Delaware
|
1-14323
|
76-0568219
|
(State or Other Jurisdiction of
|
(Commission File Number)
|
(I.R.S. Employer
|
Incorporation or Organization)
|
Identification No.)
|
1100 Louisiana Street, 10th Floor, Houston, Texas
|
77002
|
(Address of Principal Executive Offices)
|
(Zip Code)
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Exhibit No.
|
Description
|
99.1
|
Enterprise Products Partners L.P. press release dated February 1, 2012.
|
ENTERPRISE PRODUCTS PARTNERS L.P.
|
|||
By: Enterprise Products Holdings LLC,
its General Partner
|
|||
Date: February 1, 2012
|
By:
|
/s/ Michael J. Knesek
|
|
|
Name:
|
Michael J. Knesek
|
|
|
Title:
|
Senior Vice President, Controller and Principal
Accounting Officer of Enterprise Products
Holdings LLC
|
Exhibit No.
|
Description
|
99.1
|
Enterprise Products Partners L.P. press release dated February 1, 2012.
|
Enterprise Products Partners L.P.
P.O. Box 4324
Houston, TX 77210
(713) 381-6500
|
·
|
Enterprise reported record gross operating margin of $1.1 billion, record adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) of $1.2 billion, record net income of $726 million and record earnings per unit of $0.82 per unit on a fully diluted basis. This compares to gross operating margin of $829 million, Adjusted EBITDA of $803 million, net income of $289 million and earnings per unit of $0.33 on a fully diluted basis for the fourth quarter of 2010. Adjusted EBITDA and net income for the fourth quarter of 2011 include $130 million, or $0.15 per unit on a fully diluted basis, of gains from sales of assets.
|
Three months ended
December 31,
|
Year ended
December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
($ in millions, except per unit amounts)
|
||||||||||||||||
Gross operating margin
|
$ | 1,101 | $ | 829 | $ | 3,872 | $ | 3,253 | ||||||||
Operating income
|
$ | 909 | $ | 505 | $ | 2,859 | $ | 2,147 | ||||||||
Net income (1)
|
$ | 726 | $ | 289 | $ | 2,088 | $ | 1,384 | ||||||||
Fully diluted earnings per unit (1)(2)
|
$ | 0.82 | $ | 0.33 | $ | 2.38 | $ | 1.15 | ||||||||
Adjusted EBITDA
|
$ | 1,198 | $ | 803 | $ | 3,960 | $ | 3,256 | ||||||||
Distributable cash flow
|
$ | 1,409 | $ | 571 | $ | 3,737 | $ | 2,256 |
|
(1) Net income for the three months and year ended December 31, 2011 includes gains from asset sales of $130 million, or $0.15 per unit on a fully diluted basis, and $156 million, or $0.18 per unit on a fully diluted basis, respectively.
|
|
(2) Earnings per unit amounts for the three months and year ended December 31, 2010 have been adjusted as described under “Basis of Financial Statement Presentation” later in this press release.
