Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD)
today announced its financial results for the three months and year
ended December 31, 2015.
For the year 2015, operating income and cash flow provided from
operations was $3.5 billion and $4.0 billion, respectively.
Enterprise reported $5.3 billion in gross operating margin, and a
record $4.0 billion in distributable cash flow, excluding proceeds
from asset sales, for the year 2015. Distributions declared with
respect to 2015 were $1.53 per unit, a 5.5 percent increase
compared to distributions paid with respect to 2014. Distributable
cash flow for 2015, excluding the proceeds from asset sales,
provided 1.3 times coverage of the distributions declared with
respect to 2015. Including $1.6 billion of proceeds from asset
sales, Enterprise retained $2.6 billion of distributable cash flow
in 2015 to reinvest in the growth of the partnership.
“Enterprise reported a solid year in 2015,” stated Jim Teague,
chief executive officer of Enterprise’s general partner. “We are
pleased with our results given the challenging year for the energy
industry due to lower commodity prices. Our results were driven by
our fee-based businesses, contributions from newly constructed
assets and the acquisitions of Oiltanking Partners and EFS
Midstream, which more than offset the effect of lower NGL prices on
our natural gas processing business and foregone earnings due to
the sale of our offshore assets. NGL, crude oil, refined products
and petrochemical pipeline volumes increased 6 percent to 5.3
million barrels per day, LPG export loadings increased 19 percent
to 299,000 barrels per day and fee-based natural gas processing
volumes were 4.9 billion cubic feet per day for 2015.”
“We successfully completed $2.7 billion of organic growth
projects that began commercial operations and generated new sources
of cash flow during 2015. These projects included two expansions of
our LPG export facility on the Houston Ship Channel, the last two
segments of our Aegis ethane pipeline, the Rancho II crude oil
pipeline, and the buildout of our ECHO crude oil storage facility.
It is worth noting that the larger expansion of our LPG export
facility and the final segment of the Aegis pipeline were completed
at the end of 2015 and will provide additional earnings and cash
flow in 2016,” said Teague.
“We are on schedule to complete construction of four major
growth projects in 2016: two natural gas processing plants and
related infrastructure serving the Permian basin; our ethane export
terminal on the Houston Ship Channel; and our propane
dehydrogenation (“PDH”) facility at Mont Belvieu,” said Teague.
“The energy industry is entering the second year of this price
cycle, which will present new challenges and opportunities for the
midstream energy sector. We believe Enterprise is well positioned
to manage through this difficult period. Our integrated system
provides both business and geographic diversification. Our largest
customers are major consumers of energy such as integrated energy
companies, petrochemical companies, crude oil refiners and
utilities. We have spent the last five years developing markets and
assets to cultivate incremental demand for U.S. NGLs, crude oil and
refined products. Financially, we entered this cycle with strong
cash flow coverage of our distributions and Baa1/BBB+ credit
metrics. Our retained distributable cash flow has provided us
flexibility in raising capital and a margin of safety for our
distributions. Cash flow from existing assets and new assets under
construction provide the foundation for continuing distribution
growth in 2016,” concluded Teague.
Fourth Quarter
and Full Year 2015 Highlights
Three months ended Twelve months
ended December 31, December 31, 2015
2014 2015 2014 ($ in millions, except
per unit amounts) Gross operating
margin (1) $ 1,353 $ 1,358 $ 5,332 $ 5,287 Net income (2) (3) $ 694
$ 681 $ 2,558 $ 2,834 Fully diluted earnings per unit (2) (3) $
0.34 $ 0.34 $ 1.26 $ 1.47 Adjusted EBITDA (1) $ 1,335 $ 1,368 $
5,267 $ 5,291 Distributable cash flow (1) (4) $ 1,089 $ 1,063 $
5,607 $ 4,079 (1) Gross
operating margin, adjusted earnings before interest, taxes,
depreciation and amortization (“Adjusted EBITDA”) and distributable
cash flow are non-generally accepted accounting principle
(“non-GAAP”) financial measures that are defined and reconciled
later in this press release. (2) Net income and fully diluted
earnings per unit for the fourth quarters of 2015 and 2014 included
non-cash impairment charges of approximately $24 million, or $0.01
per unit, and $16 million, or $0.01 per unit, respectively. For the
years ended December 31, 2015 and 2014, net income and fully
diluted earnings per unit included non-cash impairment and related
charges of $203 million, or $0.10 per unit, and $34 million, or
$0.02 per unit, respectively. (3) Net income and fully diluted
earnings per unit included net losses attributable to asset sales
and insurance recoveries of $16 million, or $0.01 per unit for the
year ended December 31, 2015, and net gains of $102 million, or
$0.06 per unit for the year ended December 31, 2014. (4)
Distributable cash flow included proceeds from asset sales and
insurance recoveries of $71 million and $24 million for the fourth
quarters of 2015 and 2014, respectively, and $1.6 billion and $145
million for the years ended December 31, 2015 and 2014,
respectively.
