Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD)
today announced its financial results for the three and nine months
ended September 30, 2023.
Enterprise reported net income attributable to common
unitholders of $1.3 billion, or $0.60 per common unit on a fully
diluted basis for the third quarter of 2023, compared to $1.4
billion, or $0.62 per common unit on a fully diluted basis, for the
third quarter of 2022.
Distributable Cash Flow (“DCF”) was $1.9 billion for the third
quarters of 2023 and 2022. Distributions declared with respect to
the third quarter of 2023 increased 5.3 percent to $0.50 per common
unit, or $2.00 per common unit annualized, compared to
distributions declared for the third quarter of 2022. DCF provided
1.7 times coverage of the distribution declared with respect to the
third quarter of 2023. Enterprise retained $773 million of DCF for
the third quarter of 2023, and $3.2 billion for the twelve months
ended September 30, 2023.
Adjusted cash flow provided by operating activities (“Adjusted
CFFO”) was $2.0 billion for the third quarters of 2023 and 2022.
Enterprise’s payout ratio, comprised of distributions to common
unitholders and partnership common unit buybacks, for the twelve
months ended September 30, 2023, was 56 percent of Adjusted CFFO
and 90 percent of Adjusted Free Cash Flow (“Adjusted FCF”).
Third Quarter 2023
Highlights
Three Months Ended
September 30,
($ in millions, except per unit
amounts)
2023
2022
Operating income
$
1,695
$
1,712
Net income
$
1,350
$
1,392
Fully diluted earnings per common unit
$
0.60
$
0.62
Total gross operating margin (1)
$
2,331
$
2,321
Adjusted EBITDA (1)
$
2,327
$
2,258
Adjusted CFFO (1)
$
2,021
$
1,950
Adjusted FCF (1)
$
1,173
$
1,476
DCF (1)
$
1,869
$
1,868
(1)
Total gross operating margin, adjusted
earnings before interest, taxes, depreciation and amortization
(“Adjusted EBITDA”), Adjusted CFFO, Adjusted FCF and DCF are
non-generally accepted accounting principle (“non-GAAP”) financial
measures that are defined and reconciled later in this press
release.
- Gross operating margin, operating income and net income
attributable to common unitholders for the third quarter of 2023
included $38 million of non-cash, mark-to-market (“MTM”) losses on
financial instruments used in our commodity hedging activities,
compared to $48 million of MTM gains for the third quarter of
2022.
- Capital investments were $826 million in the third quarter of
2023, which included $727 million of organic growth capital
expenditures and $99 million for sustaining capital expenditures.
For the first nine months of 2023, capital investments were $2.3
billion, comprised of $2.0 billion of organic growth capital
expenditures and $284 million for sustaining capital
expenditures.
- For the first nine months of 2023, Enterprise repurchased
approximately 3.6 million of its common units on the open market
for approximately $92 million. Including these purchases, the
partnership has utilized 41 percent of its authorized $2.0 billion
common unit buyback program. The partnership elected not to
repurchase common units during the third quarter of 2023.
Third Quarter 2023 Volume
Highlights
Three Months Ended September
30,
2023
2022
NGL, crude oil, refined products &
petrochemical pipeline volumes (million BPD)
7.4
6.7
Marine terminal volumes (million BPD)
2.1
1.7
Natural gas pipeline volumes (TBtus/d)
18.4
17.5
NGL fractionation volumes (million
BPD)
1.5
1.4
Propylene plant production volumes
(MBPD)
103
101
Fee-based natural gas processing volumes
(Bcf/d)
5.9
5.2
Equity NGL-equivalent production volumes
(MBPD)
184
182
As used in this press release, “NGL” means
natural gas liquids, “BPD” means barrels per day, “MBPD” means
thousand barrels per day, “MMcf/d” means million cubic feet per
day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means
billion British thermal units per day and “TBtus/d” means trillion
British thermal units per day.
“Enterprise reported solid financial results for the third
quarter of 2023,” said A.J. “Jim” Teague, co-chief executive
officer of Enterprise’s general partner. “We handled record volumes
across our midstream system including our liquids pipelines,
natural gas pipelines, NGL fractionators and marine terminals. In
total, our pipelines transported 12.2 million equivalent BPD and
our marine terminals handled 2.1 million BPD of NGLs, crude oil,
refined products and petrochemicals. These record volumes coupled
with lower system-wide utility costs offset the impact of lower
natural gas gathering and processing margins due to a decrease in
natural gas and NGL prices compared to the third quarter of 2022.
Strong international demand for high octane motor gasoline
additives led to record gross operating margin in our octane
enhancement business, which largely mitigated the challenges of
lower utilization rates at our two propane dehydrogenation (“PDH”)
facilities. Our strong cash flow supported a 5.3 percent increase
in the cash distribution per common unit to our partners for the
third quarter of this year compared to the same quarter a year ago.
We also retained $773 million to reinvest in the growth of the
partnership.”
“Since the start of the third quarter, we completed construction
and placed into service approximately $2.7 billion of capital
projects including our twelfth NGL fractionator in Chambers County,
Texas (“Frac 12”), our second PDH unit at our Chambers County
facility and our Poseidon cryogenic natural gas processing plant in
the Midland Basin. In addition, earlier this month we began
operations at our Mentone 2 natural gas processing plant in the
Delaware Basin,” continued Teague.
