Delaware
|
1-14323
|
76-0568219
|
(State or Other Jurisdiction of
|
(Commission File Number)
|
(IRS Employer
|
Incorporation)
|
Identification No.)
|
1100 Louisiana Street, 10th Floor, Houston, Texas
|
77002
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Exhibit No.
|
Description
|
ENTERPRISE PRODUCTS PARTNERS L.P.
|
|||
By:
|
Enterprise Products Holdings LLC,
its General Partner
|
||
Date: April 30, 2018
|
By:
|
/s/ R. Daniel Boss
|
|
Name:
|
R. Daniel Boss
|
||
Title:
|
Senior Vice President-Accounting and Risk Control
of Enterprise Products Holdings LLC
|
||
By:
|
/s/ Michael W. Hanson
|
||
Name:
|
Michael W. Hanson
|
||
Title:
|
Vice President and Principal Accounting Officer
of Enterprise Products Holdings LLC
|
![]() |
Enterprise Products Partners L.P.
P.O. Box 4324
Houston, TX 77210
(713) 381-6500
|
Exhibit 99.1
|
|
Three months ended
March 31,
|
|||||||
|
2018
|
2017
|
||||||
($ in millions, except per unit amounts)
|
||||||||
Operating income
|
$
|
1,139
|
$
|
1,032
|
||||
Net income (1)
|
$
|
912
|
$
|
771
|
||||
Fully diluted earnings per unit (1)
|
$
|
0.41
|
$
|
0.36
|
||||
Net cash flow provided by operating activities (2)
|
$
|
1,234
|
$
|
876
|
||||
Total gross operating margin (3)
|
$
|
1,586
|
$
|
1,469
|
||||
Adjusted EBITDA (3)
|
$
|
1,687
|
$
|
1,414
|
||||
Distributable cash flow (3)
|
$
|
1,391
|
$
|
1,129
|
(1) |
Net income and fully diluted earnings per unit for the first quarter of 2018 included a non-cash gain on the step acquisition of an unconsolidated affiliate of $37 million, or $0.02 per unit.
|
(2) |
Net cash flow provided by operating activities includes the impact of the timing of cash receipts and payments related to operations. For the first quarters of 2018 and 2017, the net effect of changes in operating accounts, which are a component of net cash flow provided by operating activities, were reductions of $203 million and $289 million, respectively.
|
(3) |
Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and distributable cash flow are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release.
|
· |
Net income attributable to limited partners was $901 million, or $0.41 per unit on a fully diluted basis, for the first quarter of 2018, compared to $761 million, or $0.36 per unit on a fully diluted basis, for the first quarter of 2017.
|
· |
Enterprise increased its cash distribution with respect to the first quarter of 2018 by 3.0 percent to $0.4275 per unit, or $1.71 per unit annualized, compared to $0.415 per unit with respect to the first quarter of 2017. This is the 55th consecutive quarterly increase and the 64th increase since the partnership’s initial public offering in 1998. This distribution will be paid on May 8, 2018 to unitholders of record as of the close of business on April 30, 2018.
|
· |
Excluding proceeds from asset sales, Enterprise generated a 23 percent increase in distributable cash flow to a record $1.4 billion for the first quarter of 2018, which provided 1.5 times coverage of the $0.4275 per unit distribution. The partnership retained $458 million of distributable cash flow for the first quarter of 2018, providing financial flexibility to fund growth capital projects and decrease the need to issue additional equity.
|
· |
First Quarter Volume Highlights
|
Three months ended
March 31,
|
||||||||
2018
|
2017
|
|||||||
NGL, crude oil, refined products & petrochemical pipeline volumes (million BPD)
|
6.2
|
5.4
|
||||||
Marine terminal volumes (million BPD)
|
1.6
|
1.4
|
||||||
Natural gas pipeline volumes (TBtu/d)
|
13.0
|
11.4
|
||||||
NGL fractionation volumes (MBPD)
|
824
|
799
|
||||||
Fee-based natural gas processing volumes (Bcf/d)
|
4.4
|
4.5
|
||||||
Equity NGL production volumes (MBPD)
|
165
|
150
|
· |
Capital investments were $1.1 billion during the first quarter of 2018, including $66 million of sustaining capital expenditures.