- Enterprise increased its cash
distribution with respect to the fourth quarter of 2015 by 5.4
percent over the fourth quarter of 2014 to $0.39 per unit, or $1.56
per unit on an annualized basis. This is the 46th consecutive
quarterly increase and the 55th increase since the partnership’s
initial public offering in 1998. This distribution will be paid on
February 5, 2016 to unitholders of record as of the close of
business on January 29, 2016;
- Excluding proceeds from asset sales,
Enterprise reported distributable cash flow of $1 billion for the
fourth quarter of 2015, which provided 1.3 times coverage of the
$0.39 per unit cash distribution. Enterprise retained $302 million
of distributable cash flow in the fourth quarter of 2015 including
$71 million of proceeds from asset sales;
- Enterprise’s natural gas liquid
(“NGL”), crude oil, refined products and petrochemical pipeline
volumes for the fourth quarter of 2015 were 5.0 million barrels per
day (“BPD”) compared to 5.1 million BPD for the fourth quarter of
2014. Total NGL, crude oil, refined products and petrochemical
marine terminal loading and unloading volumes for the fourth
quarter of 2015 were 1.1 million BPD compared to 1.2 million BPD
for the fourth quarter of 2014. Total natural gas pipeline volumes
were 11.9 trillion British thermal units per day (“TBtud”) for the
fourth quarter of 2015 compared to 12.9 TBtud in the fourth quarter
of 2014. NGL fractionation volumes for the fourth quarter of 2015
increased to 846 thousand barrels per day (“MBPD”) from 837 MBPD in
the fourth quarter of 2014. Fee-based natural gas processing
volumes for the fourth quarter of 2015 increased 8 percent to 4.9
billion cubic feet per day (“Bcf/d”) from 4.5 Bcf/d in the fourth
quarter of 2014, while equity NGL production for the fourth quarter
of 2015 increased 63 percent to 147 MBPD; and
- Enterprise made capital investments of
approximately $1.2 billion during the fourth quarter of 2015,
including $77 million of sustaining capital expenditures. Total
capital investment for 2015 was $6.4 billion, which included $1.4
billion of equity consideration issued in the acquisition of
Oiltanking Partners, L.P., $1.1 billion for the first installment
payment in the acquisition of EFS Midstream and $273 million of
sustaining capital expenditures.
- Enterprise management announced plans
to recommend to the board of its general partner distributions
totaling $1.61 per unit with respect to 2016, which, if approved by
the board, would represent a 5.2 percent increase compared to a
total of $1.53 per unit of distributions declared with respect to
2015.
- In January 2016, affiliates of
Enterprise’s general partner and Enterprise Products Company
(collectively “EPCO”) purchased approximately $100 million of
Enterprise common units through the partnership’s at-the-market
equity issuance program. EPCO plans to purchase an additional $100
million of Enterprise common units through the partnership’s
distribution reinvestment plan with the February 2016
distribution.
Review of Fourth Quarter 2015
Results
Net income for the fourth quarter of 2015 was $694 million
compared to $681 million for the fourth quarter of 2014. On a fully
diluted basis, net income attributable to limited partners was
$0.34 per unit for the fourth quarters of 2015 and 2014. Net income
for the fourth quarters of 2015 and 2014 was reduced by non-cash
impairment charges of $24 million, or $0.01 per unit, and $16
million, or $0.01 per unit, respectively, on a fully diluted
basis.
On January 4, 2016, Enterprise announced an increase in the
partnership’s quarterly cash distribution with respect to the
fourth quarter of 2015 to $0.39 per unit, representing a 5.4
percent increase over the distribution paid with respect to the
fourth quarter of 2014. Enterprise generated distributable cash
flow of $1.1 billion for the fourth quarters of 2015 and 2014,
which included proceeds from the sales of assets of $71 million and
$24 million, respectively. Distributable cash flow for the fourth
quarter of 2014 also included $28 million of proceeds from the
monetization of financial instruments used to hedge interest
rates.
Excluding the proceeds from asset sales, Enterprise’s
distributable cash flow for the fourth quarter of 2015 provided 1.3
times coverage of the cash distribution that will be paid on
February 5, 2016 to unitholders of record on January 29, 2016. The
partnership retained $302 million of distributable cash flow for
the fourth quarter of 2015, which is available to reinvest in
growth capital projects, reduce debt and decrease the need to issue
additional equity.
Review of Fourth Quarter 2015 Segment
Performance
NGL Pipelines & Services – Gross operating margin for
the NGL Pipelines & Services segment increased 4 percent to
$730 million for the fourth quarter of 2015 from $705 million for
the fourth quarter of 2014.
Enterprise’s natural gas processing and related NGL marketing
business generated gross operating margin of $231 million for the
fourth quarter of 2015 compared to $257 million for the fourth
quarter of 2014. Gross operating margin from the partnership’s
natural gas processing plants decreased $37 million primarily due
to lower processing margins. Partially offsetting this decline was
a $12 million increase in gross operating margin from Enterprise’s
NGL marketing activities, which benefited from increased sales
volumes of LPG for exports. Enterprise’s natural gas processing
plants reported fee-based processing volumes of 4.9 Bcf/d in the
fourth quarter of 2015 compared to 4.5 Bcf/d in the fourth quarter
of 2014. Enterprise’s equity NGL production increased 63 percent to
147 MBPD for the fourth quarter of 2015 on higher recoveries of
ethane at certain processing plants in South Texas and the
Rockies.
