Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD)
today announced its financial results for the three and six months
ended June 30, 2024.
Enterprise reported net income attributable to common
unitholders of $1.4 billion, or $0.64 per unit on a fully diluted
basis, for the second quarter of 2024, a 12 percent increase
compared to $1.3 billion, or $0.57 per unit on a fully diluted
basis, for the second quarter of 2023.
Distributable Cash Flow (“DCF”) was $1.8 billion for the second
quarter of 2024, compared to $1.7 billion for the second quarter of
2023. Distributions declared with respect to the second quarter of
2024 increased 5 percent to $0.525 per common unit, or $2.10 per
common unit annualized, compared to distributions declared for the
second quarter of 2023. DCF provided 1.6 times coverage of the
distribution declared for the second quarter of this year, and
Enterprise retained $661 million of DCF.
Enterprise repurchased approximately $40 million of its common
units on the open market in the second quarter of 2024. Including
these purchases, the partnership has utilized 50 percent of its
authorized $2.0 billion common unit buyback program.
Adjusted cash flow from operations (“Adjusted CFFO”) was $2.1
billion for the second quarter of 2024, compared to $1.9 billion
for the second quarter of 2023. Adjusted CFFO was $8.4 billion for
the twelve months ended June 30, 2024. Enterprise’s payout ratio,
comprised of distributions to common unitholders and partnership
common unit buybacks, for the twelve months ended June 30, 2024,
was 55 percent of Adjusted CFFO.
Total capital investments were $1.3 billion in the second
quarter of 2024, which included $1.0 billion for growth capital
projects and $245 million of sustaining capital expenditures.
Organic growth capital investments are expected to be in the range
of $3.5 billion to $3.75 billion in 2024 and $3.25 billion to $3.75
billion in 2025. Sustaining capital expenditures are expected to be
approximately $600 million in 2024. The approximately $50 million
increase in expected sustaining capital expenditures for 2024 is
primarily related to higher capital costs associated with the major
turnaround at the PDH 1 facility, which was completed in June
2024.
Total debt principal outstanding at June 30, 2024 was $30.6
billion, including $2.3 billion of junior subordinated notes to
which the debt rating agencies ascribe partial equity content. At
June 30, 2024, Enterprise had consolidated liquidity of
approximately $3.4 billion, comprised of available borrowing
capacity under its revolving credit facilities and unrestricted
cash on hand.
Conference Call to Discuss Second
Quarter 2024 Earnings
Enterprise will host a conference call today to discuss second
quarter 2024 earnings. The call will be webcast live beginning at
9:00 a.m. CT and may be accessed by visiting the partnership’s
website at www.enterpriseproducts.com.
Second Quarter 2024 Financial
Highlights
Three Months Ended June 30,
2024
2023
($ in millions, except per unit
amounts)
Operating income (1)
$
1,765
$
1,579
Net income (1) (2)
$
1,422
$
1,283
Fully diluted earnings per common unit
(2)
$
0.64
$
0.57
Total gross operating margin (1) (3)
$
2,412
$
2,181
Adjusted EBITDA (3)
$
2,389
$
2,171
Adjusted CFFO (3)
$
2,065
$
1,866
Adjusted FCF (3)
$
814
$
1,073
DCF (3)
$
1,812
$
1,735
Operational DCF (3)
$
1,808
$
1,731
(1)
Operating income, net income, and gross
operating margin include non-cash, mark-to-market (“MTM”) gains on
financial instruments used in our commodity hedging activities of
$12 million for the second quarter of 2024 compared to losses of $7
million for the second quarter of 2023.
(2)
Net income for the second quarters of 2024
and 2023 includes non-cash, asset impairment charges of
approximately $4 million and $3 million, respectively, with
negligible impacts to fully diluted earnings per common unit for
each period.
(3)
Total gross operating margin, adjusted
earnings before interest, taxes, depreciation and amortization
(“Adjusted EBITDA”), Adjusted CFFO, adjusted free cash flow
(“Adjusted FCF”), DCF and Operational Distributable Cash Flow
(“Operational DCF”) are non-generally accepted accounting principle
(“non-GAAP”) financial measures that are defined and reconciled
later in this press release.
