Early Access

10-KPeriod: FY2011

ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2011

Filed February 29, 2012For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) operates as a leading North American midstream energy services provider, connecting producers of natural gas, NGLs, crude oil, refined products, and petrochemicals with consumers. The company's extensive network includes approximately 50,600 miles of pipelines and significant storage capacity, segmented into NGL Pipelines & Services, Onshore Natural Gas Pipelines & Services, Onshore Crude Oil Pipelines & Services, Offshore Pipelines & Services, Petrochemical & Refined Products Services, and Other Investments. EPD's business strategy focuses on capitalizing on expected increases in production and demand for energy products, expanding its asset base through growth capital projects and acquisitions, and enhancing cash flow stability by investing in fee-based businesses. The company highlighted significant growth capital projects underway, including the ATEX Express pipeline and expansions in the Eagle Ford Shale, demonstrating a commitment to infrastructure development. Strategic mergers, such as the Duncan Merger and Holdings Merger, have also played a role in EPD's growth and operational integration.

Financial Statements
Beta
Revenue$44.31B
Cost of Revenue$38.29B
Gross Profit$6.02B
Operating Expenses$41.50B
Operating Income$2.86B
Interest Expense$744.10M
Net Income$2.05B
EPS (Basic)$1.24
EPS (Diluted)$1.19
Shares Outstanding (Basic)1.65B
Shares Outstanding (Diluted)1.72B

Key Highlights

  • 1EPD is a diversified midstream energy provider with a substantial asset base, including over 50,000 miles of pipelines.
  • 2The company's strategy emphasizes growth through capital projects and acquisitions, particularly in high-production basins like the Eagle Ford Shale.
  • 3Significant recent developments include the announcement of the ATEX Express ethane pipeline project and the reversal and expansion of the Seaway crude oil pipeline.
  • 4EPD operates six reportable business segments, with NGL Pipelines & Services and Onshore Crude Oil Pipelines & Services being significant revenue contributors.
  • 5The company's financial performance is influenced by commodity prices and energy demand, with strategic hedging activities in place to mitigate price risks.
  • 6EPD reported significant capital expenditures in 2011 ($3.55 billion on growth projects) and projected similar spending for 2012, indicating continued investment in infrastructure.
  • 7The company has a strong focus on expanding its NGL fractionation capacity, particularly at its Mont Belvieu complex, to accommodate growing production.

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