Gross operating margin from the partnership’s NGL pipelines and
storage business increased $58 million, or 18 percent, to $375
million for the fourth quarter of 2015 compared to the fourth
quarter of 2014. NGL pipeline volumes were 2.9 million BPD for the
fourth quarter of 2015 compared to 2.7 million BPD for the same
quarter of 2014. The partnership’s total NGL marine terminal
loading and unloading volumes were a record 327 MBPD for the fourth
quarter of 2015 compared to 282 MBPD for the fourth quarter of
2014.
Collectively, the Mid-America, Seminole and Chaparral NGL
pipeline systems reported a $20 million increase in gross operating
margin to $139 million in the fourth quarter of 2015 compared to
the same quarter of 2014 primarily due to higher revenues from
increased tariffs and other fees and lower operating expenses.
Volumes on these pipelines were 982 MBPD in the fourth quarter of
2015 compared to 984 MBPD in the fourth quarter of 2014.
Gross operating margin from the partnership’s ATEX and Aegis
ethane pipelines increased $7 million in the fourth quarter of 2015
compared to the same quarter of 2014 primarily due to a combined 51
MBPD increase in transportation volumes. The third and final
segment of the Aegis Ethane Pipeline was completed in December
2015.
Enterprise’s South Texas NGL Pipeline System had a $14 million
increase in gross operating margin in the fourth quarter of 2015
compared to the fourth quarter of 2014 due to the combined effects
of an 81 MBPD increase in transportation volumes and lower
operating expenses.
Enterprise’s NGL fractionation business reported gross operating
margin of $124 million for the fourth quarter of 2015 compared to
$132 million for the fourth quarter of 2014. The decrease was
primarily due to lower revenues from product blending and other
fees. Total fractionation volumes increased to 846 MBPD for the
fourth quarter of 2015 from 837 MBPD in the fourth quarter of
2014.
Crude Oil Pipelines & Services – Gross operating
margin from the partnership’s Crude Oil Pipelines & Services
segment increased 13 percent, or $30 million, to $258 million for
the fourth quarter of 2015 from $228 million for the fourth quarter
of 2014. Total crude oil pipeline volumes were 1.4 million BPD for
the fourth quarter of 2015 compared to 1.3 million BPD for the same
quarter of 2014. Total crude oil marine terminal loading and
unloading volumes were 443 MBPD for the fourth quarter of 2015
compared to 680 MBPD for the same quarter of 2014 due to lower
imports of crude oil.
The EFS Midstream assets, which were acquired effective July 1,
2015, contributed $50 million of gross operating margin in the
fourth quarter of 2015.
Gross operating margin attributable to Enterprise’s ownership in
the Seaway Crude Pipeline increased $9 million in the fourth
quarter of 2015 compared to the same quarter in 2014 primarily due
to contributions from the new Seaway loop pipeline that began
commercial activities in December 2014. Net to our interest,
volumes on the Seaway Pipeline System increased 8 percent to 515
MBPD for the fourth quarter of 2015. Enterprise’s Eagle Ford joint
venture pipeline and ECHO terminal reported an aggregate $14
million increase in gross operating margin for the fourth quarter
of 2015 compared to the fourth quarter of 2014.
The South Texas crude oil pipeline system reported a $16 million
decrease in gross operating margin in the fourth quarter of 2015
compared to the same quarter last year primarily due to a decrease
from the sale of excess crude oil volumes obtained through pipeline
tariff product loss allowances and an 18 MBPD decrease in
transportation volumes. Our crude oil marketing and related
activities had a $20 million decrease in gross operating margin in
the fourth quarter of 2015 compared to the fourth quarter of 2014,
primarily due to lower margins.
Natural Gas Pipelines & Services – Enterprise’s
Natural Gas Pipelines & Services segment reported gross
operating margin of $194 million for the fourth quarter of 2015
compared to $185 million for the fourth quarter of 2014. Total
natural gas transportation volumes were 11.9 TBtud for the fourth
quarter of 2015 compared to 12.3 TBtud for the fourth quarter of
last year.
The Texas Intrastate system reported gross operating margin of
$89 million for the fourth quarter of 2015 compared to $87 million
for the fourth quarter of 2014. Natural gas pipeline volumes for
the Texas Intrastate system were 4.7 TBtud for the fourth quarter
of 2015 compared to 4.9 TBtud for the fourth quarter of last
year.
The Acadian Gas System reported gross operating margin of $44
million for the fourth quarter of 2015, compared to $40 million for
the fourth quarter of last year. Natural gas pipeline volumes for
the Acadian Gas System were 1.9 TBtud in the fourth quarter of 2015
compared to 2.0 TBtud for the same quarter of last year.
