Enterprise Reports Results for Second Quarter 2021
Enterprise Products Partners L.P. (NYSE: EPD) reported a net income of $1.1 billion, or $0.50 per unit, for Q2 2021, up from $1.0 billion, or $0.47 per unit in Q2 2020. Cash flow from operations surged to $2.0 billion, an increase from $1.2 billion a year earlier. The partnership declared a distribution of $0.45 per unit, a rise of 1.1%. Free Cash Flow reached $4.2 billion over the past twelve months, marking a substantial increase from $2.7 billion in the previous year. Capital investments totaled $634 million in Q2 2021, with a strong liquidity of $5.4 billion. Overall, performance improved due to recovering demand across multiple sectors.
- Net income rose to $1.1 billion in Q2 2021 from $1.0 billion in Q2 2020.
- Cash flow from operations increased to $2.0 billion in Q2 2021, up from $1.2 billion in the same quarter last year.
- Free Cash Flow for the latest twelve months was $4.2 billion, compared to $2.7 billion a year earlier.
- Distribution declared increased by 1.1% to $0.45 per unit.
- Non-cash asset impairment charges reduced net income by $18 million in Q2 2021.
- Gross operating margin from crude oil pipelines decreased significantly to $419 million from $634 million in Q2 2020.
Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three and six months ended June 30, 2021.
Enterprise reported net income attributable to common unitholders of
Net cash flow provided by operating activities, or cash flow from operations (“CFFO”), was
Distributable Cash Flow (“DCF”) was
Second Quarter Highlights
|
Three Months Ended June 30, |
|||||
($ in millions, except per unit amounts) |
2021 |
2020 |
||||
Operating income |
$ |
1,493 |
$ |
1,437 |
||
Net income (1) |
$ |
1,146 |
$ |
1,061 |
||
Fully diluted earnings per common unit (1) |
$ |
0.50 |
$ |
0.47 |
||
Net cash provided by operating activities (CFFO) (2) |
$ |
1,994 |
$ |
1,182 |
||
Total gross operating margin (3) |
$ |
2,061 |
$ |
1,998 |
||
Adjusted EBITDA (3) |
$ |
2,008 |
$ |
1,961 |
||
FCF (3) |
$ |
1,386 |
$ |
305 |
||
DCF (3) |
$ |
1,599 |
$ |
1,577 |
||
(1) |
Net income and fully diluted earnings per common unit for the second quarters of 2021 and 2020 include non-cash, asset impairment charges of |
|
(2) |
CFFO reflects the timing of cash receipts and payments related to operations along with other changes in working capital accounts. The net effect of changes in operating accounts, which are a component of CFFO, was a net increase of |
|
(3) |
Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), FCF and DCF are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release. |
-
Gross operating margin, operating income and net income attributable to common unitholders included non-cash, mark-to-market (“MTM”) gains on financial instruments used in our commodity hedging activities of
$23 million for the second quarter of 2021 and$62 million for the second quarter of 2020.
-
Capital investments were
$634 million in the second quarter of 2021 and$1.3 billion for the first six months of 2021. Included in these investments were sustaining capital expenditures of$117 million in the second quarter of 2021 and$261 million in the first six months of 2021.
Second Quarter Volume Highlights
|
Three Months Ended June 30, |
|||
|
2021 |
2020 |
||
NGL, crude oil, refined products & petrochemical pipeline volumes (million BPD) |
6.4 |
6.2 |
||
Marine terminal volumes (million BPD) |
1.6 |
1.7 |
||
Natural gas pipeline volumes (TBtus/d) |
14.2 |
13.0 |
||
NGL fractionation volumes (million BPD) |
1.2 |
1.2 |
||
Propylene plant production volumes (MBPD) |
113 |
72 |
||
Fee-based natural gas processing volumes (Bcf/d) |
4.2 |
4.1 |
||
Equity NGL production volumes (MBPD) |
198 |
188 |
||
As used in this press release, “NGL” means natural gas liquids, “BPD” means barrels per day, “MBPD” means thousand barrels per day, “MMcf/d” means million cubic feet per day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means billion British thermal units per day, and “TBtus/d” means trillion British thermal units per day.
“Enterprise’s second quarter results reflected the ongoing recovery in demand for crude oil, NGLs, primary petrochemicals and refined products as the global economy continues to reopen from COVID-related lockdowns,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “Our liquids pipelines transported 6.4 million BPD for the second quarter of 2021, which is within four percent of our 2019 volumes of 6.7 million BPD. Enterprise’s natural gas pipelines transported 14.2 TBtus/d for the second quarter, equaling our 2019 volumes. NGL fractionation volumes for the second quarter of 2021 remained strong at near record levels of 1.2 million BPD. Our propylene production for the second quarter of 2021 was a record 113 MBPD. Liquid volumes handled by our marine terminals for the second quarter of this year were 1.6 million BPD, which still lagged 2019 volumes of 1.9 million BPD, primarily due to weakness in crude oil and refined product exports.”
