Enterprise Products Partners LP's (EPD) second-quarter profit
jumped 27% on higher revenue, while sister company Duncan Energy
Partners LP (DEP) fell 3% on higher expenses.
Enterprise is in the midst of a planned $2.5 billion acquisition
of Duncan, which the suitor's parent company had spun off in 2006
as a separate entity holding interest in some of Enterprise's
mid-stream assets. Enterprise now owns Duncan's general partner and
about 58% of its common units.
Enterprise has seen results soar in recent quarters, helped in
part by its $3.3 billion merger with Teppco Partners LP in late
2009, creating one of the U.S.'s largest pipeline companies. The
company said in May it had $5 billion worth of expansion projects
slated for upcoming years as it seeks to take advantage of growing
U.S. onshore oil and gas production. Among its closely watched
projects is a joint venture with Energy Transfer Partners (ETP) to
build a pipeline connecting the oil storage home Cushing, Okla. to
the U.S. refining center of Houston, Texas.
Enterprise reported a profit of $448.5 million, or 51 cents a
unit, up from $354.4 million, or 26 cents a unit, a year earlier.
Revenue rose 49% to $11.2 billion driven by higher commodity prices
and volumes.
Analysts polled by Thomson Reuters most recently forecast a
profit of 44 cents on $9.82 billion in revenue.
Operating margin narrowed to 5.7% from 7.2% as costs and
expenses rose 51%.
Duncan, meanwhile, posted a profit of $22.5 million, or 39 cents
a unit, down from $23.3 million, or 40 cents a unit, a year
earlier. Revenue rose 14% to $302.8 million.
Analysts forecast a 41-cent profit on $268 million in
revenue.
Costs and expenses rose 9.8%.
Common units of Enterprise closed at $37.50 Monday while common
units of Duncan closed at $37.55. Both stocks were inactive
premarket.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com