ENTERPRISE PRODUCTS PARTNERS L.P. (NYSE:EPD) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition.
On May 2, 2017, Enterprise Products Partners L.P. (Enterprise or
the Partnership) (NYSE:EPD) issued a press release announcing its
financial and operating results for the three months ended March
31, 2017, and will hold a webcast conference call discussing
those results. A copy of the earnings press release is furnished
as Exhibit 99.1 to this Current Report, which is hereby
incorporated by reference into this Item 2.02. The webcast
conference call will be archived and available for replay on
Enterprises website at www.enterpriseproducts.com for 90
days.
the Partnership) (NYSE:EPD) issued a press release announcing its
financial and operating results for the three months ended March
31, 2017, and will hold a webcast conference call discussing
those results. A copy of the earnings press release is furnished
as Exhibit 99.1 to this Current Report, which is hereby
incorporated by reference into this Item 2.02. The webcast
conference call will be archived and available for replay on
Enterprises website at www.enterpriseproducts.com for 90
days.
Item 5.03. Amendments to Articles of Incorporation or Bylaws;
Change in Fiscal Year.
Change in Fiscal Year.
On April 26, 2017, the sole member of Enterprise Products
Holdings LLC (the General Partner), a Delaware limited liability
company and the general partner of the Partnership, executed
Amendment No. 1 (the Amendment) to the General Partners Fifth
Amended and Restated Limited Liability Company Agreement dated
September 7, 2011 to add certain provisions addressing conflicts
of interest. The foregoing description of the Amendment is
qualified in its entirety by reference to the full text of the
Amendment, which is filed as Exhibit 3.1 hereto and incorporated
by reference herein.
Holdings LLC (the General Partner), a Delaware limited liability
company and the general partner of the Partnership, executed
Amendment No. 1 (the Amendment) to the General Partners Fifth
Amended and Restated Limited Liability Company Agreement dated
September 7, 2011 to add certain provisions addressing conflicts
of interest. The foregoing description of the Amendment is
qualified in its entirety by reference to the full text of the
Amendment, which is filed as Exhibit 3.1 hereto and incorporated
by reference herein.
Item 8.01. Other Events.
The information presented in this Item 8.01 has not been reviewed
by our independent auditors and is subject to revision as we
prepare our consolidated financial statements as of and for the
three months ended March 31, 2017. This information is not a
comprehensive statement of our financial results for the
quarterly period ended March 31, 2017, and our actual results may
differ materially from these estimates as a result of the
completion of our financial closing process, final adjustments
(if any) and other developments arising between now and the time
that our financial results for the three months ended March 31,
2017 are finalized.
by our independent auditors and is subject to revision as we
prepare our consolidated financial statements as of and for the
three months ended March 31, 2017. This information is not a
comprehensive statement of our financial results for the
quarterly period ended March 31, 2017, and our actual results may
differ materially from these estimates as a result of the
completion of our financial closing process, final adjustments
(if any) and other developments arising between now and the time
that our financial results for the three months ended March 31,
2017 are finalized.
Forward-Looking Statements
Certain matters discussed in this Current Report are
forward-looking statements that involve certain risks and
uncertainties, such as Enterprises expectations regarding future
results, capital expenditures, project completions, liquidity and
financial market conditions. These risks and uncertainties
include, among other things, insufficient cash from operations,
adverse market conditions, governmental regulations and other
factors discussed in Enterprises filings with the U.S. Securities
and Exchange Commission. If any of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results or outcomes may vary materially from those
expected. Enterprise disclaims any intention or obligation to
update publicly or reverse such statements, whether as a result
of new information, future events or otherwise.
forward-looking statements that involve certain risks and
uncertainties, such as Enterprises expectations regarding future
results, capital expenditures, project completions, liquidity and
financial market conditions. These risks and uncertainties
include, among other things, insufficient cash from operations,
adverse market conditions, governmental regulations and other
factors discussed in Enterprises filings with the U.S. Securities
and Exchange Commission. If any of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results or outcomes may vary materially from those
expected. Enterprise disclaims any intention or obligation to
update publicly or reverse such statements, whether as a result
of new information, future events or otherwise.
