EPD’s capital expenditures
Enterprise Products Partners (EPD) spent ~$4.2 billion on growth projects in 2018. It expects to spend ~$3.5 billion to $3.9 billion on growth projects in 2019. The company expects $4.5 billion of its growth projects to come into service in 2019. These projects should significantly contribute to the company’s 2019 earnings. The projects expected to be operational in 2019 include the third natural gas processing plant at Orla, its iBDH (isobutane dehydrogenation) project, and the Shin Oak pipeline.
Magellan Midstream Partners
Magellan Midstream Partners (MMP) spent ~$640 million on capital projects in 2018. The company expects to spend $1.3 billion in 2019 and $400 million in 2020 to complete projects that are currently under construction.
As the above graph shows, MPLX’s (MPLX) capital expenditures have risen over the last two years. The company expects to spend $2.2 billion on growth projects in 2019 and $2.0 billion in 2020. MPLX plans to fund roughly half of its growth capital plan with internally generated cash flows. It doesn’t expect to issue equity in 2019 or 2020 to fund its capital plan.
In 2018, MPLX announced the joint development of the Permian Gulf Coast pipeline system. MPLX will develop the pipeline jointly with Energy Transfer (ET), Magellan Midstream Partners, and Delek US Holdings (DK). The project is expected to complete in 2020.