Summary
Enterprise Products Partners L.P. (EPD) reported a strong first quarter of 2018, with total revenues increasing significantly to $9.3 billion, up from $7.3 billion in the same period last year. This growth was driven by a substantial rise in crude oil marketing revenues, due to higher volumes and prices, as well as increased midstream service revenues across several segments, particularly driven by higher transportation fees and throughput on key pipelines. The company also benefited from a $37 million gain on the step acquisition of its Delaware Basin Gas Processing joint venture. Net income attributable to limited partners rose to $900.7 million, or $0.41 per diluted unit, compared to $760.7 million, or $0.36 per diluted unit, in the first quarter of 2017. Operating income also saw a healthy increase. While operating costs and expenses, particularly cost of sales, increased primarily due to higher crude oil marketing activities, the overall increase in revenues outpaced these costs, leading to improved profitability. EPD also maintained financial flexibility, with a strong distributable cash flow of $1.39 billion covering distributions 1.5 times and ample liquidity of $5.02 billion at quarter-end.
Financial Highlights
44 data points| Revenue | $9.30B |
| Cost of Revenue | $7.14B |
| Gross Profit | $2.16B |
| Operating Expenses | $8.28B |
| Operating Income | $1.14B |
| Interest Expense | $252.10M |
| Net Income | $900.70M |
| Shares Outstanding (Diluted) | 2.18B |
Key Highlights
- 1Total revenues increased by approximately 27% to $9.3 billion for the three months ended March 31, 2018, compared to $7.3 billion for the same period in 2017.
- 2Net income attributable to limited partners increased by 18% to $900.7 million, or $0.41 per diluted unit, compared to $760.7 million, or $0.36 per diluted unit, in the prior year's first quarter.
- 3Gross operating margin increased by 7% to $1.586 billion, driven by strong performance across NGL Pipelines & Services and Petrochemical & Refined Products Services segments.
- 4The company completed the acquisition of the remaining 50% interest in its Delaware Basin Gas Processing joint venture for $153.6 million, recognizing a $37 million gain on the transaction.
- 5Capital expenditures for growth projects increased significantly to $873.3 million, reflecting continued investment in infrastructure expansion, particularly for Permian Basin production and export activities.
- 6EPD's distributable cash flow was $1.39 billion, providing a coverage ratio of 1.5x for cash distributions paid to limited partners.
- 7Consolidated liquidity remained strong at $5.02 billion, comprised of available borrowing capacity and unrestricted cash.