8-KEarnings & ResultsOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Jul 30, 2015)

Filed July 30, 2015For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) filed an 8-K on July 30, 2015, to report its financial and operating results for the second quarter and the first half of 2015. The report highlights a strong performance in its Crude Oil Pipelines & Services and Petrochemical & Refined Products Services segments, which saw significant increases in gross operating margin. Conversely, the NGL Pipelines & Services segment experienced a slight decrease in margin, primarily due to lower processing margins and ethane recovery, though NGL transportation volumes reached a record high. The company also announced significant strategic developments, including the sale of its Offshore Gulf of Mexico business for approximately $1.53 billion and the acquisition of Eagle Ford Midstream assets for $2.15 billion, positioning the company for future growth and capital redeployment. Further, EPD detailed several growth projects and expansions, such as the conversion and expansion of its propylene pipeline system to increase polymer grade propylene (PGP) capacity, plans for a new crude oil and condensate pipeline from Midland to Houston, and the development of a new natural gas processing facility in the Delaware Basin. These initiatives underscore EPD's commitment to expanding its infrastructure and capturing market opportunities in key energy-producing regions. The company's financial condition shows an increase in total assets and partners' equity, alongside a rise in total debt, reflecting ongoing investments and acquisitions.

Key Highlights

  • 1Second quarter 2015 net income attributable to limited partners was $551.0 million, down from $637.7 million in Q2 2014. Fully diluted earnings per unit were $0.28, down from $0.34 in the prior year.
  • 2Total gross operating margin for Q2 2015 increased to $1,303.2 million from $1,263.2 million in Q2 2014, demonstrating underlying operational strength.
  • 3The Crude Oil Pipelines & Services segment saw a significant 28% increase in gross operating margin to $236 million, driven by higher volumes and contributions from the Seaway Loop pipeline.
  • 4The Petrochemical & Refined Products Services segment also experienced robust growth, with gross operating margin rising 12% to $181 million, supported by increased transportation volumes and higher octane enhancement margins.
  • 5Enterprise Products Partners completed the sale of its Offshore Gulf of Mexico business for approximately $1.53 billion and the acquisition of Eagle Ford Midstream assets for $2.15 billion.
  • 6The company announced plans for significant infrastructure expansions, including a new Midland-to-Houston crude oil and condensate pipeline and a natural gas processing facility in the Delaware Basin.
  • 7Total assets grew to $48.16 billion as of June 30, 2015, from $47.19 billion at the end of 2014, while total debt principal outstanding increased to $22.33 billion.

Frequently Asked Questions

For the second quarter of 2015, Enterprise Products Partners reported net income attributable to limited partners of $551.0 million, or $0.28 per fully diluted unit. Total gross operating margin increased to $1,303.2 million, up from $1,263.2 million in the second quarter of 2014, indicating improved operational performance despite a slight decrease in net income.

EPD completed two significant transactions: the sale of its Offshore Gulf of Mexico Business for approximately $1.53 billion in cash and the acquisition of Eagle Ford Midstream LLC for $2.15 billion, which closed on July 8, 2015. These moves suggest a strategic shift towards higher-return opportunities and capital redeployment.

The Crude Oil Pipelines & Services segment showed strong growth with a 28% increase in gross operating margin to $236 million, driven by higher volumes and new pipeline services. The Petrochemical & Refined Products Services segment also performed well, with a 12% increase in gross operating margin to $181 million. The NGL Pipelines & Services segment saw a slight decrease in margin primarily due to lower processing margins, but recorded record transportation volumes.

EPD detailed several growth projects, including the expansion and conversion of its propylene pipeline system to increase polymer grade propylene (PGP) capacity, plans to construct a new crude oil and condensate pipeline from Midland to Houston, and the development of a new natural gas processing facility in the Delaware Basin through a joint venture.