The Jonah gas gathering system reported an $8 million increase
in gross operating margin to $34 million in the fourth quarter of
2015, primarily due to higher volumes and fees and lower operating
expenses.
Petrochemical & Refined Products Services – Gross
operating margin for the Petrochemical & Refined Products
Services segment was $171 million for the fourth quarter of 2015
compared to $199 million for the fourth quarter of 2014. Total
refined products and petrochemical transportation volumes increased
to 804 MBPD for the fourth quarter of 2015 from 794 MBPD for the
same quarter of 2014.
The partnership’s propylene business reported gross operating
margin of $44 million for the fourth quarter of 2015 compared to
$71 million for the fourth quarter of 2014. The decrease was
primarily due to lower sales margins and volumes. Propylene
fractionation volumes were 71 MBPD for the fourth quarter of 2015
compared to 81 MBPD for the fourth quarter of 2014.
Gross operating margin for Enterprise’s octane enhancement and
high-purity isobutylene business decreased $10 million to $18
million in the fourth quarter of 2015 primarily due to lower sales
margins and volumes. The partnership’s octane enhancement facility
was taken out of service for its annual turnaround in late November
2015 and is expected to resume operations in mid-February 2016.
Total plant production volumes were 15 MBPD for the fourth quarter
of 2015 compared to 22 MBPD for the same quarter of 2014.
Enterprise’s refined products pipelines and related services
business reported gross operating margin of $76 million for the
fourth quarter of 2015 compared to $72 million for the fourth
quarter of 2014. The increase was primarily due to higher volumes
at the partnership’s marine and land-based products terminals along
the Gulf Coast. Total refined products and petrochemical marine
terminal loading and unloading volumes increased 18 percent to 336
MBPD for the fourth quarter of 2015 compared to 284 MBPD for the
fourth quarter of 2014.
Gross operating margin for Enterprise’s butane isomerization and
related operations increased to $21 million for the fourth quarter
of 2015 from $9 million for the fourth quarter of 2014, primarily
due to higher volumes and lower maintenance expenses. Butane
isomerization volumes increased 28 percent to 115 MBPD for the
fourth quarter of 2015 from 90 MBPD for the same quarter of
2014.
Offshore Pipelines & Services – Enterprise closed on
the sale of its offshore Gulf of Mexico business on July 24, 2015.
As a result, the partnership had no contribution to gross operating
margin from these assets in the fourth quarter of 2015 compared to
$42 million for the fourth quarter of 2014.
Capitalization
Total debt principal outstanding at December 31, 2015 was $22.7
billion, including $1.5 billion of junior subordinated notes to
which the nationally recognized debt rating agencies ascribe
partial equity content. At December 31, 2015, Enterprise had
consolidated liquidity of approximately $4.4 billion, which was
comprised of unrestricted cash on hand and available borrowing
capacity under our revolving credit facilities.
Total capital spending in the fourth quarter of 2015 was $1.2
billion, which includes $77 million of sustaining capital
expenditures. For the year, capital spending was $6.4 billion,
which includes $1.4 billion of equity consideration to complete the
acquisition of Oiltanking Partners, L.P. in February 2015 and $1.1
billion for the first installment payment for the acquisition of
EFS Midstream. Sustaining capital expenditures were $273 million
for 2015.
For 2016, we currently expect to invest in the range of $2.5
billion to $2.8 billion for growth capital projects, $1 billion for
the final installment payment for the purchase of EFS Midstream and
approximately $275 million for sustaining capital expenditures.
Conference Call to Discuss Fourth
Quarter 2015 Earnings
Enterprise will host a conference call today to discuss fourth
quarter 2015 earnings. The call will be broadcast live over the
Internet beginning at 9:00 a.m. CT and may be accessed by visiting
the company’s website at www.enterpriseproducts.com.
Use of Non-GAAP Financial
Measures
This press release and accompanying schedules include the
non-GAAP financial measures of gross operating margin,
distributable cash flow and Adjusted EBITDA. The accompanying
schedules provide definitions of these non-GAAP financial measures
and reconciliations to their most directly comparable financial
measure calculated and presented in accordance with GAAP. Our
non-GAAP financial measures should not be considered as
alternatives to GAAP measures such as net income, operating income,
net cash flows provided by operating activities or any other
measure of financial performance calculated and presented in
accordance with GAAP. Our non-GAAP financial measures may not be
comparable to similarly-titled measures of other companies because
they may not calculate such measures in the same manner as we
do.
Company Information and Use of
Forward-Looking Statements
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 include approximately 49,000 miles of pipelines; 250 million
barrels of storage capacity for NGLs, crude oil, refined products
and petrochemicals; and 14 billion cubic feet of natural gas
storage capacity.
This press release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve certain risks and uncertainties, such as the partnership’s
expectations regarding future results, capital expenditures,
project completions, liquidity and financial market conditions.
These risks and uncertainties include, among other things,
insufficient cash from operations, adverse market conditions,
governmental regulations and other factors discussed in
Enterprise’s filings with the U.S. Securities and Exchange
Commission. If any of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those expected. The partnership
disclaims any intention or obligation to update publicly or reverse
such statements, whether as a result of new information, future
events or otherwise.
