Enterprise Products Partners L.P. (“Enterprise”) (NYSE:EPD) today
announced its financial results for the three and six months ended June
30, 2016.
Second Quarter 2016 Highlights
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Three months ended
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Six months ended
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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($ in millions, except per unit amounts)
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Operating income
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$
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837
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$
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800
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$
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1,753
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$
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1,696
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Net income (1) (2)
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$
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570
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$
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557
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$
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1,240
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$
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1,207
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Fully diluted earnings per unit (1) (2)
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$
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0.27
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$
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0.28
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$
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0.59
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$
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0.60
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Net cash flows provided by operating activities (3)
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$
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946
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$
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948
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$
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1,845
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$
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1,902
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Total gross operating margin (4)
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$
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1,254
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$
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1,312
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$
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2,579
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$
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2,636
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Adjusted EBITDA (4)
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$
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1,315
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$
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1,296
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$
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2,642
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$
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2,622
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Distributable cash flow (4)
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$
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1,040
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$
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988
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$
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2,093
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$
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2,017
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(1)
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Net income and fully diluted earnings per unit for the second
quarters of 2016 and 2015 included non-cash asset impairment and
related charges of $14 million, or $0.01 per unit, and $119 million,
or $0.06 per unit, which included $95 million associated with our
offshore Gulf of Mexico business that was classified as held for
sale at June 30, 2015 and sold in July 2015. Non-cash impairment and
related charges for the six months ended June 30, 2016 and 2015 were
$15 million, or $0.01 per unit, and $152 million, or $0.08 per unit,
respectively.
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(2)
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Net income and fully diluted earnings per unit for the second
quarters of 2016 and 2015 also included net losses attributable to
asset sales, insurance recoveries and related property damage of $9
million, or less than $0.01 per unit, and $3 million, or less than
$0.01 per unit, respectively. These net losses for the six months
ended June 30, 2016 and 2015 were $14 million, or $0.01 per unit,
and $2 million, or less than $0.01 per unit, respectively.
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(3)
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Net cash flows provided by operating activities includes the impact
of the timing of cash receipts and payments related to operations.
For the second quarters of 2016 and 2015, the net effect of changes
in operating accounts, which are a component of net cash flows
provided by operating activities, were reductions of $108 million
and $112 million, respectively.
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(4)
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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.
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Enterprise increased its cash distribution with respect to the second
quarter of 2016 by 5.3 percent to $0.40 per unit compared to the
distribution paid with respect to the second quarter of 2015. The
distribution will be paid August 5, 2016 to unitholders of record as
of the close of business on July 29, 2016.
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Enterprise reported distributable cash flow of $1.0 billion for the
second quarter of 2016, which provided 1.2 times coverage of the $0.40
per unit cash distribution and resulted in $200 million of retained
distributable cash flow. For the first six months of 2016,
distributable cash flow of $2.1 billion provided 1.3 times coverage of
the aggregate $0.795 per unit cash distribution, and Enterprise
retained $428 million of distributable cash flow, which is available
to reinvest in growth capital projects and reduce the need to issue
additional equity.
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Second Quarter Volume Highlights
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Three months
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ended June 30,
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2016
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2015
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Onshore NGL, crude oil, refined products & petrochemical pipeline
volumes (million BPD)
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5.2
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4.9
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Marine terminal volumes (million BPD)
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1.4
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1.3
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Onshore natural gas pipeline volumes (TBtu/d)
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12.1
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12.5
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NGL fractionation volumes (MBPD)
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840
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822
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Fee-based natural gas processing volumes (Bcf/d)
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5.0
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4.9
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Equity NGL production volumes (MBPD)
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143
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123
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As used in this press release, “NGL” means natural gas liquids,
“BPD” means barrels per day, “MBPD” means thousand barrels per day,
“Bcf/d” means billion cubic feet per day; and “TBtu/d” means
trillion British thermal units per day.
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Capital investments were $884 million in the second quarter of 2016,
and $1.9 billion for the first six months of 2016. Included in these
investments were sustaining capital expenditures of $58 million in the
second quarter of 2016 and $118 million in the first six months of
2016.
“Enterprise reported record onshore liquid pipeline volumes and marine
terminal volumes in the second quarter of 2016, which led to a 5.3
percent increase in distributable cash flow to $1.0 billion and provided
1.2 times coverage of the distribution to partners declared for the
second quarter,” said Jim Teague, chief executive officer of
Enterprise’s general partner. “Volume growth was primarily driven by the
expansion of our LPG marine terminal, the ramp up of contracted volumes
on our Aegis and ATEX ethane pipelines, the acquisition of EFS
Midstream, as well as higher volumes on the Mid-America, Seminole and TE
Products pipeline systems. The increase in gross operating margin from
our fee-based businesses largely offset lower earnings from our
commodity- sensitive businesses, the impact of lower crude oil pipeline
volumes and the divestiture of our offshore Gulf of Mexico business in
July 2015.”
