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, 2023

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 2,171,879,003 common units of Enterprise Products Partners L.P. outstanding at the close of business on October 31, 2023. 


ENTERPRISE PRODUCTS PARTNERS L.P.
TABLE OF CONTENTS

 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

PART I.  FINANCIAL INFORMATION.

ITEM 1.  FINANCIAL STATEMENTS.

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

   
September 30,
2023
   
December 31,
2022
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
 
$
171
   
$
76
 
Restricted cash
   
143
     
130
 
Accounts receivable – trade, net of allowance for credit losses
of $49 at September 30, 2023 and $54 at December 31, 2022
   
6,923
     
6,964
 
Accounts receivable – related parties
   
5
     
11
 
Inventories (see Note 3)
   
3,345
     
2,554
 
Derivative assets (see Note 13)
   
409
     
469
 
Prepaid and other current assets
   
436
     
394
 
Total current assets
   
11,432
     
10,598
 
Property, plant and equipment, net (see Note 4)
   
45,340
     
44,401
 
Investments in unconsolidated affiliates (see Note 5)
   
2,337
     
2,352
 
Intangible assets, net (see Note 6)
   
3,821
     
3,965
 
Goodwill (see Note 6)
   
5,608
     
5,608
 
Other assets
   
1,266
     
1,184
 
Total assets
 
$
69,804
   
$
68,108
 
 
               
LIABILITIES AND EQUITY
               
Current liabilities:
               
Current maturities of debt (see Note 7)
 
$
1,470
   
$
1,744
 
Accounts payable – trade
   
962
     
743
 
Accounts payable – related parties
   
148
     
232
 
Accrued product payables
   
8,460
     
7,988
 
Accrued interest
   
237
     
426
 
Derivative liabilities (see Note 13)
   
427
     
354
 
Other current liabilities
   
771
     
778
 
Total current liabilities
   
12,475
     
12,265
 
Long-term debt (see Note 7)
   
27,446
     
26,551
 
Deferred tax liabilities (see Note 15)
   
605
     
600
 
Other long-term liabilities
   
1,007
     
941
 
Commitments and contingent liabilities (see Note 16)
   
     
 
Redeemable preferred limited partner interests: (see Note 8)
               
    Series A cumulative convertible preferred units (“preferred units”)
        (50,412 units outstanding at September 30, 2023 and December 31, 2022)
   
49
     
49
 
Equity: (see Note 8)
               
Partners’ equity:
               
Common limited partner interests (2,171,879,003 units issued and outstanding at
     September 30, 2023, 2,170,806,347 units issued and outstanding at December 31, 2022)
   
28,244
     
27,555
 
Treasury units, at cost
   
(1,297
)
   
(1,297
)
Accumulated other comprehensive income
   
203
     
365
 
Total partners’ equity
   
27,150
     
26,623
 
Noncontrolling interests in consolidated subsidiaries
   
1,072
     
1,079
 
Total equity
   
28,222
     
27,702
 
Total liabilities, preferred units, and equity
 
$
69,804
   
$
68,108
 


See Notes to Unaudited Condensed Consolidated Financial Statements.

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,
 
 
 
2023
   
2022
   
2023
   
2022
 
Revenues:
                       
Third parties
 
$
11,980
   
$
15,448
   
$
35,049
   
$
44,481
 
Related parties
   
18
     
20
     
44
     
55
 
Total revenues (see Note 9)
   
11,998
     
15,468
     
35,093
     
44,536
 
Costs and expenses:
                               
Operating costs and expenses:
                               
Third party and other costs
   
10,009
     
13,459
     
29,246
     
38,545
 
Related parties
   
357
     
353
     
1,014
     
1,005
 
Total operating costs and expenses
   
10,366
     
13,812
     
30,260
     
39,550
 
General and administrative costs:
                               
Third party and other costs
   
18
     
19
     
59
     
68
 
Related parties
   
41
     
36
     
113
     
111
 
Total general and administrative costs
   
59
     
55
     
172
     
179
 
Total costs and expenses (see Note 10)
   
10,425
     
13,867
     
30,432
     
39,729
 
Equity in income of unconsolidated affiliates
   
122
     
111
     
347
     
335
 
Operating income
   
1,695
     
1,712
     
5,008
     
5,142
 
Other income (expense):
                               
