Enterprise Product Partners has recorded increased revenues in the second quarter, fuelled by record volumes on its liquids and natural gas pipelines and marine terminals.
Adjusted EBITDA increased 18 percent to a record $2.1 billion for the second quarter of 2019 compared to the second quarter of 2018. It also reported a 41 percent increase in gross operating margin to $2.1 billion for the second quarter of 2019 compared to $1.5 billion for the second quarter of 2018.
“Enterprise reported record volumes and cash flow from operations during the second quarter of 2019,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “Each of our business segments reported increases in gross operating margin compared to the second quarter of last year. In total, we reported 16 operational and financial records during the quarter. Record volumes included our liquid pipelines at 6.6 million barrels per day, marine terminals at 2 million barrels per day, NGL fractionation volumes at 1 million barrels per day and natural gas pipeline volumes at 14.5 trillion Btus per day.”
“We completed construction and brought into service $900 million of major growth projects in the second quarter of 2019, including the third Orla gas plant and the Midland-to-Echo 2 crude oil pipeline. We are on schedule to complete construction of $3.2 billion of major growth projects in the second half of this year, including: a 175,000 barrels per day expansion of our LPG marine terminal on the Houston Ship Channel; our ethylene export terminal and dock facility at Morgan’s Point; our second isobutane dehydrogenation (iBDH) facility; a tenth NGL fractionator in the Mont Belvieuarea; our Mentone 1 natural gas processing plant in the Permian Basin; and a natural gas processing plant in East Texas. We continue to make progress in underwriting additional organic growth projects, all of which should provide additional sources of cash flow and enhance the value of our partnership,” concluded A.J.
NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment increased 6 percent to $966 million for the second quarter of 2019 from $914 million for the second quarter of 2018.
Gross operating margin from the partnership’s NGL pipelines and storage business increased 26 percent, or $123 million to $589 million for the second quarter of 2019 compared to the second quarter of 2018. NGL pipeline transportation volumes increased to 3.6 million BPD this quarter from 3.4 million BPD for the second quarter of 2018. NGL marine terminal volumes increased 5 percent to a record 625 MBPD for the second quarter of 2019 compared to the same quarter in 2018.
The Shin Oak NGL pipeline, which was placed into service in February 2019, contributed $35 million to gross operating margin. Gross operating margin from its Dixie pipeline and related terminals increased a combined $16 million.
Gross operating margin from Enterprise’s NGL storage facilities at Mont Belvieu increased $38 million primarily due to higher throughput and storage fees.
Gross operating margin from Enterprise’s Hydrocarbons Terminal (EHT) on the Houston Ship Channel increased $11 million due to higher LPG export volumes of 49 Mbpd and propylene export volumes of 14 Mbpd. EHT volumes during the second quarter of 2019 benefited from cargoes that were deferred from the first quarter due to temporary closures of the Houston Ship Channel.
Gross operating margin from Enterprise’s South Louisiana NGL Pipeline System increased $6 million.
Gross operating margin from the partnership’s Crude Oil Pipelines & Services segment was $513 million for the second quarter of 2019. Total crude oil pipeline transportation volumes increased 19 percent to a record 2.4 million bpd for the second quarter of 2019. Total crude oil marine terminal volumes for the second quarter of this year increased 23 percent to a record 985 Mbpdd compared to the second quarter of 2018.
Gross operating margin from Enterprise’s Permian-to-Houston pipelines, which includes Midland-to-ECHO 1 & 2, the West Texas and South Texas pipeline systems and related business activities, increased $63 million compared to the second quarter of 2018
Enterprise’s Natural Gas Pipelines & Services segment reported record gross operating margin of $302 million for the second quarter of 2019, a 41 percent increase compared to the second quarter of 2018. Total natural gas transportation volumes increased 6 percent to a record 14.5 TBtu/d for the second quarter of this year compared to 13.7 TBtu/d for the second quarter of last year.
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