|
Enterprise Products Partners L.P.
|
Exhibit A
|
|||||||
Condensed Statements of Consolidated Operations – UNAUDITED
|
||||||||
($ in millions, except per unit amounts)
|
||||||||
For the Three Months
Ended March 31,
|
||||||||
2018
|
2017
|
|||||||
Revenues
|
$
|
9,298.5
|
$
|
7,320.4
|
||||
Costs and expenses:
|
||||||||
Operating costs and expenses
|
8,222.7
|
6,333.2
|
||||||
General and administrative costs
|
53.0
|
50.4
|
||||||
Total costs and expenses
|
8,275.7
|
6,383.6
|
||||||
Equity in income of unconsolidated affiliates
|
115.7
|
94.8
|
||||||
Operating income
|
1,138.5
|
1,031.6
|
||||||
Other income (expense):
|
||||||||
Interest expense
|
(252.1
|
)
|
(249.3
|
)
|
||||
Other, net
|
30.2
|
(5.3
|
)
|
|||||
Total other expense, net
|
(221.9
|
)
|
(254.6
|
)
|
||||
Income before income taxes
|
916.6
|
777.0
|
||||||
Provision for income taxes
|
(5.1
|
)
|
(6.0
|
)
|
||||
Net income
|
911.5
|
771.0
|
||||||
Net income attributable to noncontrolling interests
|
(10.8
|
)
|
(10.3
|
)
|
||||
Net income attributable to limited partners
|
$
|
900.7
|
$
|
760.7
|
||||
Per unit data (fully diluted):
|
||||||||
Earnings per unit
|
$
|
0.41
|
$
|
0.36
|
||||
Average limited partner units outstanding (in millions)
|
2,177.2
|
2,134.9
|
||||||
Supplemental financial data:
|
||||||||
Net cash flow provided by operating activities
|
$
|
1,233.6
|
$
|
875.6
|
||||
Total debt principal outstanding at end of period
|
$
|
25,618.5
|
$
|
23,624.8
|
||||
Non-GAAP distributable cash flow (1)
|
$
|
1,390.6
|
$
|
1,128.6
|
||||
Non-GAAP Adjusted EBITDA (2)
|
$
|
1,686.6
|
$
|
1,414.4
|
||||
Gross operating margin by segment:
|
||||||||
NGL Pipelines & Services
|
$
|
884.9
|
$
|
856.0
|
||||
Crude Oil Pipelines & Services
|
220.0
|
264.6
|
||||||
Natural Gas Pipelines & Services
|
197.9
|
170.9
|
||||||
Petrochemical & Refined Products Services
|
271.9
|
181.8
|
||||||
Total segment gross operating margin (3)
|
1,574.7
|
1,473.3
|
||||||
Net adjustment for shipper make-up rights (4)
|
11.5
|
(4.2
|
)
|
|||||
Non-GAAP total gross operating margin (5)
|
$
|
1,586.2
|
$
|
1,469.1
|
||||
Capital spending:
|
||||||||
Capital expenditures
|
$
|
946.5
|
$
|
430.4
|
||||
Cash used for business combinations, net of cash received
|
149.8
|
16.0
|
||||||
Investments in unconsolidated affiliates
|
37.9
|
13.7
|
||||||
Other investing activities
|
0.9
|
--
|
||||||
Total capital spending
|
$
|
1,135.1
|
$
|
460.1
|
||||
(1) See Exhibit D for reconciliation to GAAP net cash flow provided by operating activities.
(2) See Exhibit E for reconciliation to GAAP net cash flow provided by operating activities.
(3) 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”).
(4) 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.
