HOUSTON--(BUSINESS WIRE)--Jan. 31, 2019--
Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) today
announced that the board of directors of its general partner has
approved a $2.0 billion multi-year common unit buyback program.
Enterprise’s management also provided distribution guidance for 2019.
Enterprise’s board approved a $2 billion multi-year common unit buyback
program to provide the partnership with an additional method to return
capital to investors. The program authorizes the partnership to purchase
its common units from time to time, including through open market
purchases and negotiated transactions. The timing and pace of buy backs
under the program will be determined by a number of factors including
Enterprise’s financial performance and flexibility; organic growth and
acquisition opportunities with higher potential returns on investment;
Enterprise’s unit price and implied distributable cash flow yield; and
maintaining targeted financial leverage with a debt-to-normalized EBITDA
ratio in the 3.5 times area. No time limit has been set for the
completion of the program, and the program may be suspended or
discontinued at any time.
With regard to distribution guidance for 2019, based on current
expectations, Enterprise’s management plans to continue to recommend to
its board a $0.0025 per unit per quarter increase to its distribution
rate. This pace of increase would result in a 2.3 percent increase in
distributions paid with respect to 2019 to $1.765 per unit compared to
$1.725 per unit for distributions declared for 2018.
“It was just fifteen months ago that we announced our plan to transition
away from the MLP externally-dependent financing model with a goal of
self-funding the equity portion of our growth capital investments,” said
A.J. “Jim” Teague, chief executive officer of the general partner of
Enterprise. “I am pleased to announce that we accomplished this
objective a year early by self-funding over 50 percent of our 2018
growth capital investments and acquisitions of approximately $4 billion.
To position Enterprise to return more capital to investors, we believed
the first step was to become equity self-funding and to strengthen our
credit metrics. We believe the authorization of a new buyback program
gives us another ‘tool in the toolbox’ to opportunistically return
capital to investors.”
Enterprise Products Partners L.P. is one of the largest publicly traded
partnerships and a leading North American provider of midstream energy
services to producers and consumers of natural gas, NGLs, crude oil,
refined products and petrochemicals. Our services include: natural gas
gathering, treating, processing, transportation and storage; NGL
transportation, fractionation, storage and import and export terminals;
crude oil gathering, transportation, storage and terminals;
petrochemical and refined products transportation, storage and
terminals; and a marine transportation business that operates primarily
on the United States inland and Intracoastal Waterway systems. The
partnership’s assets currently include approximately 49,100 miles of
pipelines; 260 million barrels of storage capacity for NGLs, crude oil,
petrochemicals and refined products; and 14 billion cubic feet of
natural gas storage capacity.
This press release includes “forward-looking statements” as defined
by the Securities and Exchange Commission. All statements, other than
statements of historical fact, included herein that address activities,
events, developments or transactions that Enterprise and its general
partner expect, believe or anticipate will or may occur in the future
are forward-looking statements. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially from expectations, including required approvals by
regulatory agencies, the possibility that the anticipated benefits from
such activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related thereto
will be greater than expected, the impact of competition, and other risk
factors included in Enterprise’s reports filed with the Securities and
Exchange Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of their dates.
Except as required by law, Enterprise does not intend to update or
revise its forward-looking statements, whether as a result of new
information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190131005137/en/
Source: Enterprise Products Partners L.P.
Randy Burkhalter, Investor Relations, (713) 381-6812 or (866) 230-0745
Rainey, Media Relations, (713) 381-3635