Summary
Enterprise Products Partners L.P. (EPD) reported its financial results for the second quarter and the first six months of 2015. The company experienced a significant decline in revenues compared to the prior year, primarily driven by lower commodity prices for NGLs, crude oil, petrochemicals, and refined products, which more than offset increases in sales volumes. Despite lower revenues, the company managed its operating costs effectively, resulting in a slight increase in net cash flows provided by operating activities for the first six months of 2015 compared to the same period in 2014. A major strategic development was the completion of the sale of its Offshore Gulf of Mexico Business in July 2015, which is viewed as a non-core asset. The company also made significant capital investments, including the acquisition of EFS Midstream LLC and announced plans for new pipeline projects. These activities reflect a continued focus on expanding and optimizing its midstream energy infrastructure. The company maintained compliance with its debt covenants and ended the period with a solid liquidity position.
Financial Highlights
40 data points| Revenue | $7.09B |
| Cost of Revenue | $5.26B |
| Gross Profit | $1.83B |
| Operating Expenses | $6.40B |
| Operating Income | $800.30M |
| Interest Expense | $240.40M |
| Net Income | $551.00M |
| Shares Outstanding (Diluted) | 2.00B |
Key Highlights
- 1Total revenues decreased significantly in the second quarter and first six months of 2015 compared to 2014, primarily due to lower commodity prices across NGLs, crude oil, petrochemicals, and refined products.
- 2Net cash flows provided by operating activities saw a slight increase of $29.7 million for the first six months of 2015 compared to the prior year, reaching $1,901.6 million.
- 3The company completed the sale of its Offshore Gulf of Mexico Business for approximately $1.53 billion in cash, classifying it as a non-strategic asset sale.
- 4Capital expenditures increased significantly in the first six months of 2015, driven by major growth projects at export terminals and the acquisition of EFS Midstream LLC for $2.15 billion.
- 5Enterprise Products Partners L.P. issued $2.5 billion in senior notes in May 2015 to refinance existing debt and fund general corporate purposes.
- 6The company continues to grow its asset base through strategic projects, including pipeline expansions and new processing facilities, with approximately $2.4 billion in growth capital projects expected to be completed in the remainder of 2015.
- 7Distributable cash flow for the first six months of 2015 was $2,017.2 million, with a distribution coverage ratio of 1.4x, indicating the company's ability to cover its distributions to limited partners.