2023. Growth is the main investment story. The company placed $3.5 billion of growth projects into service in 2023, including PDH 2, Frac 12, the Poseidon Midland Basin processing train and a second Mentone train. It has about $6.8 billion of growth projects scheduled through the first half of 2026, and expects 2024 capital investments of $3.8 to $4.3 billion, including $3.25 to $3.75 billion of growth spending. Balance sheet strength is supported by A-/A3/A- credit ratings, $3.9 billion of consolidated liquidity and a $2.0 billion senior notes issuance in January 2024. Key risks include commodity price volatility, particularly weak natural gas and NGL pricing outlook, rising debt of roughly $29 billion principal, and the partnership's structure, in which EPCO-affiliated owners hold about 32.4% of common units and control the general partner. Lower deficiency revenues on the EFS and South Texas crude systems and lower NGL marketing margins weighed on segment results.
Feb 28, 2024
2022
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2022
Enterprise Products Partners L.P. (NYSE: EPD) reported record-level 2022 results driven by its integrated midstream network. Revenues rose to $58.2 billion (from $40.8 billion) and net income attributable to common unitholders reached $5.5 billion (from $4.6 billion), largely due to higher marketing revenues and a $805 million increase in operating income. Total non-GAAP gross operating margin grew to $9.3 billion from $8.6 billion, led by NGL Pipelines & Services (up to $5.1 billion from $4.3 billion), which benefited from the Navitas Midstream acquisition ($3.2 billion, February 2022) and stronger processing margins. Distributable cash flow rose to $7.75 billion, covering distributions 1.85 times, and the quarterly distribution was raised to $0.49 per common unit. Balance sheet and liquidity are solid. EPO's senior unsecured debt is rated investment grade (BBB+/Baa1/BBB+), with $4.1 billion of consolidated liquidity and 96.2% of debt at fixed rates (weighted average cost 4.5%). Total debt principal is $28.6 billion, with $1.7 billion maturing in 2023. Management plans 2023 capital investments of $2.7 to $2.9 billion, including $2.3 to $2.5 billion of growth projects, and has about $5.8 billion of growth projects scheduled through 2025. Key risks include commodity price volatility, rising interest rates, regulatory rate indexing at the FERC, and project execution, along with the pending Sea Port Oil Terminal (SPOT) license and the EPCO-affiliated ownership concentration (about 32.4% of common units).
Feb 28, 2023
2021
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2021
Enterprise Products Partners L.P. (NYSE: EPD) reported a strong 2021 for its Form 10-K filed February 28, 2022. Consolidated revenues rose to $40.81 billion from $27.20 billion, driven mainly by higher commodity prices in marketing activities. Operating income increased to $6.10 billion from $5.04 billion, and net income attributable to common unitholders was $4.63 billion, up from $3.77 billion. Total segment gross operating margin (non-GAAP) was $8.51 billion, up about 4% from $8.19 billion, led by Petrochemical & Refined Products (+25%) and Natural Gas Pipelines (+25%), partly offset by lower Crude Oil Pipelines margin (down 16%). Winter Storms Uri and Viola in February 2021 contributed favorable margins in marketing, while Hurricane Ida reduced margin by an estimated $34 million in the second half of the year. Cash flow strengthened considerably. Operating cash flow was $8.51 billion versus $5.89 billion, and non-GAAP free cash flow was $6.30 billion versus $2.67 billion, reflecting lower growth capital spending ($2.22 billion in capital expenditures versus $3.29 billion in 2020). Distributable cash flow was $6.61 billion, covering the $3.99 billion of common unit distributions at a 1.66x coverage ratio. The quarterly distribution was raised to $0.465 per unit ($1.86 annualized) for Q4 2021. Liquidity stood at $7.32 billion, and the company carries investment-grade ratings of BBB+/Baa1/BBB+. Looking ahead, management expects 2022 capital investments of about $1.9 billion (including $1.5 billion of growth capital), and a $3.25 billion cash acquisition of Navitas Midstream closed on February 17, 2022, funded with commercial paper and cash. Key watch items include total debt of roughly $29.8 billion principal, the PDH 2 facility scheduled for Q2 2023, pending SPOT offshore terminal approval, and ongoing FERC index changes. The 2019 buyback program had $1.52 billion of remaining capacity at year-end.
Feb 28, 2022
2020
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2020
Enterprise Products Partners L.P. (NYSE: EPD) reported a 2020 year marked by the pandemic-driven collapse in energy demand, with consolidated revenues falling to $27.20 billion from $32.79 billion and net income attributable to common unitholders declining to $3.77 billion from $4.59 billion. Total non-GAAP gross operating margin fell to $8.10 billion from $8.27 billion, while operating income dropped to $5.04 billion. The decline was driven in part by $890.6 million of non-cash asset impairments, including a $296.3 million goodwill write-off in Natural Gas Pipelines & Services and a $256.7 million impairment on the marine transportation business. Partially offsetting this, NGL Pipelines & Services and Petrochemical & Refined Products Services held up well, with segment gross operating margin rising to $4.18 billion and $1.08 billion respectively. Cash flow remained solid, with operating cash flow of $5.89 billion and free cash flow of $2.67 billion, which covered distributions. The distribution coverage ratio was 1.63x on distributable cash flow of $6.41 billion, and the quarterly common unit distribution was held at $0.45 per unit. Liquidity stood at $6.06 billion, and EPO's senior unsecured debt remains investment grade (BBB+/Baa1/BBB+). Total principal debt is about $30.1 billion, and the company completed roughly $4.25 billion of senior note issuances in 2020, while retiring $1.5 billion. Looking ahead, management guided to 2021 capital investments of about $2.1 billion ($1.6 billion growth, $440 million sustaining), with growth spending expected to step down further in 2022 and 2023 as major projects such as PDH 2 (scheduled for Q2 2023) move toward completion. Management stated it will evaluate any future distribution increases quarterly, and the 2019 buyback program retains $1.73 billion of remaining capacity. Key risks include continued volatility in hydrocarbon prices, COVID-19 demand recovery, further potential impairments, the SPOT crude terminal approval timing, and the company's sizable debt load.
