Enterprise Products Partners L.P. (EPD, Financial) filed Quarterly Report for the period ended 2012-06-30.
Enterprise Products Partners L.p. has a market cap of $46.82 billion; its shares were traded at around $52.85 with a P/E ratio of 21.4 and P/S ratio of 1.1. The dividend yield of Enterprise Products Partners L.p. stocks is 4.8%. Enterprise Products Partners L.p. had an annual average earning growth of 6.6% over the past 10 years. GuruFocus rated Enterprise Products Partners L.p. the business predictability rank of 3-star.
Gross operating margin from our San Juan Gathering System decreased $15.2 million quarter-to-quarter primarily due to lower gathering fees and production volumes caused by the decrease in natural gas prices. Lower gathering and related fees for the second quarter of 2012 accounted for approximately $9.1 million of the quarter-to-quarter reduction in gross operating margin from our San Juan Gathering System. Collectively, gross operating margin from our Jonah Gathering System and Central Treating Facility decreased $9.7 million quarter-to-quarter primarily due to lower production volumes. Gross operating margin from our natural gas marketing activities decreased $8.6 million quarter-to-quarter primarily due to lower sales margins. Lastly, gross operating margin from our natural gas storage business was $1.7 million for the second quarter of 2012 compared to $10.5 million for the second quarter of 2011, an $8.8 million quarter-to-quarter decrease primarily due to the sale of our Mississippi natural gas storage facilities in December 2011.
Gross operating margin from our San Juan Gathering System decreased $19.9 million period-to-period primarily due to lower gathering fees and production volumes caused by the decrease in natural gas prices. Lower gathering and related fees accounted for $13.3 million of the period-to-period decrease in gross operating margin from our San Juan Gathering System. Gross operating margin from our natural gas marketing activities decreased $14.4 million period-to-period primarily due to lower sales margins. Collectively, gross operating margin from our Jonah Gathering System and Central Treating Facility decreased $13.7 million period-to-period primarily due to lower production volumes. Lastly, gross operating margin from our natural gas storage business was $3.5 million for the first six months of 2012 compared to $23.7 million for the first six months of 2011, a $20.2 million period-to-period decrease primarily due to the sale of our Mississippi natural gas storage facilities in December 2011.
With respect to the six months ended June 30, 2012, gross operating margin from onshore crude oil pipelines and services increased $35.5 million period-to-period. Gross operating margin from our crude oil marketing and related activities increased $20.8 million period-to-period primarily due to higher sales volumes, which accounted for approximately $12.7 million of the increase, and margins. Collectively, gross operating margin from our South Texas Crude Oil Pipeline System, West Texas System, Red River System and Basin Pipeline System increased $13.1 million period-to-period due to a 30 MBPD increase in throughput volumes and higher fees during the first six months of 2012. Of the $13.1 million period-to-period collective increase in gross operating margin for these pipelines, approximately $7.1 million of the increase is attributable to higher volumes. Equity earnings from our investment in Seaway increased $6.2 million period-to-period primarily due to the Seaway Pipeline commencing the southbound delivery of crude oil during the second quarter of 2012. Gross operating margin from our crude oil terminal in Midland, Texas decreased $3.5 million period-to-period primarily due to higher operating expenses for operational measurement gains and losses during the first six months of 2012.
unsecured Senior Notes EE. These notes were issued at 99.542% of their principal amount, have a fixed-rate of interest of 4.85% and mature on August 15, 2042. Net proceeds from the issuance of Senior Notes EE were used to temporarily reduce borrowings outstanding under EPO s $3.5 Billion Multi-Year Revolving Credit Facility (which was used to repay at maturity its $490.5 million principal amount of Senior Notes S due February 2012 and $9.5 million principal amount of TEPPCO Senior Notes due February 2012 prior to the delivery of Senior Notes EE) and for general company purposes. August 2012 Senior Notes Offering. On August 6, 2012, EPO agreed to issue $650 million in principal amount of 3-year unsecured Senior Notes FF at 99.941% of their principal amount and $1.1 billion million in principal amount of 30-year unsecured Senior Notes GG at 99.470% of their principal amount. The transaction is scheduled to close on August 13, 2012. The Senior Notes FF to be issued upon closing will have a fixed interest rate of 1.25% and mature on August 13, 2015, and the Senior Notes GG to be issued upon closing will have a fixed interest rate of 4.45% and mature on February 15, 2043. Enterprise has agreed to guarantee both such series of notes through an unconditional guarantee on an unsecured and unsubordinated basis. EPO expects to use net proceeds from the issuance of such notes to temporarily reduce borrowings under its $3.5 Billion Multi-Year Revolving Credit Facility (which was used to repay amounts due upon the maturity of its $500.0 million principal amount of Senior Notes P on August 1, 2012) and for general company purposes. Commercial Paper Program On August 8, 2012, EPO established a commercial paper program, under which EPO may issue up to $2.0 billion of short-term