On October 31, 2023, Enterprise Products Partners LP (EPD, Financial) released its financial results for the third quarter of 2023. The company reported a net income attributable to common unitholders of $1.3 billion, marking a decrease from $1.4 billion in the third quarter of 2022. Despite this, the company saw a 5.3% increase in distributions declared for Q3 2023, rising to $0.50 per common unit.
Financial Highlights
Enterprise's Distributable Cash Flow (DCF) remained steady at $1.9 billion for both Q3 2023 and Q3 2022. The company retained $773 million of DCF for Q3 2023, and $3.2 billion for the twelve months ended September 30, 2023. Adjusted cash flow provided by operating activities (Adjusted CFFO) was also consistent at $2.0 billion for both Q3 2023 and Q3 2022.
Performance Overview
Enterprise reported solid financial results for the third quarter of 2023, handling record volumes across its midstream system. The company's strong cash flow supported a 5.3% increase in the cash distribution per common unit to its partners for the third quarter of this year compared to the same quarter a year ago.
Enterprise reported solid financial results for the third quarter of 2023," said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. "Our strong cash flow supported a 5.3 percent increase in the cash distribution per common unit to our partners for the third quarter of this year compared to the same quarter a year ago. We also retained $773 million to reinvest in the growth of the partnership."
Capital Investments and Future Projects
Since the start of the third quarter, Enterprise completed construction and placed into service approximately $2.7 billion of capital projects. The company also announced $3.1 billion of new growth capital projects in its NGL Pipelines & Services segment, its largest business. In total, the company now has $6.8 billion of organic growth projects under construction.
Review of Q3 2023 Results
Enterprise reported total gross operating margin of $2.3 billion for the third quarters of 2023 and 2022. The company's NGL Pipelines & Services segment reported a gross operating margin of $1.2 billion for Q3 2023, compared to $1.3 billion for Q3 2022. The Crude Oil Pipelines & Services segment saw an increase in gross operating margin to $432 million for Q3 2023 from $415 million for Q3 2022.
Capitalization
As of September 30, 2023, the total debt principal outstanding was $29.2 billion, including $2.3 billion of junior subordinated notes. The company had consolidated liquidity of approximately $3.8 billion, comprised of available borrowing capacity under its revolving credit facilities and unrestricted cash on hand.
Explore the complete 8-K earnings release (here) from Enterprise Products Partners LP for further details.
