Summary
Enterprise Products Partners L.P. (EPD) reported its financial results for the third quarter and the first nine months of 2015. The company experienced a significant decrease in total revenues for both periods compared to 2014, primarily driven by lower commodity prices for NGLs, crude oil, natural gas, and refined products. Despite lower revenues, the company's gross operating margin remained relatively stable year-over-year for the third quarter and showed a modest increase for the nine-month period, indicating effective cost management and stable fee-based business performance. Operationally, EPD completed the second stage of the Aegis Ethane Pipeline expansion and made significant progress on other strategic projects, including the expansion of its propylene pipeline system and plans for a new crude oil pipeline from Midland to Houston. The company also completed the acquisition of EFS Midstream in July 2015, bolstering its natural gas gathering and processing capabilities. Furthermore, EPD sold its Offshore Business in July 2015, which was deemed non-strategic. The company maintained a strong liquidity position and was in compliance with its debt covenants.
Financial Highlights
43 data points| Revenue | $6.31B |
| Cost of Revenue | $4.42B |
| Gross Profit | $1.89B |
| Operating Expenses | $5.50B |
| Operating Income | $909.40M |
| Interest Expense | $243.70M |
| Net Income | $649.30M |
| Shares Outstanding (Diluted) | 2.01B |
Key Highlights
- 1Total revenues decreased significantly in Q3 2015 ($6.3B vs $12.3B in Q3 2014) and the first nine months of 2015 ($20.9B vs $37.8B in 2014), primarily due to lower commodity prices.
- 2Gross operating margin remained stable year-over-year for Q3 ($1.34B vs $1.33B) and increased for the nine months ($3.98B vs $3.93B), showing resilience in core operations.
- 3The company completed the EFS Midstream acquisition in July 2015 for approximately $2.1 billion, expanding its natural gas gathering and processing services.
- 4EPD sold its Offshore Business in July 2015 for approximately $1.53 billion, streamlining its portfolio.
- 5Capital expenditures for the nine months ended September 30, 2015 were $5.21 billion, significantly higher than the $2.45 billion in the prior year, largely due to the Oiltanking acquisition and EFS Midstream acquisition.
- 6Net cash from operations decreased slightly to $2.59 billion for the nine months ended September 30, 2015, compared to $2.70 billion in the prior year.
- 7The company maintained a strong liquidity position with $4.71 billion in consolidated liquidity at September 30, 2015.