Summary
Enterprise Products Partners L.P. (EPD) reported its fourth quarter and full-year 2017 financial and operating results on January 31, 2018. The company demonstrated strong performance, with net income increasing year-over-year for both the quarter and the full year. Revenues and operating income also saw significant increases, reflecting growth across key business segments, particularly in NGL Pipelines & Services and Crude Oil Pipelines & Services. Investors will be interested in the robust growth in volumes across several of EPD's pipeline systems, including record NGL and crude oil pipeline volumes, as well as the contributions from new assets like the Midland-to-ECHO pipeline. Despite some segment-specific headwinds, such as lower marketing margins and one-time contract termination benefits in the prior year, the overall operational strength and expansion of infrastructure position EPD favorably.
Key Highlights
- 1Net income for the fourth quarter of 2017 was $797.3 million, an increase from $669.7 million in the fourth quarter of 2016.
- 2Full-year 2017 net income rose to $2,855.6 million, up from $2,553.0 million in 2016.
- 3Total revenues for the fourth quarter of 2017 increased to $8,426.6 million, up from $6,478.8 million in the prior year's fourth quarter.
- 4NGL Pipelines & Services segment gross operating margin increased 11% to $872 million in Q4 2017, driven by strong pipeline and marine terminal volumes.
- 5Crude Oil Pipelines & Services segment gross operating margin surged 34% to $296 million in Q4 2017, with record pipeline volumes and contributions from the new Midland-to-ECHO pipeline.
- 6Total capital investments for Q4 2017 were approximately $1.0 billion, including $80 million for sustaining capital expenditures, indicating continued investment in infrastructure.
- 7Total debt principal outstanding increased to $24,780.1 million as of December 31, 2017, from $23,901.6 million as of December 31, 2016.