Condensed Consolidated Financial Highlights First Quarter 2017
Results (Unaudited)
Results (Unaudited)
On May 2, 2017, Enterprise announced its consolidated financial
results for the three months ended March 31, 2017. The
following table presents condensed consolidated financial
highlights for the periods and at the dates indicated (dollars
in millions, except per unit amounts):
results for the three months ended March 31, 2017. The
following table presents condensed consolidated financial
highlights for the periods and at the dates indicated (dollars
in millions, except per unit amounts):
|
For the Three Months
Ended March 31,
|
||||||||
|
(Unaudited)
|
||||||||
|
Selected Income Statement Data:
|
||||||||
|
Revenues
|
$
|
7,320.4
|
$
|
5,005.3
|
||||
|
Costs and expenses
|
6,383.6
|
4,190.8
|
||||||
|
Equity in income of unconsolidated affiliates
|
94.8
|
101.1
|
||||||
|
Operating income
|
1,031.6
|
915.6
|
||||||
|
Interest expense
|
249.3
|
240.6
|
||||||
|
Provision for income taxes
|
6.0
|
8.4
|
||||||
|
Net income
|
771.0
|
670.2
|
||||||
|
Net income attributable to noncontrolling interests
|
10.3
|
9.0
|
||||||
|
Net income attributable to limited partners
|
760.7
|
661.2
|
||||||
|
Earnings per unit, fully diluted
|
$
|
0.36
|
$
|
0.32
|
||||
|
Gross Operating Margin by Segment:
|
||||||||
|
NGL Pipelines Services
|
$
|
856.0
|
$
|
783.7
|
||||
|
Crude Oil Pipelines Services
|
264.6
|
202.3
|
||||||
|
Natural Gas Pipelines Services
|
170.9
|
177.7
|
||||||
|
Petrochemical Refined Products Services
|
181.8
|
154.8
|
||||||
|
Total segment gross operating margin (1)
|
1,473.3
|
1,318.5
|
||||||
|
Net adjustment for shipper make-up rights (2)
|
(4.2
|
)
|
5.8
|
|||||
|
Total gross operating margin
|
$
|
1,469.1
|
$
|
1,324.3
|
||||
|
March 31,
|
December 31,
|
|||||||
|
(Unaudited)
|
||||||||
|
Selected Balance Sheet Data:
|
||||||||
|
Cash and cash equivalents (unrestricted)
|
$
|
62.4
|
$
|
63.1
|
||||
|
Total assets
|
51,507.9
|
52,194.0
|
||||||
|
Total debt principal outstanding, including
current maturities
|
23,624.8
|
23,901.6
|
||||||
|
Partners equity
|
22,579.3
|
22,047.0
|
||||||
|
Noncontrolling interests
|
220.7
|
219.0
|
||||||
|
(1) Within the context of this table, total segment gross
operating margin represents a subtotal and corresponds to measures similarly titled within the financial statement footnotes provided in our quarterly and annual filings with the U.S. Securities and Exchange Commission (SEC).
(2) Gross operating margin by segment for NGL Pipelines
Services and Crude Oil Pipelines Services reflects adjustments for non-refundable deferred transportation revenues relating to the make-up rights of committed shippers on certain major pipeline projects. These adjustments are included in managements evaluation of segment results. However, these adjustments are excluded from non-GAAP total gross operating margin in compliance with guidance from the SEC. |
Earnings per unit amounts discussed in this Item 8.01 are on a
fully diluted basis.
fully diluted basis.
For the first quarter of 2017, depreciation, amortization and
accretion expenses totaled $402 million, cash distributions
received from unconsolidated affiliates were $103 million and
the non-cash expense attributable to changes in the fair market
value of the Liquidity Option Agreement was $6 million. In
addition, for the first quarter of 2017, our total capital
investments were approximately $460 million, which includes $48
million of sustaining capital expenditures.
accretion expenses totaled $402 million, cash distributions
received from unconsolidated affiliates were $103 million and
the non-cash expense attributable to changes in the fair market
value of the Liquidity Option Agreement was $6 million. In
addition, for the first quarter of 2017, our total capital
investments were approximately $460 million, which includes $48
million of sustaining capital expenditures.