Mar 1, 2021
2019
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2019
Enterprise Products Partners L.P. (NYSE: EPD) reported full-year 2019 results with revenues of $32.79 billion (down from $36.53 billion, primarily on lower commodity prices), operating income of $6.08 billion (up 12%), and net income attributable to limited partners of $4.59 billion ($2.09 per unit vs. $1.91 in 2018). Gross operating margin rose to a non-GAAP $8.27 billion, driven by Crude Oil Pipelines & Services (up about $576 million, largely from the Midland-to-ECHO system) and NGL Pipelines & Services (up about $239 million net, with Shin Oak and Mont Belvieu storage contributing). Distribution coverage was approximately 1.7x on distributable cash flow of $6.62 billion, and the partnership declared $1.765 per unit for 2019 with plans for a $0.0025 per quarter increase in 2020. The balance sheet grew substantially, with total assets of $61.7 billion and total debt principal of $27.9 billion, funded in part by a $2.5 billion senior notes issuance in July 2019 and a $3.0 billion issuance in January 2020. Growth capital spending was $4.2 billion in 2019, and management guided to 2020 total capital investments of $3.4 to $4.4 billion, with $7.7 billion of growth projects scheduled through 2023. Liquidity stood at $4.85 billion, and credit ratings were BBB+/Baa1/BBB+ at the filing date. Key subsequent and risk events include the February 25, 2020 exercise of the Liquidity Option by Marquard & Bahls, which will require EPD to acquire 54.8 million units from OTA (expected to be settled in newly issued units, so unit count is unchanged), and the Texas Supreme Court's January 31, 2020 affirmance of the reversal of the $535.8 million ETP judgment, which removes a major contingent liability. Investors should also note COVID-19 demand and price headwinds described in the outlook, and that the company reported Vitol as a 10.1% customer.
Feb 28, 2020
2018
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2018
Enterprise Products Partners L.P. (NYSE: EPD) reported record 2018 results, with net income attributable to limited partners of $4.17 billion ($1.91 per unit) versus $2.80 billion ($1.30 per unit) in 2017, and total revenues of $36.53 billion (up from $29.24 billion). Operating income rose 38% to $5.41 billion, driven by strong NGL Pipelines & Services and Petrochemical & Refined Products Services segments. Total non-GAAP gross operating margin reached $7.33 billion, up about 29%, led by the PDH facility, the Orla gas plant, and expanded Permian Basin crude and NGL infrastructure. Distributable cash flow was $5.99 billion, giving a 1.6x distribution coverage ratio on $1.725 per unit of 2018 distributions, up from 1.2x in 2017, which supports the company's decision to retain cash for growth. The balance sheet and capital plans are the main areas of investor focus. Total debt principal was $26.4 billion at year-end, and EPO's credit ratings were investment grade (BBB+/Baa1/BBB+). Management expects 2019 capital investments of $3.5 to $3.9 billion, with $6.7 billion of growth projects scheduled through 2020, including Shin Oak NGL Pipeline, Mentone and a new Mont Belvieu fractionator. The partnership also authorized a $2.0 billion multi-year unit buyback in January 2019 and plans a $0.0025 per unit quarterly distribution increase for 2019. Key risks include commodity price and basis volatility, with an unrealized mark-to-market loss of $44.6 million tied to Midland-to-ECHO 1 basis hedges, and an unresolved $535.8 million judgment in the Energy Transfer litigation, which the company believes is not probable of payment. Other risks include regulatory changes at FERC for oil pipeline indexed rates, the cost of growth capital, and exposure to interest rate increases given $26.15 billion of fixed-rate debt.
Mar 1, 2019
2017
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2017
Enterprise Products Partners L.P. (NYSE: EPD) reported 2017 total revenues of $29.24 billion, up roughly 27% from $23.02 billion in 2016, driven mainly by higher commodity prices in NGL, crude oil and petrochemical marketing. Net income attributable to limited partners rose to $2.80 billion ($1.30 per unit) from $2.51 billion ($1.20 per unit), and total non-GAAP gross operating margin increased to $5.68 billion from $5.25 billion. Growth came from fee-based segments such as NGL pipelines, the Midland-to-ECHO crude pipeline, and Morgan's Point ethane export capacity, while Hurricane Harvey reduced 2017 gross operating margin by an estimated $46 million. The partnership's financial position remains large and leveraged. Total debt principal was about $24.8 billion at year-end, and liquidity was $3.75 billion. Operating cash flow rose to $4.67 billion, and distributable cash flow of $4.50 billion covered distributions at 1.24x. Capital spending was about $3.4 billion in 2017 and is planned at roughly $3.3 billion for 2018, which the company expects to fund partly with equity and debt issuance. Management plans to raise the quarterly distribution by $0.0025 per unit each quarter through 2018, and it expects to be self-funding for the equity portion of capital spending by 2019. Key risks include exposure to commodity price volatility, customer concentration (Vitol was 11.2% of revenue), a long-running ETP litigation matter (the appellate court reversed the $535.8 million judgment, but ETP sought Texas Supreme Court review), a PDH facility construction dispute, FERC rate proceedings affecting Seaway, and rising interest-rate exposure. Investors should weigh the strong fee-based growth pipeline and distribution coverage against high leverage and commodity-linked earnings.
