Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on October 26, 2016, to report its financial and operating results for the third quarter and first nine months of 2016, which concluded on September 30, 2016. The company reported net income attributable to limited partners of $634.6 million for Q3 2016, a slight decrease from $649.3 million in Q3 2015. Diluted earnings per unit were $0.30 for Q3 2016, down from $0.32 in the prior year's quarter. Total revenues for the quarter were $5.92 billion, down from $6.31 billion in Q3 2015, reflecting shifts in various business segments. Despite a modest decline in overall net income and revenues, EPD highlighted operational performance across its segments. The NGL Pipelines & Services segment saw an increase in gross operating margin, driven by higher processing margins and NGL marketing activities, including increased LPG export loadings. The company also noted contributions from its ethane export terminal, which commenced commercial service in September 2016. However, segment performance was impacted by downtime at the Pascagoula plant and lower volumes in certain pipeline systems. The company made substantial capital investments of approximately $1.6 billion in Q3 2016, including sustaining capital expenditures.
Key Highlights
- 1Net income attributable to limited partners for Q3 2016 was $634.6 million, a decrease from $649.3 million in Q3 2015.
- 2Diluted earnings per unit for Q3 2016 were $0.30, down from $0.32 in Q3 2015.
- 3Total revenues for Q3 2016 were $5.92 billion, down from $6.31 billion in Q3 2015.
- 4NGL Pipelines & Services segment gross operating margin increased in Q3 2016, driven by higher processing margins and NGL marketing activities, including LPG export growth.
- 5The Pascagoula natural gas processing plant experienced an outage due to a fire, impacting Q3 2016 results with an estimated $23 million impact.
- 6Enterprise's ethane export terminal on the Houston Ship Channel began commercial service in September 2016.
- 7Total capital investments in Q3 2016 were approximately $1.6 billion.