Summary
Enterprise Products Partners L.P. (EPD) reported strong second quarter 2024 financial results, demonstrating robust growth across key segments. The company posted net income attributable to common unitholders of $1.4 billion, or $0.64 per unit, an increase from $1.3 billion, or $0.57 per unit, in the prior year's second quarter. This growth was underpinned by a significant rise in total gross operating margin, reaching $2.4 billion, up from $2.2 billion in Q2 2023, reflecting the operational strength and strategic expansions of the partnership. Several segments contributed to this positive performance, notably NGL Pipelines & Services, which saw its gross operating margin increase to $1.3 billion, driven by record processing and transportation volumes. The Petrochemical & Refined Products Services segment also showed growth. Furthermore, EPD announced plans to expand its LPG export capacity at the Enterprise Hydrocarbon Terminal (EHT) with a new refrigeration train expected online by the end of 2026, which will add approximately 300 MBPD of propane and butane export capability. The company also continues to advance its capital projects, with significant growth capital expenditures planned for 2024 and 2025.
Key Highlights
- 1Net income attributable to common unitholders increased to $1.4 billion ($0.64 per unit) in Q2 2024 from $1.3 billion ($0.57 per unit) in Q2 2023.
- 2Total gross operating margin rose to $2.4 billion in Q2 2024, up from $2.2 billion in Q2 2023, indicating improved operational profitability.
- 3The NGL Pipelines & Services segment was a key driver of growth, with gross operating margin increasing to $1.3 billion, supported by record processing and transportation volumes, particularly in the Permian and South Texas regions.
- 4EPD announced an expansion of its LPG export capacity at the Enterprise Hydrocarbon Terminal (EHT) with a fourth refrigeration train, expected to add 300 MBPD of propane and butane export capability by late 2026.
- 5Total capital investments for Q2 2024 were $1.3 billion, including $1.0 billion for growth projects, with projected growth capital spending of $3.5 billion to $3.75 billion for full-year 2024 and $3.25 billion to $3.75 billion for 2025.
- 6The company initiated service on the first phase of its Texas Western Products System (TW Products System) in March 2024 and expects further terminal completions in Q3 2024.