Feb 28, 2018
2016
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2016
Enterprise Products Partners L.P. (NYSE: EPD) reported full-year 2016 results marked by lower commodity-driven revenue but resilient fee-based cash generation. Total revenues fell to $23.02 billion from $27.03 billion, driven by lower crude oil and NGL sales prices, while operating income rose modestly to $3.58 billion and net income attributable to limited partners was $2.51 billion, or $1.20 per unit, versus $1.28 in 2015. Total gross operating margin (non-GAAP) declined to $5.25 billion from $5.34 billion, reflecting the 2015 sale of the Offshore Business and weaker crude oil marketing margins, partly offset by growth in NGL pipelines, the Morgan's Point ethane export terminal, and EFS Midstream. The partnership continued to fund a large growth program: capital spending was $4.12 billion in 2016 (including the final $1.0 billion EFS Midstream installment), with 2017 capital spending guided to $2.3 to $2.7 billion. Distributable cash flow was $4.10 billion, covering total distributions to limited partners of $3.39 billion at a 1.21x coverage ratio, and the quarterly distribution was raised to $0.41 per unit for the fourth quarter of 2016. Growth was funded substantially by equity: 104 million common units were issued for $2.54 billion of net proceeds, while long-term debt rose to $23.70 billion including current maturities. Investors should weigh the strong liquidity and investment-grade ratings (BBB+/Baa1) and long-term fee-based contracts against several risks: leverage that continues to rise, a pending $535.8 million ETP litigation judgment for which no provision has been recorded, the Seaway FERC rate matters, and exposure to commodity-price-driven marketing results. Management expects producer activity in the Permian, Eagle Ford, Haynesville, and Rockies to recover in 2017, supporting volumes from projects such as the Orla plant and Midland-to-ECHO pipeline.
Feb 24, 2017
2015
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2015
Enterprise Products Partners L.P. (NYSE: EPD) reported 2015 results that reflect a sharp drop in commodity-driven revenue alongside steady growth in fee-based midstream earnings. Total revenues fell to $27.03 billion from $47.95 billion, driven mainly by lower NGL, crude oil and natural gas sales prices, while operating income declined modestly to $3.54 billion from $3.78 billion and net income attributable to limited partners fell to $2.52 billion from $2.79 billion. Total segment gross operating margin, the partnership's preferred core profitability measure, rose slightly to $5.33 billion from $5.29 billion, which management attributes to newly completed assets such as Aegis, ATEX, the Houston Ship Channel LPG export terminal, and the acquisitions of Oiltanking and EFS Midstream. Balance sheet and cash flow highlights are mixed. Distributable cash flow rose to $5.61 billion (versus $4.08 billion), giving a distribution coverage ratio of 1.85x, but much of the increase reflects $1.6 billion of asset-sale proceeds, mainly the $1.53 billion sale of the Offshore Business. Operating cash flow fell slightly to $4.00 billion. Total debt principal reached $22.74 billion, with liquidity of $4.4 billion. The partnership funded roughly $6.4 billion of total capital spending in 2015, including the $2.1 billion EFS Midstream acquisition, partly through about $1.2 billion of common unit issuances, and it guides to $3.8-4.1 billion of 2016 capital spending. Looking ahead, management plans a 5.2% distribution increase to $1.61 per unit for 2016, and it expects several growth projects (the ethane export terminal, the South Eddy and Delaware Basin plants, and the PDH facility) to enter service in 2016-2017. Risks investors should weigh include a $535.8 million ETP judgment the company is appealing without an accrual, an ongoing FTC investigation into the Oiltanking acquisition, volume shortfalls and make-up rights on several pipelines tied to low commodity prices, a PDH construction schedule revision, and weak producer activity in the Eagle Ford, Rockies and Haynesville regions.
Feb 26, 2016
2014
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2014
Enterprise Products Partners L.P. (NYSE: EPD) reported full-year 2014 results that were driven by continued midstream expansion. Revenues rose modestly to $47.95 billion (from $47.73 billion), while net income attributable to limited partners increased to $2.79 billion, or $1.47 diluted earnings per unit, versus $2.60 billion and $1.41 in 2013. Total segment gross operating margin grew about 10% to $5.29 billion, led by NGL Pipelines & Services (up roughly 14%, helped by the ATEX pipeline and Mont Belvieu fractionation) and Onshore Crude Oil Pipelines & Services. Distributable cash flow covered distributions 1.51x, and quarterly distributions rose to $0.37 per unit. The partnership completed Step 1 of its Oiltanking acquisition in October 2014 (about $4.4 billion in consideration, with a $1.5 billion 364-day facility bridging the cash) and closed the Oiltanking Merger in February 2015, issuing 36.8 million additional units. Capital spending was heavy, with total 2014 spending of $8.2 billion including the Oiltanking Step 1, and a planned 2015 capital program of about $3.9 billion. Leverage increased: long-term debt reached $21.4 billion and total equity grew to $19.7 billion, with liquidity of $4.17 billion. Investors should weigh several risks. Crude oil prices fell from about $107 to roughly $47 by January 2015, which management expects to slow drilling in supply basins it serves. The company faces a $535.8 million judgment in the ETP litigation, which it is appealing and for which no provision has been recorded. The FTC has opened an investigation into the Oiltanking acquisition, and Oiltanking was excluded from the internal control assessment at year-end.