“Enterprise successfully completed construction and began commercial
service for $600 million of growth capital projects in the second
quarter. These included the South Eddy natural gas processing plant in
the Delaware Basin and completion of over 2.0 million barrels of
additional crude oil storage capacity at our Houston terminal and
Beaumont Marine West terminals. We are on schedule to complete and begin
commercial service on another $1.4 billion of growth projects during the
remainder of 2016, including our ethane export facility on the Houston
Ship Channel and the Waha natural gas processing plant in the Delaware
Basin. In addition, we have $5.2 billion of growth capital projects
scheduled to be completed in 2017 and 2018. These capital projects
provide our investors visibility to continued growth in distributable
cash flow,” continued Teague.
Review of Second Quarter 2016 Results
NGL Pipelines & Services – Gross operating margin for the NGL
Pipelines & Services segment increased 11 percent to $719 million for
the second quarter of 2016 from $651 million for the second quarter of
2015.
Enterprise’s natural gas processing and related NGL marketing business
generated gross operating margin of $181 million for the second quarter
of 2016 compared to $220 million for the second quarter of 2015. This
decrease in gross operating margin was primarily due to lower processing
margins, including the effect of hedging activities. Enterprise’s
natural gas processing plants reported fee-based processing volumes of
5.0 Bcf/d in the second quarter of 2016 compared to 4.9 Bcf/d for the
second quarter of 2015. Enterprise’s equity NGL production increased 16
percent to 143 MBPD in the second quarter of 2016 from 123 MBPD in the
second quarter of 2015, primarily due to higher ethane recoveries by the
partnership’s processing plants in the Rockies and South Texas.
Gross operating margin from the partnership’s NGL pipelines and storage
business increased $96 million, or 31 percent, to $408 million for the
second quarter of 2016 from $312 million for the second quarter of 2015.
Total NGL transportation volumes were a record 3.0 million BPD for the
second quarter of 2016 compared to 2.7 million BPD for the same quarter
of 2015.
Enterprise’s ATEX and Aegis ethane pipelines reported a $32 million
increase in gross operating margin for the second quarter of 2016
compared to the second quarter of last year on a 136 MBPD increase in
volume. The third and final segment of the Aegis ethane pipeline was
completed in December 2015. Gross operating margin for the partnership’s
Mid-America, Seminole, South Texas, Lou-Tex and Tri-States NGL pipelines
increased by a total of $29 million for the second quarter of 2016
compared to the second quarter of 2015 on an aggregate 92 MBPD increase
in NGL transportation volumes.
The partnership’s liquefied petroleum gas (“LPG”) marine terminal on the
Houston Ship Channel and related pipeline reported a 71 percent, or $33
million, increase in gross operating margin for the second quarter of
2016 compared to the second quarter of 2015, primarily due to a 162 MBPD
increase in export loading volumes. The loading capacity of the LPG
export terminal increased from 9 million barrels per month in April 2015
to 16 million barrels per month in December 2015.
Recently, Enterprise had three loadings of LPG exports cancelled for
July 2016 and has received notices from customers cancelling five LPG
loadings for August 2016 at its Houston Ship Channel marine terminal. In
July 2016, Enterprise loaded a record nine cargoes of polymer grade
propylene (“PGP”) from its Houston Ship Channel facility for export to
international markets. Currently, the partnership expects to load an
additional nine cargoes of PGP in August 2016. We expect that the
decrease in total gross operating margin from the cancelled LPG loadings
will be more than offset by the associated cancellation fees and the
additional fees earned from the PGP export activity.
Gross operating margin from the partnership’s NGL fractionation business
increased 9 percent to $130 million for the second quarter of 2016 from
$119 million for the second quarter of 2015. The increase was primarily
due to higher fractionation volumes and fees from Enterprise’s Mont
Belvieu fractionators. Total fractionation volumes were 840 MBPD for the
second quarter of 2016 compared to 822 MBPD for the second quarter of
2015.
Crude Oil Pipelines & Services – Gross operating margin from
the partnership’s Crude Oil Pipelines & Services segment was $177
million for the second quarter of 2016 compared to $236 million for the
second quarter of 2015. Total crude oil pipeline transportation volumes
were 1.4 million BPD for the second quarter of 2016 compared to 1.5
million BPD for the same quarter of 2015. Total crude oil marine
terminal volumes were 514 MBPD in the second quarter of 2016 compared to
591 MBPD for the second quarter of 2015.
The EFS Midstream assets, which we acquired effective July 1, 2015,
contributed $56 million of gross operating margin in the second quarter
of 2016. Enterprise completed construction and put into service 8.5
million barrels of additional storage capacity at its ECHO and
Enterprise Houston terminals in Houston, and its Beaumont West Terminal
since the second quarter of 2015. These new storage tanks contributed to
an $11 million increase in gross operating margin in the second quarter
of 2016 compared to the second quarter of last year.