commercial paper notes outstanding at any time. The commercial paper notes will be senior unsecured obligations of EPO that are unconditionally guaranteed by Enterprise. We intend to use the net proceeds from the sale of the commercial paper notes for general company purposes. The commercial paper program is fully backed by EPO s existing $3.5 Billion Multi-Year Revolving Credit Facility. As of the filing date of this quarterly report, EPO has not issued any commercial paper notes pursuant to this program. For additional information regarding our consolidated debt obligations, see Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report. Registration Statements We may issue additional equity or debt securities to assist us in meeting our future liquidity and capital spending requirements. We have a universal shelf registration statement (the “2010 Shelf”) on file with the SEC. The 2010 Shelf allows Enterprise and EPO (on a standalone basis) to issue an unlimited amount of equity and debt securities, respectively. EPO utilized the 2010 Shelf to issue its Senior Notes EE in February 2012 and will use the 2010 Shelf to issue Senior Notes FF and GG in August 2012. In May 2012, we entered into an equity distribution agreement with certain broker-dealers pursuant to which we may offer and sell up to $1.0 billion of our common units in amounts, at prices and on terms to be determined by market conditions and other factors at the time of such offerings. Pursuant to this “at-the-market” program, we may sell common units under the agreement from time to time by means of ordinary brokers transactions through the NYSE at market prices, in block transactions or as otherwise agreed to with the broker-dealer parties to the agreement. A registration statement covering the issuance and sale of common units pursuant to this agreement was filed with the SEC in March 2012. There were no issuances and sales under this agreement as of August 9, 2012. For information regarding our registration statements, see Note 10 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
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Enterprise Products Partners L.p. has a market cap of $46.82 billion; its shares were traded at around $52.85 with a P/E ratio of 21.4 and P/S ratio of 1.1. The dividend yield of Enterprise Products Partners L.p. stocks is 4.8%. Enterprise Products Partners L.p. had an annual average earning growth of 6.6% over the past 10 years. GuruFocus rated Enterprise Products Partners L.p. the business predictability rank of 3-star.
Highlight of Business Operations:
Gross operating margin from our natural gas processing and related NGL marketing activities for the second quarter of 2012 increased $35.6 million compared to the second quarter of 2011 primarily due to a $32.5 million quarter-to-quarter increase in gross operating margin from our NGL marketing activities attributable to higher product sales margins. Gross operating margin from our natural gas processing plants located in the Rocky Mountains increased $24.7 million quarter-to-quarter primarily due to improved commodity hedging results during the second quarter of 2012, which benefited processing margins at these facilities. Including the impact of improved commodity hedging results, processing margins and fees at our Rocky Mountain processing plants increased approximately $55.2 million quarter-to-quarter, which more than offset an estimated $30.5 million reduction in gross operating margin attributable to lower volumes. Gross operating margin from our San Juan/Permian Basin and south Louisiana natural gas processing plants decreased $20.5 million quarter-to-quarter primarily due to lower natural gas processing margins and equity NGL production volumes. The decrease in equity NGL production volumes contributed to an estimated $7.5 million of the quarter-to-quarter reduction in gross operating margin, with the remainder of the decrease generally attributable to lower processing margins. Our south Louisiana plants were negatively impacted by maintenance down-time at third-party owned facilities, which reduced production volumes sourced from certain Gulf of Mexico resource basins during the second quarter of 2012. Gross operating margin from our Texas natural gas processing plants decreased $0.9 million quarter-to-quarter. The additional gross operating margin resulting from the start-up of our Yoakum plant in May 2012 and a quarter-to-quarter increase in fee-based processing volumes were more than offset by lower natural gas processing margins and equity NGL production volumes during the second quarter of 2012.Gross operating margin from our San Juan Gathering System decreased $15.2 million quarter-to-quarter primarily due to lower gathering fees and production volumes caused by the decrease in natural gas prices. Lower gathering and related fees for the second quarter of 2012 accounted for approximately $9.1 million of the quarter-to-quarter reduction in gross operating margin from our San Juan Gathering System. Collectively, gross operating margin from our Jonah Gathering System and Central Treating Facility decreased $9.7 million quarter-to-quarter primarily due to lower production volumes. Gross operating margin from our natural gas marketing activities decreased $8.6 million quarter-to-quarter primarily due to lower sales margins. Lastly, gross operating margin from our natural gas storage business was $1.7 million for the second quarter of 2012 compared to $10.5 million for the second quarter of 2011, an $8.8 million quarter-to-quarter decrease primarily due to the sale of our Mississippi natural gas storage facilities in December 2011.