Mar 2, 2015
2013
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2013
Enterprise Products Partners L.P. (NYSE: EPD) reported record 2013 results driven by its growing midstream footprint. Total revenues rose about 12% to $47.73 billion, operating income increased to $3.47 billion from $3.11 billion, and net income attributable to limited partners reached $2.60 billion, or $2.82 diluted earnings per unit versus $2.71 in 2012. Total segment gross operating margin, the non-GAAP measure management uses to evaluate segments, grew to $4.82 billion from $4.39 billion, led by Onshore Crude Oil Pipelines & Services (up roughly 92% to $742.7 million) and NGL Pipelines & Services ($2.51 billion). Much of the revenue growth reflects higher commodity marketing volumes, so investors should focus on fee-based and margin-based earnings rather than top-line figures. Cash generation strengthened, with operating cash flow of $3.87 billion versus $2.89 billion in 2012, supporting a 2014 distribution rate of $0.70 per unit for the fourth quarter of 2013 (up from $0.66 a year earlier). Capital spending was $4.5 billion in 2013, and management guides to $3.9 to $4.4 billion for 2014, with about $5.0 billion of major growth projects expected to enter service during 2014 (including ATEX Express, the Front Range Pipeline, and the Texas Express Pipeline). Liquidity stood at approximately $4.1 billion at year-end, and EPO's credit ratings were BBB+ (S&P) and Baa1 (Moody's). Key risks include a heavy debt load of $17.36 billion in principal, ethane oversupply and rejection that can depress NGL volumes, lower natural gas drilling in dry-gas basins, pending FERC rate proceedings on the Seaway Pipeline's uncommitted shipper rates, and a concentration of revenue with BP (9.0% of 2013 revenues). The partnership has no employees and relies on EPCO under an administrative services agreement, and affiliates of EPCO own about 36.4% of the units, which concentrates control with the Duncan family.
Mar 3, 2014
2012
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2012
Enterprise Products Partners L.P. (NYSE: EPD) reported full-year 2012 revenues of $42.58 billion, down from $44.31 billion in 2011, driven almost entirely by lower NGL, natural gas and petrochemical commodity prices rather than operating weakness. Net income rose 16% to $2.43 billion and net income attributable to limited partners climbed to $2.42 billion ($2.71 diluted EPS vs. $2.38 in 2011). Total segment gross operating margin grew to $4.39 billion from $3.87 billion, led by the NGL Pipelines & Services and Onshore Crude Oil segments, while the Offshore segment declined on lower Gulf of Mexico volumes and the expiration of Independence Hub demand fees. The partnership also increased its distribution to $0.66 per unit for Q4 2012 (annualized roughly $2.64) and reported cash distributions of $2.57 per unit for the year. Growth spending is the central investor issue. Capital spending reached $4.25 billion in 2012, and management guides to about $4.4 billion for 2013, including roughly $4.0 billion of growth projects. Operating cash flow fell to $2.89 billion from $3.33 billion, so the partnership relies on debt and equity issuance to fund the gap. Total consolidated debt rose to $16.18 billion, and the company issued 9.2 million units in February 2013 for $486.6 million net. Liquidity was $3.17 billion at year-end, and credit ratings remain investment grade (BBB+/Baa2/BBB). Key risks include a sharp fall in natural gas and ethane prices in 2012, which has led to ethane rejection and pressure on equity NGL volumes, pending FERC rate proceedings for Seaway and TE Products, and continued concentration of revenue (BP was 9.5% of consolidated revenue). The partnership's projects, including ATEX Express, Front Range, Texas Express, the Yoakum plant and the PDH unit, are expected to support long-term fee-based growth, but investors should monitor whether these projects are completed on schedule and whether cash flow growth keeps pace with rising distributions and debt.
Mar 1, 2013
2011
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2011
Enterprise Products Partners L.P. (NYSE: EPD) closed 2011 with record results: revenues rose to $44.3 billion (from $33.7 billion), operating income reached $2.86 billion (from $2.15 billion), and net income attributable to partners climbed to $2.05 billion (from $321 million, which was depressed in 2010 by the Holdings Merger accounting). Gross operating margin increased 19% to $3.87 billion, led by NGL Pipelines & Services ($2.18 billion) and Onshore Natural Gas ($675 million). Cash distributions per unit rose to $2.44 from $2.27, and the quarterly payout reached $0.62 for the fourth quarter, the 2012 February distribution. Growth remains heavy: 2011 growth capital spending was $3.55 billion, with 2012 consolidated capex guided at about $3.8 billion, including $3.5 billion of growth projects in Eagle Ford, Haynesville, the ATEX Express, the SEKCO pipeline, and Seaway reversal. Balance sheet and liquidity both improved. Credit ratings were upgraded in January and February 2012 (S&P to BBB, Moody's to Baa2, Fitch to BBB). Liquidity stood at $3.37 billion at year-end. Total debt principal is about $14.5 billion, with roughly 7.6% variable-rate exposure. The company also sold 22.8 million Energy Transfer Equity units in January 2012 for $825 million, reducing that stake to about 6 million units. Key risks flagged include commodity price exposure through percent-of-liquids and keepwhole contracts, the Gulf of Mexico drilling moratorium's lingering effects, FERC rate-case proceedings, climate and pipeline-safety regulation, and the reliance on EPCO affiliates and related-party arrangements.
