Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 


Enterprise to Expand Butane Isomerization Facility
In January 2018, we announced plans to expand our butane isomerization facility by up to 30 MBPD of incremental capacity.   This expansion is supported by new long-term agreements, including a 20-year, 35 MBPD fee-based, tolling arrangement, to provide butane isomerization, storage and pipeline services.

Enterprise to Expand Orla Natural Gas Processing Complex in West Texas
In January 2018, we announced plans to add 300 MMcf/d of incremental capacity at our cryogenic natural gas processing facility under construction near Orla, Texas in Reeves County.  The addition of a third processing train at Orla (“Orla III”) would increase inlet volume capacity to 900 MMcf/d and allow us to expand our NGL extraction capabilities by an incremental 40 MBPD to 120 MBPD.  Orla III is expected to begin service in the third quarter of 2019.

In June 2017, we announced plans to add a second processing train (“Orla II”) to our cryogenic natural gas processing facility currently under construction near Orla, Texas in Reeves County.   Orla II is expected to add 300 MMcf/d of incremental processing capacity to the facility and double the inlet capacity of the facility to 600 MMcf/d and increase extraction of NGLs from up to 40 MBPD to up to 80 MBPD.  Orla II is expected to begin service in the fourth quarter of 2018.

Mixed NGLs extracted at the Orla facility will be delivered into our fully integrated NGL system, including the recently announced Shin Oak NGL Pipeline (or “Shin Oak”).  Residue natural gas volumes from the facility will be transported to the Waha area through our Texas Intrastate system. The Orla facility is designed to support the continued growth in NGL-rich natural gas production from the Delaware Basin of West Texas and southeastern New Mexico and is supported by long-term customer commitments.

Enterprise Management Provides Guidance with Regards to Distribution Growth through 2018
In October 2017, our management announced plans to recommend to the Board cash distribution increases per quarter of $0.0025 per unit with respect to each of the six fiscal quarters beginning with the third quarter of 2017 and ending with the fourth quarter of 2018.  The Board declared a $0.4225 per common unit cash distribution to limited partners with respect to the third quarter of 2017, which was paid on November 7, 2017.  The Board declared a $0.425 per common unit cash distribution to limited partners with respect to the fourth quarter of 2017, which was paid on February 7, 2018.  Management currently expects to recommend to the Board the following quarterly cash distributions with respect to each quarter of 2018: $0.4275, first quarter of 2018; $0.4300, second quarter of 2018; $0.4325, third quarter of 2018; and $0.4350, fourth quarter of 2018.

The recommended distribution growth rate should further strengthen our distribution coverage, increase our retained distributable cash flow available to fund growth capital opportunities, and reduce unitholder dilution by decreasing the amount of equity we may need to issue.  Management believes that moderation in the growth rate of our near-term cash distributions should enhance our ability to be self-funding for the equity portion of capital expenditures by 2019.

The payment of any quarterly cash distribution is subject to Board approval and management’s evaluation of our financial condition, results of operations and cash flows in connection with such payment.  Management will propose recommendations to the Board regarding our cash distribution growth rate for 2019 as we consider future investment opportunities and alternatives for returning capital to investors.

Plans to Build Shin Oak NGL Pipeline
In April 2017, we announced plans to build Shin Oak, a 24-inch diameter pipeline, to transport growing NGL production from the Permian Basin to our NGL fractionation and storage complex located in Mont Belvieu, Texas.  The Shin Oak NGL Pipeline is expected to have an initial design capacity of 250 MBPD and be expandable up to 600 MBPD.  The project is supported by long-term shipper commitments and is expected to be placed into service during the second quarter of 2019.



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