Gross operating margin from Enterprise’s crude oil marketing and related
activities decreased $83 million in the second quarter of 2016 compared
to the second quarter of 2015, which includes $47 million of non-cash,
mark-to-market losses in the second quarter of 2016 on financial
instruments related to blending activities. The remaining $36 million
decrease in gross operating margin from crude oil marketing activities
is primarily due to lower crude oil sales margins.
Enterprise’s South Texas Crude Oil Pipeline System reported a $23
million decrease in gross operating margin for the second quarter of
2016 compared to the second quarter of 2015 due to lower volumes and
fees. Pipeline volumes on this system were 231 MBPD for the second
quarter of 2016 compared to 295 MBPD for the same quarter of 2015.
Natural Gas Pipelines & Services – Enterprise’s Natural Gas
Pipelines & Services segment reported gross operating margin of $177
million for the second quarter of 2016 compared to $191 million for the
second quarter of 2015. Total natural gas transportation volumes were
12.1 TBtu/d for the second quarter of 2016 compared to 12.5 TBtu/d for
the same quarter of last year.
The Texas Intrastate System reported gross operating margin of $83
million for the second quarter of 2016 compared to $93 million for the
second quarter of 2015. Natural gas pipeline volumes for this system
were 5.0 TBtu/d for the second quarters in both 2016 and 2015.
The Acadian Gas System reported a $4 million decrease in gross operating
margin for the second quarter of 2016 compared to the second quarter of
last year, primarily due to lower fees and volumes. Natural gas pipeline
volumes for this system were 1.9 TBtu/d this quarter compared to 2.0
TBtu/d for the same quarter of last year.
Petrochemical & Refined Products Services – Gross operating
margin for the Petrochemical & Refined Products Services segment was
$176 million for the second quarter of 2016 compared to $181 million for
the second quarter of 2015. Total segment pipeline transportation
volumes increased 12 percent to 874 MBPD for the second quarter of 2016
from 777 MBPD for the same quarter of 2015.
Enterprise’s refined products pipelines and related services business
reported a 68 percent increase in gross operating margin for the second
quarter of 2016 to $74 million from $44 million for the second quarter
of 2015. Included in these amounts is gross operating margin from
refined products marketing activities, which increased by $15 million,
primarily due to higher sales margins and volumes. Gross operating
margin from the TE Products Pipeline and related terminals increased $9
million as a result of higher volumes, and refined products terminaling
services at our facility in Beaumont, Texas contributed $5 million to
the increase in gross operating margin, primarily due to higher demand
for storage and marine vessel loading services.
The partnership’s propylene business reported a 55 percent increase in
gross operating margin to $53 million for the second quarter of 2016
from $34 million for the second quarter of 2015, primarily as a result
of higher propylene volumes and lower maintenance expenses. Propylene
fractionation volumes were 80 MBPD for this quarter compared to 68 MBPD
for the second quarter of last year.
Gross operating margin for Enterprise’s octane enhancement and
high-purity isobutylene business was $21 million in the second quarter
of 2016 versus $68 million in the second quarter of last year. The $47
million quarter-to-quarter decrease was primarily due to lower sales
margins and volumes. Total plant production volumes were 22 MBPD this
quarter compared to 24 MBPD for the second quarter of last year.
Offshore Pipelines & Services – Enterprise closed on the sale
of its offshore Gulf of Mexico business on July 24, 2015. As a result,
the partnership had no contribution to gross operating margin from these
assets in the second quarter of 2016 compared to $44 million in the
second quarter of 2015.
Capitalization
Total debt principal outstanding at June 30, 2016 was $23.0 billion,
including $1.5 billion of junior subordinated notes to which the
nationally recognized debt rating agencies ascribe partial equity
content. At June 30, 2016, Enterprise had consolidated liquidity of $4.7
billion, which was comprised of unrestricted cash on hand and available
borrowing capacity under our revolving credit facilities. We used $1.0
billion of liquidity on July 11, 2016 to fund the second and final
installment payment for the EFS Midstream acquisition.
Total capital spending in the second quarter of 2016 was $884 million,
which includes $58 million of sustaining capital expenditures. For the
first six months of 2016, Enterprise’s capital spending was $1.9 billion
including $118 million of sustaining capital expenditures. For 2016, we
currently expect to invest approximately $2.8 billion for growth
projects and approximately $275 million for sustaining capital
expenditures.