Second Quarter 2024 Volume
Highlights
Three Months Ended June 30,
2024
2023
Equivalent pipeline transportation volumes
(million BPD) (1)
12.6
11.9
NGL, crude oil, refined products &
petrochemical pipeline volumes (million BPD)
7.7
7.1
Marine terminal volumes (million BPD)
2.2
1.9
Natural gas pipeline volumes (TBtus/d)
18.3
18.3
NGL fractionation volumes (MBPD)
1,629
1,376
Propylene plant production volumes
(MBPD)
96
84
Fee-based natural gas processing volumes
(Bcf/d)
6.5
5.7
Equity NGL-equivalent production volumes
(MBPD)
217
173
(1)
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.
As used in this press release, “NGL” means natural gas
liquids, “LPG” means liquefied petroleum gas, “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 a solid second quarter in terms of both
volumes and cash flow generated by our integrated midstream
system,” said A. J. “Jim” Teague, co-chief executive officer of
Enterprise’s general partner. “Even though the second quarter is
typically our seasonally weakest quarter, the partnership handled a
near record 12.6 million BPD of equivalent pipeline volumes and 2.2
million BPD of marine terminal volumes, as well as record fee-based
natural gas processing, NGL pipeline and NGL fractionation volumes.
Our total equivalent pipeline volumes and marine terminal volumes
increased by 5 percent and 18 percent, respectively, compared to
the second quarter of 2023.”
“Our investments in infrastructure to support growth in the
Permian Basin were visible both volumetrically and financially in
our NGL Pipeline & Services segment during the second quarter.
This segment reported a 19 percent increase in gross operating
margin compared to the second quarter of last year primarily
attributable to four new natural gas processing plants in the
Permian Basin and our 12th NGL fractionator at our Mont Belvieu
area complex that began operations over the past twelve months. In
addition, we benefited from improvements in natural gas processing
margins compared to last year. Our Natural Gas Pipelines &
Services segment reported a 23 percent increase in gross operating
margin versus the same quarter in 2023 largely due to higher
transportation revenues and marketing margins associated with the
wider price spreads between the Waha hub and other market hubs,”
said Teague.
“This operating performance led to a 12 percent increase in
earnings per common unit on a fully diluted basis, an 11 percent
increase in adjusted cash flow from operations and a 5 percent
increase in our cash distribution per unit for the second quarter
of 2024, compared to the second quarter of 2023. The year 2024 will
mark our 26th consecutive year of distribution growth. In addition,
the partnership has $6.7 billion of fee-based growth projects under
construction that provide visibility to future earnings and cash
flow growth,” said Teague.
“We completed a comprehensive turnaround of our PDH 1 plant
during the second quarter. We expect this work will result in
greater reliability and higher utilization rates. Since PDH 1
returned to service in late June, it has operated above its
nameplate capacity. Upon completion of the PDH 1 turnaround, we
elected to promptly begin the planned turnaround of PDH 2 given
scheduling efficiencies and availability of manpower and equipment.
We expect PDH 2 to return to service in August. I would like to
thank our Mont Belvieu team and supporting service providers for
their efforts on these turnarounds,” said Teague.
Review of Second Quarter 2024
Results
Total gross operating margin was $2.4 billion for the second
quarter of 2024, an 11 percent increase compared to $2.2 billion
for the second quarter of 2023.
NGL Pipelines & Services – Gross operating margin
from the NGL Pipelines & Services segment was $1.3 billion for
the second quarter of 2024 compared to $1.1 billion for the second
quarter of 2023.
