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/
Copyright Business Wire 2016