Conference Call to Discuss Second Quarter 2016
Earnings
Today, Enterprise will host a conference call to discuss second quarter
2016 earnings. The call will be broadcast live over the Internet
beginning at 9:00 a.m. CT and may be accessed by visiting the
partnership’s website at www.enterpriseproducts.com.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP
financial measures of total gross operating margin, distributable cash
flow 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. Our services include: natural gas
gathering, treating, processing, transportation and storage; NGL
transportation, fractionation, storage and import and export terminals;
crude oil gathering, transportation, storage and terminals;
petrochemical and refined products transportation, storage and
terminals; and a marine transportation business that operates primarily
on the United States inland and Intracoastal Waterway systems. The
partnership’s assets include approximately 49,000 miles of pipelines;
250 million barrels of storage capacity for NGLs, crude oil, refined
products and petrochemicals; 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.
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Enterprise Products Partners L.P.
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Exhibit A
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Condensed Statements of Consolidated Operations – UNAUDITED
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($ in millions, except per unit amounts)
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For the Three Months
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For the Six Months
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Ended June 30,
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Ended June 30,
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2016
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2015
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2016
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2015
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Revenues
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$
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5,617.8
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$
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7,092.5
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$
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10,623.1
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$
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14,565.0
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Costs and expenses:
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Operating costs and expenses
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4,822.2
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6,357.5
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8,969.1
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12,973.9
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General and administrative costs
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35.1
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44.9
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79.0
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94.2
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Total costs and expenses
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4,857.3
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6,402.4
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9,048.1
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13,068.1
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Equity in income of unconsolidated affiliates
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76.4
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110.2
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177.5
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199.4
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Operating income
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836.9
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800.3
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1,752.5
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1,696.3
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Other income (expense):
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Interest expense
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(244.1
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)
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(240.4
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)
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(484.7
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)
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(479.5
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)
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Other, net
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(22.9
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)
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(11.2
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)
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(19.3
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)
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(10.7
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)
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Total other expense
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(267.0
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)
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(251.6
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)
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(504.0