Gross operating margin from the natural gas processing business
and related NGL marketing activities was $386 million for the
second quarter of 2024, an increase of 25 percent compared to $310
million for the second quarter of 2023. Total fee-based natural gas
processing volumes increased 837 MMcf/d, or 15 percent, to a record
6.5 Bcf/d in the second quarter of 2024, compared to the second
quarter of 2023. Total equity NGL-equivalent production volumes
were 217 MBPD and 173 MBPD in the second quarters of 2024 and 2023,
respectively. The following highlights summarize selected variances
within this business, with results for the second quarter of 2024
as compared to the second quarter of 2023:
- Gross operating margin from Permian natural gas processing
facilities, including the Midland and Delaware Basin assets,
increased $81 million primarily attributable to the addition of
four natural gas processing plants that went into service during
the last twelve months. These plants contributed to higher
fee-based processing volumes and higher equity NGL-equivalent
volumes for the Midland and Delaware Basin assets. These assets
also benefited from higher average processing margins, primarily
due to the impact of hedging. Midland Basin fee-based processing
volumes increased 342 MMcf/d stemming from the addition of the
Poseidon and Leonidas natural gas processing trains, which were
placed in service in July 2023 and late March 2024, respectively.
Midland Basin equity NGL-equivalent production volumes increased 23
MBPD. Delaware Basin fee-based processing volumes increased 359
MMcf/d benefiting from the addition of the Mentone 2 and Mentone 3
processing trains, which were placed in service in October 2023 and
late March 2024, respectively. Delaware Basin equity NGL-equivalent
production volumes increased 3 MBPD.
- Gross operating margin from South Texas natural gas processing
facilities increased $16 million primarily due to higher average
processing margins, higher fee-based processing volumes, and lower
operating costs. South Texas fee-based processing volumes increased
153 MMcf/d. Equity NGL-equivalent production volumes were
essentially flat.
- Gross operating margin from Rockies natural gas processing
facilities increased $6 million primarily due to higher fee-based
processing volumes, which increased 256 MMcf/d, and higher equity
NGL-equivalent volumes, which increased 9 MBPD.
- Gross operating margin from NGL marketing activities decreased
$34 million primarily due to lower average sales margins, partially
offset by higher sales volumes.
Gross operating margin from the NGL pipelines and storage
business was $701 million for the second quarter of 2024, an
increase of $103 million compared to the second quarter of 2023.
Total NGL pipeline transportation volumes were a record 4.3 million
BPD in the second quarter of 2024, a 9 percent increase over the
second quarter of 2023. Total NGL marine terminal volumes increased
15 percent, or 111 MBPD, to 876 MBPD for the second quarter of
2024, compared to the second quarter in 2023. The following
highlights summarize selected variances within this business, with
results for the second quarter of 2024 as compared to the second
quarter of 2023:
- On a combined basis, the pipelines serving the Permian and
Rocky Mountain regions reported a $21 million increase in gross
operating margin. This includes the Mid-America, Seminole, Shin
Oak, and Chaparral NGL pipeline systems. The variance was primarily
driven by a 179 MBPD, net to our interest, increase in
transportation volumes and higher average transportation fees.
- Eastern ethane pipelines, which include the ATEX and Aegis
pipelines, reported a $21 million increase in gross operating
margin largely due to higher transportation revenues. Eastern
ethane pipeline volumes decreased 48 MBPD.
- Gross operating margin from the Enterprise Hydrocarbons
Terminal (“EHT”) increased $18 million primarily due to a 72 MBPD
increase in LPG export volumes and higher average loading fees.
Gross operating margin from the Morgan’s Point Ethane Export
Terminal increased $4 million primarily due to a 39 MBPD increase
in export volumes. Gross operating margin from the Houston Ship
Channel Pipeline System increased $9 million in connection with a
139 MBPD increase in transportation volumes.
- Gross operating margin from the Mont Belvieu area storage
complex increased $18 million primarily due to higher storage
revenues.
Gross operating margin from the NGL fractionation business was
$238 million for the second quarter of 2024 compared to $202
million for the second quarter of 2023. Total NGL fractionation
volumes increased 253 MBPD to a record 1.6 million BPD for the
second quarter of 2024, compared to the second quarter of 2023. The
following highlights summarize selected variances within this
business, with results for the second quarter of 2024 as compared
to the second quarter of 2023:
- Gross operating margin from our Mont Belvieu area NGL
fractionation complex increased $25 million primarily due to a 216
MBPD, net to our interest, increase in fractionation volumes,
partially offset by higher operating costs. The increase in volume
and gross operating margin was primarily due to the addition of the
12th NGL fractionator at this facility, which was placed in service
in July 2023. Fractionation volumes also benefited from the
acquisition of the remaining 25 percent equity interest in EF78 LLC
in February 2024.
