July 29, 2016 [OPIS] - Enterprise Products Partners posted a 2% rise in second-quarter net income to $570 million, up from $557 million a year ago, the company reported Thursday. Earnings per unit dipped to 27 cents from 28 cents.
Enterprise reported that gross operating margin for its Natural Gas Liquids Pipelines and Services Segment increased 11% to $719 million from $651 million in the second quarter of 2015. However, the company’s natural gas processing and related NGL marketing business’ gross operating margin slid 17% to $181 million, which was attributed primarily to lower processing margins, including the effect of hedging activities.
The company’s ATEX and Aegis ethane pipelines reported a $32 million rise in gross operating margin compared to a year ago, on a 136,000 barrels per day increase in operating volume.
Enterprise stated that the gross operating margin from its NGL pipelines and storage business climbed 31% to $408 million from the second quarter of 2015. Total NGL transportation volume rose to 3 million barrels per day, up from 2.7 million a year ago. Gross operating margin for the company’s NGL fractionation business increased 9% to $130 million. which was attributed to higher fractionation volumes and fees from its Mont Belvieu fractionators.
“The increase in gross operating margin from our fee-based businesses largely offset lower earnings from our commodity-sensitive business, the impact of lower crude oil pipeline volumes and the divestiture of our offshore Gulf of Oil Mexico business in July 2015,” said Jim Teague, chief executive officer of Enterprise’s general partner.