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)
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|
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(490.2
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)
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Income before income taxes
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|
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|
569.9
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|
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548.7
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1,248.5
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|
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1,206.1
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Benefit from (provision for) income taxes
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0.1
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7.9
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(8.3
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)
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1.1
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Net income
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570.0
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556.6
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1,240.2
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|
1,207.2
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Net income attributable to noncontrolling
interests
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(11.5
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)
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(5.6
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)
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(20.5
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)
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(20.1
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)
|
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Net income attributable to limited partners
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$
|
558.5
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$
|
551.0
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$
|
1,219.7
|
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|
$
|
1,187.1
|
|
|
|
|
|
|
|
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Per unit data (fully diluted):
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Earnings per unit
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$
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0.27
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$
|
0.28
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$
|
0.59
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$
|
0.60
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Average limited partner units outstanding (in millions)
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|
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2,093.2
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|
|
|
2,002.1
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|
|
|
2,066.8
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|
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1,984.5
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Supplemental financial data:
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Net cash flows provided by operating activities
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$
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945.5
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$
|
947.6
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$
|
1,845.2
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$
|
1,901.6
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Total debt principal outstanding at end of period
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$
|
22,999.9
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$
|
22,332.7
|
|
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$
|
22,999.9
|
|
|
$
|
22,332.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP distributable cash flow (1)
|
|
|
$
|
1,039.7
|
|
|
$
|
987.5
|
|
|
$
|
2,093.3
|
|
|
$
|
2,017.2
|
|
|
Non-GAAP Adjusted EBITDA (2)
|
|
|
$
|
1,314.7
|
|
|
$
|
1,296.3
|
|
|
$
|
2,641.9
|
|
|
$
|
2,622.3
|
|
|
Gross operating margin by segment:
|
|
|
|
|
|
|
|
|
|
|
NGL Pipelines & Services
|
|
|
$
|
719.1
|
|
|
$
|
650.6
|
|
|
$
|
1,502.8
|
|
|
$
|
1,345.8
|
|
|
Crude Oil Pipelines & Services
|
|
|
|
177.4
|
|
|
|
235.6
|
|
|
|
379.7
|
|
|
|
449.6
|
|
|
Natural Gas Pipelines & Services
|
|
|
|
177.4
|
|
|
|
191.4
|
|
|
|
355.1
|
|
|
|
395.9
|
|
|
Petrochemical & Refined Products Services
|
|
|
|
175.5
|
|
|
|
181.3
|
|
|
|
330.3
|
|
|
|
355.9
|
|
|
Offshore Pipelines & Services
|
|
|
|
--
|
|
|
|
44.3
|
|
|
|
--
|
|
|
|
90.4
|
|
|
Total segment gross operating margin (3)
|
|
|
|
1,249.4
|
|
|
|
1,303.2
|
|
|
|
2,567.9
|
|
|
|
2,637.6
|
|
|
Net adjustment for shipper make-up rights (4)
|
|
|
|
4.8
|
|
|
|
9.1
|
|
|
|
10.6
|
|
|
|
(1.5
|
)
|
|
Non-GAAP total gross operating margin (5)
|
|
|
$
|
1,254.2
|
|
|
$
|
1,312.3
|
|
|
$
|
2,578.5
|
|
|
$
|
2,636.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital spending:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures, net (6)
|
|
|
$
|
861.8
|
|
|
$
|
837.0
|
|
|
$
|
1,856.8
|
|
|
$
|
1,630.2
|
|
|
Equity consideration issued for Step 2 of Oiltanking acquisition
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,408.7
|
|
|
Investments in unconsolidated affiliates
|
|
|
|
22.0
|
|
|
|
45.8
|
|
|
|
92.4
|
|
|
|
114.1
|
|
|
Other investing activities
|
|
|
|
--
|
|
|
|
5.3
|
|
|
|
--
|
|
|
|
5.3
|
|
|