|
·
|
Enterprise increased its cash distribution with respect to the fourth quarter of 2011 to $0.62 per unit, or $2.48 per unit on an annualized basis, which represents a 5.1 percent increase from the distribution rate paid with respect to the fourth quarter of 2010. This is the 30th consecutive quarterly increase and the 39th increase since the partnership’s initial public offering in 1998. The distribution with respect to the fourth quarter of 2011 will be paid on February 9, 2012 to unitholders of record as of the close of business on January 31, 2012;
|
·
|
Enterprise reported record distributable cash flow of $1.4 billion for the fourth quarter of 2011, which provided 2.7 times coverage of the $0.62 per unit cash distribution that will be paid to common unitholders. Enterprise retained approximately $879 million of distributable cash flow for the fourth quarter of 2011. Distributable cash flow for the fourth quarter of 2011 included $593 million of net proceeds from sales of assets including Enterprise’s natural gas storage business in Mississippi and 1.1 million common units of Energy Transfer Equity, L.P. (“Energy Transfer,” NYSE: ETE). Excluding proceeds from sales of assets, distributable cash flow for the fourth quarter of 2011 was a record $816 million and provided 1.5 times coverage of the cash distribution declared with respect to the quarter;
|
·
|
Enterprise’s NGL, crude oil, refined products and petrochemical pipeline volumes for the fourth quarter of 2011 were 4.0 million barrels per day (“BPD”), which were 8 percent less than volumes in the fourth quarter of 2010. Total natural gas pipeline volumes increased 13 percent to a record 14.2 trillion British thermal units per day (“TBtud”) for the fourth quarter of 2011. NGL fractionation volumes for the fourth quarter of 2011 increased 17 percent to a record 617 thousand barrels per day (“MBPD”). Equity NGL production for the fourth quarter of 2011 decreased 4 percent to 112 MBPD, while fee-
|
|
based natural gas processing volumes for the fourth quarter of 2011 increased 22 percent to a record 4.1 billion cubic feet per day (“Bcfd”);
|
·
|
Enterprise made capital investments of approximately $1.1 billion during the fourth quarter of 2011, including $79 million of sustaining capital expenditures; and
|
·
|
Enterprise had consolidated liquidity (defined as unrestricted cash on hand and available borrowing capacity under its revolving credit facility) at December 31, 2011 of approximately $3.4 billion. Our consolidated liquidity at December 31, 2011 does not include the $825 million of proceeds that Enterprise received from the sale of approximately 22.8 million Energy Transfer common units on January 18, 2012.
|
Enterprise Products Partners L.P.
|
Exhibit A
|
|||||||||||||||
Condensed Statements of Consolidated Operations – UNAUDITED
|
||||||||||||||||
($ in millions, except per unit amounts)
|
||||||||||||||||
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
$ | 11,585.7 | $ | 9,583.6 | $ | 44,313.0 | $ | 33,739.3 | ||||||||
Costs and expenses:
|
||||||||||||||||
Operating costs and expenses
|
10,643.5 | 9,043.1 | 41,318.5 | 31,449.3 | ||||||||||||
General and administrative costs
|
43.5 | 53.9 | 181.8 | 204.8 | ||||||||||||
Total costs and expenses
|
10,687.0 | 9,097.0 | 41,500.3 | 31,654.1 | ||||||||||||
Equity in income of unconsolidated affiliates
|
10.5 | 18.8 | 46.4 | 62.0 | ||||||||||||
Operating income
|
909.2 | 505.4 | 2,859.1 | 2,147.2 | ||||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense
|
(183.0 | ) | (212.8 | ) | (744.1 | ) | (741.9 | ) | ||||||||
Other, net
|
0.7 | 2.7 | 0.5 | 4.5 | ||||||||||||
Total other expense
|
(182.3 | ) | (210.1 | ) | (743.6 | ) | (737.4 | ) | ||||||||
Income before provision for income taxes
|
726.9 | 295.3 | 2,115.5 | 1,409.8 | ||||||||||||
Provision for income taxes
|
(1.1 | ) | (6.0 | ) | (27.2 | ) | (26.1 | ) | ||||||||
Net income
|
725.8 | 289.3 | 2,088.3 | 1,383.7 | ||||||||||||
Net income attributable to noncontrolling interests:
|
||||||||||||||||
Net income attributable to noncontrolling interests – Enterprise (1)
|
-- | (113.0 | ) | -- | (1,000.3 | ) | ||||||||||
Net income attributable to noncontrolling interests – Duncan (2)
|
-- | (10.3 | ) | (20.9 | ) | (37.1 | ) | |||||||||
Net income attributable to noncontrolling interests – other
|
(4.7 | ) | (6.2 | ) | (20.5 | ) | (25.5 | ) | ||||||||
Total net income attributable to noncontrolling interests
|
(4.7 | ) | (129.5 | ) | (41.4 | ) | (1,062.9 | ) | ||||||||
Net income attributable to partners
|
$ | 721.1 | $ | 159.8 | $ | 2,046.9 | $ | 320.8 | ||||||||
Net income allocated to:
|
||||||||||||||||
Limited partners
|
$ | 721.1 | $ | 159.8 | $ | 2,046.9 | $ | 320.8 | ||||||||
General partner
|
$ | -- | $ | * | $ | -- | $ | * | ||||||||
Per unit data (fully diluted):
|
||||||||||||||||
Earnings per unit
|
$ | 0.82 | $ | 0.33 | $ | 2.38 | $ | 1.15 | ||||||||
Average limited partner units outstanding (in millions)
|
879.0 | 485.2 | 859.9 | 278.5 | ||||||||||||
Other financial data:
|
||||||||||||||||
Net cash flows provided by operating activities
|
$ | 1,102.3 | $ | 856.2 | $ | 3,330.5 | $ | 2,300.0 | ||||||||
Cash used in investing activities
|
$ | 439.0 | $ | 750.1 | $ | 2,777.6 | $ | 3,251.6 | ||||||||
Cash provided by (used in) financing activities
|
$ | (672.6 | ) | $ | (83.9 | ) | $ | (598.6 | ) | $ | 961.1 | |||||
Distributable cash flow
|
$ | 1,409.4 | $ | 571.2 | $ | 3,736.5 | $ | 2,256.4 | ||||||||
Adjusted EBITDA
|
$ | 1,197.7 | $ | 802.7 | $ | 3,960.1 | $ | 3,256.1 | ||||||||
Depreciation, amortization and accretion
|
$ | 267.8 | $ | 276.0 | $ | 1,007.0 | $ | 985.1 | ||||||||
Distributions received from unconsolidated affiliates
|
$ | 33.9 | $ | 45.9 | $ | 156.4 | $ | 191.9 | ||||||||
Total debt principal outstanding at end of period
|
$ | 14,482.7 | $ | 13,526.5 | $ | 14,482.7 | $ | 13,526.5 | ||||||||
Capital spending:
|
||||||||||||||||
Capital expenditures, net of contributions in aid of construction costs, for property, plant and equipment
|
$ | 1,062.7 | $ | 610.9 | $ | 3,842.6 | $ | 2,002.1 | ||||||||
Cash used for business combinations, net of cash received
|
15.0 | 80.9 | 15.0 | 1,313.9 | ||||||||||||
Investments in unconsolidated affiliates
|
18.1 | 1.7 | 30.0 | 8.0 | ||||||||||||
Other investing activities
|
-- | -- | 7.4 | -- | ||||||||||||
Total capital spending
|
$ | 1,095.8 | $ | 693.5 | $ | 3,895.0 | $ | 3,324.0 | ||||||||
(1) Represents consolidated net income attributable to Enterprise’s limited partner interests that were owned by parties other than Holdings prior to completion of the Holdings Merger on November 22, 2010. See “Basis of Presentation” discussion in the accompanying press release.
(2) Represents consolidated net income attributable to Duncan Energy Partners’ limited partner interests that were owned by parties other than Enterprise prior to completion of the Duncan Merger on September 7, 2011.
* Amount is negligible.
|
Enterprise Products Partners L.P.