Review of Segment Performance for First Quarter 2017
NGL Pipelines Services
Gross operating margin from the NGL Pipelines Services
segment increased 9 percent to a record $856 million for the
first quarter of 2017 from $784 million for the first quarter
of 2016.
segment increased 9 percent to a record $856 million for the
first quarter of 2017 from $784 million for the first quarter
of 2016.
Gross operating margin from Enterprises natural gas
processing business and related natural gas liquids (NGL)
marketing activities increased $44 million, or 19 percent, to
$278 million for the first quarter of 2017, compared to $234
million for the first quarter of 2016. Gross operating margin
from the partnerships natural gas processing plants increased
approximately $21 million, primarily due to higher processing
margins, including the impact of hedging activities.
Enterprises NGL marketing activities contributed $23 million
to the increase in gross operating margin, primarily due to
higher sales volumes. Enterprises natural gas processing
plants reported fee-based processing volumes of 4.5 billion
cubic feet per day (Bcf/d) in the first quarter of 2017
compared to 4.8 Bcf/d in the first quarter of 2016. Decreases
in fee-based processing volumes from our South Texas and
Meeker natural gas processing plants more than offset an
increase from our South Eddy plant in the Delaware Basin,
which began operations in May 2016. The partnerships equity
NGL production increased to 150 thousand barrels per day
(MBPD) this quarter from 145 MBPD for the first quarter of
2016. An increase in equity NGL production from the South
Eddy and Rocky Mountain plants was partially offset by lower
equity NGL volumes extracted by our plants in South Texas.
processing business and related natural gas liquids (NGL)
marketing activities increased $44 million, or 19 percent, to
$278 million for the first quarter of 2017, compared to $234
million for the first quarter of 2016. Gross operating margin
from the partnerships natural gas processing plants increased
approximately $21 million, primarily due to higher processing
margins, including the impact of hedging activities.
Enterprises NGL marketing activities contributed $23 million
to the increase in gross operating margin, primarily due to
higher sales volumes. Enterprises natural gas processing
plants reported fee-based processing volumes of 4.5 billion
cubic feet per day (Bcf/d) in the first quarter of 2017
compared to 4.8 Bcf/d in the first quarter of 2016. Decreases
in fee-based processing volumes from our South Texas and
Meeker natural gas processing plants more than offset an
increase from our South Eddy plant in the Delaware Basin,
which began operations in May 2016. The partnerships equity
NGL production increased to 150 thousand barrels per day
(MBPD) this quarter from 145 MBPD for the first quarter of
2016. An increase in equity NGL production from the South
Eddy and Rocky Mountain plants was partially offset by lower
equity NGL volumes extracted by our plants in South Texas.
Gross operating margin from the partnerships NGL pipelines
and storage business increased $28 million, or 7 percent, to
$455 million for the first quarter of 2017. NGL pipeline
transportation volumes were a record 3.2 million barrels per
day (BPD) for the first quarter of 2017 compared to 3.0
million BPD for the same quarter of 2016. The partnerships
total NGL marine terminal volumes were a record 569 MBPD for
the first quarter of 2017 compared to 456 MBPD for the first
quarter of 2016.
and storage business increased $28 million, or 7 percent, to
$455 million for the first quarter of 2017. NGL pipeline
transportation volumes were a record 3.2 million barrels per
day (BPD) for the first quarter of 2017 compared to 3.0
million BPD for the same quarter of 2016. The partnerships
total NGL marine terminal volumes were a record 569 MBPD for
the first quarter of 2017 compared to 456 MBPD for the first
quarter of 2016.
Higher fees from the partnerships Mont Belvieu NGL and
related product storage business led to a $16 million
increase in gross operating margin this quarter. Enterprises
LPG export and ethane export terminals on the Houston Ship
Channel and a related pipeline reported a combined $14
million increase in gross operating margin due to higher
volumes. Volumes at our LPG export terminal increased 53 MBPD
this quarter compared to the same quarter in 2016, and we
loaded 58 MBPD of ethane during the first quarter of 2017.
