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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

☑  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR
☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___  to  ___.

Commission file number:  1-14323

ENTERPRISE PRODUCTS PARTNERS L.P.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
  
 
76-0568219
(State or Other Jurisdiction of Incorporation or Organization)
  
 
(I.R.S. Employer Identification No.)
 
1100 Louisiana Street, 10th Floor
Houston, Texas 77002
    (Address of Principal Executive Offices, including Zip Code)
(713) 381-6500
(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each Class
Trading Symbol(s)
Name of Each Exchange On Which Registered
Common Units
EPD
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☑  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑
Accelerated filer ☐
Non-accelerated filer   ☐
Smaller reporting company ☐
Emerging growth company   ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ☐   No ☑ 

There were 2,175,569,690 common units of Enterprise Products Partners L.P. outstanding at the close of business on October 31, 2022. 

Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
TABLE OF CONTENTS

 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  

1

Table of Contents

PART I.  FINANCIAL INFORMATION.

ITEM 1.  FINANCIAL STATEMENTS.

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)

   
September 30,
2022
    
December 31,
2021
  
ASSETS
            
Current assets:
            
Cash and cash equivalents
  
$
167
    
$
2,820
  
Restricted cash
    
88
      
145
  
Accounts receivable – trade, net of allowance for credit losses
of $55 at September 30, 2022 and $53 at December 31, 2021
    
6,704
      
6,967
  
Accounts receivable – related parties
    
29
      
21
  
Inventories (see Note 3)
    
3,173
      
2,681
  
Derivative assets (see Note 14)
    
486
      
237
  
Prepaid and other current assets
    
435
      
399
  
Total current assets
    
11,082
      
13,270
  
Property, plant and equipment, net (see Note 4)
    
44,167
      
42,088
  
Investments in unconsolidated affiliates (see Note 5)
    
2,356
      
2,428
  
Intangible assets, net (see Note 6)
    
4,010
      
3,151
  
Goodwill (see Note 6)
    
5,608
      
5,449
  
Other assets
    
1,214
      
1,140
  
Total assets
  
$
68,437
    
$
67,526
  
 
                
LIABILITIES AND EQUITY
                
Current liabilities:
                
Current maturities of debt (see Note 7)
  
$
2,654
    
$
1,400
  
Accounts payable – trade
    
754
      
632
  
Accounts payable – related parties
    
155
      
167
  
Accrued product payables
    
7,975
      
8,093
  
Accrued interest
    
219
      
453
  
Derivative liabilities (see Note 14)
    
383
      
254
  
Other current liabilities
    
757
      
626
  
Total current liabilities
    
12,897
      
11,625
  
Long-term debt (see Note 7)
    
26,548
      
28,135
  
Deferred tax liabilities (see Note 16)
    
565
      
518
  
Other long-term liabilities
    
938
      
760
  
Commitments and contingent liabilities (see Note 17)
    
     
 
Redeemable preferred limited partner interests: (see Note 8)
                
    Series A cumulative convertible preferred units (“preferred units”)
        (50,412 units outstanding at September 30, 2022 and December 31, 2021)
    
49
      
49
  
Equity: (see Note 8)
                
Partners’ equity:
                
Common limited partner interests (2,176,505,760 units issued and outstanding at
     September 30, 2022, 2,176,379,587 units issued and outstanding at December 31, 2021)
    
27,272
      
26,340
  
Treasury units, at cost
    
(1,297
)
    
(1,297
)
Accumulated other comprehensive income
    
373
      
286
  
Total partners’ equity
    
26,348
      
25,329
  
Noncontrolling interests in consolidated subsidiaries
    
1,092
      
1,110
  
Total equity
    
27,440
      
26,439
  
Total liabilities, preferred units, and equity
  
$
68,437
    
$
67,526
  


See Notes to Unaudited Condensed Consolidated Financial Statements.
2

Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
 (Dollars in millions, except per unit amounts)

 
  
For the Three Months
Ended September 30,
    
For the Nine Months
Ended September 30,
  
 
  
2022
    
2021
    
2022
    
2021
  
Revenues:
                        
Third parties
  
$
15,448
    
$
10,801
    
$
44,481
    
$
29,383
  
Related parties
    
20
      
31
      
55
      
54
  
Total revenues (see Note 9)
    
15,468
      
10,832
      
44,536
      
29,437
  
Costs and expenses:
                                
Operating costs and expenses:
                                
Third party and other costs
    
13,459
      
9,068
      
38,545
      
24,064
  
Related parties
    
353
      
341
      
1,005
      
965
  
Total operating costs and expenses
    
13,812
      
9,409
      
39,550
      
25,029
  
General and administrative costs:
                                
Third party and other costs
    
19
      
16
      
68
      
56
  
Related parties
    
36
      
31
      
111
      
99
  
Total general and administrative costs
    
55
      
47
      
179
      
155
  
Total costs and expenses (see Note 10)
    
