1 May

Enterprise Products’ Q1 Earnings Beat Estimates

WRITTEN BY Rekha Khandelwal, CFA

EPD’s Q1 performance

Enterprise Products Partners (EPD) reported 18% growth in its first-quarter earnings today. EPD’s adjusted EBITDA rose from $1,687 million in Q1 2018 to $1,986 million in the first quarter of 2019. The company beat EBITDA estimates for the quarter by 9%. Enterprise Products Partners’ distributable cash flow rose 17% YoY.

Enterprise Products’ Q1 Earnings Beat Estimates

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“We continue to benefit from production increases in the Permian and Haynesville shale regions, while demand for U.S. crude oil, NGLs and refined products remains strong in both domestic and international markets,” noted A.J. Teague, the chief executive officer of Enterprise Products Partners. Enterprise Products Partners’ crude oil marine terminals reported significant volume growth for the quarter.

Business performance

Enterprise Products’ NGL (natural gas liquids) pipelines and services business reported an 8% YoY rise in gross operating margin. The company’s crude oil pipeline volumes rose 12% and crude oil marine terminal volumes rose 40% YoY. Similarly, EPD’s natural gas pipelines and services business reported a 34% YoY rise in gross operating margin on higher gas transportation volumes. The company’s petrochemical and refined products services business reported a YoY fall in the gross operating margin of $29 million. Kinder Morgan (KMI) reported a 14% rise in its natural gas transport volumes in Q1.

Enterprise Products Partners stock is currently trading ~2% higher than yesterday’s close. Magellan Midstream Partners (MMP), which also reported today, is up ~0.9%.

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