Enterprise Products Partners
L.P.
Exhibit A
Condensed Statements of Consolidated Operations – UNAUDITED
($ in millions, except per unit amounts)
For the Three Months For the Year
Ended December 31, Ended December 31,
2015 2014 2015
2014
Revenues
$ 6,155.0 $ 10,190.3 $ 27,027.9 $
47,951.2
Costs and
expenses:
Operating costs and expenses 5,242.2 9,286.1 23,668.7 44,220.5
General and administrative costs 49.4
63.6 192.6
214.5 Total costs and expenses 5,291.6
9,349.7 23,861.3
44,435.0
Equity in income of
unconsolidated affiliates
71.1 80.4
373.6 259.5
Operating
income
934.5 921.0 3,540.2 3,775.7
Other income
(expense):
Interest expense (238.6 ) (241.4 ) (961.8 ) (921.0 ) Other, net
(9.3 ) 2.1
(22.5 ) 1.9 Total other expense
(247.9 ) (239.3 ) (984.3
) (919.1 )
Income before income
taxes
686.6 681.7 2,555.9 2,856.6 Benefit from (provision for) income
taxes 6.9 (0.6 )
2.5 (23.1 )
Net
income
693.5 681.1 2,558.4 2,833.5
Net income
attributable to noncontrolling interests
(8.7 ) (21.3 )
(37.2 ) (46.1 )
Net income
attributable to limited partners
$ 684.8 $ 659.8 $ 2,521.2
$ 2,787.4
Per unit data (fully
diluted):
Earnings per unit $ 0.34 $ 0.34
$ 1.26 $ 1.47 Average limited
partner units outstanding (in millions) 2,014.4
1,940.5 1,998.6
1,895.2
Supplemental
financial data:
Non-GAAP distributable cash flow (1) $ 1,088.8
$ 1,063.0 $ 5,607.3 $
4,078.6 Non-GAAP Adjusted EBITDA (2) $ 1,335.1
$ 1,367.6 $ 5,267.3
$ 5,290.6 Non-GAAP gross operating margin by segment:
(3) NGL Pipelines & Services $ 730.3 $ 705.3 $ 2,771.6 $
2,877.7 Crude Oil Pipelines & Services 257.7 228.0 961.9 762.5
Natural Gas Pipelines & Services 194.3 184.5 782.6 803.3
Petrochemical & Refined Products Services 171.1 198.6 718.5
681.0 Offshore Pipelines & Services --
42.0 97.5
162.0 Total gross operating margin $ 1,353.4
$ 1,358.4 $ 5,332.1
$ 5,286.5 Net cash flows
provided by operating activities $ 1,411.2 $
1,457.8 $ 4,002.4 $
4,162.2 Total debt principal outstanding at end of period $
22,738.5 $ 21,389.2 $
22,738.5 $ 21,389.2 Capital
spending: Capital expenditures, net (4) $ 1,192.5 $ 1,004.5 $
3,811.6 $ 2,864.0 Equity consideration issued for Oiltanking
acquisition -- 2,171.5 1,408.7 2,171.5 Cash used for business
combinations, net of cash received 11.4 2,416.8 1,056.5 2,416.8
Investments in unconsolidated affiliates 31.9 139.1 162.6 722.4
Other investing activities --
(0.2 ) 5.3 5.8
Total capital spending, cash and non-cash $ 1,235.8
$ 5,731.7 $ 6,444.7
$ 8,180.5
(1)
See Exhibit D for reconciliation to GAAP net cash flows
provided by operating activities. (2) See Exhibit E for
reconciliation to GAAP net cash flows provided by operating
activities. (3) See Exhibit F for reconciliation to GAAP operating
income. (4) Capital expenditures for property, plant and equipment
are presented net of contributions in aid of construction cost.
Enterprise Products Partners
L.P.
