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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, 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. 

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,
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.

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,
  
 
  
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.
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,
  
 
  
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.

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,
  
 
  
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.

5

Table of Contents


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.
6

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
)
   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
    
(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.

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ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

KEY REFERENCES USED IN THESE
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unless the context requires otherwise, references to “we,” “us” or “our” within these Notes to Unaudited Condensed Consolidated Financial Statements are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries.  

References to the “Partnership” or “Enterprise” mean Enterprise Products Partners L.P. on a standalone basis.

References to “EPO” mean Enterprise Products Operating LLC, which is an indirect wholly owned subsidiary of the Partnership, and its consolidated subsidiaries, through which the Partnership conducts its business.  We are managed by our general partner, Enterprise Products Holdings LLC (“Enterprise GP”), which is a wholly owned subsidiary of Dan Duncan LLC, a privately held Texas limited liability company.

The membership interests of Dan Duncan LLC are owned by a voting trust, the current trustees (“DD LLC Trustees”) of which are: (i) Randa Duncan Williams, who is also a director and Chairman of the Board of Directors of Enterprise GP (the “Board”);  (ii) Richard H. Bachmann, who is also a director and Vice Chairman of the Board; and (iii) W. Randall Fowler, who is also a director and the Co-Chief Executive Officer and Chief Financial Officer of Enterprise GP.  Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as managers of Dan Duncan LLC.

References to “EPCO” mean Enterprise Products Company, a privately held Texas corporation, and its privately held affiliates.  The outstanding voting capital stock of EPCO is owned by a voting trust, the current trustees (“EPCO Trustees”) of which are: (i) Ms. Duncan Williams, who serves as Chairman of EPCO; (ii) Mr. Bachmann, who serves as the President and Chief Executive Officer of EPCO; and (iii) Mr. Fowler, who serves as an Executive Vice President and the Chief Financial Officer of EPCO.  Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as directors of EPCO.

We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees.  EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at September 30, 2023.

With the exception of per unit amounts, or as noted within the context of each disclosure,
the dollar amounts presented in the tabular data within these disclosures are
stated in millions of dollars.

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Table of Contents
ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1.  Partnership Organization and Operations

We are a publicly traded Delaware limited partnership, the common units of which are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “EPD.”  Our preferred units are not publicly traded.  We were formed in April 1998 to own and operate certain natural gas liquids (“NGLs”) related businesses of EPCO and are a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals and refined products.  We are owned by our limited partners (preferred and common unitholders) from an economic perspective.  Enterprise GP, which owns a non-economic general partner interest in us, manages our Partnership.  We conduct substantially all of our business operations through EPO and its consolidated subsidiaries.

Our fully integrated, midstream energy asset network (or “value chain”) links producers of natural gas, NGLs and crude oil from some of the largest supply basins in the United States (“U.S.”), Canada and the Gulf of Mexico with domestic consumers and international markets.  Our midstream energy operations include:

•
natural gas gathering, treating, processing, transportation and storage;

•
NGL transportation, fractionation, storage, and marine terminals (including those used to export liquefied petroleum gases (“LPG”) and ethane);

•
crude oil gathering, transportation, storage, and marine terminals;

•
propylene production facilities (including propane dehydrogenation (“PDH”) facilities), butane isomerization, octane enhancement, isobutane dehydrogenation (“iBDH”) and high purity isobutylene (“HPIB”) production facilities;

•
petrochemical and refined products transportation, storage, and marine terminals (including those used to export ethylene and polymer grade propylene (“PGP”)); and

•
a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. 

Like many publicly traded partnerships, we have no employees.  All of our management, administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement (the “ASA”) or by other service providers.  See Note 14 for information regarding related party matters.

Our results of operations for the nine months ended September 30, 2023 are not necessarily indicative of results expected for the full year of 2023.  In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring accruals necessary for fair presentation.  Although we believe the disclosures in these financial statements are adequate and make the information presented not misleading, certain information an