|
|
|
(State or Other Jurisdiction of
|
(Commission File Number)
|
(IRS Employer
|
Incorporation)
|
Identification No.)
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange On Which Registered
|
|
|
|
For the Three Months
Ended June 30, |
For the Six Months
Ended June 30, |
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Selected Income Statement Data:
|
||||||||||||||||
Revenues
|
$
|
13,483
|
$
|
10,651
|
$
|
28,243
|
$
|
23,095
|
||||||||
Costs and expenses
|
(11,819
|
)
|
(9,193
|
)
|
(24,859
|
)
|
(20,007
|
)
|
||||||||
Equity in income of unconsolidated affiliates
|
101
|
121
|
203
|
225
|
||||||||||||
Operating income
|
1,765
|
1,579
|
3,587
|
3,313
|
||||||||||||
Interest expense
|
(332
|
)
|
(302
|
)
|
(663
|
)
|
(616
|
)
|
||||||||
Other, net
|
4
|
19
|
17
|
31
|
||||||||||||
Income before income taxes
|
1,437
|
1,296
|
2,941
|
2,728
|
||||||||||||
Provision for income taxes
|
(15
|
)
|
(13
|
)
|
(36
|
)
|
(23
|
)
|
||||||||
Net income
|
1,422
|
1,283
|
2,905
|
2,705
|
||||||||||||
Net income attributable to noncontrolling interests
|
(16
|
)
|
(29
|
)
|
(42
|
)
|
(60
|
)
|
||||||||
Net income attributable to preferred units
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
||||||||
Net income attributable to common unitholders
|
$
|
1,405
|
$
|
1,253
|
$
|
2,861
|
$
|
2,643
|
||||||||
Earnings per unit, fully diluted
|
$
|
0.64
|
$
|
0.57
|
$
|
1.30
|
$
|
1.20
|
||||||||
|
||||||||||||||||
Gross Operating Margin by Segment:
|
||||||||||||||||
NGL Pipelines & Services
|
$
|
1,325
|
$
|
1,110
|
$
|
2,665
|
$
|
2,322
|
||||||||
Crude Oil Pipelines & Services
|
417
|
422
|
828
|
819
|
||||||||||||
Natural Gas Pipelines & Services
|
293
|
238
|
605
|
552
|
||||||||||||
Petrochemical & Refined Products Services
|
392
|
383
|
836
|
802
|
||||||||||||
Total segment gross operating margin (1)
|
2,427
|
2,153
|
4,934
|
4,495
|
||||||||||||
Net adjustment for shipper make-up rights (2)
|
(15
|
)
|
28
|
(32
|
)
|
21
|
||||||||||
Non-GAAP total gross operating margin
|
$
|
2,412
|
$
|
2,181
|
$
|
4,902
|
$
|
4,516
|
||||||||
June 30,
|
December 31,
|
|||||||||||||||
2024
|
2023
|
|||||||||||||||
(Unaudited)
|
||||||||||||||||
Selected Balance Sheet Data:
|
||||||||||||||||
Cash and cash equivalents (unrestricted)
|
$
|
138
|
$
|
180
|
||||||||||||
Total assets
|
73,561
|
70,982
|
||||||||||||||
Total debt principal outstanding, including
current maturities
|
30,621
|
29,021
|
||||||||||||||
Partners’ equity
|
27,989
|
27,673
|
||||||||||||||
Noncontrolling interests
|
808
|
1,086
|
(1)
|
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 the Partnership’s quarterly and annual filings with the U.S. Securities and Exchange Commission (“SEC”).
|
(2)
|
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 management’s evaluation of segment results. However, these adjustments are excluded
from non-GAAP total gross operating margin in compliance with guidance from the SEC.
|
•
|
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.
|
•
|
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 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.
|
•
|
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.
|
•
|
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 billion British thermal units per day (“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.
|
•
|
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
propane dehydrogenation (“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 $8 million primarily due to
lower average sales margins and lower fee-based revenues at our Beaumont terminal facility.
|
Enterprise Products Partners L.P.
|
||||||||||||||||
Gross Operating Margin – UNAUDITED
|
||||||||||||||||
($ in millions)
|
||||||||||||||||
For the Three Months
Ended June 30,
|
For the Six Months
Ended June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Total gross operating margin (non-GAAP)
|
$
|
2,412
|
$
|
2,181
|
$
|
4,902
|
$
|
4,516
|
||||||||
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
|
)
|
||||||||
Asset impairment charges in operating costs and expenses
|
(4
|
)
|
(3
|
)
|
(24
|
)
|
(16
|
)
|
||||||||
Net gains (losses) attributable to asset sales and related matters in operating costs and expenses
|
(5
|
)
|
2
|
(5
|
)
|
4
|
||||||||||
General and administrative costs
|
(57
|
)
|
(56
|
)
|
(123
|
)
|
(113
|
)
|
||||||||
Total operating income (GAAP)
|
$
|
1,765
|
$
|
1,579
|
$
|
3,587
|
$
|
3,313
|
(1)
|
Excludes amortization of major maintenance costs for reaction-based plants, which are a component of gross operating margin.
|
Exhibit No.
|
Description
|
99.1
|
|
104
|
Cover Page Interactive Data File–the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are
embedded within the Inline XBRL document.
|
ENTERPRISE PRODUCTS PARTNERS L.P.
|
|||
By:
|
Enterprise Products Holdings LLC,
its General Partner
|
||
Date: July 30, 2024
|
By:
|
/s/ R. Daniel Boss
|
|
Name:
|
R. Daniel Boss
|
||
Title:
|
Executive Vice President and Chief Financial Officer of Enterprise Products Holdings LLC
|