Summary
Enterprise Products Partners L.P. (EPD) reported a decrease in total revenues for the third quarter and the first nine months of 2023 compared to the prior year, primarily driven by lower marketing revenues due to decreased commodity prices. Despite lower revenues, the company demonstrated resilience with stable operating income and distributable cash flow (DCF) for the third quarter, largely supported by strong performance in its midstream services and new project completions. Key operational highlights include the successful commissioning of the PDH 2 plant and Frac 12 in July 2023, contributing to increased fractionation capacity and propylene production. The company also announced significant Permian Basin growth projects, including new NGL pipelines and natural gas processing plants, underscoring its commitment to expanding its infrastructure to support growing production. EPD maintained its financial health with $3.8 billion in consolidated liquidity and continued to return capital to unitholders through a declared quarterly cash distribution of $0.50 per unit.
Financial Highlights
42 data points| Revenue | $12.00B |
| Cost of Revenue | $8.79B |
| Gross Profit | $3.21B |
| Operating Expenses | $10.43B |
| Operating Income | $1.70B |
| Interest Expense | $328.00M |
| Net Income | $1.32B |
| Shares Outstanding (Diluted) | 2.19B |
Key Highlights
- 1Total revenues decreased year-over-year due to lower marketing revenues driven by lower commodity prices, with total revenues for Q3 2023 at $12.0 billion and for the nine months ended Sept 30, 2023 at $35.1 billion.
- 2Operating income remained relatively stable, with $1.7 billion for Q3 2023 and $5.0 billion for the nine months ended Sept 30, 2023, showcasing the resilience of its midstream services.
- 3Distributable Cash Flow (DCF) remained strong, reported at $1.87 billion for Q3 2023 and $5.54 billion for the nine months ended Sept 30, 2023, supporting a distribution coverage ratio of 1.7x.
- 4The company declared a quarterly cash distribution of $0.50 per common unit, totaling $1.1 billion for Q3 2023.
- 5Significant growth projects were completed or announced, including the PDH 2 plant and Frac 12 in July 2023, and new Permian Basin projects scheduled for completion in 2025.
- 6Total debt at the end of Q3 2023 was $29.2 billion, with an average maturity of approximately 19.3 years, indicating a well-structured debt profile.
- 7Capital expenditures for the nine months ended Sept 30, 2023, were $2.25 billion, primarily directed towards growth projects, with an expectation of $3.4 billion for the full year 2023.