Exhibit B
Selected Operating Data – UNAUDITED
For the Three Months For the
Year Ended December 31, Ended December
31, 2015 2014
2015 2014
Selected operating
data: (1)
NGL Pipelines & Services, net: NGL
pipeline transportation volumes (MBPD) 2,858 2,662 2,700 2,634 NGL
marine terminal volumes (MBPD) 327 282 302 258 NGL fractionation
volumes (MBPD) 846 837 826 824 Equity NGL production (MBPD) (2) 147
90 133 116 Fee-based natural gas processing (MMcf/d) (3) 4,886
4,532 4,905 4,786 Crude Oil Pipelines & Services, net: Crude
oil pipeline transportation volumes (MBPD) 1,377 1,288 1,474 1,278
Crude oil marine terminal volumes (MBPD) 443 680 557 691 Natural
Gas Pipelines & Services, net: Natural gas pipeline
transportation volumes (BBtus/d) 11,912 12,284 12,321 12,476
Petrochemical & Refined Products Services, net: Propylene
fractionation volumes (MBPD) 71 81 71 75 Butane isomerization
volumes (MBPD) 115 90 96 93 Standalone DIB processing volumes
(MBPD) 78 86 79 82 Octane additive and related plant production
volumes (MBPD) 15 22 17 17
Pipeline transportation volumes, primarily
refined products and petrochemicals (MBPD)
804 794 784 758
Refined products and petrochemicals marine
terminal volumes (MBPD)
336 284 355 270 Offshore Pipelines & Services, net: Natural gas
pipeline transportation volumes (BBtus/d) -- 644 587 627 Crude oil
pipeline transportation volumes (MBPD) -- 331 357 330 Platform
natural gas processing (MMcf/d) -- 129 101 145 Platform crude oil
processing (MBPD) -- 15 13 14 Total, net:
NGL, crude oil, petrochemical and refined
products pipeline transportation volumes (MBPD)
5,039 5,075 5,315 5,000 Natural gas pipeline transportation volumes
(BBtus/d) 11,912 12,928 12,908 13,103 Equivalent pipeline
transportation volumes (MBPD) (4) 8,174 8,477 8,712 8,448
NGL, crude oil, refined products and
petrochemical marine terminal volumes (MBPD)
1,106 1,246 1,214 1,219
(1)
Operating rates are reported on a net basis, which takes into
account our ownership interests in certain joint ventures, and
include volumes for newly constructed assets from the related
in-service dates and for recently purchased assets from the related
acquisition dates. (2) Represents the NGL volumes we earn and take
title to in connection with our processing activities. (3) Volumes
reported correspond to the revenue streams earned by our gas
plants. “MMcf/d” means million cubic feet per day. (4) Represents
total NGL, crude oil, refined products and petrochemical
transportation volumes plus equivalent energy volumes where 3.8
MMBtus of natural gas transportation volumes are equivalent to one
barrel of NGLs transported.
Enterprise
Products Partners L.P. Exhibit C Selected Commodity
Price Information
Polymer
Refinery Natural Normal
Natural Grade Grade WTI LLS
Gas, Ethane, Propane, Butane,
Isobutane, Gasoline, Propylene,
Propylene, Crude Oil, Crude Oil,
$/MMBtu $/gallon
$/gallon $/gallon
$/gallon $/gallon
$/pound $/pound
$/barrel $/barrel (1) (2) (2) (2) (2)
(2) (3) (3) (4) (4)
2014 by quarter: 1st Quarter $4.95 $0.34
$1.30 $1.39 $1.42 $2.12 $0.73 $0.61 $98.68 $104.43 2nd Quarter
$4.68 $0.29 $1.06 $1.25 $1.30 $2.21 $0.70 $0.57 $102.99 $105.55 3rd
Quarter $4.07 $0.24 $1.04 $1.25 $1.28 $2.11 $0.71 $0.58 $97.21
$100.94 4th Quarter $4.04 $0.21 $0.76
$0.98 $0.99 $1.49
$0.69 $0.52 $73.15
$76.08
YTD 2014 Averages $4.43 $0.27
$1.04 $1.22 $1.25
$1.98 $0.71 $0.57 $93.01
$96.75
2015 by quarter: 1st Quarter $2.99
$0.19 $0.53 $0.68 $0.68 $1.10 $0.50 $0.37 $48.63 $52.83 2nd Quarter
$2.65 $0.18 $0.46 $0.59 $0.60 $1.26 $0.42 $0.29 $57.94 $62.97 3rd
Quarter $2.77 $0.19 $0.40 $0.55 $0.55 $0.98 $0.33 $0.21 $46.43
$50.17 4th Quarter $2.27 $0.18 $0.42
$0.60 $0.61 $0.97
$0.31 $0.18 $42.18
$43.54
YTD 2015 Averages $2.67 $0.18
$0.45 $0.61 $0.61
$1.08 $0.39 $0.26 $48.80
$52.38
(1) Natural gas prices
are based on Henry-Hub Inside FERC commercial index prices as
reported by Platts, which is a division of McGraw Hill Financial,
Inc. (2) NGL prices for ethane, propane, normal butane, isobutane
and natural gasoline are based on Mont Belvieu Non-TET commercial
index prices as reported by Oil Price Information Service. (3)
Polymer-grade propylene prices represent average contract pricing
for such product as reported by Chemical Market Associates, Inc.
(“CMAI”). Refinery grade propylene prices represent
weighted-average spot prices for such product as reported by CMAI.
(4) Crude oil prices are based on commercial index prices for West
Texas Intermediate (“WTI”) as measured on the New York Mercantile
Exchange (“NYMEX”) and for Louisiana Light Sweet (“LLS”) as
reported by Platts.
The weighted-average indicative market price for NGLs (based on
prices for such products at Mont Belvieu, Texas, which is the
primary industry hub for domestic NGL production) was $0.46 per
gallon during the fourth quarter of 2015 versus $0.74 per gallon
for the fourth quarter of 2014.
Fluctuations in our consolidated revenues and cost of sales
amounts are explained in large part by changes in energy commodity
prices. Energy commodity prices fluctuate for a variety of reasons,
including supply and demand imbalances and geopolitical
tensions.
