Enterprise Products Partners L.P.

SEC Filings

8-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 8-K on 01/31/2018
Entire Document
 
Enterprise Products Partners L.P.
P.O. Box 4324
Houston, TX 77210
(713) 381-6500  
Exhibit 99.1
 
Enterprise Reports Record 2017 Results

Houston, Texas (Wednesday, January 31, 2018) – Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three months and twelve months ended December 31, 2017.

Enterprise reported a 10 percent increase in operating income to $3.9 billion for 2017 compared to $3.6 billion for 2016.  Total gross operating margin for 2017 increased 8 percent to a record $5.7 billion from $5.2 billion in 2016.  Net cash flow provided by operating activities for 2017 increased 14 percent to $4.6 billion from $4.1 billion in 2016.  Distributable cash flow, excluding proceeds from asset sales, increased 10 percent to a record $4.5 billion in 2017 from $4.1 billion in 2016.  Total gross operating margin and distributable cash flow are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release.

Enterprise declared distributions with respect to 2017 representing a 4.5 percent increase compared to those declared with respect to 2016.  Distributable cash flow provided 1.2 times coverage of the distributions declared with respect to 2017.  Enterprise retained $867 million of distributable cash flow in 2017 to reinvest in the growth of the partnership.

“Enterprise reported record operating and financial results in 2017 as the energy industry began to emerge from a challenging three-year commodity cycle,” stated Jim Teague, chief executive officer of Enterprise’s general partner.  “We posted record liquid pipeline volumes and marine terminal volumes.  Our strong financial performance in 2017 provided us the financial flexibility to provide our partners with 4.5 percent distribution growth and 1.2 times distribution coverage for the year while self-funding approximately 55 percent of the equity portion of our $3.1 billion of investments in organic growth capital projects and acquisitions during the year.  Based on expected distributable cash flow growth from new projects and our existing assets, we believe we can deliver on our goal of providing our partners moderate distribution growth and fully self-funding the equity portion of our growth capital investments in 2019, assuming $2.5 billion to $3.0 billion in growth capital expenditures.  We believe we can accomplish this while maintaining one of the strongest investment grade balance sheets in the midstream sector.”

Teague added, “During 2017, Enterprise completed construction and either began service or commissioning activities on projects representing $4.5 billion of capital investment.  In the fourth quarter, we began limited service on our Midland-to-ECHO pipeline moving a single grade of crude oil from the Permian Basin to the Houston refining and export market.  We expect to be in full service on this pipeline early in the second quarter of 2018.  Also during the quarter, we began commissioning activities at our new propane dehydrogenation, or PDH, facility.  This plant has been running near full capacity and is in the latter stages of the commissioning phase.  During