“This morning, we announced $3.1 billion of new growth capital
projects in our NGL Pipelines & Services segment, our largest
business. In addition to these projects directly integrating with
and complementing our entire NGL value chain, these investments
also facilitate continued crude oil and natural gas production
growth in the basin that will provide benefits to our crude oil and
natural gas businesses. In total, we now have $6.8 billion of
organic growth projects under construction. Once in service, these
assets will provide new sources of cash flow that will support
additional returns of capital to our partners,” said Teague.
Review of Third Quarter 2023
Results
Enterprise reported total gross operating margin of $2.3 billion
for the third quarters of 2023 and 2022. Below is a detailed review
of each business segment’s performance for the third quarter of
2023. Gross operating margin for the third quarter of 2023 included
$38 million of non-cash, MTM losses on financial instruments used
in our hedging activities compared to $48 million of MTM gains for
the third quarter of 2022.
NGL Pipelines & Services – Gross operating margin
from the NGL Pipelines & Services segment was $1.2 billion for
the third quarter of 2023 compared to $1.3 billion for the third
quarter of 2022.
Gross operating margin from Enterprise’s natural gas processing
and related NGL marketing business was $293 million for the third
quarter of 2023 compared to $485 million for the third quarter of
2022. Lower natural gas and NGL prices led to an aggregate decrease
in average processing margins from most of the partnership’s
processing plants. The weighted-average indicative NGL price for
the third quarter of 2023 decreased 36 percent to $0.61 per gallon
from $0.95 per gallon for the third quarter of 2022.
Gross operating margin from NGL marketing activities decreased
$77 million for the third quarter of 2023 compared to the third
quarter of 2022, primarily due to lower average sales margins and a
decrease in non-cash, MTM earnings.
The partnership’s Midland Basin natural gas processing plants
reported a net $65 million decrease in gross operating margin for
the third quarter of 2023 compared to the third quarter of 2022,
primarily due to lower average processing margins, including the
impact of hedging activities, and higher operating costs, partially
offset by an increase in fee-based natural gas processing volumes.
Fee-based processing volumes at our Midland Basin natural gas
processing facilities increased 212 MMcf/d this quarter compared to
the third quarter last year primarily due to processing volumes
from our Poseidon natural gas processing plant, which was placed
into service in July 2023.
Enterprise’s Delaware Basin processing plants reported a $35
million decrease in gross operating margin for the third quarter of
2023 compared to the third quarter of 2022, primarily due to lower
average processing margins, including the impact of hedging
activities.
Gross operating margin from Enterprise’s South Texas natural gas
processing facilities decreased a net $4 million for the third
quarter of 2023 compared to the same quarter of last year,
primarily due to lower average processing margins, including the
impact of hedging activities, and a 6 MBPD decrease in equity
NGL-equivalent production volumes, partially offset by a 181 MMcf/d
increase in fee-based natural gas processing volumes and lower
operating costs.
Total fee-based natural gas processing volumes were a record 5.9
Bcf/d for the third quarter of 2023 compared to 5.2 Bcf/d in the
third quarter of 2022. Equity NGL-equivalent production volumes
were 184 MBPD for the third quarter of 2023 compared to 182 MBPD
for the third quarter of 2022.
Gross operating margin from the partnership’s NGL pipelines and
storage business increased $93 million, or 15 percent, to a record
$704 million for the third quarter of 2023 compared to the third
quarter of 2022. NGL pipeline transportation volumes increased 7
percent to 4.0 million BPD in the third quarter of 2023 from 3.7
million BPD in the third quarter of 2022, and NGL marine terminal
volumes increased to 771 MBPD this quarter from 747 MBPD in the
same quarter last year.
Gross operating margin from the partnership’s Eastern ethane
pipelines, which includes the ATEX and Aegis pipelines, increased a
combined $25 million for the third quarter of 2023 compared to the
third quarter of 2022, primarily due to higher average
transportation fees. Transportation volumes on these pipelines
increased a combined 91 MBPD this quarter compared to the same
quarter of last year.
A number of Enterprise’s NGL pipelines, including the
Mid-America and Seminole NGL Pipeline Systems, Shin Oak NGL
Pipeline and Chaparral NGL pipeline, serve the Permian Basin and
Rocky Mountain regions. On a combined basis, these pipelines
reported a net $19 million increase in gross operating margin for
the third quarter of 2023 compared to the third quarter of 2022,
primarily due to higher average transportation fees and a 64 MBPD,
net to our interest, increase in transportation volumes, partially
offset by lower other revenues.
The partnership’s South Texas NGL Pipeline System reported a $14
million increase in gross operating margin this quarter versus the
third quarter last year, primarily due to a 36 MBPD increase in
transportation volumes and higher average transportation and
related fees.
The Enterprise Hydrocarbons Terminal (“EHT”) had a $13 million
increase in gross operating margin for the third quarter of this
year compared to the third quarter of 2022, primarily due to higher
average loading fees. Liquefied petroleum gas (“LPG”) export
volumes at EHT increased 9 MBPD this quarter compared to the third
quarter of last year. The partnership’s Morgan’s Point Ethane
Export Terminal reported a $9 million increase in gross operating
margin, primarily attributable to a 15 MBPD increase in export
volumes and higher average loading fees. The partnership’s
associated Houston Ship Channel pipeline reported a $9 million
increase in gross operating margin for the third quarter of 2023
compared to the third quarter of 2022, primarily due to higher
average transportation fees and a 69 MBPD increase in
transportation volumes.