Total capital spending, cash and non-cash
|
|
|
$
|
883.8
|
|
|
$
|
888.1
|
|
|
$
|
1,949.2
|
|
|
$
|
3,158.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
See Exhibit D for reconciliation to GAAP net cash flows provided by
operating activities.
|
|
(2)
|
|
See Exhibit E for reconciliation to GAAP net cash flows 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 recently
issued guidance from the SEC.
|
|
(5)
|
|
See Exhibit F for reconciliation to GAAP total operating income.
|
|
(6)
|
|
Capital expenditures for property, plant and equipment are presented
net of contributions in aid of construction cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enterprise Products Partners L.P.
|
|
Exhibit B
|
|
Selected Operating Data – UNAUDITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
For the Six Months
|
|
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Selected operating data: (1)
|
|
|
|
|
|
|
|
|
|
|
|
NGL Pipelines & Services, net:
|
|
|
|
|
|
|
|
|
|
|
|
NGL pipeline transportation volumes (MBPD)
|
|
|
|
2,992
|
|
2,679
|
|
2,973
|
|
2,553
|
|
NGL marine terminal volumes (MBPD)
|
|
|
|
450
|
|
295
|
|
453
|
|
279
|
|
NGL fractionation volumes (MBPD)
|
|
|
|
840
|
|
822
|
|
838
|
|
810
|
|
Equity NGL production (MBPD) (2)
|
|
|
|
143
|
|
123
|
|
145
|
|
129
|
|
Fee-based natural gas processing (MMcf/d) (3)
|
|
|
|
4,995
|
|
4,912
|
|
4,939
|
|
4,848
|
|
Crude Oil Pipelines & Services, net:
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil transportation volumes (MBPD)
|
|
|
|
1,358
|
|
1,469
|
|
1,376
|
|
1,427
|
|
Crude oil marine terminal volumes (MBPD)
|
|
|
|
514
|
|
591
|
|
497
|
|
617
|
|
Natural Gas Pipelines & Services, net:
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas transportation volumes (BBtus/d)
|
|
|
|
12,134
|
|
12,488
|
|
12,014
|
|
12,496
|
|
Petrochemical & Refined Products Services, net:
|
|
|
|
|
|
|
|
|
|
|
|
Propylene fractionation volumes (MBPD)
|
|
|
|
80
|
|
68
|
|
75
|
|
71
|
|
Butane isomerization volumes (MBPD)
|
|
|
|
114
|
|
98
|
|
112
|
|
80
|
|
Standalone DIB processing volumes (MBPD)
|
|
|
|
90
|
|
82
|
|
93
|
|
74
|
|
Octane additive and related plant production volumes (MBPD)
|
|
|
|
22
|
|
24
|
|
16
|
|
16
|
|
Pipeline transportation volumes, primarily refined products and
petrochemicals (MBPD)
|
|
|
|
874
|
|
777
|
|
863
|
|
758
|
|
Refined products and petrochemicals marine terminal volumes (MBPD)
|
|
|
|
410
|
|
374
|
|
379
|
|
349
|
|
Offshore Pipelines & Services, net:
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas transportation volumes (BBtus/d)
|
|
|
|
--
|
|
561
|
|
--
|
|
590
|
|
Crude oil transportation volumes (MBPD)
|
|
|
|
--
|
|
372
|
|
--
|
|
358
|
|
Platform natural gas processing (MMcf/d)
|
|
|
|
--
|
|
83
|
|
--
|
|
103
|
|
Platform crude oil processing (MBPD)
|
|
|
|
--
|
|
13
|
|
--
|
|
14
|
|
Total, net:
|
|
|
|
|
|
|
|
|
|
|
|
NGL, crude oil, refined products and petrochemical transportation
volumes (MBPD)
|
|
|
|
5,224
|
|
5,297
|
|
5,212
|
|
5,096
|
|
Natural gas transportation volumes (BBtus/d)
|
|
|
|
12,134
|
|
13,049
|
|
12,014
|
|
13,086
|
|
Equivalent transportation volumes (MBPD) (4)
|
|
|
|
8,417
|
|
8,731
|
|
8,374
|
|
8,540
|
|
NGL, crude oil, refined products and petrochemical marine terminal
volumes (MBPD)
|
|
|
|
1,374
|
|
1,260
|
|
1,329
|
|
1,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
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)
|
|
Represents total NGL, crude oil, refined products and petrochemical
transportation volumes plus equivalent energy volumes where 3.8
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
|
|
Refinery
|
|
|
|
|
|
|
|
|
Natural
|
|
|
|
|
|
Normal
|
|
|
|
Natural
|
|
Grade
|
|
Grade
|
|
WTI
|
|
LLS
|
|
|
|
|
Gas,
|
|
Ethane,
|
|
Propane,
|
|
Butane,
|
|
Isobutane,
|
|
Gasoline,
|
|
Propylene,
|
|
Propylene,
|
|
Crude Oil,
|
|
Crude Oil,
|
|
|
|
|
$/MMBtu
|
|
$/gallon
|
|
$/gallon
|
|
$/gallon
|
|
$/gallon
|
|
$/gallon
|
|
$/pound
|
|
$/pound
|
|
$/barrel
|
|
$/barrel
|
|
|
|
|
(1)
|
|
(2)
|
|
(2)
|
|
(2)
|
|
(2)
|
|
(2)
|
|
(3)
|
|
(3)
|
|
(4)
|
|
(4)
|
|
2015 by quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter
|
|
|
$2.99
|
|
$0.19
|
|
$0.53
|
|
$0.68
|
|
$0.68
|
|
$1.10
|
|
$0.50
|
|
$0.37
|
|
$48.63
|
|
$52.83
|
|
2nd Quarter
|
|
|
$2.65
|
|
$0.18
|
|
$0.46
|
|
$0.59
|
|
$0.60
|
|
$1.26
|
|
$0.42
|
|
$0.29
|
|
$57.94
|
|
$62.97
|
|
3rd Quarter
|
|
|
$2.77
|
|
$0.19
|
|
$0.40
|
|
$0.55
|
|
$0.55
|
|
$0.98
|
|
$0.33
|
|
$0.21
|
|
$46.43
|
|
$50.17
|
|
4th Quarter
|
|
|
$2.27
|
|
$0.18
|
|
$0.42
|
|
$0.60
|
|
$0.61
|
|
$0.97
|
|
$0.31
|
|
$0.18
|
|
$42.18
|
|
$43.54
|
|
YTD 2015 Averages
|
|
|
$2.67
|
|
$0.18
|
|
$0.45
|
|
$0.61
|
|
$0.61
|
|
$1.08
|
|
$0.39
|
|
$0.26
|
|
$48.80
|
|
$52.38
|
|
2016 by quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter
|
|
|
$2.09
|
|
$0.16
|
|
$0.38
|
|
$0.53
|
|
$0.53
|
|
$0.76
|
|
$0.31
|
|
$0.18
|
|
$33.45
|
|
$35.11
|
|
2nd Quarter
|
|
|
$1.95
|
|
$0.20
|
|
$0.49
|
|
$0.62
|
|
$0.63
|
|
$0.96
|
|
$0.33
|
|
$0.19
|
|
$45.59
|
|
$47.35
|
|
YTD 2016 Averages
|
|
|
$2.02
|
|
$0.18
|
|
$0.44
|
|
$0.58
|
|
$0.58
|
|
$0.86
|
|
$0.32
|
|
$0.19
|
|
$39.52
|
|
$41.23
|
|
|
|
|
|
|
|
|
|
(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
(“NYMEX”) and for Louisiana Light Sweet (“LLS”) 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 $0.50 per gallon during the second
quarter of 2016 versus $0.52 per gallon for the second quarter of 2015.
Fluctuations in our consolidated revenues and cost of sales amounts are
explained in large part by changes in energy commodity prices. Energy
commodity prices fluctuate for a variety of reasons, including supply
and demand imbalances and geopolitical tensions.
