Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on May 2, 2017, reporting its first-quarter 2017 financial and operating results and detailing significant business developments. The company reported an increase in net income to $771.0 million for Q1 2017, up from $670.2 million in Q1 2016, with earnings per unit rising to $0.36 from $0.32. This growth was driven by strong performance across most segments, notably NGL Pipelines & Services and Crude Oil Pipelines & Services, which achieved record gross operating margins. In addition to financial results, EPD announced several strategic growth initiatives. These include plans for the Shin Oak NGL Pipeline, ethylene storage and transportation projects, the resumption of construction on a ninth NGL fractionator at Mont Belvieu, and the completion of the Azure Midstream Partners acquisition. These developments underscore EPD's commitment to expanding its midstream infrastructure and capitalize on growing NGL production, particularly from the Permian Basin.
Key Highlights
- 1Reported Q1 2017 net income of $771.0 million, a 15% increase year-over-year from $670.2 million in Q1 2016.
- 2Earnings per unit (fully diluted) increased to $0.36 in Q1 2017 from $0.32 in Q1 2016.
- 3Total gross operating margin increased to $1,469.1 million in Q1 2017, up 11.4% from $1,324.3 million in Q1 2016, indicating improved core profitability.
- 4Announced plans for the Shin Oak NGL Pipeline, a 571-mile pipeline from the Permian Basin to Mont Belvieu, expected in-service Q2 2019.
- 5Completed the acquisition of Azure Midstream Partners for $189 million in April 2017, adding significant natural gas gathering and processing assets in East Texas and North Louisiana.
- 6Resumed construction on a ninth NGL fractionator at Mont Belvieu, with an expected capacity of 85 MBPD, targeting completion by mid-2018.
- 7Announced expansion projects for ethylene storage and transportation in the Houston area, including repurposing a storage well and building a new pipeline to Bayport.