Summary
Enterprise Products Partners L.P. (EPD) reported a strong first quarter in 2017, driven by higher commodity prices and increased volumes across its midstream energy infrastructure segments. Total revenues surged by over 45% year-over-year, indicating robust demand for its services. The company also continued to invest in its extensive network of pipelines and facilities, signaling confidence in future growth. Distributable cash flow remained strong, supporting distributions to unitholders and providing ample coverage. Financially, EPD demonstrated improved profitability with a significant increase in net income attributable to limited partners, driven by higher gross operating margins in key segments, particularly NGL Pipelines & Services and Crude Oil Pipelines & Services. The company's proactive management of its debt obligations and its strong liquidity position, evidenced by substantial available borrowing capacity and cash on hand, provide a solid foundation for ongoing operations and strategic growth initiatives. The completion of the Azure acquisition in April 2017 further expands EPD's asset base and market reach.
Financial Highlights
43 data points| Revenue | $7.32B |
| Cost of Revenue | $5.34B |
| Gross Profit | $1.98B |
| Operating Expenses | $6.38B |
| Operating Income | $1.03B |
| Interest Expense | $249.30M |
| Net Income | $760.70M |
| Shares Outstanding (Diluted) | 2.13B |
Key Highlights
- 1Total revenues increased by approximately 45% to $7.32 billion for the three months ended March 31, 2017, compared to $5.01 billion for the same period in 2016.
- 2Net income attributable to limited partners rose by over 15% to $760.7 million, or $0.36 per diluted unit, reflecting improved operational performance.
- 3Gross operating margin increased by approximately 12% to $1.47 billion, driven by strong performance in NGL Pipelines & Services and Crude Oil Pipelines & Services segments.
- 4The company's distributable cash flow was $1.13 billion for the quarter, resulting in a distribution coverage ratio of 1.3x, demonstrating its ability to cover distributions to limited partners.
- 5Capital expenditures were $460.1 million, primarily focused on growth projects, indicating continued investment in expanding its midstream infrastructure.
- 6The company announced plans to build the Shin Oak NGL Pipeline and expand its ethylene infrastructure, signaling strategic growth initiatives.
- 7EPD completed the acquisition of Azure Midstream Partners, L.P. in April 2017, further enhancing its natural gas gathering and processing capabilities.