(5) See Exhibit F for reconciliation to GAAP total operating income.
|
Enterprise Products Partners L.P.
|
Exhibit B
|
|||||||
Selected Operating Data – UNAUDITED
|
||||||||
For the Three Months
Ended March 31,
|
||||||||
2018
|
2017
|
|||||||
Selected operating data: (1)
|
||||||||
NGL Pipelines & Services, net:
|
||||||||
NGL pipeline transportation volumes (MBPD)
|
3,287
|
3,225
|
||||||
NGL marine terminal volumes (MBPD)
|
575
|
569
|
||||||
NGL fractionation volumes (MBPD)
|
824
|
799
|
||||||
Equity NGL production (MBPD) (2)
|
165
|
150
|
||||||
Fee-based natural gas processing (MMcf/d) (3)
|
4,364
|
4,489
|
||||||
Crude Oil Pipelines & Services, net:
|
||||||||
Crude oil pipeline transportation volumes (MBPD)
|
2,034
|
1,356
|
||||||
Crude oil marine terminal volumes (MBPD)
|
634
|
475
|
||||||
Natural Gas Pipelines & Services, net:
|
||||||||
Natural gas pipeline transportation volumes (BBtus/d) (4)
|
13,029
|
11,429
|
||||||
Petrochemical & Refined Products Services, net:
|
||||||||
Propylene production volumes (MBPD)
|
105
|
80
|
||||||
Butane isomerization volumes (MBPD)
|
113
|
92
|
||||||
Standalone DIB processing volumes (MBPD)
|
78
|
83
|
||||||
Octane additive and related plant production volumes (MBPD)
|
26
|
20
|
||||||
Pipeline transportation volumes, primarily refined products
and petrochemicals (MBPD)
|
852
|
827
|
||||||
Refined products and petrochemicals marine terminal volumes
(MBPD)
|
370
|
399
|
||||||
Total, net:
|
||||||||
NGL, crude oil, petrochemical and refined products
pipeline transportation volumes (MBPD)
|
6,173
|
5,408
|
||||||
Natural gas pipeline transportation volumes (BBtus/d)
|
13,029
|
11,429
|
||||||
Equivalent pipeline transportation volumes (MBPD) (5)
|
9,602
|
8,416
|
||||||
NGL, crude oil, refined products and petrochemical
marine terminal volumes (MBPD)
|
1,579
|
1,443
|
||||||
(1) Operating rates are reported on a net basis, which takes into account our ownership interests, and include volumes for newly constructed assets from the related in-service dates and for recently purchased assets from the related acquisition dates.
(2) Represents the NGL volumes we earn and take title to in connection with our processing activities.
(3) Volumes reported correspond to the revenue streams earned by our gas plants. “MMcf/d” means million cubic feet per day.
(4) “BBtus/d” means billion British thermal units per day.
(5) 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
|
||||||||||||||||||||||||||||||||||||||||
Polymer
Grade
Propylene,
|
Refinery
Grade
Propylene,
|
|||||||||||||||||||||||||||||||||||||||
Natural
Gas,
|
Normal
Butane,
|
Natural
Gasoline,
|
WTI
Crude Oil,
|
LLS
Crude Oil,
|
||||||||||||||||||||||||||||||||||||
Ethane,
|
Propane,
|
Isobutane,
|
||||||||||||||||||||||||||||||||||||||
$/MMBtu
|
$/gallon
|
$/gallon
|
$/gallon
|
$/gallon
|
$/gallon
|
$/pound
|
$/pound
|
$/barrel
|
$/barrel
|
|||||||||||||||||||||||||||||||
(1)
|
|
(2)
|
|
(2)
|
|
(2)
|
|
(2)
|
|
(2)
|
|
(3)
|
|
(3)
|
|
(4)
|
|
(4)
|
|
|||||||||||||||||||||
2017 by quarter:
|
||||||||||||||||||||||||||||||||||||||||
1st Quarter
|
$
|
3.32
|
$
|
0.23
|
$
|
0.71
|
$
|
0.98
|
$
|
0.94
|
$
|
1.10
|
$
|
0.47
|
$
|
0.32
|
$
|
51.91
|
$
|
53.52
|
||||||||||||||||||||
2nd Quarter
|
$
|
3.19
|
$
|
0.25
|
$
|
0.63
|
$
|
0.76
|
$
|
0.75
|
$
|
1.07
|
$
|
0.41
|
$
|
0.28
|
$
|
48.28
|
$
|
50.31
|
||||||||||||||||||||
3rd Quarter
|
$
|
2.99
|
$
|
0.26
|
$
|
0.77
|
$
|
0.91
|
$
|
0.92
|
$
|
1.10
|
$
|
0.42
|
$
|
0.28
|
$
|
48.20
|
$
|
51.62
|
||||||||||||||||||||
4th Quarter
|
$
|
2.93
|
$
|
0.25
|
$
|
0.96
|
$
|
1.04
|
$
|
1.04
|
$
|
1.32
|
$
|
0.49
|
$
|
0.35
|
$
|
55.40
|
$
|
61.07
|
||||||||||||||||||||
YTD 2017 Averages
|
$
|
3.11
|
$
|
0.25
|
$
|
0.77
|
$
|
0.92
|
$
|
0.91
|
$
|
1.15
|
$
|
0.45
|
$
|
0.31
|
$
|
50.95
|
$
|
54.13
|
||||||||||||||||||||
2018 by quarter:
|
||||||||||||||||||||||||||||||||||||||||
1st Quarter
|
$
|
3.01
|
$
|
0.25
|
$
|
0.85
|
$
|
0.96
|
$
|
1.00
|
$
|
1.41
|
$
|
0.53
|
$
|
0.33
|
$
|
62.87
|
$
|
65.79
|
||||||||||||||||||||
(1) Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of McGraw Hill Financial, 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.