Gross operating margin from our San Juan Gathering System decreased $19.9 million period-to-period primarily due to lower gathering fees and production volumes caused by the decrease in natural gas prices. Lower gathering and related fees accounted for $13.3 million of the period-to-period decrease in gross operating margin from our San Juan Gathering System. Gross operating margin from our natural gas marketing activities decreased $14.4 million period-to-period primarily due to lower sales margins. Collectively, gross operating margin from our Jonah Gathering System and Central Treating Facility decreased $13.7 million period-to-period primarily due to lower production volumes. Lastly, gross operating margin from our natural gas storage business was $3.5 million for the first six months of 2012 compared to $23.7 million for the first six months of 2011, a $20.2 million period-to-period decrease primarily due to the sale of our Mississippi natural gas storage facilities in December 2011.
With respect to the six months ended June 30, 2012, gross operating margin from onshore crude oil pipelines and services increased $35.5 million period-to-period. Gross operating margin from our crude oil marketing and related activities increased $20.8 million period-to-period primarily due to higher sales volumes, which accounted for approximately $12.7 million of the increase, and margins. Collectively, gross operating margin from our South Texas Crude Oil Pipeline System, West Texas System, Red River System and Basin Pipeline System increased $13.1 million period-to-period due to a 30 MBPD increase in throughput volumes and higher fees during the first six months of 2012. Of the $13.1 million period-to-period collective increase in gross operating margin for these pipelines, approximately $7.1 million of the increase is attributable to higher volumes. Equity earnings from our investment in Seaway increased $6.2 million period-to-period primarily due to the Seaway Pipeline commencing the southbound delivery of crude oil during the second quarter of 2012. Gross operating margin from our crude oil terminal in Midland, Texas decreased $3.5 million period-to-period primarily due to higher operating expenses for operational measurement gains and losses during the first six months of 2012.
unsecured Senior Notes EE. These notes were issued at 99.542% of their principal amount, have a fixed-rate of interest of 4.85% and mature on August 15, 2042. Net proceeds from the issuance of Senior Notes EE were used to temporarily reduce borrowings outstanding under EPO s $3.5 Billion Multi-Year Revolving Credit Facility (which was used to repay at maturity its $490.5 million principal amount of Senior Notes S due February 2012 and $9.5 million principal amount of TEPPCO Senior Notes due February 2012 prior to the delivery of Senior Notes EE) and for general company purposes. August 2012 Senior Notes Offering. On August 6, 2012, EPO agreed to issue $650 million in principal amount of 3-year unsecured Senior Notes FF at 99.941% of their principal amount and $1.1 billion million in principal amount of 30-year unsecured Senior Notes GG at 99.470% of their principal amount. The transaction is scheduled to close on August 13, 2012. The Senior Notes FF to be issued upon closing will have a fixed interest rate of 1.25% and mature on August 13, 2015, and the Senior Notes GG to be issued upon closing will have a fixed interest rate of 4.45% and mature on February 15, 2043. Enterprise has agreed to guarantee both such series of notes through an unconditional guarantee on an unsecured and unsubordinated basis. EPO expects to use net proceeds from the issuance of such notes to temporarily reduce borrowings under its $3.5 Billion Multi-Year Revolving Credit Facility (which was used to repay amounts due upon the maturity of its $500.0 million principal amount of Senior Notes P on August 1, 2012) and for general company purposes. Commercial Paper Program On August 8, 2012, EPO established a commercial paper program, under which EPO may issue up to $2.0 billion of short-term commercial paper notes outstanding at any time. The commercial paper notes will be senior unsecured obligations of EPO that are unconditionally guaranteed by Enterprise. We intend to use the net proceeds from the sale of the commercial paper notes for general company purposes. The commercial paper program is fully backed by EPO s existing $3.5 Billion Multi-Year Revolving Credit Facility. As of the filing date of this quarterly report, EPO has not issued any commercial paper notes pursuant to this program. For additional information regarding our consolidated debt obligations, see Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report. Registration Statements We may issue additional equity or debt securities to assist us in meeting our future liquidity and capital spending requirements. We have a universal shelf registration statement (the “2010 Shelf”) on file with the SEC. The 2010 Shelf allows Enterprise and EPO (on a standalone basis) to issue an unlimited amount of equity and debt securities, respectively. EPO utilized the 2010 Shelf to issue its Senior Notes EE in February 2012 and will use the 2010 Shelf to issue Senior Notes FF and GG in August 2012. In May 2012, we entered into an equity distribution agreement with certain broker-dealers pursuant to which we may offer and sell up to $1.0 billion of our common units in amounts, at prices and on terms to be determined by market conditions and other factors at the time of such offerings. Pursuant to this “at-the-market” program, we may sell common units under the agreement from time to time by means of ordinary brokers transactions through the NYSE at market prices, in block transactions or as otherwise agreed to with the broker-dealer parties to the agreement. A registration statement covering the issuance and sale of common units pursuant to this agreement was filed with the SEC in March 2012. There were no issuances and sales under this agreement as of August 9, 2012. For information regarding our registration statements, see Note 10 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
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