Enterprises Products Partners L.P Earnings: Beats Wall Street Expectations

Enterprises Products Partners L.P (NYSE:EPD) reported net income above Wall Street’s expectations for the first quarter. Enterprise Products Partners is a North American midstream energy company providing a range of services to producers and consumers of natural gas, natural gas liquids, crude oil, and certain petrochemicals.

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Enterprises Products Partners L.P Earnings Cheat Sheet for the First Quarter

Results: Net income for Enterprises Products Partners L.P rose to $651.3 million (73 cents per share) vs. $420.7 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 54.8% from the year-earlier quarter.

Revenue: Rose 10.5% to $11.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Enterprises Products Partners L.P beat the mean analyst estimate of 59 cents per share. Analysts were expecting revenue of $11.03 billion.

Quoting Management: “Enterprise’s geographic and business diversification served us well during the first quarter of 2012 as we reported near record financial results despite challenges in certain of our businesses,” stated Michael A. Creel, president and CEO of Enterprise. “Our NGL Pipelines & Services and Onshore Natural Gas Pipelines & Services segments reported record gross operating margin on higher sales and natural gas processing margins; record fee-based natural gas processing and NGL fractionation volumes; and an increase in natural gas pipeline volumes from the Haynesville and Eagle Ford shale areas. These record results more than offset challenges we had at our octane enhancement facility, which was out of service for most of the quarter due to maintenance and unplanned mechanical repairs and reduced gross operating margin by at least $35 million. Our octane enhancement facility has since returned to full commercial operations. We were also negatively impacted by lower propane pipeline volumes due to warmer than normal weather and lower demand to transport refined products from the Gulf Coast to the Midwest. Broadly, our integrated system of assets continued to benefit from production growth in non-conventional shale resource plays and from increased demand for NGLs by the U.S. petrochemical industry and international customers.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 27.9%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 48.7% from the year earlier quarter.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 11 cents in the fourth quarter of the last fiscal year, by 5 cents in the third quarter of the last fiscal year, and by 4 cents in the second quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 59 cents per share from 56 cents. For the fiscal year, the average estimate has moved up from $2.29 a share to $2.42 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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