Must-know: EPD’s segment-wise performance in 3Q14

Enterprise Products Partners’ segment-wise performance

In the last part of this series, we analyzed Enterprise Products Partners’ (EPD) revenues, operating income, and income margins. In the next parts in this series, we’ll analyze each segment’s contribution.

By revenues, NGL Pipelines & Services’ revenue came down 35% versus 32.7%. The Petrochemicals & Refined Products Services segment’s revenues increased 12.7% versus 15%. The percentages of EPD’s total revenues increased from 3Q13 to 3Q14.

Operating income split

NGL Pipelines & Services and Onshore Natural Gas Pipeline & Services are EPD’s most significant segments. They accounted for 53% and 15% of its 3Q14 operating income, respectively.

Compared to the same quarter last year, both the segments’ contributions reduced in 3Q14. They were 55% and 19% in 3Q13, respectively.

The Petrochemical & Refined Products Services segment’s operating profit share increased from 10% in 3Q13 to 14% in 3Q14.

Segment shares for other midstream master limited partnerships (or MLPs) also changed in the recent quarter. For Plains All American (PAA), its Supply and Logistics segment’s profit share increased from ~16% in 3Q13 to ~29% in 3Q14. Its Facilities segment’s profit share fell to 27.7% from 35.8% during this period. Williams Companies Inc. (WMB) consolidated Access Midstream Partners’ financial results this quarter. This generated $300 million in revenues in 3Q14.

EPD and PAA are part of the Alerian MLP ETF (AMLP). WMB is part of the Energy Select Sector SPDR ETF (XLE).

In the next part of the series, we’ll discuss the NGL Pipelines & Services segment’s performance.