Summary
Enterprise Products Partners L.P. (EPD) reported solid financial results for the second quarter and first half of 2019, demonstrating resilient performance across its diverse midstream energy segments. Total revenues for the quarter slightly decreased year-over-year, primarily due to lower marketing revenues, but this was offset by a significant increase in midstream services revenue, driven by strong demand for pipeline transportation and storage. Net income attributable to limited partners saw a substantial increase of over 80% for the quarter and over 50% for the first half of the year compared to the prior year periods. The company continues to execute its growth strategy, with significant capital investments in expansion projects across its NGL, Crude Oil, and Natural Gas Pipelines & Services segments. Notably, the company announced several key agreements and project milestones, including long-term agreements with Chevron supporting the development of its Sea Port Oil Terminal (SPOT) and expansion of its crude oil pipeline system. EPD also repurchased approximately $81.1 million of its common units under its $2 billion buyback program during the first half of the year, underscoring its commitment to returning capital to unitholders while maintaining financial flexibility.
Financial Highlights
44 data points| Revenue | $8.28B |
| Cost of Revenue | $5.61B |
| Gross Profit | $2.67B |
| Operating Expenses | $6.85B |
| Operating Income | $1.56B |
| Interest Expense | $290.10M |
| Net Income | $1.21B |
| Shares Outstanding (Diluted) | 2.20B |
Key Highlights
- 1Net income attributable to limited partners increased to $1.21 billion for Q2 2019, up from $673.8 million in Q2 2018, driven by strong performance across midstream services.
- 2Total revenues for Q2 2019 were $8.28 billion, a slight decrease from $8.47 billion in Q2 2018, mainly due to lower marketing revenues, offset by higher midstream service revenues.
- 3Gross operating margin increased significantly by 42.7% to $2.08 billion in Q2 2019 compared to $1.46 billion in Q2 2018, reflecting robust operational performance.
- 4The company announced significant long-term agreements with Chevron to support the development of its Sea Port Oil Terminal (SPOT) and expansion of its crude oil pipeline system.
- 5Capital expenditures for the first six months of 2019 were $2.26 billion, up from $1.92 billion in the prior year, reflecting continued investment in growth projects.
- 6EPD repurchased $81.1 million of its common units under its $2 billion buyback program in the first half of 2019, demonstrating a commitment to shareholder returns.