What was the primary driver of the revenue increase in the third quarter of 2006?

The increase in revenue was primarily driven by higher sales volumes and favorable energy commodity prices, particularly in the NGL Pipelines & Services segment, which benefited from strong demand for NGLs.

How did the company manage the impact of the 2005 hurricanes?

The company received significant insurance proceeds for business interruption and property damage claims related to Hurricanes Katrina, Rita, and Ivan. These proceeds contributed to the company's financial results, particularly in the third quarter of 2006. The company also noted increased insurance costs and deductibles in its renewed policies.

What are the company's main growth initiatives for the remainder of 2006 and beyond?

The company continues to invest heavily in growth capital projects across its segments, including expansions of NGL and natural gas pipeline systems, new processing facilities, and petrochemical asset expansions. The announced IPO of Duncan Energy Partners is also a key strategic initiative to potentially fund further growth.

How is the company financed, and what is its debt situation?

EPD primarily finances its operations and growth through operating cash flows, revolving credit facilities, and the issuance of equity and debt securities. As of September 30, 2006, the company had approximately $1.3 billion in available credit and consolidated debt obligations of approximately $4.9 billion, with various debt maturities extending into the future.

EPD/EPDU 10-Q Quarterly Report Q3 FY2006 — Revenue, Net Income, EPS

Summary

Enterprise Products Partners L.P. (EPD) reported strong financial performance for the third quarter and first nine months of 2006, with significant revenue growth driven by increased volumes and favorable commodity prices. The company demonstrated robust operating income and net income growth year-over-year, supported by expansion projects and strategic acquisitions, including the notable Encinal acquisition. Capital expenditures remain substantial, focused on growth initiatives across various segments. EPD also highlighted progress in its financing activities and operational improvements, including managing the impact of recent hurricanes. Key financial metrics indicate a healthy business operation, with management expressing confidence in future growth fueled by ongoing capital projects and a strong market position in midstream energy services.

Key Highlights

1Total revenues increased to $3.87 billion for the third quarter of 2006, up from $3.25 billion in the prior year's comparable period, driven by higher sales volumes and commodity prices.
2Operating income rose significantly to $274.2 million for the third quarter of 2006, a substantial increase from $194.4 million in the third quarter of 2005.
3Net income for the third quarter of 2006 reached $208.3 million, a considerable jump from $131.2 million in the same period of 2005.
4The company reported strong year-to-date performance with net income of $468.4 million for the first nine months of 2006, compared to $311.1 million for the same period in 2005.
5Capital expenditures for the nine months ended September 30, 2006, totaled $1.4 billion, primarily allocated to growth capital projects and business combinations.
6A significant acquisition, the Encinal and Canales natural gas gathering systems for $326.1 million, was completed in July 2006, adding to the company's South Texas presence.
7The company announced its intention to pursue an initial public offering for its subsidiary, Duncan Energy Partners L.P., signaling a strategic move to unlock value from its midstream energy assets.

ENTERPRISE PRODUCTS PARTNERS L.P. Quarterly Report for Q3 Ended Sep 30, 2006

Summary

Key Highlights

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