A change in our consolidated marketing revenues due to lower
energy commodity sales prices may not result in a similar change in
gross operating margin or cash available for distribution, since
our consolidated cost of sales amounts would also change due to
comparable decreases in the purchase prices of the underlying
energy commodities.
Enterprise Products Partners L.P. Exhibit
D Distributable Cash Flow - UNAUDITED
($ in millions)
For the Three Months
For the Year Ended December 31,
Ended December 31, 2015 2014
2015 2014 Net income
attributable to limited partners (GAAP) $ 684.8 $
659.8 $ 2,521.2 $ 2,787.4 Adjustments to GAAP net
income attributable to limited partners to derive non-GAAP
distributable cash flow: Add depreciation, amortization and
accretion expenses 368.3 368.1 1,516.0 1,360.5 Add distributions
received from unconsolidated affiliates 99.7 114.4 462.1 375.1
Subtract equity in income of unconsolidated affiliates (71.1 )
(80.4 ) (373.6 ) (259.5 ) Subtract sustaining capital expenditures
(1) (76.8 ) (107.0 ) (272.6 ) (369.0 )
Add net losses or subtract net gains
attributable to asset sales and insurance recoveries
0.9 (3.1 ) 15.6 (102.1 ) Add cash proceeds from asset sales and
insurance recoveries 71.3 23.8 1,608.6 145.3
Add non-cash expense attributable to
changes in fair value of the Liquidity Option Agreement
9.6 -- 25.4 --
Add gains from the monetization of
interest rate derivative instruments
-- 27.6 -- 27.6 Add deferred income tax expense or subtract benefit
(7.3 ) 3.5 (20.6 ) 6.1 Add non-cash impairment charges 23.5 15.8
162.6 34.0
Add or subtract other miscellaneous
adjustments to derive non-GAAP distributable cash flow, as
applicable
(14.1 ) 40.5
(37.4 ) 73.2
Distributable
cash flow (non-GAAP) 1,088.8 1,063.0 5,607.3 4,078.6
Adjustments to non-GAAP distributable cash
flow to derive GAAP net cash flows provided by operating
activities:
Add sustaining capital expenditures
reflected in distributable cash flow
76.8 107.0 272.6 369.0
Subtract cash proceeds from asset sales
and insurance recoveries reflected in distributable cash flow
(71.3 ) (23.8 ) (1,608.6 ) (145.3 )
Subtract gains from the monetization of
interest rate derivative instruments
-- (27.6 ) -- (27.6 ) Add or subtract the net effect of changes in
operating accounts, as applicable
304.6
327.6 (323.3 ) (108.2 ) Add or subtract miscellaneous non-cash and
other amounts to reconcile non-GAAP distributable cash flow with
GAAP net cash flows provided by operating activities, as applicable
12.3 11.6
54.4 (4.3 )
Net cash flows
provided by operating activities (GAAP) $ 1,411.2
$ 1,457.8 $ 4,002.4
$ 4,162.2
(1)
Sustaining capital expenditures are capital expenditures (as
defined by GAAP) resulting from improvements to and major renewals
of existing assets. Such expenditures serve to maintain existing
operations but do not generate additional revenues.
Our management compares the distributable cash flow we generate
to the cash distributions we expect to pay our partners. Using this
metric, management computes our distribution coverage ratio.
Distributable cash flow is an important non-GAAP financial measure
for our limited partners since it serves as an indicator of our
success in providing a cash return on investment. Specifically,
this financial measure indicates to investors whether or not we are
generating cash flows at a level that can sustain or support an
increase in our quarterly cash distributions. Distributable cash
flow is also a quantitative standard used by the investment
community with respect to publicly traded partnerships because the
value of a partnership unit is, in part, measured by its yield,
which is based on the amount of cash distributions a partnership
can pay to a unitholder. The GAAP measure most directly comparable
to distributable cash flow is net cash flows provided by operating
activities.
Enterprise Products Partners
L.P.
