Summary
Enterprise Products Partners L.P. (EPD) reported its first-quarter 2023 financial results, showcasing resilience and solid operational performance. Total revenues were $12.44 billion, a slight decrease from $13.01 billion in the prior year's comparable quarter, primarily driven by lower marketing revenues. However, the company demonstrated strong operational execution, with a 3% increase in gross operating margin to $2.34 billion, driven by growth in Natural Gas Pipelines & Services and Petrochemical & Refined Products Services segments. Net income attributable to common unitholders rose to $1.39 billion ($0.63 per diluted unit) from $1.30 billion ($0.59 per diluted unit) in Q1 2022. Distributable Cash Flow (DCF) was robust at $1.94 billion, supporting a declared quarterly distribution of $0.49 per common unit. The company also continued its strategic capital deployment, with significant investments in growth projects, including expansions in the Permian Basin and new processing facilities. EPD maintained a strong liquidity position with $4.0 billion available.
Financial Highlights
44 data points| Revenue | $12.44B |
| Cost of Revenue | $9.33B |
| Gross Profit | $3.11B |
| Operating Expenses | $10.81B |
| Operating Income | $1.73B |
| Interest Expense | $314.00M |
| Net Income | $1.38B |
| Shares Outstanding (Diluted) | 2.19B |
Key Highlights
- 1Total revenues for Q1 2023 were $12.44 billion, a slight decrease year-over-year, mainly due to lower marketing revenues, though offset by higher sales volumes in certain segments.
- 2Gross operating margin increased by 3% to $2.34 billion in Q1 2023, indicating strong operational performance and effective cost management.
- 3Net income attributable to common unitholders increased to $1.39 billion ($0.63 per diluted unit) compared to $1.30 billion ($0.59 per diluted unit) in Q1 2022.
- 4Distributable Cash Flow (DCF) remained strong at $1.94 billion, covering declared cash distributions of $1.08 billion ($0.49 per unit) with a coverage ratio of 1.8x.
- 5Capital expenditures for growth projects were $542 million in Q1 2023, with significant investments in natural gas processing and gathering in the Permian Basin and the PDH 2 facility.
- 6The company maintained a strong liquidity position with $4.0 billion in consolidated liquidity as of March 31, 2023, including $3.9 billion in available borrowing capacity.
- 7EPD repurchased approximately 0.68 million common units for $17 million under its 2019 Buyback Program, demonstrating a commitment to returning capital to unitholders.