01—Abstract
Summary
Summary of the 10-Q filed May 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Enterprise Products Partners L.P.
(EPD) reported solid financial results for the first quarter of 2024, with total revenues increasing by 18.5% year-over-year to $14.76 billiona. This growth was primarily driven by higher sales volumes across its marketing activities, particularly in crude oil and petrochemicals and refined products, despite a slight decrease in average sales prices for some commodities. The company's midstream services also saw an increase in revenues, contributing to an overall improvement in operating income, which rose to $1.82 billion.
EPD demonstrated strong operational execution with net cash flows from operating activities significantly increasing to $2.11 billionb, up from $1.58 billion in the prior year's quarter. This robust cash generation supports the company's continued investment in growth capital projects, with approximately $1.05 billion deployed in the quarter. The partnership also maintained its commitment to unitholders by declaring a quarterly cash distribution of $0.5150 per common unit, underscoring its focus on returning value while reinvesting in its extensive midstream infrastructure network.
02—Key points
Key Highlights
- Total revenues increased by 18.5% to $14.76 billion in Q1 2024 compared to Q1 2023, driven by higher sales volumes.
- Operating income grew to $1.82 billion in Q1 2024, up from $1.73 billion in Q1 2023.
- Net cash flows from operating activities were strong at $2.11 billion for Q1 2024, a significant increase from $1.58 billion in Q1 2023.
- The company invested $1.05 billion in capital expenditures during the quarter, primarily for growth projects.
- EPD declared a quarterly cash distribution of $0.5150 per common unit for Q1 2024.
- The company acquired remaining equity interests in Whitethorn Pipeline Company, LLC and Enterprise EF78 LLC, and an additional interest in Panola Pipeline Company, LLC, enhancing its ownership in key midstream assets.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Enterprise Products Partners L.P. kept $0.10.
- Revenue$14.76B100.0%
- Cost of revenue−$11.40B77.3%
- Gross profit$3.35B22.7%
- Operating costs−$1.53B10.4%
- Operating income$1.82B12.3%
- Interest, other & tax−$366.0M2.5%
- Net income$1.46B9.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 9, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $14.76B$12.44B | +18.6% |
| Cost of Revenue | $11.40B$9.33B | +22.2% |
| Gross Profit | $3.35B$3.11B | +7.8% |
| Operating Expenses | $13.04B$10.81B | +20.6% |
| Operating Income | $1.82B$1.73B | +5.1% |
| Interest Expense | $331.00M$314.00M | +5.4% |
| Net Income | $1.46B$1.39B | +4.7% |
| Shares Outstanding (Diluted) | 2.19B2.19B | −0.1% |
05—Questions
Frequently Asked Questions
How did Enterprise Products Partners' revenues perform in the first quarter of 2024 compared to the previous year?
Enterprise Products Partners reported a significant increase in total revenues for the first quarter of 2024, reaching $14.76 billion, up from $12.44 billion in the first quarter of 2023. This 18.5% year-over-year growth was largely attributable to higher sales volumes in marketing activities, particularly in crude oil and petrochemicals/refined products, as well as increased revenues from midstream services.
What is the company's financial health and cash flow generation like?
The company demonstrated strong financial health with net cash flows provided by operating activities totaling $2.11 billion in the first quarter of 2024, a notable increase from $1.58 billion in the same period last year. This robust cash generation supports its operations, capital investments, and distributions to unitholders.
How is the company returning capital to its unitholders?
Enterprise Products Partners declared a quarterly cash distribution of $0.5150 per common unit for the first quarter of 2024. This reflects the company's ongoing commitment to providing cash returns to its investors, supported by its strong operational performance and cash flow generation.
What were the key capital investments made during the quarter?
During the first quarter of 2024, Enterprise Products Partners invested $1.05 billion in capital expenditures. A significant portion of this was allocated to growth capital projects, including expansions in ethane, ethylene, and LPG export capacity, as well as investments in natural gas processing trains and gathering system expansions in the Delaware and Midland Basins.
06—Continue