EnterpriseProducts Partners L.P. EPD reported fourth-quarter 2015 adjusted earnings per limited partner unit of 35 cents, which came in line with the Zacks Consensus Estimate.
The bottom line was higher than the year-ago quarterly earnings of 34 cents.
Quarterly distribution at Enterprise Products Partners increased 5.4% year over year to 39 cents per common unit, or $1.56 per unit on an annualized basis. Adjusted distributable cash flow of $1,089 million provided coverage of 1.3x. The partnership retained $302 million in cash flow, thereby reducing its financing needs.
Quarterly revenues plunged to $6,155 million from $10,190.3 million in the year-ago quarter. The top line also failed to meet the Zacks Consensus Estimate of $6,877 million.
Fourth-Quarter Segmental Performance
Gross operating income in the NGL Pipeline & Services segment rose to $730.3 million from $705.3 million in the year-ago quarter.
Onshore Natural Gas Pipeline and Services’ gross operating income increased to $194.3 million from $184.5 million in the year-ago quarter.
Gross operating income from the Onshore Crude Oil Pipelines & Services segment soared 13% year over year to $257.7 million.
Gross operating income from the Petrochemical & Refined Product Services segment declined to $171.1 million from the year-earlier level of $198.6 million.
The Offshore Pipelines & Services segment had no contribution to the gross operating income in the fourth quarter. This was because Enterprise Products Partnersclosed the sale of its offshore Gulf of Mexico business on Jul 24, 2015. The Offshore Pipelines & Services segment had earned $42 million in the fourth quarter of 2014.
Financials
During the quarter, the partnership spent $1,235.8 million. Outstanding total debt principal as of Dec 31, 2015 was $22.7 billion. Enterprise Products Partners had consolidated liquidity of $4.4 billion, which comprised unrestricted cash on hand and available borrowing capacity.
Zacks Rank and Key Stock Picks
Currently, Enterprise Products Partners carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the oil and gas production/pipeline MLP space are EnLink Midstream Partners, LP ENLK, Shell Midstream Partners, L.P. SHLX and Summit Midstream Partners, LP SMLP. All of these stocks hold a Zacks Rank #2 (Buy).
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