Crude Oil Pipelines & Services – Gross operating
margin from the Crude Oil Pipelines & Services segment was $417
million for the second quarter of 2024 compared to $422 million for
the second quarter of 2023. Gross operating margin for the second
quarter of 2024 includes non-cash, MTM gains of $8 million related
to hedging activities compared to non-cash, MTM losses of $7
million in the second quarter of 2023. Total crude oil pipeline
transportation volumes were 2.5 million BPD in the second quarter
of 2024 compared to 2.4 million BPD for the second quarter of 2023.
Total crude oil marine terminal volumes were 977 MBPD this quarter,
a 163 MBPD increase compared to the second quarter of 2023. The
following highlights summarize selected variances within this
segment, with results for the second quarter of 2024 as compared to
the second quarter of 2023:
- Gross operating margin from crude oil activities at EHT
increased $8 million primarily due to higher loading revenues.
Crude oil marine terminal volumes increased 138 MBPD.
- Gross operating margin from the Midland-to-ECHO system and
related business activities increased $4 million. Transportation
volumes, net to our interest, increased 153 MBPD primarily due to
our acquisition of the remaining 20 percent equity interest in
Whitethorn Pipeline Company LLC in February of 2024.
- On a combined basis, our Texas in-basin crude oil pipelines,
terminals and other marketing activities reported a $23 million
decrease in gross operating margin primarily due to lower average
sales margins and transportation fees, partially offset by higher
sales volumes. Transportation volumes, net to our interest,
increased 14 MBPD.
Natural Gas Pipelines & Services – Gross operating
margin for the Natural Gas Pipelines & Services segment was
$293 million for the second quarter of 2024 compared to $238
million for the second quarter of 2023. Total natural gas
transportation volumes were 18.3 TBtus/d in both the second
quarters of 2024 and 2023. The following highlights summarize
selected variances within this segment, with results for the second
quarter of 2024 as compared to the second quarter of 2023:
- Gross operating margin from the Texas Intrastate System
increased $36 million primarily due to higher capacity reservation
and transportation revenues, partially offset by higher operating
costs. Transportation volumes decreased 294 BBtus/d.
- Gross operating margin from our natural gas marketing business
increased $24 million primarily due to higher average sales
margins.
- Permian natural gas gathering, including Delaware Basin and
Midland Basin Gathering Systems, reported a combined $5 million
increase in gross operating margin primarily due to an 831 BBtus/d
increase in gathering volumes, partially offset by higher operating
costs.
- Gross operating margin from Haynesville Gathering decreased $11
million primarily due to lower transportation volumes and revenues.
Transportation volumes decreased 168 BBtus/d.
Petrochemical & Refined Products Services – Gross
operating margin for the Petrochemical & Refined Products
Services segment was $392 million for the second quarter of 2024
compared to $383 million for the second quarter of 2023. Total
segment pipeline transportation volumes were 946 MBPD in the second
quarter 2024 compared to 837 MBPD in the second quarter of 2023.
Total marine terminal volumes were 338 MBPD in the second quarter
of 2024 compared to 283 MBPD for the second quarter of 2023. The
following highlights summarize selected variances within this
segment, with results for the second quarter of 2024 as compared to
the second quarter of 2023:
- Gross operating margin from our octane enhancement and related
plant operations increased $14 million primarily due to higher
sales volumes and revenues.
