Summary
Enterprise Products Partners L.P. (EPD) reported solid financial results for the first quarter of 2019, demonstrating resilience and growth across its diverse midstream energy operations. Total revenues for the quarter were $8.54 billion, a decrease from the prior year's $9.30 billion, primarily driven by lower marketing revenues, particularly in crude oil. However, the company's core midstream services segment showed robust performance, with an increase in gross operating margin by $547.2 million year-over-year to $2.13 billion. This growth was fueled by strong contributions from NGL Pipelines & Services and Crude Oil Pipelines & Services, supported by new infrastructure coming online. The company also highlighted its commitment to returning capital to unitholders with the announcement of a $2.0 billion unit buyback program and a planned increase in quarterly distributions.
Financial Highlights
44 data points| Revenue | $8.54B |
| Cost of Revenue | $5.84B |
| Gross Profit | $2.71B |
| Operating Expenses | $7.07B |
| Operating Income | $1.63B |
| Interest Expense | $277.20M |
| Net Income | $1.26B |
| Shares Outstanding (Diluted) | 2.20B |
Key Highlights
- 1Total revenues decreased by 8.1% to $8.54 billion, primarily due to lower crude oil marketing revenues.
- 2Gross operating margin increased by 35.2% to $2.13 billion, driven by growth in NGL and Crude Oil Pipelines & Services segments.
- 3Capital expenditures were $1.15 billion, an increase from $946.5 million in the prior year, reflecting significant investments in growth projects like the Shin Oak NGL Pipeline and Midland-to-ECHO 2 Pipeline System.
- 4The company announced a $2.0 billion unit buyback program in January 2019, repurchasing $51.6 million of units in Q1 2019.
- 5Distributable Cash Flow (DCF) increased by 17.5% to $1.63 billion, leading to a distribution coverage ratio of 1.7x.
- 6The company declared a Q1 2019 cash distribution of $0.4375 per common unit, a 2.3% increase year-over-year.