Summary
Enterprise Products Partners L.P. (EPD) reported a strong performance for the six months ended June 30, 2011, with total revenues reaching $21.4 billion, a significant increase from $16.09 billion in the same period of the prior year. This growth was driven by higher commodity prices and increased volumes across several business segments, particularly in NGLs and crude oil transportation. Net income attributable to partners saw a substantial jump to $854.4 million from $124 million in the prior year, reflecting improved operational execution and favorable market conditions. The company continued its strategic growth initiatives, with significant capital expenditures on expansion projects like the sixth NGL fractionator at Mont Belvieu and the Eagle Ford Shale crude oil pipeline extension. These investments are positioned to capitalize on the growing production from key shale basins. Management expressed confidence in the company's liquidity and capital resources to fund ongoing and future growth, with plans for further debt and equity issuances if necessary.
Financial Highlights
46 data points| Revenue | $11.22B |
| Cost of Revenue | $9.79B |
| Gross Profit | $1.43B |
| Operating Expenses | $10.58B |
| Operating Income | $643.90M |
| Interest Expense | $188.30M |
| Net Income | $433.70M |
| EPS (Basic) | $0.27 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 2K |
| Shares Outstanding (Diluted) | 1.70B |
Key Highlights
- 1Total revenues increased by approximately 33% to $21.4 billion for the six months ended June 30, 2011, compared to $16.09 billion for the same period in 2010.
- 2Net income attributable to partners significantly increased to $854.4 million for the six months ended June 30, 2011, from $124 million in the prior year.
- 3Gross operating margin for the six months ended June 30, 2011, was $1.8 billion, up from $1.62 billion in the prior year, driven by strong performance in NGL Pipelines & Services and Onshore Natural Gas Pipelines & Services.
- 4Capital expenditures for the first six months of 2011 totaled $1.73 billion, primarily for growth projects like the Eagle Ford Shale and Haynesville Shale expansions, indicating a strong commitment to future growth.
- 5The company announced plans for significant capacity expansions, including a sixth NGL fractionator at Mont Belvieu and an extension of the Eagle Ford Shale crude oil pipeline system.
- 6EPD continues to manage its debt effectively, with average debt principal outstanding increasing but remaining manageable relative to earnings and cash flow.
- 7The proposed merger with Duncan Energy Partners is progressing, pending unitholder approval, and is expected to be accretive.