13,867
      
9,456
      
39,729
      
25,184
  
Equity in income of unconsolidated affiliates
    
111
      
137
      
335
      
447
  
Operating income
    
1,712
      
1,513
      
5,142
      
4,700
  
Other income (expense):
                                
Interest expense
    
(309
)
    
(316
)
    
(937
)
    
(955
)
Interest income
    
3
      
1
      
6
      
3
  
Other, net
    
4
      
–
      
6
      
–
  
Total other expense, net
    
(302
)
    
(315
)
    
(925
)
    
(952
)
Income before income taxes
    
1,410
      
1,198
      
4,217
      
3,748
  
Provision for income taxes (see Note 16)
    
(18
)
    
(16
)
    
(54
)
    
(57
)
Net income
    
1,392
      
1,182
      
4,163
      
3,691
  
Net income attributable to noncontrolling interests
    
(31
)
    
(28
)
    
(93
)
    
(82
)
Net income attributable to preferred units
    
(1
)
    
(1
)
    
(3
)
    
(3
)
Net income attributable to common unitholders
  
$
1,360
    
$
1,153
    
$
4,067
    
$
3,606
  
 
                                
Earnings per unit: (see Note 11)
                                
Basic and diluted earnings per common unit
  
$
0.62
    
$
0.52
    
$
1.85
    
$
1.64
  













See Notes to Unaudited Condensed Consolidated Financial Statements.
3

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED
COMPREHENSIVE INCOME
(Dollars in millions)

 
  
For the Three Months
Ended September 30,
    
For the Nine Months
Ended September 30,
  
 
  
2022
    
2021
    
2022
    
2021
  
 
                        
Net income
  
$
1,392
    
$
1,182
    
$
4,163
    
$
3,691
  
Other comprehensive income (loss):
                                
Cash flow hedges: (see Note 14)
                                
Commodity hedging derivative instruments:
                                
Changes in fair value of cash flow hedges
    
186
      
(100
)
    
126
      
(852
)
Reclassification of losses (gains) to net income
    
9
      
117
      
(54
)
    
634
  
Interest rate hedging derivative instruments:
                                
Changes in fair value of cash flow hedges
    
–
      
–
      
–
      
183
  
Reclassification of losses to net income
    
1
      
10
      
15
      
28
  
Total cash flow hedges
    
196
      
27
      
87
      
(7
)
Total other comprehensive income (loss)
    
196
      
27
      
87
      
(7
)
Comprehensive income
    
1,588
      
1,209
      
4,250
      
3,684
  
Comprehensive income attributable to noncontrolling interests
    
(31
)
    
(28
)
    
(93
)
    
(82
)
Comprehensive income attributable to preferred units
    
(1
)
    
(1
)
    
(3
)
    
(3
)
Comprehensive income attributable to common unitholders
  
$
1,556
    
$
1,180
    
$
4,154
    
$
3,599
  
  


























See Notes to Unaudited Condensed Consolidated Financial Statements.

4

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Dollars in millions)

 
  
For the Nine Months
Ended September 30,
  
 
  
2022
    
2021
  
Operating activities:
            
Net income
  
$
4,163
    
$
3,691
  
Reconciliation of net income to net cash flows provided by operating activities:
                
Depreciation and accretion
    
1,336
      
1,281
  
Amortization of intangible assets
    
132
      
113
  
Amortization of major maintenance costs for reaction-based plants
    
38
      
19
  
Other amortization expense
    
169
      
181
  
Impairment of assets other than goodwill
    
48
      
113
  
Equity in income of unconsolidated affiliates
    
(335
)
    
(447
)
Distributions received from unconsolidated affiliates attributable to earnings
    
329
      
406
  
Net losses attributable to asset sales and related matters
    
3
      
8
  
Deferred income tax expense
    
24
      
33
  
Change in fair market value of derivative instruments
    
46
      
(86
)
Non-cash expense related to long-term operating leases (see Note 17)
    
43
      
29
  
Net effect of changes in operating accounts (see Note 18)
    
(682
)
    
1,047
  
Other operating activities
    
–
      
(1
)
Net cash flows provided by operating activities
    
5,314
      
6,387
  
Investing activities:
                
Capital expenditures
    
(1,203
)
    
(1,806
)
Cash used for business combinations, net of cash received (See Note 12)
    
(3,204
)
    
–
  
Investments in unconsolidated affiliates
    
(1
)
    
(1
)
Distributions received from unconsolidated affiliates attributable to the return of capital
    
82
      
41
  
Proceeds from asset sales
    
20
      
58
  
Other investing activities
    
(3
)
    
(13
)
Cash used in investing activities
    
(4,309
)
    
(1,721
)
Financing activities:
                
Borrowings under debt agreements
    
64,482
      
11,159
  
Repayments of debt
    
(64,828
)
    
(11,492
)
Debt issuance costs
    
(1
)
    
(15
)
Monetization of interest rate derivative instruments
    
–
      
75
  
Cash distributions paid to common unitholders (see Note 8)
    
