Summary
Enterprise Products Partners L.P. (EPD) reported strong financial results for the second quarter and first half of 2022, driven by higher commodity prices and increased volumes across its midstream energy services segments. Total revenues significantly increased year-over-year, reflecting robust performance in NGL, Crude Oil, and Natural Gas pipelines and services, as well as Petrochemical & Refined Products Services. The company successfully navigated a higher inflationary environment, with fee-based contracts and the ability to pass through costs providing some offset to increased operational expenses. EPD also completed the significant acquisition of Navitas Midstream in February 2022, which contributed to the growth in its natural gas gathering and processing businesses. The company continues to focus on capital allocation, including growth projects and returning capital to unitholders through distributions and unit repurchases.
Financial Highlights
44 data points| Revenue | $16.06B |
| Cost of Revenue | $12.91B |
| Gross Profit | $3.15B |
| Operating Expenses | $14.40B |
| Operating Income | $1.76B |
| Interest Expense | $309.00M |
| Net Income | $1.40B |
| Shares Outstanding (Diluted) | 2.20B |
Key Highlights
- 1Total revenues for the six months ended June 30, 2022, increased by $10.5 billion year-over-year, largely driven by a $10.0 billion increase in marketing revenues due to higher average sales prices and volumes.
- 2Net income attributable to common unitholders for the six months ended June 30, 2022, was $2.71 billion, an increase from $2.45 billion in the prior year period.
- 3The company declared a quarterly cash distribution of $0.4750 per common unit for Q2 2022, payable in August 2022.
- 4EPD completed the acquisition of Navitas Midstream for $3.2 billion in February 2022, expanding its presence in the Midland Basin.
- 5Gross operating margin increased across most segments, with notable growth in Petrochemical & Refined Products Services and NGL Pipelines & Services, demonstrating strong operational performance.
- 6Despite inflationary pressures, the company's financial results were not materially impacted due to contract provisions for cost escalation and the ability to pass through costs to customers.
- 7Total assets grew to $70.35 billion at June 30, 2022, from $67.53 billion at December 31, 2021, partly due to the Navitas acquisition and increased property, plant, and equipment.