Enterprise’s NGL fractionation business reported gross operating
margin of $199 million for the third quarter of 2023 compared to
$200 million for the third quarter of 2022. Total NGL fractionation
volumes were a record 1.5 million BPD in the third quarter of 2023
compared to 1.4 million BPD for the third quarter of 2022. Lower
average fractionation fees from the partnership’s fractionators
this quarter offset the benefit of higher volumes. The increase in
NGL fractionation volumes was primarily due to contributions from
Frac 12 fractionator in Chambers County, which began service in
July 2023.
Crude Oil Pipelines & Services – Gross operating
margin from the Crude Oil Pipelines & Services segment
increased to $432 million for the third quarter of 2023 from $415
million for the third quarter of 2022. Gross operating margin for
the third quarter of 2023 included non-cash, MTM losses of $33
million compared to non-cash, MTM gains of $31 million for the
third quarter of 2022. Total crude oil pipeline transportation
volumes increased to a record 2.6 million BPD for the third quarter
of 2023 compared to 2.2 million BPD for the third quarter of 2022.
Total crude oil marine terminal volumes increased to a record 988
MBPD this quarter from 824 MBPD for the same quarter last year.
Gross operating margin from the partnership’s West Texas
Pipeline System increased $72 million this quarter compared to the
same quarter last year, primarily due to higher ancillary service
and other revenues. Transportation volumes increased 46 MBPD on
this pipeline system.
Gross operating margin from Enterprise’s Midland-to-ECHO
Pipeline System, including related marketing activities, increased
$52 million for the third quarter of 2023 compared to the third
quarter of 2022, primarily due to a 137 MBPD increase, net to our
interest, in transportation volumes and higher average
transportation fees and related margins from related marketing
activities.
The partnership’s ECHO crude oil terminal reported a $13 million
increase in gross operating margin this quarter compared to the
third quarter last year, primarily due to higher terminaling and
storage revenues, and lower utility and other operating costs.
Gross operating margin from crude oil activities at EHT increased
$11 million this quarter compared to the third quarter of last
year, primarily due to higher loading revenues. Crude oil terminal
volumes at EHT increased 200 MBPD this quarter compared to the same
quarter last year.
Gross operating margin from Enterprise’s other crude oil
marketing activities decreased $100 million, primarily due to lower
non-cash, MTM earnings and lower average sales margins.
Gross operating margin from Enterprise’s South Texas Crude Oil
Pipeline System decreased $25 million this quarter versus the same
quarter last year, primarily due to lower ancillary service and
other revenues. Transportation volumes decreased 15 MBPD on this
system for the third quarter of 2023 compared to the third quarter
of 2022.
Natural Gas Pipelines & Services – Gross operating
margin from the Natural Gas Pipelines & Services segment was
$239 million for the third quarter of 2023 compared to $278 million
for the third quarter of 2022. Total natural gas transportation
volumes increased 5 percent to a record 18.4 TBtus/d this quarter
compared to 17.5 TBtus/d for the same quarter of 2022.
On a combined basis, gross operating margin from the
partnership’s Jonah Gathering System, Piceance Basin Gathering
System, and San Juan Gathering System in the Rocky Mountains
decreased $26 million for the third quarter of 2023 compared to the
third quarter of 2022, primarily due to lower average gathering
fees (including those indexed to regional natural gas prices),
higher maintenance and other operating costs and an aggregate 90
BBtus/d decrease in gathering volumes from these systems.
On a combined basis, gross operating margin from Enterprise’s
Acadian Gas System and Haynesville Gas Gathering System decreased
$10 million this quarter versus the same quarter last year,
primarily due to lower other revenues. On a combined basis,
transportation volumes increased 51 BBtus/d this quarter compared
to the third quarter last year.
Gross operating margin from Enterprise’s natural gas marketing
business decreased $11 million for the third quarter of 2023
compared to the same quarter last year, primarily due to lower
average sales margins attributable to a decrease in regional price
differentials.
Petrochemical & Refined Products Services – Gross
operating margin for the Petrochemical & Refined Products
Services segment increased 28 percent to a record $453 million for
the third quarter of 2023 from $353 million for the third quarter
of 2022. Total segment pipeline transportation volumes were 826
MBPD for the third quarter this year compared to 758 MBPD for the
third quarter of last year. Total refined products and
petrochemicals marine terminal volumes increased to 331 MBPD this
quarter compared to 166 MBPD for the same quarter of 2022.
Gross operating margin from the partnership’s propylene
production and related activities increased $10 million for the
third quarter of 2023 compared to the third quarter of 2022. Higher
average transportation fees from our propylene pipeline systems led
to a $6 million increase in gross operating margin. Gross operating
margin for the partnership’s Chambers County propylene production
facilities decreased $1 million when comparing the third quarter of
2023 to the third quarter last year, primarily due to lower
propylene sales volumes and average margins, and higher maintenance
and other operating costs, partially offset by higher propylene
processing, storage and other revenues. PDH 2, which was initially
placed into service in July 2023, has had a slower start up than
expected. The 15 MBPD of incremental propylene production
contributed by PDH 2 during the third quarter of 2023 was partially
offset by lower volumes from PDH 1, which experienced 56 days of
downtime during the quarter for unplanned maintenance. PDH 2 has
been down for startup maintenance since October 8, and is expected
to restart in late November. Total propylene and associated
by-product production volumes were 103 MBPD (net to our interest)
this quarter compared to 101 MBPD (net to our interest) for the
same quarter last year.