Feb 29, 2012
2010-A
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report (Amendment), Year Ended Dec 31, 2010
This document is Amendment No. 1 (Form 10-K/A) to Enterprise Products Partners L.P.'s annual report for fiscal year 2010. It was filed in response to SEC staff comments on the original report and amends only Part III, Item 11 (Executive Compensation) and Part IV, Item 15 (Exhibits). It contains no financial statements, and the filing text does not state its filing date. It does not update the financial results, operations, or other disclosures in the original 10-K, so it should be read alongside that report. The amendment shows that Enterprise has no directly employed executives. Its general partner's officers are EPCO employees, and Enterprise reimburses EPCO for 100% of their compensation costs under the Administrative Services Agreement (ASA). Named executive officer total 2010 compensation ranged from about $1.6 million to $4.3 million. CEO Michael A. Creel received $4.34 million, A. James Teague received $3.56 million, William Ordemann received $2.20 million, W. Randall Fowler received $1.61 million, and Mark A. Hurley received $1.61 million. Compensation is discretionary, with no formula or specific performance metrics tied to pay. The filing states this design is intended to discourage excessive risk-taking. For investors, the main points are the 2010 retention agreements and the executive equity holdings. Creel, Teague, Fowler, and Ordemann each received retention agreements in late 2010 with cash payments of $10 million, $10 million, $5 million, and $2.5 million, payable after 48 months of service or upon certain involuntary terminations or a sale of EPCO or Enterprise. Teague also has a performance payment of at least $6 million tied to hiring a Chief Operating Officer for Enterprise GP. Restricted unit and option awards, along with the 2010 liquidation of the Employee Partnerships, are also disclosed. Enterprise's share of compensation costs is allocated under the ASA based on each executive's time spent on Enterprise's consolidated businesses, so the amounts shown are only Enterprise's portion of total EPCO pay.
Jun 30, 2011
2010
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2010
Enterprise Products Partners L.P. (EPD) reported a 2010 10-K filed March 1, 2011, showing revenues of $33.74 billion (up 32% from $25.51 billion in 2009) and net income attributable to partners of $320.8 million (up from $204.1 million). The headline growth is driven largely by higher commodity prices and volumes in the marketing businesses, while segment gross operating margin rose 13% to $3.25 billion, led by NGL Pipelines & Services and Petrochemical & Refined Products Services. Results were also shaped by the November 2010 Holdings Merger with Enterprise GP Holdings, which was accounted for as an equity transaction, so pre-merger financials reflect Holdings' historical presentation and per-unit figures were restated for the 1.5-to-1 exchange ratio. The balance sheet expanded materially, with total assets of $31.4 billion and consolidated debt of about $13.5 billion principal. Management guided 2011 capital spending of roughly $3.7 billion, mostly growth projects tied to the Eagle Ford Shale and the Haynesville Extension, and reported about $2.9 billion of consolidated liquidity after post-year-end note issuance. Key risks include a February 2011 fire at the Mont Belvieu West Storage facility (one fatality), heavy dependence on distributions from EPO, Gulf of Mexico drilling uncertainty after the 2010 moratorium, and a proposed unit-for-unit acquisition of Duncan Energy Partners announced February 22, 2011, which would offer 0.9545 EPD units per DEP unit (valued at $42.00, a roughly 30% premium). From an investor standpoint, the filing shows a larger, more diversified midstream platform with growing fee-based and volume-driven earnings, but the gap between net income ($1.38 billion consolidated) and income attributable to partners ($320.8 million) is large because of noncontrolling interests, so per-unit distributable cash flow is the more relevant lens. Distributions were $2.27 per unit for 2010, with a $0.59 quarterly rate declared for Q4 2010.
Mar 1, 2011
2009
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2009
Enterprise Products Partners L.P. (NYSE: EPD) closed fiscal 2009 with revenues of $25.51 billion, down from $35.47 billion in 2008, driven almost entirely by lower energy commodity prices rather than volume or operational weakness. Net income was $1.16 billion ($1.03 billion attributable to the partnership), and earnings per unit were $1.73 versus $1.84 in 2008. Total segment gross operating margin rose 9% to $2.84 billion, led by NGL Pipelines & Services ($1.63 billion, up from $1.33 billion), which benefited from new Rocky Mountain processing plants, stronger NGL marketing, and higher pipeline volumes. Distributions per unit increased to $2.195 from $2.075, and the quarterly rate reached $0.56 in early 2010. The defining event of the year was the October 2009 TEPPCO Merger, which issued roughly 127 million common units plus 4.5 million Class B units and added a substantial set of refined products, crude, and marine assets. The merger also drove a sharp rise in consolidated debt to $11.35 billion and in the number of common units outstanding to about 606 million. Management guides 2010 capital spending to about $1.75 billion, including $1.5 billion of growth projects such as the Haynesville Extension and a new Mont Belvieu fractionator, and reports approximately $2 billion of liquidity after a January 2010 equity offering that raised $343.1 million. Investors should weigh the strong gross margin and expanded asset base against rising leverage, a $1.6 billion 2010 to 2011 refinancing need, and a material $1.4 billion of 2009 charges tied to the TOPS project and impairments.
