ENTERPRISE PRODUCTS PARTNERS L.P. Quarterly Report for Q3 Ended Sep 30, 2019

Summary

Enterprise Products Partners L.P. (EPD) reported its third-quarter and nine-month results for 2019, highlighting a decrease in total revenues primarily driven by lower marketing revenues due to softer commodity prices. Despite the revenue decline, the company demonstrated solid operational performance across its midstream segments. The company continued its strategic capital allocation, investing in growth projects and returning capital to unitholders through distributions and unit repurchases. The balance sheet remained strong, with significant liquidity available for future needs. Key financial metrics showed a decrease in net income attributable to limited partners to $1,019.2 million for the third quarter and $3,494.4 million for the first nine months, compared to the prior year. This was largely influenced by lower commodity prices affecting marketing segments, although midstream services revenue showed growth. The company's focus on fee-based services and its extensive infrastructure network continue to provide stability. Management expressed confidence in sufficient liquidity and access to capital markets to fund ongoing and future capital expenditures.

Key Highlights

• 1Total revenues decreased by approximately 16.9% for the third quarter and 9.4% for the first nine months of 2019 compared to the prior year, primarily due to lower commodity prices impacting marketing revenues.
• 2Net income attributable to limited partners decreased to $1,019.2 million ($0.46 per unit) for Q3 2019 and $3,494.4 million ($1.59 per unit) for the nine months ended September 30, 2019.
• 3Gross operating margin for NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services collectively decreased slightly in Q3 2019 but increased significantly for the nine-month period, indicating resilience in core midstream operations.
• 4The company repurchased approximately $81.1 million of its common units under the 2019 Buyback Program during the first nine months of the year, with remaining capacity of $1.92 billion at the end of Q3 2019.
• 5Enterprise announced several expansion projects including the ATEX pipeline expansion, the Midland-to-ECHO 4 pipeline, a second PDH plant, and expansions of the Acadian Gas System and EHT.
• 6The company declared a quarterly cash distribution of $0.4425 per common unit, representing a 2.3% increase over the prior year's third quarter distribution.
• 7Consolidated debt increased to $25.64 billion at September 30, 2019, from $24.68 billion at December 31, 2018, with significant issuances of senior notes in July 2019.

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