- Propylene production and related activities reported a $6
million increase in gross operating margin. Our propylene
production facilities reported higher propylene processing revenues
and higher average sales margins that were partially offset by
lower propylene sales volumes and higher operating costs. Total
propylene and associated by-product production volumes were 96
MBPD, net to our interest, a 12 MBPD increase. This increase was
driven by contributions from the PDH 2 facility, which was placed
in service in July 2023, and higher operating rates at our
propylene splitters which experienced 57 days of downtime in the
second quarter of 2023. The increases were partially offset by
lower production at our PDH 1 facility which was down for 79 days
during the second quarter of 2024 for planned maintenance.
- Gross operating margin from our refined products pipelines and
related activities decreased $8 million primarily due to lower
average sales margins and lower fee-based revenues at our Beaumont
terminal facility.
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, Operational 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 300 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 June 30,
For the Six Months
Ended June 30,
For the Twelve Months
Ended June 30,
2024
2023
2024
2023
2024
Revenues
$
13,483
$
10,651
$
28,243
$
23,095
$
54,863
Costs and
expenses:
Operating costs and expenses
11,762
9,137
24,736
19,894
47,859
General and administrative costs
57
56
123
113
241
Total costs and expenses
11,819
9,193
24,859
20,007
48,100
Equity in income of
unconsolidated affiliates
101
121
203
225
440
Operating income
1,765
1,579
3,587
3,313
7,203
Other income
(expense):
Interest expense
(332
)
(302
)
(663
)
(616
)
(1,316
)
Other, net
4
19
17
31
27
Total other expense, net
(328
)
(283
)
(646
)
(585
)
(1,289
)
Income before income
taxes
1,437
1,296
2,941
2,728
5,914
Provision for income taxes
(15
)
(13
)
(36
)
(23
)
(57
)
Net income
1,422
1,283
2,905
2,705
5,857
Net income
attributable to noncontrolling interests
(16
)
(29
)
(42
)
(60
)
(107
)
Net income
attributable to preferred units
(1
)
(1
)
(2
)
(2
)
(3
)
Net income
attributable to common unitholders
$
1,405
$
1,253
$
2,861
$
2,643
$
5,747
Per common unit data (fully diluted):
Earnings per common unit
$
0.64
$
0.57
$
1.30
$
1.20
$
2.62
Average common units outstanding (in
millions)
2,194
2,196
2,194
2,195
2,193
Supplemental
financial data:
Net cash flow provided by operating
activities
$
1,574
$
1,902
$
3,685
$
3,485
$
7,769
Net cash flow used in investing
activities
$
1,243
$
765
$
2,281
$
1,402
$
4,076
Net cash flow used in financing
activities
$
281
$
1,136
$
1,290
$
2,012
$
3,536
Total debt principal outstanding at end of
period
$
30,621
$
28,926
$
30,621
$
28,926
$
30,621
Non-GAAP Distributable Cash Flow (1)
$
1,812
$
1,735
$
3,727
$
3,673
$
7,655
Non-GAAP Operational Distributable Cash
Flow (1)
$
1,808
$
1,731
$
3,750
$
3,646
$
7,642
Non-GAAP Adjusted EBITDA (2)
$
2,389
$
2,171
$
4,858
$
4,492
$
9,684
Non-GAAP Adjusted Cash flow from
operations (3)
$
2,065
$
1,866
$
4,212
$
3,888
$
8,448
Non-GAAP Free Cash Flow (4)
$
323
$
1,109
$
1,366
$
2,017
$
3,605
Non-GAAP Adjusted Free Cash Flow (4)
$
814
$
1,073
$
1,893
$
2,420
$
4,284
Gross operating margin by segment:
NGL Pipelines & Services
$
1,325
$
1,110
$
2,665
$
2,322
$
5,241
Crude Oil Pipelines & Services
417
422
828
819
1,716
Natural Gas Pipelines & Services
293
238
605
552
1,130
Petrochemical & Refined Products
Services
392
383
836
802
1,728
Total segment gross operating margin
(5)
2,427
2,153
4,934
4,495
9,815
Net adjustment for shipper make-up rights