“The partnership generated
“Our commercial teams continue to make progress with certain of our downstream customers regarding growth projects under development. Enterprise’s newly formed energy evolution technology team has made remarkable early progress in researching and identifying areas that are complementary to our existing competencies and assets such as carbon capture and sequestration, hydrogen and renewable fuels,” continued Teague.
“Enterprise’s major construction projects remain on-time and on-budget. The next two growth projects scheduled for completion in the fourth quarter of 2021 are the Gillis natural gas pipeline that will connect Haynesville Shale production with the LNG markets in southwest Louisiana and a natural gasoline treater in Chambers County, Texas. The partnership completed the quarter with a strong balance sheet and
Review of Second Quarter 2021 Results
Enterprise reported total gross operating margin of
NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment increased 13 percent to
Enterprise’s natural gas processing and related NGL marketing business reported gross operating margin of
Total fee-based processing volumes were 4.2 Bcf/d in the second quarter of 2021 compared to 4.1 Bcf/d in the second quarter of 2020. The partnership’s equity NGL production increased to 198 MBPD this quarter from 188 MBPD in the second quarter of last year.
Gross operating margin from NGL marketing activities increased
Gross operating margin from the partnership’s NGL pipelines and storage business decreased
Gross operating margin from Enterprise’s Dixie Pipeline and related terminals decreased
Enterprise’s NGL pipelines that serve the Permian Basin and Rocky Mountain producers, including the Mid-America and Seminole NGL Pipeline Systems, Shin Oak NGL Pipeline and Chaparral NGL pipeline, on a combined basis had a
Gross operating margin from the partnership’s NGL storage complex in Chambers County, Texas decreased
The South Texas NGL Pipeline System had a
Enterprise’s NGL fractionation business reported a
Gross operating margin from the partnership’s Chambers County NGL fractionation complex reported a
Enterprise’s Norco fractionator in Louisiana had an
Crude Oil Pipelines & Services – Gross operating margin from the partnership’s Crude Oil Pipelines & Services segment was
Gross operating margin from crude oil marketing activities for the second quarter of 2021 decreased
The partnership’s West Texas Pipeline System had an
Gross operating margin from crude oil activities at EHT decreased
Enterprise’s share of gross operating margin associated with the Seaway Pipeline increased
Gross operating margin from Enterprise’s Midland-to-ECHO System increased
Natural Gas Pipelines & Services – Enterprise’s Natural Gas Pipelines & Services segment reported gross operating margin of
Gross operating margin from the partnership’s Permian Basin Gathering System increased
Gross operating margin from Enterprise’s natural gas marketing business decreased
Gross operating margin from the partnership’s Texas Intrastate System decreased
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment increased
Gross operating margin from the partnership’s propylene production and related activities was a record
Gross operating margin from butane isomerization and related operations increased
Gross operating margin from refined products pipelines and related activities for the second quarter of 2021 increased
The partnership’s octane enhancement business and related operations had a
Capitalization
Total debt principal outstanding at June 30, 2021 was
Capital Investments
Total capital spending in the second quarter of 2021 was
Our current expectation for growth capital investments associated with sanctioned projects for 2021 and 2022 is
Conference Call to Discuss Second Quarter 2021 Earnings
Today, Enterprise will host a conference call to discuss second quarter 2021 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, FCF, DCF and Adjusted EBITDA. The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we do.
Company Information and Use of Forward-Looking Statements
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and export and import terminals; crude oil gathering, transportation, storage and export and import terminals; petrochemical and refined products transportation, storage, export and import terminals and related services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 50,000 miles of pipelines; 260 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, direct and indirect effects of the COVID-19 pandemic, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.