Transportation volumes on the related Houston Ship Channel
Pipeline System increased 147 MBPD quarter-to-quarter.
related product storage business led to a $16 million
increase in gross operating margin this quarter. Enterprises
LPG export and ethane export terminals on the Houston Ship
Channel and a related pipeline reported a combined $14
million increase in gross operating margin due to higher
volumes. Volumes at our LPG export terminal increased 53 MBPD
this quarter compared to the same quarter in 2016, and we
loaded 58 MBPD of ethane during the first quarter of 2017.
Transportation volumes on the related Houston Ship Channel
Pipeline System increased 147 MBPD quarter-to-quarter.
Enterprises ATEX and Aegis ethane pipelines reported a $9
million increase in gross operating margin for the first
quarter of 2017 compared to the first quarter of 2016,
primarily due to a 31 MBPD increase in transportation
volumes. Committed volumes under long-term contracts on ATEX
increased to 116 MBPD for 2017 from 104 MBPD in 2016.
Committed volumes are 131 MBPD under these contracts for
2018.
million increase in gross operating margin for the first
quarter of 2017 compared to the first quarter of 2016,
primarily due to a 31 MBPD increase in transportation
volumes. Committed volumes under long-term contracts on ATEX
increased to 116 MBPD for 2017 from 104 MBPD in 2016.
Committed volumes are 131 MBPD under these contracts for
2018.
Partially offsetting these increases in gross operating
margin was a $4 million decrease in gross operating margin
from the South Texas NGL Pipeline System, primarily due to
reduced producer activity in the Eagle Ford.
margin was a $4 million decrease in gross operating margin
from the South Texas NGL Pipeline System, primarily due to
reduced producer activity in the Eagle Ford.
Enterprises NGL fractionation business reported gross
operating margin of $123 million for each of the first
quarters of 2017 and 2016. Total NGL fractionation volumes
were 799 MBPD this quarter compared to 836 MBPD for the same
quarter in 2016.
operating margin of $123 million for each of the first
quarters of 2017 and 2016. Total NGL fractionation volumes
were 799 MBPD this quarter compared to 836 MBPD for the same
quarter in 2016.
Crude Oil Pipelines Services
Gross operating margin from the partnerships Crude Oil
Pipelines Services segment increased 31 percent to $265
million for the first quarter of 2017 from $202 million for
the first quarter of 2016. Total crude oil pipeline volumes
were 1.4 million BPD for each of the first quarters of 2017
and 2016. Total crude oil marine terminal volumes were 475
MBPD for the first quarter of this year compared to 479 MBPD
for the first quarter of last year.
Pipelines Services segment increased 31 percent to $265
million for the first quarter of 2017 from $202 million for
the first quarter of 2016. Total crude oil pipeline volumes
were 1.4 million BPD for each of the first quarters of 2017
and 2016. Total crude oil marine terminal volumes were 475
MBPD for the first quarter of this year compared to 479 MBPD
for the first quarter of last year.
Gross operating margin from Enterprises crude oil marketing
and related activities increased $56 million in the first
quarter of 2017 compared to the first quarter of 2016.
Approximately $33 million of this increase is associated
with the non-cash, mark-to-market valuation on financial
instruments related to blending activities. The partnership
had $20 million of mark-to-market gains in the first
quarter of 2017 versus $13 million of mark-to-market losses
in the first quarter of 2016. The remainder of the $56
million increase in gross operating margin is primarily due
to an increase in sales margins from crude oil marketing
activities associated with our firm capacity on the Seaway
Pipeline.
and related activities increased $56 million in the first
quarter of 2017 compared to the first quarter of 2016.
Approximately $33 million of this increase is associated
with the non-cash, mark-to-market valuation on financial
instruments related to blending activities. The partnership
had $20 million of mark-to-market gains in the first
quarter of 2017 versus $13 million of mark-to-market losses
in the first quarter of 2016. The remainder of the $56
million increase in gross operating margin is primarily due
to an increase in sales margins from crude oil marketing
activities associated with our firm capacity on the Seaway
Pipeline.
The partnerships West Texas Pipeline System reported an $11
million increase in gross operating margin for the first
quarter of 2017 compared to the first quarter of 2016 on a
17 MBPD increase in transportation volumes between the two
periods.
million increase in gross operating margin for the first
quarter of 2017 compared to the first quarter of 2016 on a
17 MBPD increase in transportation volumes between the two
periods.
