8-KEarnings & ResultsOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Financial Results (Oct 27, 2016)

Filed October 27, 2016For Securities:EPDEPDU

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.

Frequently Asked Questions

For the third quarter of 2016, EPD reported net income attributable to limited partners of $634.6 million, or $0.30 per diluted unit, on revenues of $5.92 billion. This represents a slight decrease in net income and earnings per unit compared to the same period in 2015.

The NGL Pipelines & Services segment showed a modest increase in gross operating margin, boosted by NGL marketing and higher processing margins, partly due to increased LPG exports. However, segment performance was tempered by an outage at the Pascagoula plant and lower volumes in some pipeline systems. The Crude Oil Pipelines & Services segment remained relatively stable, while the Natural Gas Pipelines & Services and Petrochemical & Refined Products Services segments saw decreases in gross operating margin, largely due to lower volumes and specific market conditions.

A fire at the Pascagoula, Mississippi natural gas processing plant in June 2016 caused downtime, impacting Q3 results by an estimated $23 million and reducing processing volumes. Additionally, Enterprise's ethane export terminal on the Houston Ship Channel commenced commercial service in September 2016, indicating a new revenue stream.

Enterprise Products Partners invested approximately $1.6 billion in capital expenditures during the third quarter of 2016, which included $62 million for sustaining capital expenditures.