| Enterprise Products Partners L.P. | Exhibit A |
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Condensed Statements of Consolidated Operations – UNAUDITED |
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($ in millions, except per unit amounts) |
|
|
|
|||||||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
For the Twelve
June 30, |
|||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|||||
Revenues |
$ |
9,450.1 |
|
$ |
5,751.0 |
|
$ |
18,605.4 |
|
$ |
13,233.5 |
|
$ |
32,571.6 |
|
|||||
Costs and expenses: |
|
|
|
|
|
|||||||||||||||
Operating costs and expenses |
|
8,066.7 |
|
|
4,370.4 |
|
|
15,620.1 |
|
|
10,430.7 |
|
|
27,560.5 |
|
|||||
General and administrative costs |
|
51.5 |
|
|
57.0 |
|
|
107.8 |
|
|
112.5 |
|
|
214.9 |
|
|||||
Total costs and expenses |
|
8,118.2 |
|
|
4,427.4 |
|
|
15,727.9 |
|
|
10,543.2 |
|
|
27,775.4 |
|
|||||
Equity in income of unconsolidated affiliates |
|
160.7 |
|
|
113.3 |
|
|
309.6 |
|
|
254.1 |
|
|
481.6 |
|
|||||
Operating income |
|
1,492.6 |
|
|
1,436.9 |
|
|
3,187.1 |
|
|
2,944.4 |
|
|
5,277.8 |
|
|||||
Other income (expense): |
|
|
|
|
|
|||||||||||||||
Interest expense |
|
(316.1 |
) |
|
(320.2 |
) |
|
(638.9 |
) |
|
(637.7 |
) |
|
(1,288.6 |
) |
|||||
Other, net |
|
0.7 |
|
|
3.8 |
|
|
1.6 |
|
|
9.6 |
|
|
5.7 |
|
|||||
Total other expense, net |
|
(315.4 |
) |
|
(316.4 |
) |
|
(637.3 |
) |
|
(628.1 |
) |
|
(1,282.9 |
) |
|||||
Income before income taxes |
|
1,177.2 |
|
|
1,120.5 |
|
|
2,549.8 |
|
|
2,316.3 |
|
|
3,994.9 |
|
|||||
Benefit from (provision for) income taxes |
|
(31.2 |
) |
|
(59.7 |
) |
|
(41.2 |
) |
|
119.5 |
|
|
(36.4 |
) |
|||||
Net income |
|
1,146.0 |
|
|
1,060.8 |
|
|
2,508.6 |
|
|
2,435.8 |
|
|
3,958.5 |
|
|||||
Net income attributable to noncontrolling interests |
|
(32.7 |
) |
|
(26.1 |
) |
|
(54.0 |
) |
|
(51.0 |
) |
|
(113.1 |
) |
|||||
Net income attributable to preferred units |
|
(1.0 |
) |
|
– |
|
|
(1.9 |
) |
|
– |
|
|
(2.8 |
) |
|||||
Net income attributable to common unitholders |
$ |
1,112.3 |
|
$ |
1,034.7 |
|
$ |
2,452.7 |
|
$ |
2,384.8 |
|
$ |
3,842.6 |
|
|||||
Per common unit data (fully diluted): |
|
|
|
|
|
|||||||||||||||
Earnings per common unit |
$ |
0.50 |
|
$ |
0.47 |
|
$ |
1.11 |
|
$ |
1.08 |
|
$ |
1.75 |
|
|||||
Average common units outstanding (in millions) |
|
2,205.5 |
|
|
2,201.9 |
|
|
2,204.3 |
|
|
2,203.0 |
|
|
2,202.7 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Supplemental financial data: |
|
|
|
|
|
|||||||||||||||
Net cash flow provided by operating activities |
$ |
1,993.9 |
|
$ |
1,181.6 |
|
$ |
4,017.0 |
|
$ |
3,193.8 |
|
$ |
6,714.7 |
|
|||||
Cash flows used in investing activities |
$ |
571.7 |
|
$ |
858.8 |
|
$ |
1,228.7 |
|
$ |
1,930.5 |
|
$ |
2,418.9 |
|
|||||
Cash flows used in financing activities |
$ |
1,145.6 |
|
$ |
1,001.8 |
|
$ |
3,335.4 |
|
$ |
236.7 |
|
$ |
5,121.4 |
|
|||||
Total debt principal outstanding at end of period |
$ |
28,821.4 |
|
$ |
29,896.4 |
|
$ |
28,821.4 |
|
$ |
29,896.4 |
|
$ |
28,821.4 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Non-GAAP Distributable Cash Flow (1) |
$ |
1,598.5 |
|
$ |
1,577.3 |
|
$ |
3,335.8 |
|
$ |
3,130.9 |
|
$ |
6,611.6 |
|
|||||
Non-GAAP Adjusted EBITDA (2) |
$ |
2,008.1 |
|
$ |
1,961.2 |
|
$ |
4,253.7 |
|
$ |
3,939.9 |
|
$ |
8,369.5 |
|
|||||
Non-GAAP Free Cash Flow (3) |
$ |
1,385.6 |
|
$ |
305.4 |
|
$ |
2,735.0 |
|
$ |
1,221.2 |
|
$ |
4,184.2 |
|
|||||
Gross operating margin by segment: |
|
|
|
|
|
|||||||||||||||
NGL Pipelines & Services |
$ |
1,097.6 |
|
$ |
968.1 |
|
$ |
2,184.0 |
|
$ |
2,010.1 |
|
$ |
4,356.3 |
|
|||||
Crude Oil Pipelines & Services |
|
418.9 |
|
|
634.4 |
|
|
819.1 |
|
|
1,087.3 |
|
|
1,729.1 |
|
|||||
Natural Gas Pipelines & Services |
|
202.0 |
|
|
208.9 |
|
|
737.2 |
|
|
492.7 |
|
|
1,171.1 |
|
|||||
Petrochemical & Refined Products Services |
|
326.3 |
|
|
191.5 |
|
|
607.8 |
|
|
470.0 |
|
|
1,219.6 |
|
|||||
