EPD’s capital expenditures
Enterprise Products Partners (EPD) spent $3.9 billion on growth projects in 2018. It has ~$6.7 billion of growth projects under construction currently. On February 28, Enterprise Products began service on its Shin Oak NGL (natural gas liquids) pipeline. The Texas pipeline from Orla to Mont Belvieu has a capacity of 250,000 barrels per day.
The Shin Oak pipeline provides takeaway capacity for NGLs from multiple basins including the fast-growing Permian Basin. The pipeline will primarily source NGLs from EPD’s Orla gas processing plants.
EPD’s key projects expected to be completed in 2019 include a third natural gas processing unit at Orla, the iBDH (isobutylene dehydrogenation) project at Mont Belvieu, and an ethylene export terminal on the Houston Ship Channel.
Enterprise Products’ iBDH project has an annual capacity of 937 million pounds of isobutylene. It’s expected to be complete in the fourth quarter this year. Its ethylene export terminal will have an export capacity of 2.2 billion pounds per year.
The above graph shows Enterprise Products Partners’ organic growth capital and the amount spent on acquisitions over the last six years. After Oiltanking and EFS Midstream, Enterprise Products hasn’t done any major acquisitions in the last two years. The company, however, continued to spend on organic growth projects.
Let’s next take a look at Enterprise Products Partners’ leverage position over the years.