The partnership’s octane enhancement and related operations
business reported a $60 million increase in gross operating margin
for the third quarter of 2023 compared to the third quarter of
2022, primarily due to higher sales volumes and average sales
margins and lower utility and other operating costs.
Enterprise’s refined products pipelines and related activities
reported a $26 million increase in gross operating margin for the
third quarter of 2023 compared to the third quarter of 2022.
Contributing to the quarterly increase in gross operating margin
were higher average sales margins from refined products marketing
activities, higher storage and other fee revenues from the refined
products terminal in Beaumont, Texas, and higher average
transportation and related fees from our TE Products Pipeline
System.
Capitalization
Total debt principal outstanding at September 30, 2023 was $29.2
billion, including $2.3 billion of junior subordinated notes to
which the nationally recognized debt rating agencies ascribe
partial equity content. Assuming the final maturity date for our
junior subordinated notes, the weighted-average life of our debt
portfolio is approximately 19 years. Our weighted-average cost of
debt is 4.6%. At September 30, 2023, approximately 96% of our debt
was fixed-rate. In 2024, only $850 million, or approximately 3%, of
our $28.6 billion in term debt obligations (excludes commercial
paper) mature. For the next three years (2024 through 2026), $3.625
billion, or only 13%, of our term debt obligations mature. At
September 30, 2023, Enterprise had consolidated liquidity of
approximately $3.8 billion, comprised of available borrowing
capacity under its revolving credit facilities and unrestricted
cash on hand.
Capital Investments
Total capital investments in the third quarter of 2023 were $826
million, which included $99 million of sustaining capital
expenditures. For the first nine months of 2023, Enterprise’s
capital investments totaled $2.3 billion, which included $284
million of sustaining capital expenditures.
Our current expectation for growth capital investments and
sustaining capital expenditures for 2023 is approximately $3.0
billion, and $400 million, respectively. We expect growth capital
investments for 2024 to be in the range of $3.0 billion to $3.5
billion.
Conference Call to Discuss Third
Quarter 2023 Earnings
Today, Enterprise will host a conference call to discuss third
quarter 2023 earnings. The call will be broadcast live over the
Internet beginning at 9:00 a.m. CT and may be accessed by visiting
the partnership’s website at www.enterpriseproducts.com.
Use of Non-GAAP Financial
Measures
This press release and accompanying schedules include the
non-GAAP financial measures of total gross operating margin,
Adjusted CFFO, FCF, Adjusted FCF, DCF and Adjusted EBITDA. The
accompanying schedules provide definitions of these non-GAAP
financial measures and reconciliations to their most directly
comparable financial measure calculated and presented in accordance
with GAAP. Our non-GAAP financial measures should not be considered
as alternatives to GAAP measures such as net income, operating
income, net cash flow provided by operating activities or any other
measure of financial performance calculated and presented in
accordance with GAAP. Our non-GAAP financial measures may not be
comparable to similarly titled measures of other companies because
they may not calculate such measures in the same manner as we
do.
Company Information and Use of
Forward-Looking Statements
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Services
include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and marine terminals; crude oil gathering, transportation,
storage and marine terminals; petrochemical and refined products
transportation, storage and marine terminals; and a marine
transportation business that operates on key U.S. inland and
intracoastal waterway systems. The partnership’s assets currently
include more than 50,000 miles of pipelines; over 260 million
barrels of storage capacity for NGLs, crude oil, petrochemicals and
refined products; and 14 billion cubic feet of natural gas storage
capacity.
This press release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve certain risks and uncertainties, such as the partnership’s
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
Enterprise’s 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. The partnership
disclaims any intention or obligation to update publicly or reverse
such statements, whether as a result of new information, future
events or otherwise.
Enterprise Products Partners L.P.
Exhibit A
Condensed Statements of Consolidated
Operations – UNAUDITED
($ in millions, except per unit
amounts)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
For the Twelve Months Ended
September 30,
2023
2022
2023
2022
2023
Revenues
$
11,998
$
15,468
$
35,093
$
44,536
$
48,743
Costs and
expenses:
Operating costs and expenses
10,366
13,812
30,260
39,550
42,212
General and administrative costs
59
55
172
179
234
Total costs and expenses
10,425
13,867
30,432
39,729
42,446
Equity in income of
unconsolidated affiliates
122
111
347
335
476
Operating
income
1,695
1,712
5,008
5,142
6,773
Other income
(expense):
Interest expense
(328
)
(309
)
(944
)
(937
)
(1,251
)
Other, net
5
7
36
12
58
Total other expense, net
(323
)
(302
)
(908
)
(925
)
(1,193