Total segment gross operating margin (4) |
|
2,044.8 |
|
|
2,002.9 |
|
|
4,348.1 |
|
|
4,060.1 |
|
|
8,476.1 |
|
|||||
Net adjustment for shipper make-up rights (5) |
|
16.6 |
|
|
(4.5 |
) |
|
36.6 |
|
|
(14.2 |
) |
|
(34.9 |
) |
|||||
Non-GAAP total gross operating margin (6) |
$ |
2,061.4 |
|
$ |
1,998.4 |
|
$ |
4,384.7 |
|
$ |
4,045.9 |
|
$ |
8,441.2 |
|
|||||
(1) |
See Exhibit E for reconciliation to GAAP net cash flow provided by operating activities. |
|
(2) |
See Exhibit F for reconciliation to GAAP net cash flow provided by operating activities. |
|
(3) |
See Exhibit D for reconciliation to GAAP net cash flow provided by operating activities. |
|
(4) |
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”). |
|
(5) |
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. |
|
(6) |
See Exhibit G for reconciliation to GAAP total operating income. |
| Enterprise Products Partners L.P. |
|
Exhibit B |
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Selected Operating Data – UNAUDITED |
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|
|
|
|||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
For the Twelve
June 30, |
|||||||
|
2021 |
2020 |
2021 |
2020 |
2021 |
|||||
Selected operating data: (1) |
|
|
|
|
|
|||||
NGL Pipelines & Services, net: |
|
|
|
|
|
|||||
NGL pipeline transportation volumes (MBPD) |
3,428 |
3,482 |
3,377 |
3,622 |
3,488 |
|||||
NGL marine terminal volumes (MBPD) |
665 |
701 |
659 |
721 |
691 |
|||||
NGL fractionation volumes (MBPD) |
1,245 |
1,154 |
1,216 |
1,186 |
1,241 |
|||||
Equity NGL production volumes (MBPD) (2) |
198 |
188 |
180 |
164 |
160 |
|||||
Fee-based natural gas processing volumes (MMcf/d) (3,4) |
4,187 |
4,136 |
4,102 |
4,398 |
4,318 |
|||||
Crude Oil Pipelines & Services, net: |
|
|
|
|
|
|||||
Crude oil pipeline transportation volumes (MBPD) |
2,041 |
1,890 |
1,988 |
2,141 |
1,994 |
|||||
Crude oil marine terminal volumes (MBPD) |
770 |
726 |
671 |
854 |
633 |
|||||
Natural Gas Pipelines & Services, net: |
|
|
|
|
|
|||||
Natural gas pipeline transportation volumes (BBtus/d) (5) |
14,161 |
12,975 |
13,934 |
13,419 |
13,676 |
|||||
Petrochemical & Refined Products Services, net: |
|
|
|
|
|
|||||
Propylene production volumes (MBPD) |
113 |
72 |
99 |
85 |
95 |
|||||
Butane isomerization volumes (MBPD) |
84 |
68 |
74 |
86 |
90 |
|||||
Standalone DIB processing volumes (MBPD) |
173 |
130 |
156 |
118 |
146 |
|||||
Octane enhancement and related plant sales volumes (MBPD) (6) |
31 |
32 |
30 |
33 |
38 |
|||||
Pipeline transportation volumes, primarily refined products and petrochemicals (MBPD) |
977 |
786 |
859 |
748 |
854 |
|||||
Refined products and petrochemicals marine terminal volumes (MBPD) (7) |
198 |
250 |
233 |
261 |
247 |
|||||
Total, net: |
|
|
|
|
|
|||||
NGL, crude oil, petrochemical and refined products pipeline transportation volumes (MBPD) |
6,446 |
6,158 |
6,224 |
6,511 |
6,336 |
|||||
Natural gas pipeline transportation volumes (BBtus/d) |
14,161 |
12,975 |
13,934 |
13,419 |
13,676 |
|||||
Equivalent pipeline transportation volumes (MBPD) (8) |
10,173 |
9,572 |
9,891 |
10,042 |
9,935 |
|||||
NGL, crude oil, refined products and petrochemical marine terminal volumes (MBPD) |
1,633 |
1,677 |
1,563 |
1,836 |
1,571 |
|||||
(1) |
Operating rates are reported on a net basis, which take into account our ownership interests in certain joint ventures, and include volumes for newly constructed assets from the related in-service dates and for recently purchased assets from the related acquisition dates. |
|
(2) |
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) |
Fee-based natural gas processing volumes are measured at either the wellhead or plant inlet in MMcf/d. |
|
(5) |
“BBtus/d” means billion British thermal units per day. |
|
(6) |
Reflects aggregate sales volumes for our octane additive and iBDH facilities located at our Chambers County complex and our high-purity isobutylene production facility located adjacent to the Houston Ship Channel. |