|
Exhibit B
|
|||||||||||||||
Condensed Operating Data – UNAUDITED
|
||||||||||||||||
($ in millions)
|
||||||||||||||||
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Gross operating margin by segment:
|
||||||||||||||||
NGL Pipelines & Services
|
$ | 634.5 | $ | 457.1 | $ | 2,184.2 | $ | 1,732.6 | ||||||||
Onshore Natural Gas Pipelines & Services
|
199.0 | 135.9 | 675.3 | 527.2 | ||||||||||||
Onshore Crude Oil Pipelines & Services
|
67.0 | 26.1 | 234.0 | 113.7 | ||||||||||||
Offshore Pipelines & Services
|
59.6 | 65.6 | 228.2 | 297.8 | ||||||||||||
Petrochemical & Refined Products Services
|
137.4 | 140.2 | 535.2 | 584.5 | ||||||||||||
Other Investments
|
3.5 | 4.2 | 14.8 | (2.8 | ) | |||||||||||
Total gross operating margin
|
1,101.0 | 829.1 | 3,871.7 | 3,253.0 | ||||||||||||
Adjustments to reconcile non-GAAP gross operating margin to
GAAP operating income:
|
||||||||||||||||
Amounts included in operating costs and expenses:
|
||||||||||||||||
Depreciation, amortization and accretion
|
(256.3 | ) | (261.8 | ) | (958.7 | ) | (936.3 | ) | ||||||||
Non-cash asset impairment charges
|
(22.6 | ) | (6.9 | ) | (27.8 | ) | (8.4 | ) | ||||||||
Operating lease expenses paid by EPCO
|
-- | (0.2 | ) | (0.3 | ) | (0.7 | ) | |||||||||
Gains from asset sales and related transactions
|
130.6 | (0.9 | ) | 156.0 | 44.4 | |||||||||||
General and administrative costs
|
(43.5 | ) | (53.9 | ) | (181.8 | ) | (204.8 | ) | ||||||||
Operating income
|
$ | 909.2 | $ | 505.4 | $ | 2,859.1 | $ | 2,147.2 | ||||||||
Selected operating data: (1)
|
||||||||||||||||
NGL Pipelines & Services, net:
|
||||||||||||||||
NGL transportation volumes (MBPD)
|
2,277 | 2,524 | 2,284 | 2,322 | ||||||||||||
NGL fractionation volumes (MBPD)
|
617 | 526 | 575 | 485 | ||||||||||||
Equity NGL production (MBPD)
|
112 | 117 | 116 | 121 | ||||||||||||
Fee-based natural gas processing (MMcf/d)
|
4,080 | 3,337 | 3,820 | 2,932 | ||||||||||||
Onshore Natural Gas Pipelines & Services, net:
|
||||||||||||||||
Natural gas transportation volumes (BBtus/d)
|
13,164 | 11,511 | 13,231 | 11,482 | ||||||||||||
Onshore Crude Oil Pipelines & Services
|
||||||||||||||||
Crude oil transportation volumes (MBPD)
|
680 | 645 | 678 | 670 | ||||||||||||
Offshore Pipelines & Services, net:
|
||||||||||||||||
Natural gas transportation volumes (BBtus/d)
|
1,060 | 1,117 | 1,065 | 1,242 | ||||||||||||
Crude oil transportation volumes (MBPD)
|
282 | 304 | 279 | 320 | ||||||||||||
Platform natural gas processing (MMcf/d)
|
381 | 415 | 405 | 513 | ||||||||||||
Platform crude oil processing (MBPD)
|
18 | 18 | 17 | 17 | ||||||||||||
Petrochemical & Refined Products Services, net:
|
||||||||||||||||
Butane isomerization volumes (MBPD)
|
106 | 87 | 101 | 89 | ||||||||||||
Propylene fractionation volumes (MBPD)
|
75 | 74 | 73 | 77 | ||||||||||||
Octane additive and other plant production volumes (MBPD)
|
17 | 20 | 16 | 16 | ||||||||||||
Transportation volumes, primarily refined products
and petrochemicals (MBPD)
|
732 | 859 | 759 | 869 | ||||||||||||
Total, net:
|
||||||||||||||||
NGL, crude oil, refined products and petrochemical
transportation volumes (MBPD)
|
3,971 | 4,332 | 4,000 | 4,181 | ||||||||||||
Natural gas transportation volumes (BBtus/d)
|
14,224 | 12,628 | 14,296 | 12,724 | ||||||||||||
Equivalent transportation volumes (MBPD) (2)
|
7,714 | 7,655 | 7,762 | 7,529 | ||||||||||||
(1) Operating rates are reported on a net basis, which takes 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) Reflects equivalent energy volumes where 3.8 MMBtus of natural gas are equivalent to one barrel of NGLs.
