01—Abstract
Summary
Summary of the 10-Q filed November 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Enterprise Products Partners L.P.
(EPD) reported a strong third quarter of 2024, with total revenues increasing by 15% year-over-year to $13.78 billiona, driven by robust growth across its NGL and Petrochemical & Refined Products segments. This top-line expansion translated into significant earnings growth, with net income attributable to common unitholders rising by approximately 7.5% to $1.42 billion, or $0.65 per diluted unit. The company demonstrated effective operational management, as evidenced by a 5.3% increase in total segment gross operating margin to $2.45 billion.
EPD also continued its disciplined capital allocation, investing heavily in growth projects while maintaining a strong liquidity position of $5.6 billionb. The company declared a quarterly cash distribution of $0.525 per common unit, reflecting confidence in its ongoing financial performance and commitment to unitholder returns.
02—Key points
Key Highlights
- Total revenues increased by 15% to $13.78 billion in Q3 2024 compared to $11.998 billion in Q3 2023, driven by strong marketing revenues in NGL and Petrochemical & Refined Products segments.
- Net income attributable to common unitholders rose by 7.5% to $1.417 billion ($0.65 per diluted unit) in Q3 2024, up from $1.318 billion ($0.60 per diluted unit) in Q3 2023.
- Total segment gross operating margin (a non-GAAP measure) increased by 5.3% to $2.45 billion in Q3 2024 from $2.33 billion in Q3 2023.
- Capital expenditures for the first nine months of 2024 totaled $3.485 billion, a significant increase from $2.254 billion in the same period of 2023, primarily for growth projects.
- The company maintained a strong liquidity position with $5.6 billion available at the end of the quarter, comprising $4.2 billion in available borrowing capacity and $1.4 billion in cash.
- Enterprise announced a quarterly cash distribution of $0.525 per common unit, payable on November 14, 2024.
- The company completed the acquisition of Piñon Midstream in October 2024 for $950 million, expanding its natural gas gathering and treating capabilities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Enterprise Products Partners L.P. kept $0.10.
- Revenue$13.78B100.0%
- Cost of revenue−$10.39B75.4%
- Gross profit$3.39B24.6%
- Operating costs−$1.61B11.7%
- Operating income$1.78B12.9%
- Interest, other & tax−$363.0M2.6%
- Net income$1.42B10.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 8, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $13.78B$12.00B | +14.8% |
| Cost of Revenue | $10.39B$8.79B | +18.2% |
| Gross Profit | $3.39B$3.21B | +5.5% |
| Operating Expenses | $12.09B$10.43B | +16.0% |
| Operating Income | $1.78B$1.70B | +5.0% |
| Net Income | $1.42B$1.32B | +7.5% |
| Shares Outstanding (Diluted) | 2.19B2.19B | −0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth in the third quarter of 2024?
Revenue growth was primarily driven by higher marketing revenues, particularly in the NGL and Petrochemical & Refined Products segments. This was fueled by increased sales volumes across these segments and, to a lesser extent, higher average sales prices.
How did Enterprise Products Partners manage its debt during the quarter?
Enterprise Products Partners continued to manage its debt effectively. In August 2024, it issued $2.5 billion in senior notes and used proceeds for general corporate purposes and debt repayment. The average maturity of its consolidated debt remains long at approximately 18.5 years, and the company was in compliance with all financial covenants.
What is the company's outlook on capital expenditures and growth projects?
The company is actively investing in growth, with $3.485 billion invested in capital projects in the first nine months of 2024. It has approximately $6.9 billion in growth capital projects scheduled for completion by the end of 2026, including expansions in NGL export capacity, natural gas processing, and pipeline infrastructure.
How is the company returning capital to its unitholders?
Enterprise Products Partners declared a quarterly cash distribution of $0.525 per common unit. Additionally, the company continues to execute its $2.0 billion unit buyback program, with $926 million remaining capacity as of September 30, 2024.
06—Continue