Enterprises South Texas Crude Oil Pipeline System reported
an $11 million decrease in gross operating margin for the
first quarter of 2017 compared to the first quarter of
2016, primarily due to lower volumes. Pipeline volumes
decreased by 62 MBPD to 176 MBPD for the first quarter of
2017 compared to the same quarter of last year.
an $11 million decrease in gross operating margin for the
first quarter of 2017 compared to the first quarter of
2016, primarily due to lower volumes. Pipeline volumes
decreased by 62 MBPD to 176 MBPD for the first quarter of
2017 compared to the same quarter of last year.
Natural Gas Pipelines Services
Enterprises Natural Gas Pipelines Services segment reported
gross operating margin of $171 million for the first
quarter of 2017 compared to $178 million for the first
quarter of 2016. Total natural gas transportation volumes
were 11.4 trillion British thermal units per day (TBtu/d)
for the first quarter of 2017 compared to 11.9 TBtu/d for
the first quarter of 2016.
gross operating margin of $171 million for the first
quarter of 2017 compared to $178 million for the first
quarter of 2016. Total natural gas transportation volumes
were 11.4 trillion British thermal units per day (TBtu/d)
for the first quarter of 2017 compared to 11.9 TBtu/d for
the first quarter of 2016.
The Texas Intrastate system reported gross operating margin
of $74 million for the first quarter of 2017 compared to
$85 million for the first quarter of 2016. This decrease
was primarily due to lower average fees and volumes in the
first quarter of 2017 compared to the first quarter of
2016. Natural gas pipeline volumes for this system were 4.3
TBtu/d this quarter compared to 4.9 TBtu/d for the same
quarter of last year.
of $74 million for the first quarter of 2017 compared to
$85 million for the first quarter of 2016. This decrease
was primarily due to lower average fees and volumes in the
first quarter of 2017 compared to the first quarter of
2016. Natural gas pipeline volumes for this system were 4.3
TBtu/d this quarter compared to 4.9 TBtu/d for the same
quarter of last year.
The Jonah Gathering System reported a $7 million decrease
in gross operating margin for the first quarter of 2017
compared to the same quarter of last year, primarily due to
lower transportation volumes and fees.
in gross operating margin for the first quarter of 2017
compared to the same quarter of last year, primarily due to
lower transportation volumes and fees.
The partnerships Permian Basin Gathering System reported an
$8 million increase in gross operating margin for the first
quarter of 2017 from the first quarter of last year,
attributable to increased producer drilling activity across
the Permian Basin. This system delivers natural gas to the
two new processing plants Enterprise placed into service in
2016.
$8 million increase in gross operating margin for the first
quarter of 2017 from the first quarter of last year,
attributable to increased producer drilling activity across
the Permian Basin. This system delivers natural gas to the
two new processing plants Enterprise placed into service in
2016.
Petrochemical Refined Products Services
Gross operating margin for the Petrochemical Refined
Products Services segment increased 18 percent to $182
million for the first quarter of 2017 from $155 million for
the first quarter of 2016. Total segment pipeline
transportation volumes were 827 MBPD for the first quarter
of 2017 compared to 852 MBPD for the first quarter of last
year. Refined products and petrochemical marine terminal
volumes were 399 MBPD for the first quarter of 2017
compared to 347 MBPD for the same quarter of last year.
Products Services segment increased 18 percent to $182
million for the first quarter of 2017 from $155 million for
the first quarter of 2016. Total segment pipeline
transportation volumes were 827 MBPD for the first quarter
of 2017 compared to 852 MBPD for the first quarter of last
year. Refined products and petrochemical marine terminal
volumes were 399 MBPD for the first quarter of 2017
compared to 347 MBPD for the same quarter of last year.
