Enterprise Products Partners L.P. (EPD) reported fourth-quarter 2014 adjusted earnings per limited partner unit of 36 cents, which came in line with the Zacks Consensus Estimate but were lower than the year-ago quarterly earnings of 39 cents.
For full-year 2014, adjusted earnings per limited partner unit were $1.47, which increased from $1.41 in the prior year but lagged the Zacks Consensus Estimate of $1.49.
Transportation of more crude, natural gas and other commodities through its pipelines led to the improvement. Enterprise transported a record 5.4 million barrels per day of natural gas liquids (NGL), crude oil, refined products and petrochemical products, up 4% year over year.
Quarterly distribution at Enterprise increased 5.7% year over year to 37 cents per common unit, or $1.48 per unit on an annualized basis. Distributable cash flow of $1.1 billion provided coverage of 1.5x. The partnership retained $358 million in cash flow, thereby reducing its financing needs.
Revenues in the quarter decreased nearly 22.2% year over year to $10,190.3 million and failed to meet the Zacks Consensus Estimate of $12,045.0 million.
In 2014, revenues increased 0.5% year over year to $47,951.2 million from $47,727.0 million in 2013 but missed the Zacks Consensus Estimate of $50,268.0 million.
Fourth Quarter Segmental Performance
Gross operating income in the NGL Pipeline & Services segment dropped 4.3% year over year to $705.0 million.
Onshore Natural Gas Pipeline and Services’ gross operating income decreased 1.1% year over year to $185.0 million.
Gross operating income from the Onshore Crude Oil Pipelines & Services segment shot up nearly 40% year over year to $228.0 million in the reported quarter.
Gross operating income in the Petrochemical & Refined Product Services segment improved to $199.0 million in the quarter from the year-earlier level of $175.0 million.
However, Enterprise’s Offshore Pipelines & Services’ gross operating income was $42 million in the quarter, higher than $28 million a year ago.
Financials
During the quarter, the partnership spent $5.7 billion, including $4.6 billion to acquire general partner and limited partner interests in Oiltanking Partners and $107 million of sustaining capital expenditures. Total debt principal outstanding as of Dec 31, 2014, was $21.4 billion.
Ranks
Enterprise currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market.
Better-ranked players from the energy sector include Cheniere Energy Partners LP (CQP), Transocean Partners LLC (RIGP) and Phillips 66 Partners LP (PSXP). All the stocks sport a Zacks Rank #1 (Strong Buy).
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