(6)
(15
)
28
(32
)
21
(34
)
Non-GAAP total gross operating margin
(7)
$
2,412
$
2,181
$
4,902
$
4,516
$
9,781
(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 June 30,
For the Six Months
Ended June 30,
For the Twelve Months
Ended June 30,
2024
2023
2024
2023
2024
Selected operating data: (1)
NGL Pipelines & Services, net:
NGL pipeline transportation volumes
(MBPD)
4,264
3,910
4,213
3,944
4,166
NGL marine terminal volumes (MBPD)
876
765
886
794
866
NGL fractionation volumes (MBPD)
1,629
1,376
1,593
1,373
1,575
Equity NGL-equivalent production volumes
(MBPD) (2)
217
173
201
169
192
Fee-based natural gas processing volumes
(MMcf/d) (3,4)
6,514
5,677
6,438
5,609
6,261
Crude Oil Pipelines & Services,
net:
Crude oil pipeline transportation volumes
(MBPD)
2,528
2,366
2,454
2,332
2,520
Crude oil marine terminal volumes
(MBPD)
977
814
1,035
829
1,014
Natural Gas Pipelines & Services,
net:
Natural gas pipeline transportation
volumes (BBtus/d) (5)
18,344
18,264
18,479
18,145
18,531
Petrochemical & Refined Products
Services, net:
Propylene production volumes (MBPD)
96
84
97
90
100
Butane isomerization volumes (MBPD)
119
120
118
109
116
Standalone DIB processing volumes
(MBPD)
211
174
204
163
196
Octane enhancement and related plant sales
volumes (MBPD) (6)
39
37
37
31
39
Pipeline transportation volumes, primarily
refined products and petrochemicals (MBPD)
946
837
903
812
893
Refined products and petrochemicals marine
terminal volumes (MBPD) (7)
338
283
334
303
336
Total, net:
NGL, crude oil, petrochemical and refined
products pipeline transportation volumes (MBPD)
7,738
7,113
7,570
7,088
7,579
Natural gas pipeline transportation
volumes (BBtus/d)
18,344
18,264
18,479
18,145
18,531
Equivalent pipeline transportation volumes
(MBPD) (8)
12,565
11,919
12,433
11,863
12,456
NGL, crude oil, refined products and
petrochemical marine terminal volumes (MBPD)
2,191
1,862
2,255
1,926
2,216
(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 Mont Belvieu area 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)
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
Fourth Quarter
$
2.88
$
0.23
$
0.67
$
0.91
$
1.07
$
1.48
$
0.46
$
0.17
2023 Averages
$
2.74
$
0.25
$
0.71
$
0.91
$
1.00
$
1.52
$
0.43
$
0.19
2024 by quarter:
First Quarter
$
2.25
$
0.19
$
0.84
$
1.03
$
1.14
$
1.54
$
0.55
$
0.18
Second Quarter
$
1.89
$
0.19
$
0.75
$
0.90
$
1.26
$
1.55
$
0.47
$
0.21
2024 Averages
$
2.07
$
0.19
$
0.80
$
0.97
$
1.20
$
1.55
$
0.51
$
0.20
(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)
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
Fourth Quarter
$
78.32
$
79.62
$
79.89
$
80.93
2023 Averages
$
77.62
$
78.86
$
79.08
$
80.13
2024 by quarter:
First Quarter
$
76.96
$
78.55
$
78.85
$
79.75
Second Quarter
$
80.57
$
81.73
$
82.33
$
83.60
2024 Averages
$
78.77
$
80.14
$
80.59
$
81.68
(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 $0.59 per
gallon during the second quarter of 2024 versus $0.55 per gallon
during the second quarter of 2023. Fluctuations in our consolidated
revenues and cost of sales amounts are explained in large part by
changes in energy commodity prices. An increase in our consolidated
marketing revenues due to higher energy commodity sales prices may
not result in an increase in gross operating margin or cash
available for distribution, since our consolidated cost of sales
amounts would also be expected to increase due to comparable
increases in the purchase prices of the underlying energy
commodities. The same type of relationship would be true in the
case of lower energy commodity sales prices and purchase costs.
Enterprise Products Partners
L.P.