|
Enterprise Products Partners L.P.
|
Exhibit C
|
|||||||||||||||
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
|
||||||||||||||||
Distributable Cash Flow
|
||||||||||||||||
($ in millions)
|
||||||||||||||||
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2011
|
2010 (1)
|
2011
|
2010 (1)
|
|||||||||||||
Net income attributable to partners
|
$ | 721.1 | $ | 159.8 | $ | 2,046.9 | $ | 1,266.7 | ||||||||
Adjustments to GAAP net income attributable to partners to derive non-GAAP distributable cash flow:
|
||||||||||||||||
Depreciation, amortization and accretion
|
267.8 | 276.0 | 1,007.0 | 980.2 | ||||||||||||
Operating lease expenses paid by EPCO
|
-- | 0.2 | 0.3 | 0.7 | ||||||||||||
Distributions received from unconsolidated affiliates
|
33.9 | 45.9 | 156.4 | 128.2 | ||||||||||||
Equity in income of unconsolidated affiliates
|
(10.5 | ) | (18.8 | ) | (46.4 | ) | (69.0 | ) | ||||||||
Sustaining capital expenditures
|
(78.6 | ) | (62.9 | ) | (296.4 | ) | (240.3 | ) | ||||||||
Cash payments to settle asset retirement obligations
|
(1.0 | ) | (1.6 | ) | (3.3 | ) | (11.2 | ) | ||||||||
Gains from asset sales and related transactions
|
(130.3 | ) | (1.3 | ) | (155.7 | ) | (46.7 | ) | ||||||||
Proceeds from asset sales and related transactions
|
593.3 | 16.3 | 1,033.8 | 105.9 | ||||||||||||
Return of an investment in an unconsolidated affiliate or related transaction
|
3.4 | -- | 3.4 | -- | ||||||||||||
Monetization of derivative instruments
|
-- | -- | (23.2 | ) | 1.3 | |||||||||||
Net income attributable to noncontrolling interest – Duncan (2)
|
-- | 10.3 | 20.9 | 37.1 | ||||||||||||
Net income attributable to noncontrolling interest – Enterprise public unitholders pre-Holdings Merger
|
-- | 113.0 | -- | 113.0 | ||||||||||||
Distribution to be paid to Duncan unitholders with respect to period (3)
|
-- | (10.6 | ) | (21.4 | ) | (42.3 | ) | |||||||||
Other miscellaneous adjustments to derive distributable cash flow
|
10.3 | 44.9 | 14.2 | 32.8 | ||||||||||||
Distributable cash flow
|
1,409.4 | 571.2 | 3,736.5 | 2,256.4 | ||||||||||||
Adjustments to non-GAAP distributable cash flow to derive GAAP net cash flows provided by operating activities:
|
||||||||||||||||
Sustaining capital expenditures
|
78.6 | 62.9 | 296.4 | 240.3 | ||||||||||||
Cash payments to settle asset retirement obligations
|
1.0 | 1.6 | 3.3 | 11.2 | ||||||||||||
Proceeds from asset sales and related transactions
|
(593.3 | ) | (16.3 | ) | (1,033.8 | ) | (105.9 | ) | ||||||||
Return of an investment in an unconsolidated affiliate or related transaction
|
(3.4 | ) | -- | (3.4 | ) | -- | ||||||||||
Monetization of derivative instruments
|
-- | -- | 23.2 | (1.3 | ) | |||||||||||
Net income attributable to noncontrolling interests
|
4.7 | 129.5 | 41.4 | 175.6 | ||||||||||||
Net income attributable to noncontrolling interest – Duncan (2)
|
-- | (10.3 | ) | (20.9 | ) | (37.1 | ) | |||||||||
Net income attributable to noncontrolling interest – Enterprise public unitholders pre-Holdings Merger
|
-- | (113.0 | ) | -- | (113.0 | ) | ||||||||||
