Summary
Enterprise Products Partners L.P. (EPD) filed its 2010 Form 10-K on February 28, 2011, reflecting its performance and financial condition as of December 30, 2010. The report details the company's extensive midstream energy infrastructure, encompassing NGL (natural gas liquids) pipelines, processing facilities, and marine terminals, alongside its refined products and petrochemical operations. Investors should note EPD's business model is largely fee-based, providing a degree of insulation from commodity price volatility, a key characteristic for the partnership's stable cash flow generation and distribution potential.
Financial Highlights
46 data pointsBeta
Financial Statements
Beta
| Revenue | $33.74B |
| Cost of Revenue | $28.72B |
| Gross Profit | $5.02B |
| Operating Expenses | $31.65B |
| Operating Income | $2.15B |
| Interest Expense | $741.90M |
| Net Income | $320.80M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 549.00M |
| Shares Outstanding (Diluted) | 557.00M |
Key Highlights
- 1EPD operates a large, integrated midstream energy network, diversifying its revenue streams across NGLs, refined products, and petrochemicals.
- 2The company's business model is primarily fee-based, mitigating direct exposure to volatile commodity prices and supporting predictable cash flows.
- 3The filing covers operations through the end of 2010, a period of economic recovery and evolving energy market dynamics.
- 4EPD's infrastructure includes significant NGL pipelines and processing assets, critical for moving and treating natural gas liquids.
- 5The report includes standard sections on business overview, risk factors, financial performance, and management's discussion, providing a comprehensive view of the partnership's standing.
- 6Key financial data and detailed financial statements are presented, allowing for in-depth analysis of the partnership's financial health and operational results.
Frequently Asked Questions
Enterprise Products Partners operates primarily in the midstream energy sector, with significant segments including NGL (natural gas liquids) transportation, processing, and storage; refined products pipelines and terminals; and petrochemicals.
A substantial portion of EPD's revenue is generated through fee-based contracts, meaning the partnership earns revenue based on the volume of products transported or processed, rather than directly on commodity prices. This fee-based model helps to stabilize cash flows and reduces the impact of commodity price volatility on its financial performance, which is attractive for investors seeking consistent distributions.
While the filing itself doesn't provide a detailed breakdown of risks in this snippet, typical risks for midstream energy companies like EPD include regulatory changes, environmental liabilities, operational disruptions, dependence on third-party producers and customers, interest rate fluctuations affecting debt financing, and the general economic conditions impacting energy demand.
This section (Item 7) is crucial for investors as it provides management's perspective on the company's financial performance, liquidity, and capital resources. It offers insights into the factors driving results, significant trends, and potential future challenges or opportunities, complementing the raw financial data presented in the financial statements.