10-QPeriod: Q1 FY2012

ENTERPRISE PRODUCTS PARTNERS L.P. Quarterly Report for Q1 Ended Mar 31, 2012

Filed May 10, 2012For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) reported a strong first quarter for 2012, with net income attributable to limited partners rising to $651.3 million, a significant increase from $420.7 million in the same period of 2011. This growth was driven by robust performance across its midstream energy services segments, particularly in NGL Pipelines & Services and Onshore Natural Gas Pipelines & Services. Total revenues increased to $11.25 billion, up from $10.18 billion in the prior year's quarter, with crude oil sales showing notable growth due to higher volumes and prices. The company also highlighted ongoing strategic growth initiatives, including plans for new pipeline construction and expansions, demonstrating a commitment to expanding its infrastructure network and leveraging production growth from key shale plays. The balance sheet reflects total assets of $33.89 billion as of March 31, 2012. Long-term debt stood at $13.57 billion, with the company actively managing its debt profile, including the issuance of new senior notes. The company maintained a strong liquidity position, underscoring its financial stability. EPD's consistent focus on infrastructure development and operational efficiency positions it well to capitalize on the evolving energy landscape.

Financial Highlights

42 data points
Beta

Revenue

$11.25B

14.1% Gross Margin

Net Income

$651.30M

5.8% Net Margin

Total Assets

$33.89B

Cash & Equivalents

$88.30M

Free Cash Flow

-$368.20M

Financial Statements
Beta
Revenue$11.25B
Cost of Revenue$9.67B
Gross Profit$1.59B
Operating Expenses$10.51B
Operating Income$748.90M
Interest Expense$186.50M
Net Income$651.30M
Shares Outstanding (Basic)1.71B
Shares Outstanding (Diluted)1.78B

Key Highlights

  • 1Net income attributable to limited partners surged to $651.3 million in Q1 2012, a substantial increase from $420.7 million in Q1 2011.
  • 2Total revenues grew to $11.25 billion, up from $10.18 billion year-over-year, driven by higher crude oil sales and increased activity across various midstream segments.
  • 3The NGL Pipelines & Services segment showed significant improvement, with gross operating margin increasing by $150.5 million year-over-year, driven by higher natural gas processing and NGL marketing margins.
  • 4The company announced several significant growth projects, including the planned construction of the Front Range Pipeline, expansion of the Seaway Crude Oil Pipeline, and new NGL fractionators at Mont Belvieu.
  • 5EPD completed the sale of a substantial portion of its investment in Energy Transfer Equity, generating significant cash proceeds and realizing substantial gains.
  • 6Capital expenditures remained robust, totaling $1.02 billion for the quarter, with a significant portion allocated to growth projects, particularly in the Eagle Ford Shale region.
  • 7The company maintained a healthy liquidity position of $3.59 billion as of March 31, 2012, ensuring sufficient resources for ongoing operations and capital investments.

Frequently Asked Questions

EPD demonstrated significant year-over-year growth. Net income attributable to limited partners increased from $420.7 million in Q1 2011 to $651.3 million in Q1 2012. Total revenues also rose to $11.25 billion in Q1 2012 from $10.18 billion in Q1 2011, driven by strong performance across its midstream segments, particularly crude oil sales and NGL processing.

EPD was actively pursuing growth through several strategic projects. These included plans to construct the Front Range Pipeline, expand the Seaway Crude Oil Pipeline, build new NGL fractionators at its Mont Belvieu complex, and develop the ATEX Express long-haul ethane pipeline. These initiatives underscore EPD's focus on expanding its midstream infrastructure to support growing energy production.

As of March 31, 2012, EPD had approximately $14.58 billion in principal outstanding debt. The company issued $750 million in senior notes in February 2012 to refinance maturing debt and for general corporate purposes. EPD maintained a strong liquidity position of $3.59 billion, comprising unrestricted cash and available credit facilities, indicating robust financial flexibility to fund its capital expenditures and operational needs.

EPD sold a significant portion of its ETE common units during the first quarter of 2012, generating approximately $825.1 million in cash proceeds from an initial private transaction and an additional $150.8 million from subsequent sales through March 31. These sales resulted in aggregate gains of $53.3 million, which were recognized in "Other income". The proceeds were used for general company purposes, including funding capital expenditures.