A change in our consolidated marketing revenues due to lower energy
commodity sales prices may not result in a similar change in gross
operating margin or cash available for distribution, since our
consolidated cost of sales amounts would also change due to comparable
decreases in the purchase prices of the underlying energy commodities.
|
|
|
|
|
Enterprise Products Partners L.P.
|
|
Exhibit D
|
|
Distributable Cash Flow – UNAUDITED
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
For the Six Months
|
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net income attributable to limited partners (GAAP)
|
|
|
$
|
558.5
|
|
$
|
551.0
|
|
$
|
1,219.7
|
|
$
|
1,187.1
|
Adjustments to GAAP net income attributable to limited partners
to derive non-GAAP distributable cash flow:
|
|
|
|
|
|
|
|
|
|
|
Add depreciation, amortization and accretion expenses
|
|
|
|
381.3
|
|
|
407.5
|
|
|
763.4
|
|
|
774.9
|
|
Add distributions received from unconsolidated affiliates
|
|
|
|
118.7
|
|
|
131.1
|
|
|
234.5
|
|
|
265.5
|
|
Subtract equity in income of unconsolidated affiliates
|
|
|
|
(76.4)
|
|
|
(110.2)
|
|
|
(177.5)
|
|
|
(199.4)
|
|
Subtract sustaining capital expenditures (1)
|
|
|
|
(58.4)
|
|
|
(60.8)
|
|
|
(117.7)
|
|
|
(111.5)
|
|
Add net losses or subtract net gains attributable to asset sales,
insurance recoveries and related property damage, net
|
|
|
|
8.8
|
|
|
2.5
|
|
|
13.7
|
|
|
2.4
|
|
Add cash proceeds from asset sales and insurance recoveries
|
|
|
|
14.5
|
|
|
5.4
|
|
|
27.9
|
|
|
5.9
|
|
Add non-cash expense or subtract benefit attributable to changes
in fair value of the Liquidity Option Agreement
|
|
|
|
23.3
|
|
|
11.5
|
|
|
21.1
|
|
|
11.5
|
|
Add deferred income tax expense (benefit)
|
|
|
|
0.2
|
|
|
(13.2)
|
|
|
4.3
|
|
|
(11.7)
|
|
Add non-cash asset impairment charges
|
|
|
|
13.5
|
|
|
79.0
|
|
|
15.2
|
|
|
112.3
|
|
Add or subtract other miscellaneous adjustments to derive non-GAAP
distributable cash flow, as applicable
|
|
|
|
55.7
|
|
|
(16.3)
|
|
|
88.7
|
|
|
(19.8)
|
|
Distributable cash flow (non-GAAP)
|
|
|
|
1,039.7
|
|
|
987.5
|
|
|
2,093.3
|
|
|
2,017.2
|
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
|
|
|
|
58.4
|
|
|
60.8
|
|
|
117.7
|
|
|
111.5
|
|
Subtract cash proceeds from asset sales and insurance recoveries
reflected in distributable cash flow
|
|
|
|
(14.5)
|
|
|
(5.4)
|
|
|
(27.9)
|
|
|
(5.9)
|
Add or subtract the net effect of changes in operating accounts, as
applicable
|
|
|
|
(108.2)
|
|
|
(111.7)
|
|
|
(294.6)
|
|
|
(250.7)
|
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
|
|
|
|
(29.9)
|
|
|
16.4
|
|
|
(43.3)
|
|
|
29.5
|
|
Net cash flow provided by operating activities (GAAP)
|
|
|
$
|
945.5
|
|
$
|
947.6
|
|
$
|
1,845.2
|
|
$
|
1,901.6
|
|
|
|
(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.
|
Distributable cash flow
Our management compares the distributable cash flow we generate to the
cash distributions we expect to pay our partners. Using this metric,
management computes our distribution coverage ratio. Distributable cash
flow is an important non-GAAP liquidity measure for our limited partners
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.
Distributable cash flow 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 unitholder. The GAAP measure most directly comparable to
distributable cash flow is net cash flow provided by operating
activities.
|
|
|
|
|
Enterprise Products Partners L.P.
