Summary
Enterprise Products Partners L.P. (EPD) reported its financial results for the second quarter and first half of 2009. The company experienced a significant decline in revenues compared to the same period in 2008, largely driven by lower energy commodity prices impacting its NGL, natural gas, and petrochemical marketing activities. Despite the revenue decrease, the company's operating income showed resilience, down modestly due to cost management and efficient operations. Key highlights for the period include continued investments in growth capital projects and the announcement of a significant merger with TEPPCO Partners, L.P. This merger, expected to close in Q4 2009, aims to enhance EPD's market position and operational scale. The company's balance sheet shows an increase in total assets and total liabilities, with a notable rise in inventories and accounts receivable, reflecting increased business activity and market conditions. Debt levels also increased to finance capital expenditures. Management is focused on maintaining financial flexibility and operational efficiency amidst a challenging economic environment. The company also highlighted its ongoing commitment to safety and environmental responsibility.
Financial Highlights
37 data points| Revenue | $5.43B |
| Operating Expenses | $5.07B |
| Operating Income | $377.80M |
| Interest Expense | -$158.50M |
| Net Income | $39.10M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
Key Highlights
- 1Total revenues decreased by approximately 45% to $3.51 billion for the three months ended June 30, 2009, compared to $6.34 billion for the same period in 2008, primarily due to lower commodity prices.
- 2Operating income for the second quarter of 2009 was $328.3 million, a decrease from $374.3 million in the prior year's quarter, reflecting the challenging commodity price environment.
- 3Net income attributable to Enterprise Products Partners L.P. was $186.6 million for the second quarter of 2009, down from $263.3 million in the second quarter of 2008.
- 4The company announced a definitive agreement to merge with TEPPCO Partners, L.P. (TEPPCO), which is expected to close in the fourth quarter of 2009.
- 5Capital expenditures for the first six months of 2009 totaled $665.9 million, primarily for growth projects.
- 6The company's gross operating margin, a non-GAAP measure, remained relatively stable year-over-year, indicating operational efficiency.
- 7Interest expense increased significantly due to higher debt levels incurred to finance capital investments and acquisitions.