Exhibit D
Free Cash Flow and Adjusted Free Cash
Flow – UNAUDITED
($ in millions)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2024
2023
2024
2023
Free
Cash Flow (“FCF”) and Adjusted FCF
Net cash flow provided by operating
activities (GAAP)
$
1,574
$
1,902
$
3,685
$
3,485
Adjustments to reconcile net cash flow
provided by operating activities to FCF and Adjusted FCF (addition
or subtraction indicated by sign):
Net cash flow used in investing
activities
(1,243
)
(765
)
(2,281
)
(1,402
)
Cash contributions from noncontrolling
interests
17
11
25
15
Cash distributions paid to noncontrolling
interests
(25
)
(39
)
(63
)
(81
)
FCF (non-GAAP)
$
323
$
1,109
$
1,366
$
2,017
Net effect of changes in operating
accounts, as applicable
491
(36
)
527
403
Adjusted FCF (non-GAAP)
$
814
$
1,073
$
1,893
$
2,420
For the Twelve Months
Ended June 30,
2024
2023
Net cash flow provided by operating
activities (GAAP)
$
7,769
$
7,260
Adjustments to reconcile net cash flow
provided by operating activities to FCF and Adjusted FCF (addition
or subtraction indicated by sign):
Net cash flow used in investing
activities
(4,076
)
(2,488
)
Cash contributions from noncontrolling
interests
54
18
Cash distributions paid to noncontrolling
interests
(142
)
(162
)
FCF (non-GAAP)
$
3,605
$
4,628
Net effect of changes in operating
accounts, as applicable
679
675
Adjusted FCF (non-GAAP)
$
4,284
$
5,303
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 June 30,
For the Six Months
Ended June 30,
For the Twelve Months
Ended June 30,
2024
2023
2024
2023
2024
2023
Adjusted
Cash flow from operations (“Adjusted CFFO”)
Net cash flow provided by operating
activities (GAAP)
$
1,574
$
1,902
$
3,685
$
3,485
$
7,769
$
7,260
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
491
(36
)
527
403
679
675
Adjusted CFFO (non-GAAP)
$
2,065
$
1,866
$
4,212
$
3,888
$
8,448
$
7,935
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. 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 and Operational
Distributable Cash Flow – UNAUDITED
($ in millions)
For the Twelve Months
Ended June 30,
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2024
2023
2024
2023
2024
Distributable Cash Flow (“DCF”) and Operational
DCF
Net income attributable to common
unitholders (GAAP)
$
1,405
$
1,253
$
2,861
$
2,643
$
5,747
Adjustments to net income attributable to
common unitholders to derive DCF (addition or subtraction indicated
by sign):
Depreciation, amortization and accretion
expenses
611
576
1,227
1,143
2,427
Cash distributions received from
unconsolidated affiliates
131
128
243
247
484
Equity in income of unconsolidated
affiliates
(101
)
(121
)
(203
)
(225
)
(440
)
Asset impairment charges
4
3
24
16
40
Change in fair market value of derivative
instruments
(12
)
7
(8
)
10
15
Deferred income tax expense (benefit)
5
(11
)
14
(8
)
34
Sustaining capital expenditures (1)
(245
)
(101
)
(425
)
(185
)
(653
)
Other, net
10
(3
)
17
5
(12
)
Operational DCF (non-GAAP)
1,808
1,731
3,750
3,646
7,642
Proceeds from asset sales and other
matters
4
4
6
6
42
Monetization of interest rate derivative
instruments accounted
for as cash flow hedges
–
–
(29
)
21
(29
)
DCF (non-GAAP)
$
1,812
$
1,735
$
3,727
$
3,673
$
7,655
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
(491
)
36
(527
)
(403
)
(679
)
Sustaining capital expenditures
245
101
425
185
653
Other, net
8
30
60
30
140
Net cash flow provided by operating
activities (GAAP)
$
1,574
$
1,902
$
3,685
$
3,485
$
7,769
(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.