Mar 1, 2010
2008
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2008
Enterprise Products Partners L.P. (EPD) reported a record 2008 with revenues of $21.91 billion (up from $16.95 billion in 2007) and net income of $954.0 million (up from $533.7 million), driven mainly by higher energy commodity prices and volumes, strong NGL processing margins, and the startup of new assets such as the Meeker and Pioneer plants, Independence Hub, and Independence Trail. Total segment gross operating margin rose about 38% to $2.06 billion, with NGL Pipelines & Services contributing $1.29 billion. Diluted earnings per unit were $1.85, versus $0.96 in 2007, and the distribution was raised to $0.53 per quarter for the fourth quarter of 2008, a 2.0750 annual total for 2008. The filing also highlights meaningful risks. Hurricanes Gustav and Ike reduced gross operating margin by an estimated $77.0 million and forced $47.9 million of repair expenses. The sharp late-2008 collapse in commodity prices and the global credit crisis drove the 2009 outlook: a reduced rig count, lower NGL margins in Q4 2008, and a more expensive capital market. Consolidated debt reached about $9.05 billion, with $717.6 million of maturities in 2009 that management expects to refinance. The company's 2009 hedging covers about 67% of expected equity NGL margins, which partly insulates it from weaker prices. Customer credit exposure to LyondellBasell's Chapter 11 filing was about $10.0 million after tariff remedies. For investors, the key trade-off is strong 2008 earnings and a growing fee-based asset base against higher leverage, commodity-price sensitivity in the marketing business, and a 2009 growth program of roughly $1.00 billion in capital spending. The January 2009 equity offering of 10.59 million units at $22.20 raised $225.6 million to reduce revolver borrowings.
Mar 2, 2009
2007
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2007
Enterprise Products Partners L.P. (EPD) reported a 2007 fiscal year marked by heavy growth spending and record revenue, but flat-to-lower net income. Consolidated revenues rose 21% to $16.95 billion, driven mainly by higher NGL and natural gas marketing volumes and commodity prices, while net income fell to $533.7 million from $601.2 million, partly due to higher interest expense ($311.8 million, up $73.7 million) and the start-up delays at the Meeker and Pioneer gas processing plants. Total segment gross operating margin, the company's preferred non-GAAP profitability measure, grew 9.5% to $1.49 billion, with Offshore Pipelines (up 66%, led by the Independence Hub platform) and NGL Pipelines & Services (up 8%) contributing most of the gain. The balance sheet is being stretched by the capital program. Total consolidated debt reached about $6.9 billion, up from $5.3 billion, and the company carries investment-grade ratings (Baa3/BBB-/BBB-), with ratings-linked covenant and acceleration provisions noted. Operating cash flow improved sharply to $1.59 billion from $1.18 billion, but 2007 capital spending of $2.5 billion and 2008 planned spending of roughly $1.7 billion mean the company will continue to rely on debt and equity markets. Distributions per unit rose to $1.9475 for 2007, with the quarterly rate at $0.50 in the fourth quarter, though distribution coverage is tighter given the capital needs. The filing also highlights several risk areas for unitholders: commodity price exposure in the gas processing contracts, the affiliate and related-party structure with EPCO (which controls the general partner and owns about 34% of the units), an ammonia pipeline criminal and civil matter, a TEPPCO unitholder lawsuit, and the upcoming Pioneer cryogenic plant start-up and 2008 growth projects that are expected to drive future cash flow.
Feb 29, 2008
2006
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2006
Enterprise Products Partners L.P. (NYSE: EPD) reported record 2006 results in its 10-K filed February 28, 2007. Revenues rose to $14.0 billion (from $12.3 billion in 2005), operating income increased to $860.1 million (from $663.0 million), and net income reached $601.2 million (from $419.5 million). Segment gross operating margin grew 20% to $1.36 billion, led by NGL Pipelines & Services ($752.5 million), while Onshore Natural Gas Pipelines fell to $333.4 million on San Juan Gathering and Wilson storage problems. Distributions per unit rose to $1.825 in 2006, and the Q4 2006 quarterly distribution was raised to $0.4675. The company is in a heavy growth-capital phase, with 2007 consolidated capital spending forecast at about $1.9 billion, mainly for Rocky Mountain, Barnett Shale, Piceance Basin, and Gulf of Mexico projects such as Independence Hub and Independence Trail. Total debt was about $5.3 billion at year-end 2006, and the Operating Partnership's credit rating was upgraded to investment grade by S&P in December 2006. Liquidity relies on the Multi-Year Revolving Credit Facility, with about $790 million available at year-end. Key event-driven items include the February 2007 IPO of Duncan Energy Partners (NYSE: DEP), which raised $291.3 million in net proceeds for the company, and a DOJ criminal investigation plus civil claims (up to $17.4 million in fines) tied to a 2004 ammonia release on a Magellan-owned pipeline that EPD operates. A TEPPCO unitholder lawsuit over related-party transactions is also pending; management views it as without merit.
Feb 28, 2007
2005
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2005
Enterprise Products Partners L.P. (NYSE: EPD) reported record results for fiscal 2005, driven by the September 2004 GulfTerra Merger, which roughly doubled its asset base. Revenues rose to $12.26 billion from $8.32 billion, operating income reached $663.0 million from $423.0 million, and net income climbed to $419.5 million ($0.91 per unit) from $268.3 million. Total segment gross operating margin grew 73% to $1.14 billion, led by the Onshore Natural Gas Pipelines and NGL Pipelines & Services segments. Growth came with higher leverage: consolidated debt reached about $4.8 billion, with interest expense up to $230.5 million, and the company has a sizable 2006 growth program. Management is pursuing a major capital build-out. It estimates 2006 consolidated capital spending of about $1.8 billion, including roughly $1.7 billion for growth projects and acquisitions, with major projects including Independence Hub, the Piceance and Wyoming gas processing projects, and the Hobbs NGL fractionator. The filing also describes 2005 disruption from Hurricanes Katrina and Rita, which reduced segment margin by an estimated $48 million, with insurance recoveries expected in 2006 and 2007. Distributions per unit rose to $1.698 for 2005 from $1.540, and the quarterly rate reached $0.4375 in early 2006. Investors should weigh the strong earnings momentum and distribution growth against elevated debt, dependence on successful execution of large projects, and governance considerations. Affiliates of EPCO, controlled by Dan L. Duncan, own about 36.9% of common units and manage the partnership through its general partner, and conflicts of interest and related-party transactions are significant features of the structure.