Gross operating margin from Enterprises octane enhancement
and high-purity isobutylene business increased $29 million
for the first quarter of 2017 compared to the first quarter
of 2016, primarily due to higher volumes. In the first half
of 2016, modifications to the octane enhancement facility
were completed to mitigate the need for lengthy annual
turnarounds. With these improvements, the facility is now
expected to have planned turnarounds, excluding catalyst
replacements, once every three years as opposed to the
historical need for annual turnarounds. Total octane
enhancement and high-purity isobutylene plant production
was 20 MBPD for the first quarter of 2017 compared to 10
MBPD for the same quarter of 2016.
and high-purity isobutylene business increased $29 million
for the first quarter of 2017 compared to the first quarter
of 2016, primarily due to higher volumes. In the first half
of 2016, modifications to the octane enhancement facility
were completed to mitigate the need for lengthy annual
turnarounds. With these improvements, the facility is now
expected to have planned turnarounds, excluding catalyst
replacements, once every three years as opposed to the
historical need for annual turnarounds. Total octane
enhancement and high-purity isobutylene plant production
was 20 MBPD for the first quarter of 2017 compared to 10
MBPD for the same quarter of 2016.
The partnerships propylene business reported a $17
million increase in gross operating margin to $69 million
for the first quarter of 2017 compared to $52 million for
the first quarter of last year. This increase in gross
operating margin is primarily due to higher propylene
sales margins and volumes and higher propylene
fractionation fees at the Mont Belvieu plants. Propylene
fractionation volumes increased 16 percent to 80 MBPD
this quarter from 69 MBPD for the first quarter of last
year. Gross operating margin for this business includes
$8 million of pre-commissioning expenses associated with
the PDH facility in the first quarter of 2017, which is
expected to begin operations by mid-2017.
million increase in gross operating margin to $69 million
for the first quarter of 2017 compared to $52 million for
the first quarter of last year. This increase in gross
operating margin is primarily due to higher propylene
sales margins and volumes and higher propylene
fractionation fees at the Mont Belvieu plants. Propylene
fractionation volumes increased 16 percent to 80 MBPD
this quarter from 69 MBPD for the first quarter of last
year. Gross operating margin for this business includes
$8 million of pre-commissioning expenses associated with
the PDH facility in the first quarter of 2017, which is
expected to begin operations by mid-2017.
Enterprises refined products pipelines and related
services business reported gross operating margin of $77
million for the first quarter of 2017 compared to $87
million for the first quarter of 2016. This decrease in
gross operating margin was primarily due to lower
transportation volumes and fees on the TE Products
Pipeline.
services business reported gross operating margin of $77
million for the first quarter of 2017 compared to $87
million for the first quarter of 2016. This decrease in
gross operating margin was primarily due to lower
transportation volumes and fees on the TE Products
Pipeline.
Gross operating margin for Enterprises butane
isomerization and related operations decreased $5
million, primarily due to lower butane isomerization
volumes, which were 92 MBPD for the first quarter of 2017
compared to 110 MBPD for the first quarter of 2016. One
of the partnerships three butane isomerization towers had
26 days of unplanned downtime during the first quarter of
2017, which contributed to the decrease in volumes.
isomerization and related operations decreased $5
million, primarily due to lower butane isomerization
volumes, which were 92 MBPD for the first quarter of 2017
compared to 110 MBPD for the first quarter of 2016. One
of the partnerships three butane isomerization towers had
26 days of unplanned downtime during the first quarter of
2017, which contributed to the decrease in volumes.
Gross Operating Margin
We evaluate segment performance based on our financial
measure of gross operating margin. Gross operating margin
is an important performance measure of the core
profitability of our operations and forms the basis of
our internal financial reporting. We believe that
investors benefit from having access to the same
financial measures that our management uses in evaluating
segment results.
measure of gross operating margin. Gross operating margin
is an important performance measure of the core
profitability of our operations and forms the basis of
our internal financial reporting. We believe that
investors benefit from having access to the same
financial measures that our management uses in evaluating
segment results.