)
Income before income
taxes
1,372
1,410
4,100
4,217
5,580
Provision for income taxes
(22
)
(18
)
(45
)
(54
)
(73
)
Net
income
1,350
1,392
4,055
4,163
5,507
Net income
attributable to noncontrolling interests
(31
)
(31
)
(91
)
(93
)
(123
)
Net income
attributable to preferred units
(1
)
(1
)
(3
)
(3
)
(3
)
Net income
attributable to common unitholders
$
1,318
$
1,360
$
3,961
$
4,067
$
5,381
Per common unit data
(fully diluted):
Earnings per common unit
$
0.60
$
0.62
$
1.81
$
1.85
$
2.45
Average common units outstanding (in
millions)
2,194
2,199
2,195
2,200
2,194
Supplemental
financial data:
Net cash flow provided by operating
activities
$
1,718
$
1,050
$
5,203
$
5,314
$
7,928
Cash flows used in investing
activities
$
818
$
441
$
2,220
$
4,309
$
2,865
Cash flows used in financing
activities
$
863
$
751
$
2,875
$
3,715
$
5,004
Total debt principal outstanding at end of
period
$
29,191
$
29,476
$
29,191
$
29,476
$
29,191
Non-GAAP Distributable Cash Flow (1)
$
1,869
$
1,868
$
5,542
$
5,723
$
7,570
Non-GAAP Adjusted EBITDA (2)
$
2,327
$
2,258
$
6,819
$
6,933
$
9,195
Non-GAAP Adjusted Cash flow from
operations (3)
$
2,021
$
1,950
$
5,909
$
5,996
$
8,006
Non-GAAP Free Cash Flow (4)
$
870
$
576
$
2,887
$
894
$
4,922
Non-GAAP Adjusted Free Cash Flow (4)
$
1,173
$
1,476
$
3,593
$
1,576
$
5,000
Gross operating margin by segment:
NGL Pipelines & Services
$
1,196
$
1,296
$
3,518
$
3,848
$
4,812
Crude Oil Pipelines & Services
432
415
1,251
1,237
1,669
Natural Gas Pipelines & Services
239
278
791
727
1,106
Petrochemical & Refined Products
Services
453
353
1,255
1,178
1,594
Total segment gross operating margin
(5)
2,320
2,342
6,815
6,990
9,181
Net adjustment for shipper make-up rights
(6)
11
(21
)
32
(49
)
34
Non-GAAP total gross operating margin
(7)
$
2,331
$
2,321
$
6,847
$
6,941
$
9,215
(1)
See Exhibit F for reconciliation to GAAP
net cash flow provided by operating activities.
(2)
See Exhibit G for reconciliation to GAAP
net cash flow provided by operating activities.
(3)
See Exhibit E for reconciliation to GAAP
net cash flow provided by operating activities.
(4)
See Exhibit D for reconciliation to GAAP
net cash flow provided by operating activities.
(5)
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”).
(6)
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.
(7)
See Exhibit H for reconciliation to GAAP
total operating income.
Enterprise Products Partners L.P.
Exhibit B
Selected Operating Data –
UNAUDITED
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
For the Twelve Months Ended
September 30,
2023
2022
2023
2022
2023
Selected operating
data: (1)
NGL Pipelines & Services, net:
NGL pipeline transportation volumes
(MBPD)
3,974
3,702
3,965
3,650
3,944
NGL marine terminal volumes (MBPD)
771
747
787
713
778
NGL fractionation volumes (MBPD)
1,519
1,371
1,528
1,341
1,521
Equity NGL-equivalent production volumes
(MBPD) (2)
184
182
173
188
174
Fee-based natural gas processing volumes
(MMcf/d) (3,4)
5,928
5,202
5,717
5,091
5,648
Crude Oil Pipelines & Services,
net:
Crude oil pipeline transportation volumes
(MBPD)
2,560
2,216
2,409
2,204
2,376
Crude oil marine terminal volumes
(MBPD)
988
824
881
799
851
Natural Gas Pipelines & Services,
net:
Natural gas pipeline transportation
volumes (BBtus/d) (5)
18,440
17,514
18,244
16,935
18,083
Petrochemical & Refined Products
Services, net:
Propylene production volumes (MBPD)
103
101
104
105
103
Butane isomerization volumes (MBPD)
112
122
110
109
109
Standalone DIB processing volumes
(MBPD)
185
165
170
159
167
Octane enhancement and related plant sales
volumes (MBPD) (6)
41
40
34
39
36
Pipeline transportation volumes, primarily
refined products
and petrochemicals (MBPD)
826
758
817
750
799
Refined products and petrochemicals marine
terminal volumes (MBPD) (7)
331
166
311
200
286
Total, net:
NGL, crude oil, petrochemical and refined
products
pipeline transportation volumes (MBPD)
7,360
6,676
7,191
6,604
7,119
Natural gas pipeline transportation
volumes (BBtus/d)
18,440
17,514
18,244
16,935
18,083
Equivalent pipeline transportation volumes
(MBPD) (8)
12,213
11,285
11,992
11,061
11,878
NGL, crude oil, refined products and
petrochemical
marine terminal volumes (MBPD)
2,090
1,737
1,979
1,712
1,915
(1)
Operating rates are reported on a net
basis, which take into account our ownership interests in certain
joint ventures and include volumes for newly constructed assets
from the related in-service dates and for recently purchased assets
from the related acquisition dates.
(2)
Primarily represents the NGL and
condensate volumes we earn and take title to in connection with our
processing activities. The total equity NGL-equivalent production
volumes also include residue natural gas volumes from our natural
gas processing business.
(3)
Volumes reported correspond to the revenue
streams earned by our gas plants. “MMcf/d” means million cubic feet
per day.
(4)
Fee-based natural gas processing volumes
are measured at either the wellhead or plant inlet in MMcf/d.
(5)
“BBtus/d” means billion British thermal
units per day.
(6)
Reflects aggregate sales volumes for our
octane enhancement and isobutane dehydrogenation (“iBDH”)
facilities located at our Chambers County complex and our
high-purity isobutylene production facility located adjacent to the
Houston Ship Channel.
(7)
In addition to exports of refined
products, these amounts include loading volumes at our ethylene
export terminal.