Feb 27, 2006
2004
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2004
Enterprise Products Partners L.P. (NYSE: EPD) reports its FY2004 10-K, filed March 15, 2005, in the wake of the transformational GulfTerra Merger completed September 30, 2004 (~$4 billion aggregate consideration). Revenues rose to $8.32 billion in 2004 from $5.35 billion in 2003, and net income more than doubled to $268.3 million ($0.87 per unit) from $104.5 million, though much of the top-line growth reflects higher NGL and petrochemical marketing volumes and prices. Total segment gross operating margin increased to $655.2 million from $410.4 million, led by NGL Pipelines & Services ($374.2 million), with the acquired GulfTerra assets contributing for only one quarter of 2004. Management highlights a strengthened midstream footprint in the deepwater Gulf of Mexico and Rockies, with large growth projects (Independence Hub, Independence Trail, Constitution, Rocky Mountain NGL expansions) targeted for 2005-2007. The balance sheet expanded materially: total assets grew to $11.3 billion from $4.8 billion, and consolidated debt reached about $4.3 billion, up from $2.1 billion. Partners' equity increased to $5.3 billion, reflecting the 104.5 million units issued in the merger and multiple 2004 equity offerings. Investors should weigh the higher leverage, large acquisition-related goodwill and intangibles ($459 million and $981 million), and integration risk against the expanded fee-based and diversified asset base. Note that the company disclosed it excluded GulfTerra and the South Texas assets from its SOX 404 internal control assessment for 2004, representing about 54% of total assets. Management also stated that the 2005 capital spending outlook is roughly $970 million, and EPCO, the ultimate parent, now controls approximately 37% of the common units.
Mar 15, 2005
2003
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2003
Enterprise Products Partners L.P. (NYSE: EPD) reported 2003 revenues of $5.35 billion, up roughly 49% from $3.58 billion in 2002, and net income of $104.5 million, up from $95.5 million. Total segment gross operating margin rose to $410.4 million from $332.3 million, driven mainly by the full-year contribution of the Mid-America and Seminole pipelines acquired in July 2002. Partially offsetting this were a $22.5 million share of an impairment at the MTBE facility (BEF), lower NGL volumes due to weak ethylene demand and low NGL extraction rates, and a loss in equity earnings. Distributions were raised to $0.3725 per unit per quarter. Diluted EPS fell to $0.41 from $0.48 in 2002, and the company carried about $2.1 billion of debt at year end. The dominant investor issue is the pending merger with GulfTerra Energy Partners (NYSE: GTM). Step One, a $425 million purchase of a 50% interest in GulfTerra's general partner, has already closed. Steps Two and Three would give Enterprise full ownership of GulfTerra and roughly 103 million new units, with total consideration estimated near $3.9 billion. Completion depends on unitholder and HSR antitrust approvals, and management expects closing in the second half of 2004. Leverage would rise substantially, goodwill of about $2 billion is expected, and rating agencies have placed Enterprise's ratings under review. Investors should weigh the strategic scale gained against integration, leverage, and execution risks, along with the overhang from Shell's 41 million units, which Shell intends to sell over time. The core business remains fee-based and midstream-oriented, but earnings remain exposed to NGL and natural gas price spreads, petrochemical demand, and MTBE regulation, which could reduce BEF's earnings. The MTBE exposure is also a risk because the insurance carrier indicated that MTBE-related claims may be excluded at the April 2004 policy renewal.
Mar 10, 2004
2002-A
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report (Amendment), Year Ended Dec 31, 2002
Enterprise Products Partners L.P. (EPD) for the fiscal year ended December 30, 2002, demonstrated significant growth primarily driven by strategic acquisitions, notably the $1.2 billion purchase of Mid-America and Seminole Pipeline Systems from Williams and the $239 million acquisition of Diamond-Koch's propylene fractionation business. These acquisitions substantially expanded the company's NGL and petrochemical infrastructure, increasing pipeline mileage and fractionation capacity. Despite revenue growth fueled by these strategic moves, operating income saw a notable decrease compared to the prior year. This decline was largely attributed to a significant negative swing in commodity hedging results, moving from a substantial gain in 2001 to a loss in 2002, impacting the Processing segment's profitability. Management is actively exploring strategies to navigate commodity price volatility, as highlighted by the potential conversion of the BEF facility from MTBE to alkylate production due to regulatory uncertainties surrounding MTBE. The company's balance sheet reflects increased assets and debt due to these acquisitions, with ongoing efforts to manage leverage through equity and debt offerings.
Apr 17, 2003
2002
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2002
Enterprise Products Partners L.P. (EPD) reported strong performance for the fiscal year ending December 31, 2002, marked by significant strategic acquisitions that expanded its midstream energy infrastructure. The company completed several key acquisitions in 2002, including the substantial purchase of Mid-America and Seminole Pipeline Systems from Williams for approximately $1.2 billion, as well as Diamond-Koch's propylene fractionation and storage businesses. These acquisitions are expected to enhance EPD's asset base, integrate its services along the natural gas and NGL value chain, and increase fee-based cash flows. Financially, EPD's revenues grew, driven by these acquisitions, although operating income saw a decrease due to increased expenses, including unfavorable changes in commodity hedging results. The company's liquidity was supported by a significant term loan for acquisitions, which was subsequently refinanced through equity and debt offerings in late 2002 and early 2003. Management remains focused on long-term growth through accretive acquisitions and internal projects, aiming for a 10% annual increase in distributions to unitholders, underscoring a commitment to unitholder value.