(3) Polymer-grade propylene prices represent average contract pricing for such product as reported by IHS Chemical, a division of IHS Inc. (“IHS Chemical”). Refinery grade propylene prices represent weighted-average spot prices for such product as reported by IHS Chemical.
(4) Crude oil prices are based on commercial index prices for West Texas Intermediate (“WTI”) as measured on the New York Mercantile Exchange and for Louisiana Light Sweet (“LLS”) as reported by Platts.
|
Enterprise Products Partners L.P.
|
Exhibit D
|
|||||||
Distributable Cash Flow – UNAUDITED
|
||||||||
($ in millions)
|
||||||||
For the Three Months
Ended March 31,
|
||||||||
2018
|
2017
|
|||||||
Net income attributable to limited partners (GAAP)
|
$
|
900.7
|
$
|
760.7
|
||||
Adjustments to GAAP net income attributable to limited partners to derive non-GAAP
distributable cash flow:
|
||||||||
Add depreciation, amortization and accretion expenses
|
431.0
|
402.3
|
||||||
Add distributions received from unconsolidated affiliates
|
122.4
|
102.5
|
||||||
Subtract equity in income of unconsolidated affiliates
|
(115.7
|
)
|
(94.8
|
)
|
||||
Subtract sustaining capital expenditures (1)
|
(66.3
|
)
|
(48.0
|
)
|
||||
Subtract net gains attributable to asset sales
|
(0.5
|
)
|
(0.3
|
)
|
||||
Add cash proceeds from asset sales
|
1.1
|
2.0
|
||||||
Subtract gain on the acquisition of equity method investment
|
(37.0
|
)
|
--
|
|||||
Add non-cash expense attributable to changes in fair
value of the Liquidity Option Agreement
|
7.5
|
5.5
|
||||||
Add non-cash expense or subtract benefit attributable to changes in
fair value of derivative instruments
|
136.9
|
(20.3
|
)
|
|||||
Add non-cash asset impairment and related charges
|
0.9
|
11.2
|
||||||
Add other miscellaneous adjustments to derive non-GAAP
distributable cash flow, as applicable
|
9.6
|
7.8
|
||||||
Distributable cash flow (non-GAAP)
|
1,390.6
|
1,128.6
|
||||||
Adjustments to non-GAAP distributable cash flow to derive GAAP net cash flow
provided by operating activities:
|
||||||||
Add sustaining capital expenditures reflected in distributable cash flow
|
66.3
|
48.0
|
||||||
Subtract cash proceeds from asset sales reflected in distributable cash flow
|
(1.1
|
)
|
(2.0
|
)
|
||||
Subtract the net effect of changes in operating accounts, as applicable
|
(203.1
|
)
|
(288.8
|
)
|
||||
Add or subtract miscellaneous non-cash and other amounts to reconcile non-
GAAP distributable cash flow with GAAP net cash flow provided by operating
activities, as applicable
|
(19.1
|
)
|
(10.2
|
)
|
||||
Net cash flow provided by operating activities (GAAP)
|
$
|
1,233.6
|
$
|
875.6
|
||||
(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.
|
Enterprise Products Partners L.P.
