Summary
Enterprise Products Partners L.P. (EPD) reported a strong financial performance for the nine months ended September 30, 2010, with revenues increasing significantly year-over-year. This growth was driven by higher energy commodity prices and increased sales volumes across its various midstream energy services segments. The company successfully integrated several strategic acquisitions, notably the State Line and Fairplay natural gas gathering systems, which contributed positively to revenues and expanded its operational footprint. EPD demonstrated robust operational execution, with significant increases in gross operating margin, particularly in the Petrochemical & Refined Products Services and Onshore Natural Gas Pipelines & Services segments. The company also managed its debt effectively, issuing new notes and leveraging its credit facilities to fund strategic growth initiatives and acquisitions. Despite some segment-specific challenges, such as reduced volumes in offshore services due to the Deepwater Horizon incident's aftermath, EPD's diversified business model and strategic investments position it well for continued growth and profitability.
Financial Highlights
43 data points| Revenue | $8.07B |
| Cost of Revenue | $6.81B |
| Gross Profit | $1.25B |
| Operating Expenses | $7.53B |
| Operating Income | $543.20M |
| Interest Expense | $192.00M |
| Net Income | $37.00M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 418 |
| Shares Outstanding (Diluted) | 418 |
Key Highlights
- 1Total revenues increased to $8.07 billion for the third quarter and $24.16 billion for the nine months ended September 30, 2010, up from $6.79 billion and $17.11 billion in the respective prior-year periods.
- 2Operating income showed significant improvement, rising to $569.2 million for the third quarter and $1.67 billion for the nine months ended September 30, 2010, compared to $356.3 million and $1.21 billion in the prior-year periods.
- 3Net income attributable to Enterprise Products Partners L.P. increased substantially to $371.9 million for the third quarter and $1.11 billion for the nine months ended September 30, 2010, compared to $212.9 million and $624.8 million in the prior-year periods.
- 4The company completed a significant acquisition of the State Line and Fairplay natural gas gathering systems for approximately $1.2 billion in May 2010, which contributed to revenue growth.
- 5Gross operating margin increased across most segments, notably Petrochemical & Refined Products Services and Onshore Natural Gas Pipelines & Services, reflecting improved operational performance and higher commodity prices.
- 6The company ended the period with $42.7 million in cash and cash equivalents and $1.8 billion in available credit under its revolving credit facilities, indicating a strong liquidity position.
- 7EPD announced plans for significant expansion projects in the Eagle Ford Shale, including new pipelines and a processing facility, to accommodate growing production.