Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on August 3, 2017, to report its financial and operating results for the second quarter ended June 30, 2017. The company reported an increase in net income to $666.0 million ($0.30 per unit) from $570.0 million ($0.27 per unit) in the prior year's quarter. Total revenues rose to $6,607.6 million from $5,617.8 million year-over-year, driven by growth across multiple segments, most notably Crude Oil Pipelines & Services and Petrochemical & Refined Products Services. Management highlighted continued growth in NGL Pipelines & Services, with gross operating margin increasing by 6% to $760 million. The Crude Oil Pipelines & Services segment also saw significant improvement, with gross operating margin up $60 million year-over-year, partly due to favorable mark-to-market adjustments. Several strategic growth projects were also detailed, including an expansion at the Orla natural gas processing plant, the construction of the Shin Oak NGL Pipeline, and plans for ethylene storage and export terminal development, signaling continued investment in expanding infrastructure to support growing production from key basins like the Permian.
Key Highlights
- 1Reported Q2 2017 net income of $666.0 million, an increase from $570.0 million in Q2 2016, with earnings per unit rising to $0.30 from $0.27.
- 2Total revenues increased to $6,607.6 million in Q2 2017 from $5,617.8 million in Q2 2016.
- 3Gross operating margin for NGL Pipelines & Services increased 6% to $760 million, driven by higher processing volumes and marketing activities.
- 4Crude Oil Pipelines & Services segment gross operating margin increased significantly by $60 million to $237 million, supported by higher transportation volumes and favorable mark-to-market adjustments in marketing activities.
- 5Announced plans for significant growth projects, including a 300 MMcf/d expansion of the Orla natural gas processing plant in West Texas and the construction of the 571-mile Shin Oak NGL Pipeline from the Permian Basin.
- 6Advanced development of ethylene infrastructure with a proposed joint venture for an ethylene marine export terminal and plans to repurpose an ethane storage cavern for ethylene storage.
- 7Completed the acquisition of Azure Midstream Partners' midstream assets in East Texas, adding gathering pipelines and processing capacity.