|
Exhibit E
|
|||||||||||
Adjusted EBITDA - UNAUDITED
|
||||||||||||
($ in millions)
|
For the Twelve
Months Ended
March 31,
|
|||||||||||
For the Three Months
Ended March 31,
|
||||||||||||
2018
|
2017
|
2018
|
||||||||||
Net income (GAAP)
|
$
|
911.5
|
$
|
771.0
|
$
|
2,996.1
|
||||||
Adjustments to GAAP net income to derive non-GAAP Adjusted EBITDA:
|
||||||||||||
Subtract equity in income of unconsolidated affiliates
|
(115.7
|
)
|
(94.8
|
)
|
(446.9
|
)
|
||||||
Add distributions received from unconsolidated affiliates
|
122.4
|
102.5
|
502.9
|
|||||||||
Add interest expense, including related amortization
|
252.1
|
249.3
|
987.4
|
|||||||||
Add provision for income taxes
|
5.1
|
6.0
|
24.8
|
|||||||||
Add depreciation, amortization and accretion in costs and expenses
|
403.5
|
384.3
|
1,585.1
|
|||||||||
Add non-cash asset impairment and related charges
|
0.9
|
11.2
|
39.5
|
|||||||||
Subtract net gains attributable to asset sales
|
(0.5
|
)
|
(0.3
|
)
|
(10.9
|
)
|
||||||
Subtract gain on the acquisition of equity method investment
|
(37.0
|
)
|
--
|
(37.0
|
)
|
|||||||
Add non-cash expense attributable to changes in fair
value of the Liquidity Option Agreement
|
7.5
|
5.5
|
66.3
|
|||||||||
Add losses or subtract gains attributable to unrealized changes
in the fair market value of commodity derivative instruments
|
136.8
|
(20.3
|
)
|
180.2
|
||||||||
Adjusted EBITDA (non-GAAP)
|
1,686.6
|
1,414.4
|
5,887.5
|
|||||||||
Adjustments to non-GAAP Adjusted EBITDA to derive GAAP net cash flow
provided by operating activities:
|
||||||||||||
Subtract interest expense, including related amortization, reflected in
Adjusted EBITDA
|
(252.1
|
)
|
(249.3
|
)
|
(987.4
|
)
|
||||||
Subtract provision for income taxes reflected in
Adjusted EBITDA
|
(5.1
|
)
|
(6.0
|
)
|
(24.8
|
)
|
||||||
Subtract distributions received for return of capital from
unconsolidated affiliates |
(14.9
|
)
|
(12.0
|
)
|
(52.2
|
)
|
||||||
Add or subtract the net effect of changes in operating accounts, as applicable
|
(203.1
|
)
|
(288.8
|
)
|
117.9
|
|||||||
Subtract miscellaneous non-cash and other amounts to reconcile non-
GAAP Adjusted EBITDA with GAAP net cash flow provided by
operating activities
|
22.2
|
17.3
|
83.3
|
|||||||||
Net cash flow provided by operating activities (GAAP)
|
$
|
1,233.6
|
$
|
875.6
|
$
|
5,024.3
|
Enterprise Products Partners L.P.
|
Exhibit F
|
|||||||
Gross Operating Margin – UNAUDITED
|
||||||||
($ in millions)
|
||||||||
For the Three Months
Ended March 31,
|
||||||||
2018
|
2017
|
|||||||
Total gross operating margin (non-GAAP)
|
$
|
1,586.2
|
$
|
1,469.1
|
||||
Adjustments to reconcile non-GAAP gross operating margin to
GAAP operating income:
|
||||||||
Subtract depreciation, amortization and accretion expense
amounts not reflected in gross operating margin
|
(394.3
|
)
|
(376.2
|
)
|
||||
Subtract non-cash asset impairment charges not reflected in gross
operating margin
|
(0.9
|
)
|
(11.2
|
)
|
||||
Add net gains attributable to asset sales
not reflected in gross operating margin
|
0.5
|
0.3
|
||||||
Subtract general and administrative costs not reflected in
gross operating margin
|
(53.0
|
)
|
(50.4
|
)
|
||||
Operating income (GAAP)
|
$
|
1,138.5
|
$
|
1,031.6
|
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