Interest expense
   
(328
)
   
(309
)
   
(944
)
   
(937
)
Interest income
   
5
     
3
     
22
     
6
 
Other, net
   
     
4
     
14
     
6
 
Total other expense, net
   
(323
)
   
(302
)
   
(908
)
   
(925
)
Income before income taxes
   
1,372
     
1,410
     
4,100
     
4,217
 
Provision for income taxes (see Note 15)
   
(22
)
   
(18
)
   
(45
)
   
(54
)
Net income
   
1,350
     
1,392
     
4,055
     
4,163
 
Net income attributable to noncontrolling interests
   
(31
)
   
(31
)
   
(91
)
   
(93
)
Net income attributable to preferred units
   
(1
)
   
(1
)
   
(3
)
   
(3
)
Net income attributable to common unitholders
 
$
1,318
   
$
1,360
   
$
3,961
   
$
4,067
 
 
                               
Earnings per unit: (see Note 11)
                               
Basic and diluted earnings per common unit
 
$
0.60
   
$
0.62
   
$
1.81
   
$
1.85
 













See Notes to Unaudited Condensed Consolidated Financial Statements.

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,
 
 
 
2023
   
2022
   
2023
   
2022
 
 
                       
Net income
 
$
1,350
   
$
1,392
   
$
4,055
   
$
4,163
 
Other comprehensive income (loss):
                               
Cash flow hedges: (see Note 13)
                               
Commodity hedging derivative instruments:
                               
Changes in fair value of cash flow hedges
   
(96
)
   
186
     
(139
)
   
126
 
Reclassification of losses (gains) to net income
   
33
     
9
     
(15
)
   
(54
)
Interest rate hedging derivative instruments:
                               
Changes in fair value of cash flow hedges
   
     
     
(5
)
   
 
Reclassification of losses (gains) to net income
   
(2
)
   
1
     
(3
)
   
15
 
Total cash flow hedges
   
(65
)
   
196
     
(162
)
   
87
 
Total other comprehensive income (loss)
   
(65
)
   
196
     
(162
)
   
87
 
Comprehensive income
   
1,285
     
1,588
     
3,893
     
4,250
 
Comprehensive income attributable to noncontrolling interests
   
(31
)
   
(31
)
   
(91
)
   
(93
)
Comprehensive income attributable to preferred units
   
(1
)
   
(1
)
   
(3
)
   
(3
)
Comprehensive income attributable to common unitholders
 
$
1,253
   
$
1,556
   
$
3,799
   
$
4,154
 
  


























See Notes to Unaudited Condensed Consolidated Financial Statements.


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

 
 
For the Nine Months
Ended September 30,
 
 
 
2023
   
2022
 
Operating activities:
           
Net income
 
$
4,055
   
$
4,163
 
Reconciliation of net income to net cash flows provided by operating activities:
               
Depreciation and accretion
   
1,388
     
1,336
 
Amortization of intangible assets
   
148
     
132
 
Amortization of major maintenance costs for reaction-based plants
   
48
     
38
 
Other amortization expense
   
158
     
169
 
Impairment of assets other than goodwill
   
28
     
48
 
Equity in income of unconsolidated affiliates
   
(347
)
   
(335
)
Distributions received from unconsolidated affiliates attributable to earnings
   
330
     
329
 
Net losses (gains) attributable to asset sales and related matters
   
(4
)
   
3
 
Deferred income tax expense
   
5
     
24
 
Change in fair market value of derivative instruments
   
48
     
46
 
Non-cash expense related to long-term operating leases (see Note 16)
   
51
     
43
 
Net effect of changes in operating accounts (see Note 17)
   
(706
)
   
(682
)
Other operating activities
   
1
     
 
Net cash flows provided by operating activities
   
5,203
     
5,314
 
Investing activities:
               
Capital expenditures
   
(2,254
)
   
(1,203
)
Cash used for business combinations, net of cash received (See Note 17)
   
     
(3,204
)
Investments in unconsolidated affiliates
   
(2
)
   
(1
)
Distributions received from unconsolidated affiliates attributable to the return of capital
   
