Summary
Enterprise Products Partners L.P. (EPD) reported its first quarter 2009 financial results, revealing a notable decrease in total revenues to $3.42 billion from $5.68 billion in the prior year's quarter. This decline is primarily attributed to lower energy commodity prices impacting sales and cost of sales, particularly in NGL, natural gas, and petrochemical marketing activities. Despite lower revenues, operating income remained resilient, increasing slightly to $372.2 million from $366.7 million, driven by improved gross operating margins in the NGL Pipelines & Services segment and controlled operating expenses. The company also reported net income attributable to EPD of $225.3 million, a decrease from $259.6 million in Q1 2008, reflecting higher interest expenses and provision for income taxes, alongside the revenue decline. The company announced several significant developments including the potential acquisition of TEPPCO, the exit from the Texas Offshore Port System partnership leading to a projected $34.2 million charge, and the commencement of service on new pipelines and facilities. EPD also successfully issued $225.6 million of common units in January 2009, which were used to reduce borrowings, demonstrating proactive capital management amidst a challenging economic environment. Investors should note the continued impact of lower commodity prices, ongoing infrastructure development, and strategic capital allocation as key factors influencing future performance.
Financial Highlights
22 data points| Revenue | $4.89B |
| Operating Expenses | $4.41B |
| Operating Income | $498.20M |
| Interest Expense | -$152.50M |
| Net Income | $62.90M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
Key Highlights
- 1Total revenues decreased by 39.8% to $3.42 billion in Q1 2009 compared to $5.68 billion in Q1 2008, primarily due to lower commodity prices.
- 2Operating income increased slightly to $372.2 million from $366.7 million, indicating strong operational management despite revenue headwinds.
- 3Net income attributable to Enterprise Products Partners L.P. decreased to $225.3 million from $259.6 million, impacted by higher interest expenses and taxes.
- 4The company raised $225.6 million in net proceeds from a common unit offering in January 2009 to reduce debt.
- 5Gross operating margin for NGL Pipelines & Services increased by $53.1 million, driven by higher processing activity and favorable hedging.
- 6The company exited the Texas Offshore Port System partnership, expecting a $34.2 million non-cash charge in Q2 2009.
- 7Despite a challenging market, the company continues to invest in growth projects, with capital expenditures totaling $392.5 million in Q1 2009.