Summary
Enterprise Products Partners L.P. (EPD) reported its second quarter 2012 results, showcasing solid performance driven by its midstream energy services. Total revenues for the quarter were $9.8 billion, a decrease from $11.2 billion in the prior year quarter, largely due to lower commodity prices impacting marketing revenues. However, the company demonstrated operational strength with a significant increase in gross operating margin to $1.03 billion, up from $922.5 million in Q2 2011. This improvement was driven by higher NGL fractionation volumes, increased capacity at its Mont Belvieu NGL fractionators, and strong performance in its onshore crude oil pipelines and services segment, benefiting from increased production in the Eagle Ford Shale. The company continued its strategic growth initiatives, with substantial capital expenditures focused on expanding its infrastructure, including new NGL pipelines and processing facilities. Notably, the company announced plans for a world-scale propane dehydrogenation (PDH) unit and commenced operations on the Eagle Ford expansion of its South Texas Crude Oil Pipeline System. These growth projects are expected to support long-term value creation for unitholders. Financially, EPD managed its debt effectively, and cash flows from operations remained robust, providing ample liquidity for its capital program and distributions.
Financial Highlights
42 data points| Revenue | $9.79B |
| Cost of Revenue | $8.20B |
| Gross Profit | $1.59B |
| Operating Expenses | $9.05B |
| Operating Income | $749.10M |
| Interest Expense | $186.60M |
| Net Income | $566.30M |
| Shares Outstanding (Diluted) | 1.78B |
Key Highlights
- 1Total revenues decreased to $9.8 billion from $11.2 billion year-over-year, primarily due to lower commodity prices impacting marketing revenues.
- 2Gross operating margin increased significantly to $1.03 billion from $922.5 million year-over-year, reflecting strong operational performance and expanded capacity.
- 3Net income attributable to limited partners rose to $566.3 million ($0.64 per diluted unit) from $433.7 million ($0.51 per diluted unit) in the prior year quarter.
- 4Capital expenditures for the first six months of 2012 were $1.95 billion, primarily directed towards growth projects in the Eagle Ford Shale and facility expansions.
- 5The company commenced operations on the Eagle Ford expansion of its South Texas Crude Oil Pipeline System and announced plans for a new world-scale propane dehydrogenation (PDH) unit.
- 6EPD completed the liquidation of its investment in Energy Transfer Equity, realizing aggregate gains of $68.8 million in 2012.
- 7Consolidated debt increased slightly to $15.01 billion, with proceeds from new debt issuances used for general corporate purposes and to repay existing debt.