Summary
Enterprise Products Partners L.P. (EPD) reported a strong third quarter and first nine months of 2008, driven by higher commodity prices and increased volumes across its midstream energy segments. Total revenues surged significantly compared to the prior year, reflecting robust demand for its NGL, natural gas, and petrochemical services. The company demonstrated operational resilience, managing the impacts of Hurricanes Gustav and Ike by leveraging its insurance coverage and demonstrating effective cost management. Key financial highlights include substantial growth in gross operating margin, particularly in the NGL Pipelines & Services segment, bolstered by new facilities coming online. Despite increased interest expenses due to higher debt levels to support capital expenditures, EPD maintained healthy net income and earnings per unit. The company's balance sheet remains solid, with substantial assets and a manageable debt profile, supported by strong operating cash flows. EPD continues to invest in growth projects and joint ventures, signaling a positive outlook for future expansion and value creation for unitholders.
Financial Highlights
20 data points| Revenue | $6.30B |
| Operating Expenses | $5.99B |
| Operating Income | $319.10M |
| Interest Expense | -$102.70M |
| Net Income | $203.10M |
Key Highlights
- 1Total revenues increased significantly to $6.3 billion for Q3 2008 and $18.3 billion for the first nine months of 2008, up from $4.1 billion and $11.6 billion in the respective prior-year periods.
- 2Gross operating margin rose to $478.9 million for Q3 2008 and $1.54 billion for the first nine months of 2008, reflecting strong performance across NGL, Onshore Natural Gas, and Petrochemical segments.
- 3Net income attributable to limited partners increased by 84% to $167.6 million for Q3 2008 and by 108% to $620.5 million for the first nine months of 2008.
- 4Earnings per unit (diluted) for limited partners were $0.38 for Q3 2008 and $1.42 for the first nine months of 2008, up from $0.20 and $0.66 respectively.
- 5Total assets grew to $18.15 billion as of September 30, 2008, up from $16.61 billion at the end of 2007.
- 6Long-term debt increased to $8.46 billion from $6.91 billion, primarily to fund capital expenditures and acquisitions.
- 7The company incurred $46.0 million in repair costs related to Hurricanes Gustav and Ike, which are expected to be largely covered by insurance claims, impacting Q3 2008 results but managed through risk mitigation strategies.