This Current Report references total gross operating
margin, which is a non-generally accepted accounting
principle (non-GAAP) financial performance measure. The
GAAP financial measure that is most directly comparable
to total gross operating margin is operating income. The
following table presents a reconciliation of operating
income to total gross operating margin for the periods
indicated (dollars in millions):
margin, which is a non-generally accepted accounting
principle (non-GAAP) financial performance measure. The
GAAP financial measure that is most directly comparable
to total gross operating margin is operating income. The
following table presents a reconciliation of operating
income to total gross operating margin for the periods
indicated (dollars in millions):
|
For the Three Months
Ended March 31,
|
||||||||
|
Operating income (GAAP)
|
$
|
1,031.6
|
$
|
915.6
|
||||
|
Adjustments to reconcile operating income to total
gross operating margin: |
||||||||
|
Add depreciation, amortization and accretion
expense |
376.2
|
358.2
|
||||||
|
Add asset impairment and related charges in
operating costs and expenses |
11.2
|
1.7
|
||||||
|
Add net losses and subtract net gains attributable
to asset sales and
insurance recoveries
|
(0.3
|
)
|
4.9
|
|||||
|
Add general and administrative costs
|
50.4
|
43.9
|
||||||
|
Total gross operating margin (non-GAAP)
|
$
|
1,469.1
|
$
|
1,324.3
|
Total gross operating margin includes equity in the
earnings of unconsolidated affiliates, but is exclusive
of other income and expense transactions, income taxes,
the cumulative effect of changes in accounting principles
and extraordinary charges. Total gross operating margin
is presented on a 100% basis before any allocation of
earnings to noncontrolling interests.
earnings of unconsolidated affiliates, but is exclusive
of other income and expense transactions, income taxes,
the cumulative effect of changes in accounting principles
and extraordinary charges. Total gross operating margin
is presented on a 100% basis before any allocation of
earnings to noncontrolling interests.
Significant Recent Developments
Plans to Build Shin Oak NGL Pipeline from Permian Basin
to Mont Belvieu, Texas
to Mont Belvieu, Texas
In April 2017, we announced plans to build a 571-mile
pipeline to transport growing NGL production from the
Permian Basin to our NGL fractionation and storage
complex located in Mont Belvieu, Texas. The Shin Oak NGL
pipeline will originate at our Hobbs facility in Gaines
County, Texas. The 24-inch diameter pipeline is expected
to have an initial design capacity of 250 MBPD and be
expandable to 600 MBPD. The project is supported by
long-term shipper commitments and is expected to be
placed into service during the second quarter of 2019.
pipeline to transport growing NGL production from the
Permian Basin to our NGL fractionation and storage
complex located in Mont Belvieu, Texas. The Shin Oak NGL
pipeline will originate at our Hobbs facility in Gaines
County, Texas. The 24-inch diameter pipeline is expected
to have an initial design capacity of 250 MBPD and be
expandable to 600 MBPD. The project is supported by
long-term shipper commitments and is expected to be
placed into service during the second quarter of 2019.
Plans to Develop Ethylene Storage and Transportation
Projects
Projects
In April 2017, we announced two expansion projects
that will further develop our ethylene infrastructure
in the Houston, Texas area. First, we plan to
repurpose a large, high-capacity ethane storage well
at our Mont Belvieu, Texas complex. Following
completion of this project, which is expected as
early as the third quarter of 2018, the 5.3 MMBbl
cavern will be able to inject/withdraw ethylene at a
rate of 2,000 barrels per hour (BPH), expandable to
4,000 BPH. There are seven third party ethylene
pipelines within two miles of the ethylene well,
providing significant connectivity opportunities for
the high-capacity system.
that will further develop our ethylene infrastructure
in the Houston, Texas area. First, we plan to
repurpose a large, high-capacity ethane storage well
at our Mont Belvieu, Texas complex. Following
completion of this project, which is expected as
early as the third quarter of 2018, the 5.3 MMBbl
cavern will be able to inject/withdraw ethylene at a
rate of 2,000 barrels per hour (BPH), expandable to
4,000 BPH. There are seven third party ethylene
pipelines within two miles of the ethylene well,
providing significant connectivity opportunities for
the high-capacity system.
Further supporting our ethylene capabilities, we also
plan to build a 24-mile, 12-inch diameter ethylene
pipeline extending from Mont Belvieu to Bayport,
Texas. The new pipeline would have the potential to
connect both producing and consuming customers
located south of the Houston Ship Channel to our
facility in Mont Belvieu. The ethylene pipeline will
be routed through our ethane export terminal in
Morgans Point, which provides us with future
flexibility should we develop ethylene export
capabilities at our Morgans Point marine terminal.
plan to build a 24-mile, 12-inch diameter ethylene
pipeline extending from Mont Belvieu to Bayport,
Texas. The new pipeline would have the potential to
connect both producing and consuming customers
located south of the Houston Ship Channel to our
facility in Mont Belvieu. The ethylene pipeline will
be routed through our ethane export terminal in
Morgans Point, which provides us with future
flexibility should we develop ethylene export
capabilities at our Morgans Point marine terminal.