Exhibit E
Adjusted EBITDA - UNAUDITED ($ in
millions)
For the Three Months For
the Year Ended December 31, Ended
December 31, 2015 2014
2015 2014 Net income
(GAAP) $ 693.5 $ 681.1 $ 2,558.4 $
2,833.5 Adjustments to GAAP net income to derive non-GAAP Adjusted
EBITDA: Subtract equity in income of unconsolidated affiliates
(71.1 ) (80.4 ) (373.6 ) (259.5 ) Add distributions received from
unconsolidated affiliates 99.7 114.4 462.1 375.1 Add interest
expense, including related amortization 238.6 241.4 961.8 921.0 Add
provision for or subtract benefit from income taxes (6.9 ) 0.6 (2.5
) 23.1 Add depreciation, amortization and accretion in costs and
expenses 357.5 358.9 1,472.6 1,325.1 Add non-cash asset impairment
charges 23.5 15.8 162.6 34.0 Add non-cash losses attributable to
asset sales 1.4 1.4 18.9 7.7
Add non-cash expense attributable to
changes in fair value of the Liquidity Option Agreement
9.6 -- 25.4 --
Add losses or subtract gains attributable
to unrealized changes in the fair market value of derivative
instruments
(10.7 ) 34.4
(18.4 ) 30.6
Adjusted EBITDA
(non-GAAP) 1,335.1 1,367.6 5,267.3 5,290.6 Adjustments to
non-GAAP Adjusted EBITDA to derive GAAP net cash flows provided by
operating activities:
Subtract interest expense, including
related amortization, reflected in Adjusted EBITDA
(238.6 ) (241.4 ) (961.8 ) (921.0 )
Add benefit or subtract provision for
income taxes reflected in Adjusted EBITDA
6.9 (0.6 ) 2.5 (23.1 ) Subtract gains attributable to asset sales
and insurance recoveries (0.5 ) (4.5 ) (3.3 ) (109.8 ) Add deferred
income tax expense or subtract benefit (7.3 ) 3.5 (20.6 ) 6.1 Add
or subtract the net effect of changes in operating accounts, as
applicable 304.6 327.6 (323.3 ) (108.2 )
Add or subtract miscellaneous non-cash and
other amounts to reconcile non-GAAP Adjusted EBITDA with GAAP net
cash flows provided by operating activities
11.0 5.6
41.6 27.6
Net cash
flows provided by operating activities (GAAP) $ 1,411.2
$ 1,457.8 $ 4,002.4
$ 4,162.2
Adjusted EBITDA is commonly used as a supplemental financial
measure by our management and external users of our financial
statements, such as investors, commercial banks, research analysts
and rating agencies, to assess the financial performance of our
assets without regard to financing methods, capital structures or
historical cost basis; the ability of our assets to generate cash
sufficient to pay interest and support our indebtedness; and the
viability of projects and the overall rates of return on
alternative investment opportunities.
Since adjusted EBITDA excludes some, but not all, items that
affect net income or loss and because these measures may vary among
other companies, the adjusted EBITDA data presented in this press
release may not be comparable to similarly titled measures of other
companies. The GAAP measure most directly comparable to adjusted
EBITDA is net cash flows provided by operating activities.
Enterprise Products Partners
L.P.
Exhibit F Gross Operating Margin – UNAUDITED
($ in millions)
For the Three
Months For the Year Ended December 31,
Ended December 31, 2015
2014 2015 2014
Total gross operating margin (non-GAAP) $ 1,353.4
$ 1,358.4 $ 5,332.1 $ 5,286.5
Adjustments to reconcile non-GAAP gross
operating margin to GAAP operating income:
Subtract depreciation, amortization and
accretion expense amounts not reflected in gross operating
margin
(346.2 ) (346.2 ) (1,428.2 ) (1,282.7 )
Subtract non-cash impairment charges not
reflected in gross operating margin
(23.5 ) (15.8 ) (162.6 ) (34.0 )
Add net gains or subtract net losses
attributable to asset sales and insurance recoveries not reflected
in gross operating margin
(0.9 ) 3.1 (15.6 ) 102.1
Subtract non-refundable deferred revenues
attributable to shipper make-up rights on new pipeline projects
reflected in gross operating margin
(14.3 ) (17.8 ) (53.6 ) (84.6 )
Add subsequent recognition of deferred
revenues attributable to make-up rights
15.4 2.9 60.7 2.9
Subtract general and administrative costs
not reflected in gross operating margin
(49.4 ) (63.6 )
(192.6 ) (214.5 )
Operating income
(GAAP) $ 934.5 $ 921.0
$ 3,540.2 $ 3,775.7
We evaluate segment performance based on the non-GAAP financial
measure of gross operating margin. Gross operating margin (either
in total or by individual segment) is an important performance
measure of the core profitability of our operations. This measure
forms the basis of our internal financial reporting and is used by
our executive management in deciding how to allocate capital
resources among business segments. We believe that investors
benefit from having access to the same financial measures that our
management uses in evaluating segment results. The GAAP financial
measure most directly comparable to total segment gross operating
margin is operating income.
In total, gross operating margin represents operating income
exclusive of (1) depreciation, amortization and accretion expenses,
(2) impairment charges, (3) gains and losses attributable to asset
sales and insurance recoveries and (4) general and administrative
costs. In addition, gross operating margin includes equity in
income of unconsolidated affiliates and non-refundable deferred
transportation revenues relating to the make-up rights of committed
shippers associated with certain pipelines. Gross operating margin
by segment is calculated by subtracting segment operating costs and
expenses (net of the adjustments noted above) from segment
revenues, with both segment totals before the elimination of
intercompany transactions. In accordance with GAAP, intercompany
accounts and transactions are eliminated in consolidation. Gross
operating margin is exclusive of other income and expense
transactions, income taxes, the cumulative effect of changes in
accounting principles and extraordinary charges. Gross operating
margin is presented on a 100 percent basis before any allocation of
earnings to noncontrolling interests.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160128005359/en/
Enterprise Products Partners L.P.Randy Burkhalter,
713-381-6812Vice President, Investor RelationsorRick Rainey,
713-381-3635Vice President, Media Relations
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