Distribution to be paid to Duncan unitholders with respect to period (3)
|
-- | 10.6 | 21.4 | 42.3 | ||||||||||||
Miscellaneous non-cash and other amounts to reconcile distributable cash flow with net cash flows provided by operating activities
|
-- | (1.4 | ) | (0.5 | ) | 4.9 | ||||||||||
Net effect of changes in operating accounts
|
205.3 | 221.4 | 266.9 | (202.1 | ) | |||||||||||
Operating cash flows for the periods prior to the effective date of the Holdings merger attributable to standalone amounts of Holdings and EPGP
|
-- | -- | -- | 28.7 | ||||||||||||
Net cash flows provided by operating activities
|
$ | 1,102.3 | $ | 856.2 | $ | 3,330.5 | $ | 2,300.0 | ||||||||
(1) Distributable cash flow for periods prior to the Holdings Merger is calculated based on historical results of Enterprise.
(2) Represents consolidated net income attributable to Duncan Energy Partners’ limited partner interests that were owned by parties other Enterprise prior to completion of the Duncan Merger on September 7, 2011.
(3) Represents cash distributions paid to unitholders of Duncan Energy Partners (other than Enterprise) prior to completion of the Duncan Merger on September 7, 2011.
|
Enterprise Products Partners L.P.
|
Exhibit D
|
|||||||||||||||
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
|
||||||||||||||||
Adjusted EBITDA
|
||||||||||||||||
($ in millions)
|
||||||||||||||||
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income
|
$ | 725.8 | $ | 289.3 | $ | 2,088.3 | $ | 1,383.7 | ||||||||
Adjustments to GAAP net income to derive non-GAAP Adjusted EBITDA:
|
||||||||||||||||
Equity in income of unconsolidated affiliates
|
(10.5 | ) | (18.8 | ) | (46.4 | ) | (62.0 | ) | ||||||||
Distributions received from unconsolidated affiliates
|
33.9 | 45.9 | 156.4 | 191.9 | ||||||||||||
Interest expense (including related amortization)
|
183.0 | 212.8 | 744.1 | 741.9 | ||||||||||||
Provision for income taxes
|
1.1 | 6.0 | 27.2 | 26.1 | ||||||||||||
Depreciation, amortization and accretion in costs and expenses
|
264.4 | 267.5 | 990.5 | 974.5 | ||||||||||||
Adjusted EBITDA
|
1,197.7 | 802.7 | 3,960.1 | 3,256.1 | ||||||||||||
Adjustments to non-GAAP Adjusted EBITDA to derive GAAP net cash flows
provided by operating activities:
|
||||||||||||||||
Interest expense
|
(183.0 | ) | (212.8 | ) | (744.1 | ) | (741.9 | ) | ||||||||
Provision for income taxes
|
(1.1 | ) | (6.0 | ) | (27.2 | ) | (26.1 | ) | ||||||||
Operating lease expenses paid by EPCO
|
-- | 0.2 | 0.3 | 0.7 | ||||||||||||
Gains from asset sales and related transactions
|
(130.3 | ) | (1.3 | ) | (155.7 | ) | (46.7 | ) | ||||||||
Miscellaneous non-cash and other amounts to reconcile Adjusted EBITDA to net cash flows provided by operating activities
|
13.7 | 52.0 | 30.2 | 48.3 | ||||||||||||
Net effect of changes in operating accounts
|
205.3 | 221.4 | 266.9 | (190.4 | ) | |||||||||||
Net cash flows provided by operating activities
|
$ | 1,102.3 | $ | 856.2 | $ | 3,330.5 | $ | 2,300.0 |
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