|
|
Exhibit E
|
|
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,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
Net income (GAAP)
|
|
|
$
|
570.0
|
|
$
|
556.6
|
|
$
|
1,240.2
|
|
$
|
1,207.2
|
|
$
|
2,591.4
|
|
Adjustments to GAAP net income to derive non-GAAP Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtract equity in income of unconsolidated affiliates
|
|
|
|
(76.4)
|
|
|
(110.2)
|
|
|
(177.5)
|
|
|
(199.4)
|
|
|
(351.7)
|
|
Add distributions received from unconsolidated affiliates
|
|
|
|
118.7
|
|
|
131.1
|
|
|
234.5
|
|
|
265.5
|
|
|
431.1
|
|
Add interest expense, including related amortization
|
|
|
|
244.1
|
|
|
240.4
|
|
|
484.7
|
|
|
479.5
|
|
|
967.0
|
|
Add provision for or subtract benefit from income taxes
|
|
|
|
(0.1)
|
|
|
(7.9)
|
|
|
8.3
|
|
|
(1.1)
|
|
|
6.9
|
|
Add depreciation, amortization and accretion in costs and expenses
|
|
|
|
366.3
|
|
|
397.2
|
|
|
733.4
|
|
|
752.8
|
|
|
1,453.2
|
|
Add non-cash asset impairment charges
|
|
|
|
13.5
|
|
|
79.0
|
|
|
15.2
|
|
|
112.3
|
|
|
65.5
|
|
Add non-cash net losses or subtract net gains attributable to
asset sales, insurance recoveries and related property damage
|
|
|
|
7.1
|
|
|
3.9
|
|
|
13.7
|
|
|
3.9
|
|
|
28.7
|
|
Add non-cash expense or subtract benefit attributable to changes
in fair value of the Liquidity Option Agreement
|
|
|
|
23.3
|
|
|
11.5
|
|
|
21.1
|
|
|
11.5
|
|
|
35.0
|
|
Add losses or subtract gains attributable to unrealized changes in
the fair market value of derivative instruments
|
|
|
|
48.2
|
|
|
(5.3)
|
|
|
68.3
|
|
|
(9.9)
|
|
|
59.8
|
|
Adjusted EBITDA (non-GAAP)
|
|
|
|
1,314.7
|
|
|
1,296.3
|
|
|
2,641.9
|
|
|
2,622.3
|
|
|
5,286.9
|
|
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
|
|
|
|
(244.1)
|
|
|
(240.4)
|
|
|
(484.7)
|
|
|
(479.5)
|
|
|
(967.0)
|
|
Add benefit or subtract provision for income taxes reflected in
Adjusted EBITDA
|
|
|
|
0.1
|
|
|
7.9
|
|
|
(8.3)
|
|
|
1.1
|
|
|
(6.9)
|
Subtract distributions received for return of capital from
unconsolidated
affiliates
|
|
|
|
(30.3)
|
|
|
--
|
|
|
(39.4)
|
|
|
--
|
|
|
(39.4)
|
|
Add deferred income tax expense or subtract benefit
|
|
|
|
0.2
|
|
|
(13.2)
|
|
|
4.3
|
|
|
(11.7)
|
|
|
(4.6)
|
Add or subtract the net effect of changes in operating accounts, as
applicable
|
|
|
|
(108.2)
|
|
|
(111.7)
|
|
|
(294.6)
|
|
|
(250.7)
|
|
|
(367.2)
|
Add miscellaneous non-cash and other amounts to reconcile non-GAAP
Adjusted EBITDA with GAAP net cash flow provided by operating
activities
|
|
|
|
13.1
|
|
|
8.7
|
|
|
26.0
|
|
|
20.1
|
|
|
44.2
|
|
Net cash flow provided by operating activities (GAAP)
|
|
|
$
|
945.5
|
|
$
|
947.6
|
|
$
|
1,845.2
|
|
$
|
1,901.6
|
|
$
|
3,946.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 F
|
|
Total Gross Operating Margin – UNAUDITED
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
For the Six Months
|
|
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Total gross operating margin (non-GAAP)
|
|
|
|
$
|
1,254.2
|
|
$
|
1,312.3
|
|
$
|
2,578.5
|
|
$
|
2,636.1
|
|
Adjustments to reconcile non-GAAP total gross operating margin
to GAAP total operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Subtract depreciation, amortization and accretion expense amounts
not reflected in gross operating margin
|
|
|
|
|
(360.3)
|
|
|
(385.6)
|
|
|
(718.5)
|
|
|
(730.9)
|
|
Subtract non-cash asset impairment charges included in operating
expenses not reflected in gross operating margin
|
|
|
|
|
(13.1)
|
|
|
(79.0)
|
|
|
(14.8)
|
|
|
(112.3)
|
|
Add net gains or subtract net losses attributable to asset sales,
insurance recoveries and related property damage not reflected in
gross operating margin
|
|
|
|
|
(8.8)
|
|
|
(2.5)
|
|
|
(13.7)
|
|
|
(2.4)
|
|
Subtract general and administrative costs not reflected in gross
operating margin
|
|
|
|
|
(35.1)
|
|
|
(44.9)
|
|
|
(79.0)
|
|
|
(94.2)
|
|
Total operating income (GAAP)
|
|
|
|
$
|
836.9
|
|
$
|
800.3
|
|
$
|
1,752.5
|
|
$
|
1,696.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 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, (ii)
impairment charges, (iii) gains and losses attributable to asset sales,
insurance recoveries and related property damage 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 (4) to Exhibit A of this press
release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728005394/en/
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