Summary
Enterprise Products Partners L.P. (EPD) reported its fiscal year 2016 results, showcasing resilience in a challenging commodity price environment. The company's integrated midstream infrastructure, spanning natural gas, NGLs, crude oil, and petrochemicals, demonstrated its ability to generate stable fee-based revenues. EPD's strategic focus on expanding its asset base through growth capital projects and accretive acquisitions, particularly in key supply basins like the Permian and Delaware Basins, positions it well for future demand growth, especially in exports. Despite lower commodity prices impacting marketing revenues, the partnership maintained strong operational performance and a robust liquidity position. For investors, EPD's performance highlights its stable business model, driven by fee-based services, and its ongoing commitment to growth and unitholder returns. The company's extensive network of pipelines, storage, and processing facilities allows it to effectively connect producers with consumers, both domestically and internationally. Key developments in 2016 included the start-up of export terminals and processing plants, underscoring EPD's strategic investments in high-growth areas. The company's financial health, supported by strong liquidity and prudent debt management, provides a solid foundation for continued operations and potential future distributions.
Financial Highlights
44 data points| Revenue | $23.02B |
| Cost of Revenue | $15.71B |
| Gross Profit | $7.31B |
| Operating Expenses | $19.80B |
| Operating Income | $3.58B |
| Interest Expense | $982.60M |
| Net Income | $2.51B |
| Shares Outstanding (Diluted) | 2.09B |
Key Highlights
- 1EPD operates a vast midstream energy infrastructure network across North America, covering natural gas, NGLs, crude oil, petrochemicals, and refined products.
- 2The company's business strategy focuses on leveraging its integrated asset network to capitalize on expected demand growth, including exports, and maintaining a diversified portfolio of fee-based assets.
- 3In 2016, EPD completed and placed into service key projects, including the Morgan’s Point Ethane Export Terminal and new natural gas processing plants in the Delaware Basin (South Eddy and Waha).
- 4The company's NGL fractionation facilities operated at high utilization rates (over 90%) in 2016, indicating strong demand for its services.
- 5EPD's Crude Oil Pipelines & Services segment saw growth in terminaling services, benefiting from expansions and increased demand, while also navigating lower crude oil marketing margins.
- 6Natural Gas Pipelines & Services segment performance was impacted by reduced drilling activity in regions like the Eagle Ford Shale, but EPD's extensive pipeline network provided a stable base.
- 7EPD maintained a strong liquidity position at year-end 2016 with $3.78 billion in consolidated liquidity, consisting of available borrowing capacity and unrestricted cash.