Summary
Enterprise Products Partners L.P. (EPD) reported its financial results for the second quarter and the first six months of 2016. For the quarter ended June 30, 2016, the company generated total revenues of $5.62 billion, a decrease from $7.09 billion in the same period last year, primarily driven by lower crude oil and natural gas marketing revenues. Despite the revenue decline, operating income saw a modest increase to $836.9 million from $800.3 million, benefiting from lower operating costs, including reduced asset impairment charges. For the six-month period, total revenues were $10.62 billion, down from $14.57 billion in the prior year. Operating income for the first half of 2016 improved to $1.75 billion, up from $1.70 billion in the comparable period of 2015. This improvement was largely due to a significant reduction in asset impairment charges, which more than offset the impact of lower revenues. The company continues to invest in growth capital projects, with approximately $1.95 billion spent in the first half of 2016, and expects to complete additional projects throughout the year.
Financial Highlights
43 data points| Revenue | $5.62B |
| Cost of Revenue | $3.84B |
| Gross Profit | $1.78B |
| Operating Expenses | $4.86B |
| Operating Income | $836.90M |
| Interest Expense | $244.10M |
| Net Income | $558.50M |
| Shares Outstanding (Diluted) | 2.09B |
Key Highlights
- 1Total revenues for Q2 2016 decreased by $1.47 billion year-over-year to $5.62 billion, mainly due to lower crude oil and natural gas marketing revenues.
- 2Operating income increased by $36.6 million year-over-year to $836.9 million in Q2 2016, driven by lower operating costs and reduced asset impairment charges.
- 3For the first six months of 2016, operating income rose to $1.75 billion from $1.70 billion in the prior year, primarily due to a substantial decrease in asset impairment charges.
- 4NGL Pipelines & Services segment gross operating margin increased by $68.5 million year-over-year in Q2 2016, driven by higher volumes and fees in NGL pipelines, storage, and terminals.
- 5Crude Oil Pipelines & Services segment gross operating margin decreased by $58.2 million year-over-year in Q2 2016, largely impacted by lower crude oil marketing activities and reduced volumes on the South Texas Crude Oil Pipeline System.
- 6The company continued to expand its asset base, with $1.95 billion in capital spending during the first six months of 2016, including significant investments in NGL and natural gas infrastructure.
- 7EPD announced plans to increase its quarterly cash distribution to $0.40 per unit for the second quarter of 2016, representing a 5.2% increase year-over-year.