Summary
Enterprise Products Partners L.P. (EPD) reported solid financial results for the nine months ended September 30, 2017. Total revenues increased significantly year-over-year, driven by higher sales prices and volumes across most segments, particularly in NGLs, crude oil, and petrochemicals/refined products. The company demonstrated strong operational performance with an increase in gross operating margin, reflecting its integrated midstream energy asset network. Despite an estimated $34.6 million negative impact from Hurricane Harvey on its Q3 2017 gross operating margin, EPD maintained its operational capacity and growth trajectory. Financially, EPD managed its debt effectively, issuing $1.7 billion in junior subordinated notes and entering into new revolving credit facilities to enhance its liquidity position. The company also continued to return value to unitholders through consistent and growing cash distributions, with plans announced for further increases through 2018. Capital expenditures remained robust, supporting ongoing growth projects aimed at capitalizing on increased production from key energy basins.
Financial Highlights
43 data points| Revenue | $6.89B |
| Cost of Revenue | $5.05B |
| Gross Profit | $1.84B |
| Operating Expenses | $6.12B |
| Operating Income | $879.20M |
| Interest Expense | $243.90M |
| Net Income | $610.90M |
| Shares Outstanding (Diluted) | 2.16B |
Key Highlights
- 1Total revenues for the first nine months of 2017 increased by $4.27 billion to $20.81 billion compared to the same period in 2016, driven by higher commodity prices and volumes.
- 2Gross operating margin for the first nine months of 2017 increased to $4.16 billion from $3.89 billion in the prior year, indicating improved core profitability.
- 3Net income attributable to limited partners for the first nine months of 2017 was $2.03 billion, up from $1.85 billion in the comparable period of 2016.
- 4The company issued $1.7 billion in junior subordinated notes and entered into new, larger revolving credit facilities, bolstering its liquidity and financial flexibility.
- 5EPD announced plans to increase quarterly cash distributions per unit by $0.0025 for six fiscal quarters starting Q3 2017, signaling confidence in future cash flows.
- 6Capital expenditures for the first nine months of 2017 totaled $2.35 billion, with significant investments in growth projects like the Shin Oak NGL Pipeline and expansion of natural gas processing capacity.
- 7Hurricane Harvey had an estimated negative impact of $34.6 million on the company's Q3 2017 gross operating margin, primarily affecting Petrochemical & Refined Products and NGL segments.