|
(7) |
In addition to exports of refined products, these amounts include loading volumes at our ethylene export terminal |
|
(8) |
Represents total NGL, crude oil, refined products and petrochemical transportation volumes plus equivalent energy volumes where 3.8 million British thermal units (“MMBtus”) of natural gas transportation volumes are equivalent to one barrel of NGLs transported. |
| Enterprise Products Partners L.P. | Exhibit C |
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Selected Commodity Price Information – UNAUDITED |
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Polymer |
Refinery |
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Natural |
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Normal |
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Natural |
Grade |
Grade |
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|
Gas, |
Ethane, |
Propane, |
Butane, |
Isobutane, |
Gasoline, |
Propylene, |
Propylene, |
||||||||
|
$/MMBtu (1) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/gallon (2) |
$/pound (3) |
$/pound (3) |
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2020 by quarter: |
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First Quarter |
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Second Quarter |
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Third Quarter |
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|
|
|
||||||||
Fourth Quarter |
|
|
|
|
|
|
|
|
||||||||
2020 Averages |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
2021 by quarter: |
|
|
|
|
|
|
|
|
||||||||
First Quarter |
|
|
|
|
|
|
|
|
||||||||
Second Quarter |
|
|
|
|
|
|
|
|
||||||||
2021 Averages |
|
|
|
|
|
|
|
|
||||||||
(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. |
|
WTI |
Midland |
Houston |
LLS |
|||||||
|
Crude Oil, |
Crude Oil, |
Crude Oil |
Crude Oil, |
|||||||
|
$/barrel (1) |
$/barrel (2) |
$/barrel (2) |
$/barrel (3) |
|||||||
2020 by quarter: |
|
|
|
|
|||||||
First Quarter |
|
|
|
|
|||||||
Second Quarter |
|
|
|
|
|||||||
Third Quarter |
|
|
|
|
|||||||
Fourth Quarter |
|
|
|
|
|||||||
2020 Averages |
|
|
|
|
|||||||
|
|
|
|
|
|||||||
2021 by quarter: |
|
|
|
|
|||||||
First Quarter |
|
|
|
|
|||||||
Second Quarter |
|
|
|
|
|||||||
2021 Averages |
|
|
|
|
(1) |
West Texas Intermediate (“WTI”) prices are based on commercial index prices at Cushing, Oklahoma as measured by the NYMEX. |
|
(2) |
Midland and Houston crude oil prices are based on commercial index prices as reported by Argus. |
|
(3) |
Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts. |
The weighted-average indicative market price for NGLs (based on prices for such products at Mont Belvieu, Texas, which is the primary industry hub for domestic NGL production) was
| Enterprise Products Partners L.P. |
|
Exhibit D |
||||||||||||||
Free Cash Flow – UNAUDITED |
||||||||||||||||
($ in millions) |
|
|
|
|
||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Free Cash Flow (“FCF”) |
|
|
|
|
||||||||||||
Net cash flow provided by operating activities (GAAP) |
$ |
1,993.9 |
|
$ |
1,181.6 |
|
$ |
4,017.0 |
|
$ |
3,193.8 |
|
||||
Adjustments to reconcile net cash flow provided by operating activities to FCF (addition or subtraction indicated by sign): |
|
|
|
|
||||||||||||
Cash used in investing activities |
|
(571.7 |
) |
|
(858.8 |
) |
|
(1,228.7 |
) |
|
(1,930.5 |
) |
||||
Cash contributions from noncontrolling interests |
|
5.0 |
|
|
14.5 |
|
|
18.1 |
|
|
19.7 |
|
||||
Cash distributions paid to noncontrolling interests |
|
(41.6 |
) |
|
(31.9 |
) |
|
(71.4 |
) |
|
(61.8 |
) |
||||
FCF (non-GAAP) |
$ |
1,385.6 |
|
$ |
305.4 |
|
$ |
2,735.0 |
|
$ |
1,221.2 |
|
||||
|
|
|
|
|
||||||||||||
|
For the Twelve Months Ended June 30, |
|
|
|||||||||||||
|
|
2021 |
|
|
2020 |
|
|
|
||||||||
Net cash flow provided by operating activities (GAAP) |