37
     
82
 
Proceeds from asset sales and other matters
   
7
     
20
 
Other investing activities
   
(8
)
   
(3
)
Cash used in investing activities
   
(2,220
)
   
(4,309
)
Financing activities:
               
Borrowings under debt agreements
   
57,685
     
64,482
 
Repayments of debt
   
(57,062
)
   
(64,828
)
Debt issuance costs
   
(17
)
   
(1
)
Monetization of interest rate derivative instruments
   
21
     
 
Cash distributions paid to common unitholders (see Note 8)
   
(3,215
)
   
(3,061
)
Cash payments made in connection with distribution equivalent rights
   
(29
)
   
(26
)
Cash distributions paid to noncontrolling interests
   
(121
)
   
(115
)
Cash contributions from noncontrolling interests
   
25
     
4
 
Repurchase of common units under 2019 Buyback Program
   
(92
)
   
(107
)
Other financing activities
   
(70
)
   
(63
)
Cash used in financing activities
   
(2,875
)
   
(3,715
)
Net change in cash and cash equivalents, including restricted cash
   
108
     
(2,710
)
Cash and cash equivalents, including restricted cash, at beginning of period
   
206
     
2,965
 
Cash and cash equivalents, including restricted cash, at end of period
 
$
314
   
$
255
 









See Notes to Unaudited Condensed Consolidated Financial Statements.


ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023
(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, 2023:
                             
     Balance June 30, 2023
 
$
27,980
   
$
(1,297
)
 
$
268
   
$
1,071
   
$
28,022
 
   Net income
   
1,318
     
     
     
31
     
1,349
 
   Cash distributions paid to common unitholders
   
(1,086
)
   
     
     
     
(1,086
)
   Cash payments made in connection with
      distribution equivalent rights
   
(10
)
   
     
     
     
(10
)
   Cash distributions paid to noncontrolling interests
   
     
     
     
(40
)
   
(40
)
   Cash contributions from noncontrolling interests
   
     
     
     
10
     
10
 
   Amortization of fair value of equity-based awards
   
43
     
     
     
     
43
 
   Cash flow hedges
   
     
     
(65
)
   
     
(65
)
   Other, net
   
(1
)
   
     
     
     
(1
)
     Balance, September 30, 2023
 
$
28,244
   
$
(1,297
)
 
$
203
   
$
1,072
   
$
28,222
 



 
 
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, 2023:
                             
     Balance, December 31, 2022
 
$
27,555
   
$
(1,297
)
 
$
365
   
$
1,079
   
$
27,702
 
   Net income
   
3,961
     
     
     
91
     
4,052
 
   Cash distributions paid to common unitholders
   
(3,215
)
   
     
     
     
(3,215
)
   Cash payments made in connection with
      distribution equivalent rights
   
(29
)
   
     
     
     
(29
)
   Cash distributions paid to noncontrolling interests
   
     
     
     
(121
)
   
(121
)
   Cash contributions from noncontrolling interests
   
     
     
     
25
     
25
 
   Repurchase and cancellation of common units under
      2019 Buyback Program
   
(92
)
   
     
     
     
(92
)
   Amortization of fair value of equity-based awards
   
128
     
     
     
     
128
 
   Cash flow hedges
   
     
     
(162
)
   
     
(162
)
   Other, net
   
(64
)
   
     
     
(2
)
   
(66
)
     Balance, September 30, 2023
 
$
28,244
   
$
(1,297
)
 
$
203
   
$
1,072
   
$
28,222
 














See Notes to Unaudited Condensed Consolidated Financial Statements.  For information regarding Unit History and
Accumulated Other Comprehensive Income (Loss), see Note 8.
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
)
   Repurchase and cancellation of common units under
      2019 Buyback Program
   
(72
)
   
     
     
     
(72
)
   Amortization of fair value of equity-based awards
   
39
     
     
     
     
39
 
   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
 
   Repurchase and cancellation of common units under
      2019 Buyback Program
   
(107
)
   
     
     
     
(107
)
   Amortization of fair value of equity-based awards
   
118
     
     
     
     
118
 
   Cash flow hedges
   
     
     
87
     
     
87
 
   Other, net