Operational DCF, which is defined as DCF excluding the impact of
proceeds from asset sales and other matters and monetization of
interest rate derivative instruments, is a supplemental non-GAAP
liquidity measure that quantifies the portion of cash available for
distribution to common unitholders that was generated from our
normal operations. We believe that it is important to consider this
non-GAAP measure as it provides an enhanced perspective of our
assets’ ability to generate cash flows without regard for certain
items that do not reflect our core operations.
The GAAP measure most directly comparable to DCF and Operational
DCF is net cash flow provided by operating activities.
Enterprise Products Partners
L.P.
Exhibit G
Adjusted EBITDA - UNAUDITED
($ in millions)
For the Twelve Months
Ended June 30,
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2024
2023
2024
2023
2024
Net income (GAAP)
$
1,422
$
1,283
$
2,905
$
2,705
$
5,857
Adjustments to net income to derive
Adjusted EBITDA (addition or subtraction indicated by sign):
Depreciation, amortization and accretion
in costs and expenses (1)
593
558
1,193
1,104
2,356
Interest expense, including related
amortization
332
302
663
616
1,316
Cash distributions received from
unconsolidated affiliates
131
128
243
247
484
Equity in income of unconsolidated
affiliates
(101
)
(121
)
(203
)
(225
)
(440
)
Asset impairment charges
4
3
24
16
40
Provision for income taxes
15
13
36
23
57
Change in fair market value of commodity
derivative instruments
(12
)
7
(8
)
10
15
Other, net
5
(2
)
5
(4
)
(1
)
Adjusted EBITDA (non-GAAP)
2,389
2,171
4,858
4,492
9,684
Adjustments to reconcile Adjusted EBITDA
to net cash flow provided by operating activities (addition or
subtraction indicated by sign):
Interest expense, including related
amortization
(332
)
(302
)
(663
)
(616
)
(1,316
)
Deferred income tax expense (benefit)
5
(11
)
14
(8
)
34
Provision for income taxes
(15
)
(13
)
(36
)
(23
)
(57
)
Net effect of changes in operating
accounts, as applicable
(491
)
36
(527
)
(403
)
(679
)
Other, net
18
21
39
43
103
Net cash flow provided by operating
activities (GAAP)
$
1,574
$
1,902
$
3,685
$
3,485
$
7,769
(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 June 30,
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2024
2023
2024
2023
2024
Total gross operating margin
(non-GAAP)
$
2,412
$
2,181
$
4,902
$
4,516
$
9,781
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)
(581
)
(545
)
(1,163
)
(1,078
)
(2,300
)
Asset impairment charges in operating
costs and expenses
(4
)
(3
)
(24
)
(16
)
(38
)
Net gains (losses) attributable to asset
sales and related matters in operating costs and expenses
(5
)
2
(5
)
4
1
General and administrative costs
(57
)
(56
)
(123
)
(113
)
(241
)
Total operating income (GAAP)
$
1,765
$
1,579
$
3,587
$
3,313
$
7,203
(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 June 30,
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2024
2023
2024
2023
2024
Capital investments:
Capital expenditures
$
1,264
$
780
$
2,311
$
1,433
$
4,144
Investments in unconsolidated
affiliates
–
–
–
–
2
Other investing activities
7
4
15
5
23
Total capital investments
$
1,271
$
784
$
2,326
$
1,438
$
4,169
The following table summarizes the non-cash mark-to-market gains
(losses) for the periods indicated:
For the Twelve Months
Ended June 30,
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2024
2023
2024
2023
2024
Mark-to-market gains (losses) in gross
operating margin:
NGL Pipelines & Services
$
–
$
(5
)
$
(7
)
$
(19
)
$
(13
)
Crude Oil Pipelines & Services
8
(7
)
12
6
1
Natural Gas Pipelines & Services
3
4
1
2
(2
)
Petrochemical & Refined Products
Services
1
1
2
1
(1
)
Total mark-to-market impact on gross
operating margin
$
12
$
(7
)
$
8
$
(10
)
$
(15
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730148939/en/
Libby Strait, Senior Director, Investor Relations, (713)
381-4754 Rick Rainey, Vice President, Media Relations, (713)
381-3635
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