10-QPeriod: Q3 FY2024

ENTERPRISE PRODUCTS PARTNERS L.P. Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 8, 2024For Securities:EPDEPDU

Summary

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 billion, 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 billion. 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.

Financial Highlights

40 data points
Beta

Revenue

$13.78B

24.6% Gross Margin

Net Income

$1.42B

10.3% Net Margin

Total Assets

$75.06B

Cash & Equivalents

$1.43B

Free Cash Flow

$898.00M

Financial Statements
Beta
Revenue$13.78B
Cost of Revenue$10.39B
Gross Profit$3.39B
Operating Expenses$12.09B
Operating Income$1.78B
Net Income$1.42B
Shares Outstanding (Diluted)2.19B

Key Highlights

  • 1Total 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.
  • 2Net 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.
  • 3Total 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.
  • 4Capital 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.
  • 5The 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.
  • 6Enterprise announced a quarterly cash distribution of $0.525 per common unit, payable on November 14, 2024.
  • 7The company completed the acquisition of Piñon Midstream in October 2024 for $950 million, expanding its natural gas gathering and treating capabilities.

Frequently Asked Questions

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.

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.

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.

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.