$ |
6,714.7 |
|
$ |
6,530.6 |
|
|
|
||||||||
Adjustments to reconcile net cash flow provided by operating activities to FCF (addition or subtraction indicated by sign): |
|
|
|
|
||||||||||||
Cash used in investing activities |
|
(2,418.9 |
) |
|
(4,219.5 |
) |
|
|
||||||||
Cash contributions from noncontrolling interests |
|
29.3 |
|
|
552.9 |
|
|
|
||||||||
Cash distributions paid to noncontrolling interests |
|
(140.9 |
) |
|
(121.1 |
) |
|
|
||||||||
FCF (non-GAAP) |
$ |
4,184.2 |
|
$ |
2,742.9 |
|
|
|
||||||||
FCF is a measure of how much cash a business generates after accounting for capital expenditures such as plants or pipelines. We believe that FCF is important to traditional investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects and/or paying distributions. Since we partner with other companies to fund certain capital projects of our consolidated subsidiaries, our determination of FCF appropriately reflects the amount of cash contributed from and distributed to noncontrolling interests.
| Enterprise Products Partners L.P. | Exhibit E |
|||||||||||||||||||
Distributable Cash Flow – UNAUDITED |
||||||||||||||||||||
($ in millions) |
|
|
For the Twelve
June 30, |
|||||||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|||||
Distributable Cash Flow (“DCF”) |
|
|
|
|
|
|||||||||||||||
Net income attributable to common unitholders (GAAP) |
$ |
1,112.3 |
|
$ |
1,034.7 |
|
$ |
2,452.7 |
|
$ |
2,384.8 |
|
$ |
3,842.6 |
|
|||||
Adjustments to net income attributable to common unitholders to derive DCF (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Depreciation, amortization and accretion expenses |
|
533.8 |
|
|
522.7 |
|
|
1,058.8 |
|
|
1,031.7 |
|
|
2,099.0 |
|
|||||
Cash distributions received from unconsolidated affiliates |
|
168.8 |
|
|
178.4 |
|
|
299.3 |
|
|
315.6 |
|
|
597.8 |
|
|||||
Equity in income of unconsolidated affiliates |
|
(160.7 |
) |
|
(113.3 |
) |
|
(309.6 |
) |
|
(254.1 |
) |
|
(481.6 |
) |
|||||
Asset impairment charges |
|
17.9 |
|
|
11.8 |
|
|
83.5 |
|
|
13.4 |
|
|
960.7 |
|
|||||
Change in fair market value of derivative instruments |
|
(23.2 |
) |
|
(61.9 |
) |
|
(38.8 |
) |
|
(91.4 |
) |
|
(26.7 |
) |
|||||
Deferred income tax expense (benefit) |
|
19.5 |
|
|
53.4 |
|
|
24.1 |
|
|
(130.7 |
) |
|
7.2 |
|
|||||
Sustaining capital expenditures (1) |
|
(116.8 |
) |
|
(74.0 |
) |
|
(260.6 |
) |
|
(142.9 |
) |
|
(411.3 |
) |
|||||
Other, net (2) |
|
2.8 |
|
|
22.0 |
|
|
(99.1 |
) |
|
33.7 |
|
|
(110.3 |
) |
|||||
Operational DCF |
|
1,554.4 |
|
|
1,573.8 |
|
|
3,210.3 |
|
|
3,160.1 |
|
|
6,477.4 |
|
|||||
Proceeds from asset sales |
|
44.1 |
|
|
3.5 |
|
|
50.3 |
|
|
4.1 |
|
|
59.0 |
|
|||||
Monetization of interest rate derivative instruments accounted for as cash flow hedges |
|
– |
|
|
– |
|
|
75.2 |
|
|
(33.3 |
) |
|
75.2 |
|
|||||
DCF (non-GAAP) |
|
1,598.5 |
|
|
1,577.3 |
|
|
3,335.8 |
|
|
3,130.9 |
|
|
6,611.6 |
|
|||||
Adjustments to reconcile DCF with net cash flow provided by operating activities (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Net effect of changes in operating accounts, as applicable |
|
300.2 |
|
|
(430.7 |
) |
|
399.2 |
|
|
(89.0 |
) |
|
(279.3 |
) |
|||||
Sustaining capital expenditures |
|
116.8 |
|
|
74.0 |
|
|
260.6 |
|
|
142.9 |
|
|
411.3 |
|
|||||
Other, net |
|
(21.6 |
) |
|
(39.0 |
) |
|
21.4 |
|
|
9.0 |
|
|
(28.9 |
) |
|||||
Net cash flow provided by operating activities (GAAP) |
$ |
1,993.9 |
|
$ |
1,181.6 |
|
$ |
4,017.0 |
|
$ |
3,193.8 |
|
$ |
6,714.7 |
|
|||||
(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. |
|
(2) |
The first six months of 2021 include |
DCF is an important non-GAAP liquidity measure for our common unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this liquidity measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions. DCF is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a common unitholder.
