Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $783 million, up 12.2% from the first quarter of 2009. Net income stood at $394 million, up 24.7% from the year ago quarter.
Earnings per unit rose to 50cts/unit from 41cts/unit for the year-ago quarter. Enterprise reported gross operating margin of $795 million. Net income was $378 million, a company statement said. Net income attributable to Enterprise for
the first quarter of 2009, standing at $316 million, does not include $78 million for net income attributable to the former owners of TEPPCO.
Growth in NGL, crude oil, refined products and petrochemical pipeline volumes was primarily attributable to the partnership’s offshore and onshore crude oil pipelines, South Louisiana NGL pipelines and the Seminole NGL pipeline. NGL fractionation volumes for the first quarter of 2010 were 473 thousand barrels per day (MBPD). Equity NGL production for the first quarter of 2010 was a record 122 MBPD.
Affiliates of Enterprise Products Company (formerly known as EPCO Inc.), a private company controlled by the Dan L. Duncan family and the largest unitholder of Enterprise Products Partners, said they are willing to consider investing up to $150 million for the remainder of 2010 to purchase additional
partnership units from Enterprise Products Partners. This includes a commitment to reinvest $50 million through Enterprise Products Partners’ distribution reinvestment plan for the distribution to be paid on May 6, 2010 to purchase
additional common units.
“During the first quarter of 2010, NGL, crude oil, refined products and petrochemical pipeline volumes averaged more than 4 million barrels per day, while NGL fractionation volumes were a near record 473,000 barrels per day, equity NGL production was a record 122,000 barrels per day and propylene
fractionation volumes were a record 80,000 barrels per day. Our natural gas pipeline systems reported record volumes of 12.1 trillion Btus per day,” said Michael A. Creel, president and chief executive officer of Enterprise. “With our strong financial position at March 31, 2010, the proceeds from our April equity offering and our retention of $156 million of distributable cash
flow with respect to the first quarter of 2010, we have liquidity of approximately $2.4 billion available to fund our $1.2 billion acquisition of midstream assets from M2 Midstream LLC in the Haynesville Shale area and construction of organic growth projects in 2010. The acquisition from M2 Midstream is expected to close in early May and one of our largest organic
growth projects, the Trinity River Basin Lateral natural gas pipeline serving the Barnett Shale region, is expected to be completed by the end of the second quarter of 2010,” concluded Creel.
Gross operating margin for the NGL Pipelines & Services segment increased 25% to $437 million for the first quarter of 2010 compared to $351 million for the same quarter of 2009. Enterprise’s natural gas processing business recorded a $65 million increase in gross operating margin to $260 million for
the first quarter of 2010 from $195 million for the first quarter of 2009. The partnership’s Rocky Mountain, Texas and Louisiana natural gas processing plants accounted for $43 million of this increase as a result of higher processing
margins and an increase in equity NGL production in the Rockies. NGL marketing activities contributed $20 million of the increase in gross operating margin for this business primarily due to higher sales volumes and recognition of earnings associated with forward sales transactions that were settled during the first quarter of 2010.
Equity NGL production (the NGLs that Enterprise earns as a result of providing processing services) for the first quarter of 2010 increased to 122 MBPD compared to 114 MBPD in the first quarter of 2009. The increase in equity NGL production was due to an 18 MBPD increase in volumes from the partnership’s
Rocky Mountain plants, which more than offset decreases from the South Texas, San Juan and Permian plants. Fee-based natural gas processing volumes were 2.7 billion cubic feet per day (Bcfd) for the first quarter of 2010 compared to
3.1 Bcfd for the first quarter of 2009, primarily reflecting a decrease in fee-based processing volumes at plants in South Texas and South Louisiana.
Gross operating margin from the partnership’s NGL pipeline and storage business increased by 19% to $150 million in the first quarter of 2010 from $126 million in the first quarter of 2009. This $24 million increase in gross operating margin was primarily generated by the partnership’s Mont Belvieu
storage facility, the Dixie pipeline, NGL import/export terminal on the Houston Ship Channel, the Mid-America and Seminole pipelines and the Rio Grande pipeline, which was acquired in the fourth quarter of 2009. NGL transportation volumes for the first quarter of 2010 increased 6%, or 119 MBPD, to 2.2 million
barrels per day.
Gross operating margin from Enterprise’s NGL fractionation business was $27 million for the first quarter of 2010 compared to $30 million reported for the same quarter of 2009. Gross operating margin for this business was lower due to
an operating gain that was recorded in the first quarter of last year. NGL fractionation volumes for the first quarter of 2010 were 473 MBPD compared to 441 MBPD for the first quarter of 2009.
Gross operating margin for the petrochemical and refined products services segment increased 33% to $120 million in the first quarter of 2010 from $90 million in the first quarter of 2009.
Enterprise’s refined products pipelines and related services business reported gross operating margin of $49 million for the first quarter of 2010 compared to $46 million in the first quarter of 2009. The increase in gross operating margin for this business was primarily due to a decrease in expenses,
higher average transportation fees and an increase in marketing activities, which more than offset the effect of lower pipeline volumes. Pipeline volumes for the refined products pipeline business were 682 MBPD for the first quarter
of 2010 compared to 724 MPBD for the first quarter of 2009.
The partnership’s propylene business reported gross operating margin of $43 million for the first quarter of 2010 compared to $23 million for the first quarter of 2009. This business benefitted from an 18% increase in propylene fractionation volumes to 80 MBPD and higher sales margins in the first quarter of 2010. Petrochemical pipeline volumes were 112 MBPD during the first quarter of 2010 compared to 95 MBPD in the first quarter of 2009. Enterprise’s butane isomerization business reported gross operating margin of $15 million for the first quarter of both 2010 and 2009. An increase in
revenues from sales of by-products at higher prices offset the impact of a 17-MBPD decrease in volume. Isomerization volumes during the first quarter of 2010 were 73 MBPD compared to 90 MBPD in the first quarter of 2009.
Gross operating margin for Enterprise’s octane enhancement business increased by $12 million from a loss of $8 million in the first quarter of 2009 to a profit of $4 million in the first quarter of 2010 due to higher margins from sales of methyl tertiary butyl ether, or MTBE, for export purposes only and revenues from sales of by-products. Octane enhancement production was 11 MBPD for the first quarter of 2010 compared to 5 MBPD for the same quarter of 2009.