Summary
Enterprise Products Partners L.P. (EPD) announced its fourth quarter and full-year 2016 financial and operating results on January 30, 2017. For the fourth quarter of 2016, the company reported total revenues of $6,478.8 million, a slight increase from $6,155.0 million in the fourth quarter of 2015. Net income attributable to limited partners was $658.8 million for the quarter, down from $684.8 million in the prior year's quarter. For the full year 2016, revenues were $23,022.3 million, a decrease from $27,027.9 million in 2015, with net income attributable to limited partners at $2,513.1 million, slightly down from $2,521.2 million in 2015. A significant development highlighted is the planned construction of a new isobutane dehydrogenation (iBDH) unit at Mont Belvieu, expected to be completed in Q4 2019. This project, underwritten by long-term contracts, aims to produce isobutylene for downstream facilities and address increasing market demand for on-purpose olefins. The company also reported a significant impact from the Pascagoula natural gas processing plant outage, estimated at $31 million in lost operating margin and increased expenses during Q4 2016, though it has since resumed operations at pre-incident levels.
Key Highlights
- 1Fourth quarter 2016 revenues increased slightly to $6.48 billion from $6.16 billion in Q4 2015, while full-year 2016 revenues decreased to $23.02 billion from $27.03 billion in 2015.
- 2Net income attributable to limited partners for Q4 2016 was $658.8 million, a decrease from $684.8 million in Q4 2015. Full-year 2016 net income attributable to limited partners was $2,513.1 million, a slight decrease from $2,521.2 million in 2015.
- 3The NGL Pipelines & Services segment saw a 7% increase in gross operating margin for Q4 2016, driven by strong performance in NGL pipelines and storage, and LPG export terminals.
- 4The Pascagoula natural gas processing plant outage in Q4 2016 resulted in an estimated $31 million negative impact on operating margin and expenses; the plant has since resumed operations.
- 5Enterprise announced plans to construct a new isobutane dehydrogenation (iBDH) unit at Mont Belvieu, expected online in Q4 2019, to produce isobutylene and meet growing demand for on-purpose olefins.
- 6The company's cash and cash equivalents increased significantly to $63.1 million as of December 31, 2016, up from $19.0 million at the end of 2015.
- 7Total assets grew to $52.2 billion, and total debt principal outstanding increased to $23.9 billion as of December 31, 2016.