uploads///Onshore Crude Oil Pipelines Operating Margin

EPD’s Crude Oil Pipeline Has Been Increasing since 2010


Dec. 4 2020, Updated 10:53 a.m. ET

How segment’s operating margin fared

The operating margin of EPD’s crude oil pipeline segment has been increasing since 2010 due to increases in volume, average tariffs, and other fees. Operating margin increased 64% from 2012 to 2013 and 5% from 2013 to 2014.

Article continues below advertisement

Effect of seasonality on revenue

This segment experiences no seasonal impact on the operations of onshore crude oil pipelines and terminals. However, crude oil assets situated along the Texas Gulf Coast may be affected by weather events such as hurricanes and tropical storms.

Strong competition from other peers

EPD faces strong competition from other crude oil pipeline companies, rail carriers, major integrated oil companies and their marketing affiliates, financial institutions with trading platforms, and independent crude oil gathering and marketing companies. Competition is based primarily on quality of customer service, competitive pricing, and proximity to customers and market hubs.

Key ETFs and stocks

Some of the MLPs that operate in the same geographical region as Enterprise Product Partners (EPD) are Williams Partners (WPZ), NGL Energy Partners (NGL), Teekay Offshore Partners (TOO), and Boardwalk Pipeline Partners (BWP). These MLPs have a combined weight of 24.4% in the Alerian MLP ETF (AMLP).

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


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.