| Enterprise Products Partners L.P. |
|
|
|
Exhibit F |
||||||||||||||||
Adjusted EBITDA - UNAUDITED |
||||||||||||||||||||
($ in millions) |
|
|
|
For the Twelve
June 30, |
||||||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|||||
Net income (GAAP) |
$ |
1,146.0 |
|
$ |
1,060.8 |
|
$ |
2,508.6 |
|
$ |
2,435.8 |
|
$ |
3,958.5 |
|
|||||
Adjustments to net income to derive Adjusted EBITDA (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Depreciation, amortization and accretion in costs and expenses (1) |
|
511.7 |
|
|
507.1 |
|
|
1,019.4 |
|
|
1,001.6 |
|
|
2,027.5 |
|
|||||
Interest expense, including related amortization |
|
316.1 |
|
|
320.2 |
|
|
638.9 |
|
|
637.7 |
|
|
1,288.6 |
|
|||||
Cash distributions received from unconsolidated affiliates |
|
168.8 |
|
|
178.4 |
|
|
299.3 |
|
|
315.6 |
|
|
597.8 |
|
|||||
Equity in income of unconsolidated affiliates |
|
(160.7 |
) |
|
(113.3 |
) |
|
(309.6 |
) |
|
(254.1 |
) |
|
(481.6 |
) |
|||||
Asset impairment charges |
|
17.9 |
|
|
11.8 |
|
|
83.5 |
|
|
13.4 |
|
|
960.7 |
|
|||||
Provision for (benefit from) income taxes |
|
31.2 |
|
|
59.7 |
|
|
41.2 |
|
|
(119.5 |
) |
|
36.4 |
|
|||||
Change in fair market value of commodity derivative instruments |
|
(23.2 |
) |
|
(61.9 |
) |
|
(38.8 |
) |
|
(91.4 |
) |
|
(26.7 |
) |
|||||
Other, net |
|
0.3 |
|
|
(1.6 |
) |
|
11.2 |
|
|
0.8 |
|
|
8.3 |
|
|||||
Adjusted EBITDA (non-GAAP) |
|
2,008.1 |
|
|
1,961.2 |
|
|
4,253.7 |
|
|
3,939.9 |
|
|
8,369.5 |
|
|||||
Adjustments to reconcile Adjusted EBITDA to net cash flow provided by operating activities (addition or subtraction indicated by sign): |
|
|
|
|
|
|||||||||||||||
Interest expense, including related amortization |
|
(316.1 |
) |
|
(320.2 |
) |
|
(638.9 |
) |
|
(637.7 |
) |
|
(1,288.6 |
) |
|||||
Deferred income tax expense (benefit) |
|
19.5 |
|
|
53.4 |
|
|
24.1 |
|
|
(130.7 |
) |
|
7.2 |
|
|||||
Benefit from (provision for) income taxes |
|
(31.2 |
) |
|
(59.7 |
) |
|
(41.2 |
) |
|
119.5 |
|
|
(36.4 |
) |
|||||
Net effect of changes in operating accounts, as applicable |
|
300.2 |
|
|
(430.7 |
) |
|
399.2 |
|
|
(89.0 |
) |
|
(279.3 |
) |
|||||
Other, net |
|
13.4 |
|
|
(22.4 |
) |
|
20.1 |
|
|
(8.2 |
) |
|
(57.7 |
) |
|||||
Net cash flow provided by operating activities (GAAP) |
$ |
1,993.9 |
|
$ |
1,181.6 |
|
$ |
4,017.0 |
|
$ |
3,193.8 |
|
$ |
6,714.7 |
|
|||||
(1) |
Excludes amortization of major maintenance costs for reaction-based plants, which are a component of Adjusted EBITDA. |
Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities.
Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flow provided by operating activities.
| Enterprise Products Partners L.P. |
|
|
|
Exhibit G |
||||||||||||||||
Gross Operating Margin – UNAUDITED |
||||||||||||||||||||
($ in millions) |
|
|
|
For the Twelve
June 30, |
||||||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|||||
Total gross operating margin (non-GAAP) |
$ |
2,061.4 |
|
$ |
1,998.4 |
|
$ |
4,384.7 |
|
$ |
4,045.9 |
|
$ |
8,441.2 |
|
|||||
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) |
|
(499.1 |
) |
|
(494.3 |
) |
|
(995.2 |
) |
|
(977.1 |
) |
|
(1,979.6 |
) |
|||||
Asset impairment charges in operating costs and expenses |
|
(17.9 |
) |
|
(11.8 |
) |
|
(83.4 |
) |
|
(13.4 |
) |
|
(960.6 |
) |
|||||
Net gains (losses) attributable to asset sales and related matters in operating costs and expenses |
|
(0.3 |
) |
|
1.6 |
|
|
(11.2 |
) |
|
1.5 |
|
|
(8.3 |
) |
|||||
General and administrative costs |
|
(51.5 |
) |
|
(57.0 |
) |
|
(107.8 |
) |
|
(112.5 |
) |
|
(214.9 |
) |
|||||
Total operating income (GAAP) |
$ |
1,492.6 |
|
$ |
1,436.9 |
|
$ |
3,187.1 |
|
$ |
2,944.4 |
|
$ |
5,277.8 |
|
|||||
(1) |
Excludes amortization of major maintenance costs for reaction-based plants, which are a component of gross operating margin. |
We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.
The term “total gross operating margin” represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants), (ii) impairment charges, (iii) gains and losses attributable to asset sales and related matters, and (iv) general and administrative costs. Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Total gross operating margin is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests. The GAAP financial measure most directly comparable to total gross operating margin is operating income.
Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (5) to Exhibit A of this press release.
| Enterprise Products Partners L.P. |
|
|
|
Exhibit H |
|||||||||||
Other Information – UNAUDITED |
|||||||||||||||
($ in millions) |
|
|
|
For the Twelve
June 30, |
|||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||
|
2021 |
2020 |
2021 |
2020 |
2021 |
||||||||||
Capital investments: |
|
|
|
|
|
||||||||||
Capital expenditures |
$ |
622.2 |
$ |
896.4 |
$ |
1,301.2 |
$ |
1,975.9 |
$ |
2,613.2 |
|||||
Investments in unconsolidated affiliates |
|
– |
|
4.0 |
|
1.3 |
|
7.3 |
|
9.6 |
|||||
Other investing activities |
|
11.8 |
|
9.6 |
|
13.4 |
|
12.5 |
|
21.5 |
|||||
Total capital investments |
$ |
634.0 |
$ |
910.0 |
$ |
1,315.9 |
$ |
1,995.7 |
$ |
2,644.3 |
|||||
The following table summarizes the non-cash, mark-to-market gains (losses) for the periods indicated:
|
|
|
|
For the Twelve
June 30, |
|||||||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
2021 |
|
|||||
Mark-to-market gains (losses) in gross operating margin: |
|
|
|
|
|
||||||||||||||
NGL Pipelines & Services |
$ |
14.7 |
|
$ |
35.7 |
|
$ |
51.8 |
|
$ |
23.4 |
$ |
76.8 |
|
|||||
Crude Oil Pipelines & Services |
|
(9.8 |
) |
|
8.1 |
|
|
(11.2 |
) |
|
18.8 |
|
(9.9 |
) |
|||||
Natural Gas Pipelines & Services |
|
1.1 |
|
|
(4.0 |
) |
|
(1.4 |
) |
|
24.8 |
|
(19.9 |
) |
|||||
Petrochemical & Refined Products Services |
|
17.2 |
|
|
22.1 |
|
|
(0.4 |
) |
|
24.4 |
|
(20.3 |
) |
|||||
Total mark-to-market impact on gross operating margin |
$ |
23.2 |
|
$ |
61.9 |
|
$ |
38.8 |
|
$ |
91.4 |
$ |
26.7 |
|
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210728005225/en/
FAQ
What were Enterprise Products' financial results for Q2 2021?
How much cash flow did Enterprise Products generate in Q2 2021?
What was the distribution declared by Enterprise Products for Q2 2021?
What capital investments did Enterprise Products make in Q2 2021?
How much Free Cash Flow did Enterprise Products report for the past twelve months?