(8)
Represents total NGL, crude oil, refined
products and petrochemical transportation volumes plus equivalent
energy volumes where 3.8 million British thermal units (“MMBtus”)
of natural gas transportation volumes are equivalent to one barrel
of NGLs transported.
Enterprise Products Partners L.P.
Exhibit C
Selected Commodity Price Information –
UNAUDITED
Polymer
Refinery
Natural
Normal
Natural
Grade
Grade
Gas,
Ethane,
Propane,
Butane,
Isobutane,
Gasoline,
Propylene,
Propylene,
$/MMBtu (1)
$/gallon (2)
$/gallon (2)
$/gallon (2)
$/gallon (2)
$/gallon (2)
$/pound (3)
$/pound (3)
2022 by quarter:
First Quarter
$4.96
$0.40
$1.30
$1.59
$1.60
$2.21
$0.63
$0.39
Second Quarter
$7.17
$0.59
$1.24
$1.50
$1.68
$2.17
$0.61
$0.40
Third Quarter
$8.20
$0.55
$1.08
$1.19
$1.44
$1.72
$0.47
$0.28
Fourth Quarter
$6.26
$0.39
$0.79
$0.97
$1.03
$1.54
$0.32
$0.18
2022 Averages
$6.65
$0.48
$1.10
$1.31
$1.44
$1.91
$0.51
$0.31
2023 by quarter:
First Quarter
$3.44
$0.25
$0.82
$1.11
$1.16
$1.62
$0.50
$0.22
Second Quarter
$2.09
$0.21
$0.67
$0.78
$0.84
$1.44
$0.40
$0.21
Third Quarter
$2.54
$0.30
$0.68
$0.83
$0.94
$1.55
$0.36
$0.15
2023 Averages
$2.69
$0.25
$0.72
$0.91
$0.98
$1.54
$0.42
$0.19
(1)
Natural gas prices are based on Henry-Hub
Inside FERC commercial index prices as reported by Platts, which is
a division of S&P Global, Inc.
(2)
NGL prices for ethane, propane, normal
butane, isobutane and natural gasoline are based on Mont Belvieu
Non-TET commercial index prices as reported by Oil Price
Information Service, which is a division of Dow Jones.
(3)
Polymer grade propylene prices represent
average contract pricing for such product as reported by IHS Markit
("IHS”), which is a division of S&P Global, Inc. Refinery grade
propylene prices represent weighted-average spot prices for such
product as reported by IHS.
WTI
Midland
Houston
LLS
Crude Oil,
Crude Oil,
Crude Oil
Crude Oil,
$/barrel (1)
$/barrel (2)
$/barrel (2)
$/barrel (3)
2022 by quarter:
First Quarter
$94.29
$96.43
$96.77
$96.77
Second Quarter
$108.41
$109.66
$109.96
$110.17
Third Quarter
$91.56
$93.41
$93.77
$94.17
Fourth Quarter
$82.64
$83.97
$84.33
$85.50
2022 Averages
$94.23
$95.87
$96.21
$96.65
2023 by quarter:
First Quarter
$76.13
$77.50
$77.74
$79.00
Second Quarter
$73.78
$74.48
$74.68
$75.87
Third Quarter
$82.26
$83.85
$84.02
$84.72
2023 Averages
$77.39
$78.61
$78.81
$79.86
(1)
West Texas Intermediate (“WTI”) prices are
based on commercial index prices at Cushing, Oklahoma as measured
by the NYMEX.
(2)
Midland and Houston crude oil prices are
based on commercial index prices as reported by Argus.
(3)
Light Louisiana Sweet (“LLS”) prices are
based on commercial index prices as reported by Platts.
The weighted-average indicative market price for NGLs (based on
prices for such products at Mont Belvieu, Texas, which is the
primary industry hub for domestic NGL production) was $0.61 per
gallon during the third quarter of 2023 versus $0.95 per gallon
during the third quarter of 2022. Fluctuations in our consolidated
revenues and cost of sales amounts are explained in large part by
changes in energy commodity prices. An increase in our consolidated
marketing revenues due to higher energy commodity sales prices may
not result in an increase in gross operating margin or cash
available for distribution, since our consolidated cost of sales
amounts would also be expected to increase due to comparable
increases in the purchase prices of the underlying energy
commodities. The same type of relationship would be true in the
case of lower energy commodity sales prices and purchase costs.
Enterprise Products Partners
L.P.
Exhibit D
Free Cash Flow and Adjusted Free Cash
Flow – UNAUDITED
($ in millions)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
Free
Cash Flow (“FCF”) and Adjusted FCF
Net cash flow provided by operating
activities (GAAP)
$
1,718
$
1,050
$
5,203
$
5,314
Adjustments to reconcile net cash flow
provided by operating activities to FCF and
Adjusted FCF (addition or subtraction
indicated by sign):
Cash used in investing activities
(818
)
(441
)
(2,220
)
(4,309
)
Cash contributions from noncontrolling
interests
10
–
25
4
Cash distributions paid to noncontrolling
interests
(40
)
(33
)
(121
)
(115
)
FCF (non-GAAP)
$
870
$
576
$
2,887
$
894
Net effect of changes in operating
accounts, as applicable
303
900
706
682
Adjusted FCF (non-GAAP)
$
1,173
$
1,476
$
3,593
$
1,576
For the Twelve Months Ended
September 30,
2023
2022
Net cash flow provided by operating
activities (GAAP)
$
7,928
$
7,440
Adjustments to reconcile net cash flow
provided by operating activities to FCF and
Adjusted FCF (addition or subtraction
indicated by sign):
Cash used in investing activities
(2,865
)
(4,723
)
Cash contributions from noncontrolling
interests
28
53
Cash distributions paid to noncontrolling
interests
(169
)
(154
)
FCF (non-GAAP)
$
4,922
$
2,616
Net effect of changes in operating
accounts, as applicable
78
363
Adjusted FCF (non-GAAP)
$
5,000
$
2,979
FCF is a non-GAAP measure of how much cash a business generates
after accounting for capital expenditures such as plants or
pipelines. Additionally, Adjusted FCF is a non-GAAP measure of how
much cash a business generates, excluding the net effect of changes
in operating accounts, after accounting for capital expenditures.
