10-KPeriod: FY2021

ENTERPRISE PRODUCTS PARTNERS L.P. Annual Report, Year Ended Dec 31, 2021

Filed February 28, 2022For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) reported a strong financial performance for the fiscal year ended December 31, 2021, driven by robust demand across its diverse midstream energy infrastructure network. The company experienced significant revenue growth, primarily fueled by higher commodity prices and increased volumes in its NGL Pipelines & Services and Crude Oil Pipelines & Services segments. EPD's integrated asset base, which spans natural gas, NGLs, crude oil, and petrochemicals, proved resilient, benefiting from strong customer relationships and operational efficiency. The company also highlighted strategic developments, including the acquisition of Navitas Midstream Partners, LLC, and expansions of its Acadian Natural Gas Pipeline System, reinforcing its commitment to growth and expanded service offerings. EPD maintained a strong liquidity position and managed its debt effectively. The company's focus on operational excellence, safety, and disciplined capital allocation positions it well for continued success in the dynamic energy market.

Financial Highlights

44 data points
Beta

Revenue

$40.81B

26.8% Gross Margin

Net Income

$4.63B

11.4% Net Margin

Total Assets

$67.53B

Cash & Equivalents

$2.82B

Free Cash Flow

$6.29B

Financial Statements
Beta
Revenue$40.81B
Cost of Revenue$29.89B
Gross Profit$10.92B
Operating Expenses$35.29B
Operating Income$6.10B
Interest Expense$1.28B
Net Income$4.63B
Shares Outstanding (Diluted)2.20B

Key Highlights

  • 1Strong revenue growth driven by higher commodity prices and increased volumes across key segments, particularly NGL and Crude Oil Pipelines & Services.
  • 2Successful completion of strategic growth projects, including expansions of the Acadian Natural Gas Pipeline System and asset modernizations.
  • 3Acquisition of Navitas Midstream Partners, LLC for $3.25 billion, enhancing natural gas processing and pipeline capabilities.
  • 4Robust financial performance with significant operating income and distributable cash flow, supporting strong unitholder returns.
  • 5Maintained a strong liquidity position with $7.32 billion in consolidated liquidity, supported by investment-grade credit ratings.
  • 6Active unit repurchase program, demonstrating commitment to returning capital to unitholders.
  • 7Commitment to ESG initiatives and sustainable practices, including exploration of carbon capture opportunities with Chevron.

Frequently Asked Questions

Enterprise Products Partners' primary source of revenue growth in 2021 was driven by higher commodity prices, particularly for NGLs, natural gas, petrochemicals, and refined products. This was complemented by increased volumes in their NGL and Crude Oil Pipelines & Services segments.

In January 2022, Enterprise Products Partners announced the acquisition of Navitas Midstream Partners, LLC for $3.25 billion in cash. This acquisition significantly expanded their natural gas gathering and processing infrastructure, adding approximately 1,750 miles of pipelines and over 1.0 Bcf/d of cryogenic natural gas processing capacity.

Enterprise Products Partners maintained a strong liquidity position with $7.32 billion in consolidated liquidity at the end of 2021, comprising available borrowing capacity and unrestricted cash. The company also actively managed its debt, issuing $1.0 billion in senior notes while repurchasing common units under its buyback program, demonstrating a balanced approach to capital allocation and shareholder returns.

Enterprise Products Partners operates through four primary business segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. These segments encompass a comprehensive range of midstream energy services.