Completion of Azure Acquisition
In March 2017, we announced the execution of a
definitive agreement to acquire the midstream business
and assets of Azure Midstream Partners, L.P. and its
operating subsidiaries (Azure). The purchase agreement
was the result of Azures bankruptcy auction
proceedings, which we won with a bid price of $189
million. The sale was approved by the U.S. Bankruptcy
Court for the Southern District of Texas on March 15,
2017.
definitive agreement to acquire the midstream business
and assets of Azure Midstream Partners, L.P. and its
operating subsidiaries (Azure). The purchase agreement
was the result of Azures bankruptcy auction
proceedings, which we won with a bid price of $189
million. The sale was approved by the U.S. Bankruptcy
Court for the Southern District of Texas on March 15,
2017.
Azures assets, which are located in East Texas and
North Louisiana, include over 960 miles of natural gas
gathering pipelines, three natural gas processing
facilities with an aggregate processing capacity of
approximately 210 MMcf/d, and two NGL pipelines with
throughput capacities of 10 MBPD each. The Azure assets
serve production from the Haynesville Shale and
Bossier, Cotton Valley and Travis Peak formations.
North Louisiana, include over 960 miles of natural gas
gathering pipelines, three natural gas processing
facilities with an aggregate processing capacity of
approximately 210 MMcf/d, and two NGL pipelines with
throughput capacities of 10 MBPD each. The Azure assets
serve production from the Haynesville Shale and
Bossier, Cotton Valley and Travis Peak formations.
The transaction closed in April 2017 after receiving
final regulatory approvals and the satisfaction of
other closing conditions.
final regulatory approvals and the satisfaction of
other closing conditions.
Plans to Build Ninth NGL Fractionator at Our Mont
Belvieu, Texas Complex
Belvieu, Texas Complex
In March 2017, we resumed construction of our ninth NGL
fractionator at our Mont Belvieu, Texas complex in
anticipation of increased NGL production from the
Permian Basin. The new fractionator, which is expected
to be completed by mid-2018, would have a nameplate
capacity of 85 MBPD. We have secured the necessary
permits and emission credits for this project. Upon
completion of this expansion project, we would have
approximately 755 MBPD of total NGL fractionation
capacity at our Mont Belvieu complex and a combined 1.2
MMBPD of capacity across all of our NGL fractionators.
fractionator at our Mont Belvieu, Texas complex in
anticipation of increased NGL production from the
Permian Basin. The new fractionator, which is expected
to be completed by mid-2018, would have a nameplate
capacity of 85 MBPD. We have secured the necessary
permits and emission credits for this project. Upon
completion of this expansion project, we would have
approximately 755 MBPD of total NGL fractionation
capacity at our Mont Belvieu complex and a combined 1.2
MMBPD of capacity across all of our NGL fractionators.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
|
Exhibit No.
|
Description
|
|
3.1
|
Amendment No. 1 to Fifth Amended and Restated
Limited Liability Company Agreement of Enterprise Products Holdings LLC, dated effective as of April 26, 2017. |
|
99.1
|
Enterprise Products Partners L.P. earnings press
release dated May 2, 2017. |
About ENTERPRISE PRODUCTS PARTNERS L.P. (NYSE:EPD)
Enterprise Products Partners L.P. (Enterprise) is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products in North America. The Company’s segments include NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The Company’s midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals, including liquefied petroleum gas (LPG); crude oil gathering, transportation, storage and terminals; offshore production platforms; petrochemical and refined products transportation, storage and terminals, and related services, and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. ENTERPRISE PRODUCTS PARTNERS L.P. (NYSE:EPD) Recent Trading Information
ENTERPRISE PRODUCTS PARTNERS L.P. (NYSE:EPD) closed its last trading session up +0.13 at 27.45 with 3,780,026 shares trading hands.