Mar 31, 2003
2001
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2001
Enterprise Products Partners L.P. (EPD) has filed its annual report for the period ending December 30, 2001. The company has demonstrated strong performance, with record revenues, gross operating margin, and operating income in 2001, largely driven by strategic acquisitions and internal growth projects. Key acquisitions in 2001 included Acadian Gas and interests in Gulf of Mexico natural gas pipelines, significantly expanding the company's natural gas pipeline footprint. EPD's business strategy focuses on capitalizing on increased natural gas and NGL production, developing joint ventures, expanding its asset base through complementary acquisitions, and increasing fee-based cash flows. The company's diverse operations span five reportable segments: Fractionation, Pipelines, Processing, Octane Enhancement, and Other. Management expresses optimism for 2002, anticipating improved NGL extraction rates and increased demand, despite some economic headwinds. The company's financial health is supported by its investment-grade credit ratings and available credit facilities, positioning it well for continued growth and capital investments.
Mar 21, 2002
2000
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2000
Enterprise Products Partners L.P. (NYSE: EPD) reported a strong fiscal 2000 in its 10-K filed March 22, 2001. Revenues from consolidated operations rose to $3.05 billion (total revenues $3.07 billion, up 128%), operating income increased 84% to $243.7 million, and net income reached $220.5 million, or $2.64 per diluted unit, versus $1.64 in 1999. The growth was driven mainly by the August 1999 TNGL acquisition from Shell, the July 1999 Mont Belvieu fractionator acquisition, and a sharp improvement in NGL prices. Processing margin jumped from $28.5 million to $122.2 million, and EBITDA rose to $267.0 million from $147.1 million. Cash flow from operations reached $360.7 million, comfortably covering $139.6 million in distributions to partners. Management raised the quarterly distribution three times in 2000, to $0.55 per unit for early 2001. The filing also highlights risks. Natural gas prices spiked to about $10/MMBtu in January 2001, which forced some processing plants into rejection mode and pressured first-quarter 2001 processing margins. Long-term debt rose to $404 million at year-end, and the company then issued $450 million of 7.50% senior notes in January 2001 to fund the Acadian and El Paso pipeline acquisitions. Those acquisitions, along with a 1.0 Bcfd Acadian system and about 737 miles of Gulf of Mexico pipelines, mark a strategic entry into natural gas gathering and transmission. Regulatory exposure is also notable: Mont Belvieu faces a proposed 90% NOx reduction mandate in the Houston-Galveston area, and the MTBE business at BEF faces potential California and federal bans. Investors should also note that EPCO, the affiliated sponsor, controls the general partner and significant units, and that Shell holds about 20.5% of the company and is both a major customer and supplier. Overall, the filing describes a partnership that grew its fee-based and merchant NGL footprint substantially through acquisitions, financed largely with debt and units, with cash distributions well covered by operating cash flow. Key watch items for investors are commodity price sensitivity, the Mont Belvieu air-permit litigation, MTBE regulation, and the dependence on Shell and EPCO relationships.
Mar 22, 2001
1999
ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 1999
Enterprise Products Partners L.P. (NYSE: EPD) reported a transformative 1999 for its NGL midstream business, driven by the August 1, 1999 acquisition of Tejas Natural Gas Liquids (TNGL) from Shell's affiliate Tejas Energy (now Coral Energy). Revenues rose 78.4% to $1,346.5 million from $754.6 million, operating income more than doubled from $50.5 million to $132.4 million, and net income increased to $120.3 million from $10.1 million in 1998 (which included a $27.2 million extraordinary debt charge). Basic earnings per unit were $1.79 and diluted were $1.64. Operating cash flow improved sharply to $168.8 million from a $20.3 million outflow, and the company raised its quarterly distribution to $0.50 per unit, an 11.1% increase over the $0.45 minimum quarterly distribution. Total assets nearly doubled to $1.49 billion, and long-term debt rose to $295 million. The key strategic driver is the 20-year Shell Processing Agreement, which gives the Company exclusive rights to process Shell's Gulf of Mexico natural gas production, including deepwater developments. This is expected to materially grow NGL volumes, and processing margins jumped to $36.8 million in 1999 from a loss of $0.7 million in 1998. The Company is also expanding through new projects, including the Neptune gas plant, a Baton Rouge propylene concentrator, and the planned 263-mile Lou-Tex NGL pipeline, plus the acquisition of the Lou-Tex Propylene Pipeline for about $100 million and a pending offer for the remaining 88.5% of Dixie Pipeline for about $204.4 million. Investors should weigh several risks. Earnings are increasingly tied to NGL prices and natural gas processing spreads, and the Mont Belvieu fractionator ran at only 75% utilization in 1999. The MTBE facility faces potential regulatory phase-outs, particularly in California and at the federal level. Shell and its affiliates now hold roughly 17.6% of the units and the General Partner, and the 14.5 million Special Units, plus up to 6 million contingent units, will convert into common units over 2000 through 2003, which could dilute existing holders. The Company has no employees and relies on EPCO under the EPCO Agreement, with the administrative fee rising to $1.55 million per month in 2000. Debt is largely variable-rate bank borrowings, with plans to issue up to $350 million in senior unsecured notes under an $800 million shelf registration, and the company received investment-grade ratings (BBB from S&P, Baa3 from Moody's) in January 2000.
Mar 1, 2000