Summary
Enterprise Products Partners L.P. (EPD) reported a significant increase in financial performance for the six months ended June 30, 2010, compared to the same period in 2009. Revenues grew by over 50%, driven by higher energy commodity prices and increased sales volumes across its various segments, particularly in NGLs, natural gas, crude oil, and refined products. This revenue growth, coupled with disciplined cost management, led to a substantial increase in operating income and net income attributable to EPD. The company also demonstrated strong operational execution, evidenced by robust gross operating margins across its business segments, with notable improvements in the Offshore Pipelines & Services and Petrochemical & Refined Products Services segments. Financially, EPD strengthened its balance sheet through significant equity and debt offerings, raising substantial capital. This capital was strategically deployed to fund major acquisitions, such as the State Line and Fairplay natural gas gathering systems, and to support ongoing growth capital projects. The company maintained a healthy liquidity position, with substantial unrestricted cash and available credit facilities, ensuring its ability to meet operational needs, debt obligations, and capital expenditure plans. The period also saw an increase in distributions paid to partners, reflecting the company's commitment to returning value to its unitholders.
Financial Highlights
42 data points| Revenue | $7.54B |
| Cost of Revenue | $6.34B |
| Gross Profit | $1.20B |
| Operating Expenses | $7.01B |
| Operating Income | $539.70M |
| Interest Expense | $179.20M |
| Net Income | $54.10M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 418 |
| Shares Outstanding (Diluted) | 418 |
Key Highlights
- 1Total revenues for the six months ended June 30, 2010 increased by approximately 56% to $16.09 billion from $10.32 billion in the prior year period.
- 2Net income attributable to Enterprise Products Partners L.P. rose significantly to $735.0 million for the first six months of 2010, up from $411.9 million in the same period of 2009.
- 3Gross operating margin for the six months ended June 30, 2010, increased by 20% to $1.61 billion, indicating improved profitability from core operations.
- 4The company completed a major acquisition of the State Line and Fairplay natural gas gathering systems for approximately $1.2 billion in May 2010, expanding its midstream infrastructure.
- 5EPD raised significant capital through equity offerings ($990.1 million) and debt issuances ($2.0 billion) during the first half of 2010 to fund its growth initiatives and acquisitions.
- 6Despite increased debt, the company maintained a strong liquidity position with $494.5 million in unrestricted cash and $1.83 billion in available credit at June 30, 2010.
- 7Distributions paid to partners increased significantly, reflecting increased earnings and partner returns.