Enterprises Products Partners L.P Earnings Cheat Sheet: Double-Digit Revenue Growth

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

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

Results: Net income for the oil and gas company rose to $449 million (51 cents per share) vs. $354 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 26.8% from the year earlier quarter.

Revenue: Rose 48.7% to $11.22 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EPD beat the mean analyst estimate of 47 cents per share. It beat the average revenue estimate of $9.82 billion.

Quoting Management: “Enterprise reported record financial results for the second quarter 2011,” stated Michael A. Creel, president and CEO of Enterprise.”Our 50,000-mile system of natural gas, NGL, refined products, petrochemical and crude oil pipelines continues to operate at record or near record volumes.This performance was driven by natural gas, NGL and crude oil production growth in the shale regions as well as demand for NGLs by the U.S. petrochemical industry and international markets.”

Key Stats:

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 1.5 percentage points to 6.1% from the year earlier quarter. Over that time, margins have contracted on average 1.1 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 19.2% to $10.18 billion from the year earlier quarter.

Competitors to Watch: Duncan Energy Partners L.P. (NYSE:DEP), Enterprise GP Hldgs. L.P. (EPE), Kinder Morgan Inc (NYSE:KMI), Kinder Morgan Energy Partners LP (NYSE:KMP), El Paso Corporation (NYSE:EP), Copano Energy, L.L.C. (NASDAQ:CPNO), Southern Union Company (NYSE:SUG), Energy Transfer Partners, L.P. (NYSE:ETP), Blue Dolphin Energy Co. (NASDAQ:BDCO), and DCP Midstream Partners, LP (NYSE:DPM).

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