DOW JONES NEWSWIRES
Enterprise GP Holdings LP's (EPE) shares fell a day after the
company reported second-quarter earnings dropped 21% on a charge
linked to leaving an offshore oil port and pipeline partnership and
a drop in revenue.
The firm owns the general partner of pipeline operators
Enterprise Products Partners LP (EPD) and Teppco Partners LP (TPP),
which agreed to merge in June. Last month Enterprise Products
Partners reported a 44% plunge in revenue as the lower prices
offset record volume, while Teppco also reported a sharp drop in
revenue.
Enterprise GP reported a profit of $39.1 million, or 28 cents
per unit, down from $49.4 million, or 40 cents per unit, a year
earlier. The latest results included a $68.4 million charge as
Enterprise Products and Teppco exited the Texas Offshore Port
System partnership in April, though nearly all of that charge was
related to a noncontrolling interest.
Revenue decreased 48% to $5.43 billion on the price
declines.
Analysts surveyed by Thomson Reuters expected 37 cents a share
on $5.46 billion in revenue.
President and Chief Executive Ralph S. Cunningham said
Enterprise GP generated record distributable cash flow for the
fifth consecutive quarter, excluding merger-related costs.
Shares were recently down 1.9% at $29.40.
-By Joan E. Solsman and Kerry Grace Benn, Dow Jones Newswires;
212-416-2353; kerry.benn@dowjones.com