(3,061
)
    
(2,948
)
Cash payments made in connection with distribution equivalent rights
    
(26
)
    
(23
)
Cash distributions paid to noncontrolling interests
    
(115
)
    
(115
)
Cash contributions from noncontrolling interests
    
4
      
23
  
Repurchase of common units under 2019 Buyback Program
    
(107
)
    
(89
)
Other financing activities
    
(63
)
    
(41
)
Cash used in financing activities
    
(3,715
)
    
(3,466
)
Net change in cash and cash equivalents, including restricted cash
    
(2,710
)
    
1,200
  
Cash and cash equivalents, including restricted cash, at beginning of period
    
2,965
      
1,158
  
Cash and cash equivalents, including restricted cash, at end of period
  
$
255
    
$
2,358
  









See Notes to Unaudited Condensed Consolidated Financial Statements.
5

Table of Contents


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022
(Dollars in millions)

 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Three Months Ended September 30, 2022:
                              
     Balance June 30, 2022
  
$
27,003
    
$
(1,297
)
  
$
177
    
$
1,094
    
$
26,977
  
   Net income
    
1,360
      
–
      
–
      
31
      
1,391
  
   Cash distributions paid to common unitholders
    
(1,035
)
    
–
      
–
      
–
      
(1,035
)
   Cash payments made in connection with
      distribution equivalent rights
    
(9
)
    
–
      
–
      
–
      
(9
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(33
)
    
(33
)
   Amortization of fair value of equity-based awards
    
39
      
–
      
–
      
–
      
39
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(72
)
    
–
      
–
      
–
      
(72
)
   Cash flow hedges
    
–
      
–
      
196
      
–
      
196
  
   Other, net
    
(14
)
    
–
      
–
      
–
      
(14
)
     Balance, September 30, 2022
  
$
27,272
    
$
(1,297
)
  
$
373
    
$
1,092
    
$
27,440
  



 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Nine Months Ended September 30, 2022:
                              
     Balance, December 31, 2021
  
$
26,340
    
$
(1,297
)
  
$
286
    
$
1,110
    
$
26,439
  
   Net income
    
4,067
      
–
      
–
      
93
      
4,160
  
   Cash distributions paid to common unitholders
    
(3,061
)
    
–
      
–
      
–
      
(3,061
)
   Cash payments made in connection with
      distribution equivalent rights
    
(26
)
    
–
      
–
      
–
      
(26
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(115
)
    
(115
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
4
      
4
  
   Amortization of fair value of equity-based awards
    
118
      
–
      
–
      
–
      
118
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(107
)
    
–
      
–
      
–
      
(107
)
   Cash flow hedges
    
–
      
–
      
87
      
–
      
87
  
   Other, net
    
(59
)
    
–
      
–
      
–
      
(59
)
     Balance, September 30, 2022
  
$
27,272
    
$
(1,297
)
  
$
373
    
$
1,092
    
$
27,440
  














See Notes to Unaudited Condensed Consolidated Financial Statements.  For information regarding Unit History and
Accumulated Other Comprehensive Income (Loss), see Note 8.
6

Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021
(Dollars in millions)

 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Three Months Ended September 30, 2021:
                              
     Balance, June 30, 2021
  
$
26,269
    
$
(1,297
)
  
$
(199
)
  
$
1,074
    
$
25,847
  
   Net income
    
1,153
      
–
      
–
      
28
      
1,181
  
   Cash distributions paid to common unitholders
    
(983
)
    
–
      
–
      
–
      
(983
)
   Cash payments made in connection with
      distribution equivalent rights
    
(8
)
    
–
      
–
      
–
      
(8
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(44
)
    
(44
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
5
      
5
  
   Amortization of fair value of equity-based awards
    
36
      
–
      
–
      
–
      
36
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(75
)
    
–
      
–
      
–
      
(75
)
   Cash flow hedges
    
–
      
–
      
27
      
–
      
27
  
   Other, net
    
(2
)
    
–
      
–
      
–
      
(2
)
     Balance, September 30, 2021
  
$
26,390
    
$
(1,297
)
  
$
(172
)
  
$
1,063
    
$
25,984
  



 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Nine Months Ended September 30, 2021:
                              
     Balance, December 31, 2020
  
$
25,767
    
$
(1,297
)
  
$
(165
)
  
$
1,073
    
$
25,378
  
   Net income
    
3,606
      
–
      
–
      
82
      
3,688
  
   Cash distributions paid to common unitholders
    
(2,948
)
    
–
      
–
      
–
      
(2,948
)
   Cash payments made in connection with
      distribution equivalent rights
    
(23
)
    
–
      
–
      
–
      
(23
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(115
)
    
(115
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
23
      
23
  
   Amortization of fair value of equity-based awards
    
115
      
–
      
–
      
–
      
115
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(89
)
    
–
      
–
      
–
      
(89
)
   Cash flow hedges
    
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–
      
(