A Look at Enterprise Products Partners’ Massive Spending Plans
Enterprise Products Partners’ capital expenditure
Enterprise Products Partners (EPD), which led in capital spending during the peak of the US shale boom, slowed down a bit on its capital program in 2016. Its 2016 capex (capital expenditure) was 21.0% less than the previous year. However, its capital spending picked up slightly in 2017, and it expects to spend between $2.8 billion and $3.0 billion on expansion projects by the end of this year.
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The company placed its refined products infrastructure and propylene pipeline expansion projects during the first two quarters of this year. It expects to bring online the PDH (propane dehydrogenation) and butane recovery facility by the end of the third quarter. EPD has remained bullish on the expansion of petchem and NGL (natural gas liquids) in recent years. DCP Midstream (DCP), EnLink Midstream Partners (ENLK), Targa Resources (TRGP), and Williams Partners (WPZ) are among the midstream companies that are bullish on the NGL growth story.
Enterprise Products Partners’ project backlog
Overall, EPD had a project backlog of $9.0 billion as of June 30, 2017. Of that, 47.0% is expected to be spent on its petchem business, 30.0% on NGL-related expansion, 22.0% on crude-related expansion, and the remaining 1.0% on natural gas–related expansion. For details on EPD’s expansion plans, be sure to read Enterprise Products Partners Continues to Attract Investors.