Summary
Enterprise Products Partners L.P. (EPD) reported a solid first quarter for 2011, demonstrating revenue growth and improved profitability compared to the prior year. Total revenues increased by approximately 19% to $10.18 billion, driven by higher volumes and prices across key products like crude oil and NGLs, although natural gas prices saw a decline. Net income attributable to partners reached $420.7 million, a significant increase from $69.9 million in the first quarter of 2010, reflecting strong operational performance and efficient management of costs. The company's operational segments generally performed well, with NGL Pipelines & Services and Onshore Natural Gas Pipelines & Services showing notable increases in gross operating margin. EPD continued its strategic growth initiatives, including significant capital expenditures on pipeline extensions and expansions, underscoring its commitment to expanding its midstream infrastructure network. The company also announced a proposed merger with Duncan Energy Partners, which is expected to enhance its scale and operational synergies.
Financial Highlights
43 data points| Revenue | $10.18B |
| Cost of Revenue | $8.82B |
| Gross Profit | $1.36B |
| Operating Expenses | $9.57B |
| Operating Income | $624.90M |
| Interest Expense | $183.80M |
| Net Income | $420.70M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 1.63B |
| Shares Outstanding (Diluted) | 1.70B |
Key Highlights
- 1Total revenues increased by 19% year-over-year to $10.18 billion.
- 2Net income attributable to partners rose substantially to $420.7 million from $69.9 million in the prior year's quarter.
- 3Gross operating margin improved across most segments, notably NGL Pipelines & Services and Onshore Natural Gas Pipelines & Services.
- 4Capital expenditures increased significantly to $717.7 million, primarily driven by growth projects in key shale plays.
- 5The company announced plans for significant pipeline expansions, including an Eagle Ford Shale crude oil pipeline extension and a joint venture crude oil pipeline from Cushing to Houston.
- 6A definitive merger agreement was entered into with Duncan Energy Partners, aiming to create a more integrated and efficient entity.
- 7EPD maintained compliance with its debt covenants and reported ample liquidity with $150.4 million in unrestricted cash and $2.38 billion in available borrowing capacity.