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Enterprise Products Partners’ Revenue Rose 1.7% in 2Q17

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EBITDA rose 1.7%

Enterprise Products Partners (EPD) reported its 2Q17 results on August 3, 2017. The company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose 1.7% to $1.34 billion in 2Q17 from $1.32 billion in 2Q16. Enterprise Products Partners’ DCF (distributable cash flow) rose to $1.05 billion from $1.04 billion in 2Q16.

The above graph shows Enterprise Products Partners’ EBITDA over the last 11 quarters. According to the company, its results for the quarter reflected benefits from its diversified operations.

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“The partnership’s businesses at its Mont Belvieu complex, processing plants and pipelines handling Permian, Rockies and Marcellus production generated strong growth in the second quarter of 2017 compared to the same quarter last year. This more than offset the effects of lower Eagle Ford production and a challenging crude oil marketing environment,” said Jim Teague, CEO of Enterprise Products Partners’ general partner.

Enterprise Products Partners reported a rise in operating income across all of its segments. We’ll discuss the company’s segmental performance in the next part of the series.

Enterprise Products Partners announced two new projects in 2Q17—doubling the capacity of its under-construction Orla natural gas processing plant and Shin Oak NGL (natural gas liquids) pipeline from the Permian Basin to Mont Belvieu.

2Q17 distributions

Enterprise Products Partners increased its 2Q17 distributions 1.2% to $0.42 per unit. Its coverage ratio for 2Q17 was 1.2x.

Enterprise Products Partners’ current yield of ~6.2% is higher compared to ~5.3% for ONEOK (OKE), ~2.5% for Kinder Morgan (KMI), and ~4.9% for Magellan Midstream Partners (MMP). Currently, the SPDR S&P 500 ETF (SPY) (SPX-INDEX) yields nearly 2%. The energy sector forms nearly 6.0% of SPY.

ONEOK reported an 11% rise in its 2Q17 earnings. To learn more, read ONEOK Announces Strong 2Q17 Results, Updates 2017 Guidance. Magellan Midstream reported a 15% rise in its 2Q17 earnings.

In the next part, we’ll see how Enterprise Products Partners’ segments performed in 2Q17.

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