We believe that FCF is important to traditional investors since it
reflects the amount of cash available for reducing debt, investing
in additional capital projects and/or paying distributions. We
believe that Adjusted FCF is also important to traditional
investors for the same reasons as FCF, without regard for
fluctuations caused by timing of when amounts earned or incurred
were collected, received or paid from period to period. Since we
partner with other companies to fund certain capital projects of
our consolidated subsidiaries, our determination of FCF and
Adjusted FCF appropriately reflect the amount of cash contributed
from and distributed to noncontrolling interests.
Enterprise Products Partners
L.P.
Exhibit E
Adjusted Cash flow from operations –
UNAUDITED
($ in millions)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
For the Twelve Months Ended
September 30,
2023
2022
2023
2022
2023
2022
Adjusted
Cash flow from operations (“Adjusted CFFO”)
Net cash flow provided by operating
activities (GAAP)
$
1,718
$
1,050
$
5,203
$
5,314
$
7,928
$
7,440
Adjustments to reconcile net cash flow
provided by operating activities to
Adjusted Cash flow from operations
(addition or subtraction indicated by sign):
Net effect of changes in operating
accounts, as applicable
303
900
706
682
78
363
Adjusted CFFO (non-GAAP)
$
2,021
$
1,950
$
5,909
$
5,996
$
8,006
$
7,803
Adjusted CFFO is a non-GAAP measure that represents net cash
flow provided by operating activities before the net effect of
changes in operating accounts, as summarized from the Company’s
Unaudited Condensed Consolidated Statements of Cash Flows. We
believe that it is important to consider this non-GAAP measure as
it can often be a better way to measure the amount of cash
generated from our operations that can be used to fund our capital
investments or return value to our investors through cash
distributions and buybacks, without regard for fluctuations caused
by timing of when amounts earned or incurred were collected,
received or paid from period to period.
Enterprise Products Partners
L.P.
Exhibit F
Distributable Cash Flow –
UNAUDITED
($ in millions)
For the Twelve Months Ended
September 30,
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
2023
Distributable Cash Flow (“DCF”)
Net income attributable to common
unitholders (GAAP)
$
1,318
$
1,360
$
3,961
$
4,067
$
5,381
Adjustments to net income attributable to
common
unitholders to derive DCF (addition or
subtraction indicated by sign):
Depreciation, amortization and accretion
expenses
599
558
1,742
1,675
2,312
Cash distributions received from
unconsolidated affiliates
120
132
367
411
500
Equity in income of unconsolidated
affiliates
(122
)
(111
)
(347
)
(335
)
(476
)
Asset impairment charges
12
29
28
48
33
Change in fair market value of derivative
instruments
38
(48
)
48
46
80
Deferred income tax expense
13
8
5
24
41
Sustaining capital expenditures (1)
(99
)
(77
)
(284
)
(234
)
(422
)
Other, net
(11
)
11
(6
)
1
(9
)
Operational DCF
1,868
1,862
5,514
5,703
7,440
Proceeds from asset sales and other
matters
1
6
7
20
109
Monetization of interest rate derivative
instruments accounted
for as cash flow hedges
–
–
21
–
21
DCF (non-GAAP)
$
1,869
$
1,868
$
5,542
$
5,723
$
7,570
Adjustments to reconcile DCF with net cash
flow provided by operating
activities (addition or subtraction
indicated by sign):
Net effect of changes in operating
accounts, as applicable
(303
)
(900
)
(706
)
(682
)
(78
)
Sustaining capital expenditures
99
77
284
234
422
Other, net
53
5
83
39
14
Net cash flow provided by operating
activities (GAAP)
$
1,718
$
1,050
$
5,203
$
5,314
$
7,928
(1)
Sustaining capital expenditures are
capital expenditures (as defined by GAAP) resulting from
improvements to and major renewals of existing assets. Such
expenditures serve to maintain existing operations but do not
generate additional revenues.
DCF is an important non-GAAP liquidity measure for our common
unitholders since it serves as an indicator of our success in
providing a cash return on investment. Specifically, this liquidity
measure indicates to investors whether or not we are generating
cash flows at a level that can sustain or support an increase in
our quarterly cash distributions. DCF is also a quantitative
standard used by the investment community with respect to publicly
traded partnerships because the value of a partnership unit is, in
part, measured by its yield, which is based on the amount of cash
distributions a partnership can pay to a common unitholder.
Enterprise Products Partners
L.P.
