What was Enterprise Products Partners' (EPD) financial performance in the third quarter of 2007?

In the third quarter of 2007, EPD reported a net income of $117.6 million, a decrease from $208.3 million in the same quarter of 2006. This decline was primarily driven by higher interest expenses resulting from recent debt issuances and increased minority interest expenses, although total revenues saw a modest increase to $4.11 billion from $3.87 billion due to higher NGL sales prices and volumes.

How did EPD's capital expenditures trend in the first nine months of 2007?

EPD significantly increased its capital expenditures, with $1.96 billion invested in the first nine months of 2007, compared to $1.21 billion in the same period of 2006. This substantial investment was primarily directed towards growth capital projects, including new facilities and infrastructure expansions across its various business segments, aimed at supporting future growth and increased production volumes.

What significant financing activities occurred for EPD during this period?

During the first nine months of 2007, EPD engaged in significant financing activities to fund its growth. This included the issuance of $800 million in Senior Notes L in September and $700 million in Junior Subordinated Notes B in May. Additionally, its subsidiary Duncan Energy Partners completed an initial public offering in February 2007. These activities increased the company's total debt principal outstanding to approximately $6.8 billion by the end of the third quarter.

How did EPD's business segments perform in the third quarter of 2007?

The NGL Pipelines & Services segment experienced a decrease in gross operating margin to $190.2 million from $232.0 million, impacted by lower NGL marketing sales volumes and increased hedging expenses. The Onshore Natural Gas Pipelines & Services segment's gross operating margin slightly decreased to $75.4 million from $77.5 million, primarily due to lower volumes on its San Juan Gathering System and higher operating expenses. The Offshore Pipelines & Services segment saw a notable increase in gross operating margin to $46.7 million from $38.4 million, largely driven by the Independence Hub platform contributing significant revenues. The Petrochemical Services segment's gross operating margin remained relatively stable at $51.4 million, compared to $51.9 million in the prior year.

EPD/EPDU 10-Q Quarterly Report Q3 FY2007 — Revenue, Net Income, EPS

Summary

Enterprise Products Partners L.P. (EPD) reported its third-quarter and nine-month results for the period ending September 30, 2007. For the quarter, the company saw a decrease in net income to $117.6 million compared to $208.3 million in the prior year period. This decline was attributed to increased interest expenses, driven by recent debt issuances, and a higher minority interest expense, partially offset by revenue growth from higher NGL sales prices and natural gas sales volumes. For the nine-month period, net income was $371.8 million, down from $468.4 million in the same period of 2006. The decrease was mainly due to higher operating costs and expenses, increased interest expenses from higher debt balances, and a rise in minority interest expense. The company continued to invest heavily in growth capital projects, with capital expenditures totaling $1.96 billion for the nine months ended September 30, 2007, up from $1.21 billion in the prior year period, reflecting significant investments in new facilities and infrastructure expansions across its business segments. The company maintains a strong liquidity position with substantial credit facilities available.

Key Highlights

1Total revenues for the nine months ended September 30, 2007, increased to $11.65 billion from $10.64 billion in the prior year, primarily driven by higher NGL sales volumes and prices.
2Net income for the nine months decreased to $371.8 million from $468.4 million, impacted by higher operating costs, interest expenses, and minority interest.
3Capital expenditures significantly increased to $1.96 billion for the first nine months of 2007 from $1.21 billion in 2006, reflecting substantial investment in growth projects and infrastructure.
4The company issued $800 million in Senior Notes L in September 2007 and $700 million in Junior Subordinated Notes B in May 2007, increasing total debt principal outstanding to $6.8 billion.
5Gross operating margin for the nine months was $1.06 billion, a slight increase from $1.02 billion in the prior year, showing resilience despite higher operating costs.
6Duncan Energy Partners, a consolidated subsidiary, completed its initial public offering in February 2007, contributing $291.9 million in net proceeds.
7The company experienced a $90.7 million quarter-over-quarter decrease in net income for the third quarter of 2007, mainly due to higher interest expenses and increased minority interest.

ENTERPRISE PRODUCTS PARTNERS L.P. Quarterly Report for Q3 Ended Sep 30, 2007

Summary

Key Highlights

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