Enterprise Products Revenue Down on Energy Prices
January 28 2016 - 7:30AM
Dow Jones News
Enterprise Products Partners L.P., one of the largest pipeline
companies in the U.S., said its fourth-quarter revenue was cut by
40% from the same period last year, pressured by low energy
prices.
The company kept profit stable, however, by cutting total costs
and expenses by 43%. Revenue was below Wall Street expectations but
earnings met expectations.
The partnership retained $302 million of distributable cash flow
for the third quarter.
The company said it currently expects to spend $2.5 billion to
$2.8 billion for "growth" capital projects, $1 billion for the
final payment of its June $2.15 billion purchase of Texas oil and
gas pipelines and processing plants and $275 million for sustaining
capital expenditures.
Enterprise Products said it was on schedule to complete
construction of four projects in 2016, including two natural gas
processing plants, an ethane export terminal and a propane
dehydrogenation facility.
The Houston-based energy company's assets include 49,0000 miles
of pipelines.
Overall, the company posted a profit of $684.8 million, or 34
cents a share, up from $659.8 million, or 34 cents a share a year
earlier. Revenue dropped 40% to $6.16 billion.
Analysts surveyed by Thomson Reuters had forecast per-share
earnings of 34 cents a share on revenue of $8.01 billion.
Enterprise has become one of the energy industry's most powerful
middlemen, using pipelines, storage tanks and ports to get fuel
from one place to another.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 28, 2016 07:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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