Exhibit G
Adjusted EBITDA - UNAUDITED
($ in millions)
For the Twelve Months Ended
September 30,
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
2023
Net income (GAAP)
$
1,350
$
1,392
$
4,055
$
4,163
$
5,507
Adjustments to net income to derive
Adjusted EBITDA
(addition or subtraction indicated by
sign):
Depreciation, amortization and accretion
in costs and expenses (1)
579
536
1,683
1,606
2,233
Interest expense, including related
amortization
328
309
944
937
1,251
Cash distributions received from
unconsolidated affiliates
120
132
367
411
500
Equity in income of unconsolidated
affiliates
(122
)
(111
)
(347
)
(335
)
(476
)
Asset impairment charges
12
29
28
48
33
Provision for income taxes
22
18
45
54
73
Change in fair market value of commodity
derivative instruments
38
(48
)
48
46
80
Other, net
–
1
(4
)
3
(6
)
Adjusted EBITDA (non-GAAP)
2,327
2,258
6,819
6,933
9,195
Adjustments to reconcile Adjusted EBITDA
to net cash flow provided by
operating activities (addition or
subtraction indicated by sign):
Interest expense, including related
amortization
(328
)
(309
)
(944
)
(937
)
(1,251
)
Deferred income tax expense
13
8
5
24
41
Provision for income taxes
(22
)
(18
)
(45
)
(54
)
(73
)
Net effect of changes in operating
accounts, as applicable
(303
)
(900
)
(706
)
(682
)
(78
)
Other, net
31
11
74
30
94
Net cash flow provided by operating
activities (GAAP)
$
1,718
$
1,050
$
5,203
$
5,314
$
7,928
(1)
Excludes amortization of major maintenance
costs for reaction-based plants, which are a component of Adjusted
EBITDA.
Adjusted EBITDA is commonly used as a supplemental financial
measure by our management and external users of our financial
statements, such as investors, commercial banks, research analysts
and rating agencies, to assess the financial performance of our
assets without regard to financing methods, capital structures or
historical cost basis; the ability of our assets to generate cash
sufficient to pay interest and support our indebtedness; and the
viability of projects and the overall rates of return on
alternative investment opportunities.
Since Adjusted EBITDA excludes some, but not all, items that
affect net income or loss and because these measures may vary among
other companies, the Adjusted EBITDA data presented in this press
release may not be comparable to similarly titled measures of other
companies. The GAAP measure most directly comparable to Adjusted
EBITDA is net cash flow provided by operating activities.
Enterprise Products Partners
L.P.
Exhibit H
Gross Operating Margin –
UNAUDITED
($ in millions)
For the Twelve Months Ended
September 30,
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
2023
Total gross operating margin
(non-GAAP)
$
2,331
$
2,321
$
6,847
$
6,941
$
9,215
Adjustments to reconcile total gross
operating margin to total operating
income (addition or subtraction indicated
by sign):
Depreciation, amortization and accretion
expense in operating
costs and expenses (1)
(566
)
(524
)
(1,644
)
(1,569
)
(2,182
)
Asset impairment charges in operating
costs and expenses
(11
)
(29
)
(27
)
(48
)
(32
)
Net gains (losses) attributable to asset
sales and related matters in operating costs and expenses
–
(1
)
4
(3
)
6
General and administrative costs
(59
)
(55
)
(172
)
(179
)
(234
)
Total operating income (GAAP)
$
1,695
$
1,712
$
5,008
$
5,142
$
6,773
(1)
Excludes amortization of major maintenance
costs for reaction-based plants, which are a component of 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.
The term “total gross operating margin” represents GAAP
operating income exclusive of (i) depreciation, amortization and
accretion expenses (excluding amortization of major maintenance
costs for reaction-based plants), (ii) impairment charges, (iii)
gains and losses attributable to asset sales and related matters,
and (iv) general and administrative costs. 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 percent basis before any
allocation of earnings to noncontrolling interests. The GAAP
financial measure most directly comparable to total gross operating
margin is operating income.
Total gross operating margin excludes amounts attributable to
shipper make-up rights as described in footnote (6) to Exhibit A of
this press release.
Enterprise Products Partners
L.P.
Exhibit I
Other Information – UNAUDITED
($ in millions)
For the Twelve Months Ended
September 30,
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
2023
Capital investments:
Capital expenditures
$
821
$
472
$
2,254
$
1,203
$
3,015
Cash used for business combinations, net
of cash received
–
–
–
3,204
–
Investments in unconsolidated
affiliates
2
1
2
1
2
Other investing activities
3
1
8
3
10
Total capital investments
$
826
$
474
$
2,264
$
4,411
$
3,027
The following table summarizes the non-cash mark-to-market gains
(losses) for the periods indicated:
For the Twelve Months Ended
September 30,
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
2023
Mark-to-market gains (losses) in gross
operating margin:
NGL Pipelines & Services
$
(3
)
$
18
$
(22
)
$
(12
)
$
(62
)
Crude Oil Pipelines & Services
(33
)
31
(27
)
(38
)
(19
)
Natural Gas Pipelines & Services
(4
)
(1
)
(2
)
(2
)
(3
)
Petrochemical & Refined Products
Services
2
–
3
6
4
Total mark-to-market impact on gross
operating margin
$
(38
)
$
48
$
(48
)
$
(46
)
$
(80
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031581687/en/
Randy Burkhalter, Vice President, Investor Relations, (713)
381-6812 Rick Rainey, Vice President, Media Relations, (713)
381-3635
Enterprise Products Part... (NYSE:EPD)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Enterprise Products Part... (NYSE:EPD)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024