Enterprise Reports Results for Second Quarter 2014

HOUSTON–(BUSINESS WIRE)–Jul. 31, 2014– Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three and six months ended June 30, 2014.

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 second quarter of 2014 include net gains of $7 million, or $0.01 per unit, attributable to asset sales, whereas net income and fully diluted earnings per unit for the second quarter of 2013 include net losses of $6 million, or $0.01 per unit, attributable to asset sales. For the six months ended June 30, 2014 and 2013, net income and fully diluted earnings per unit include net gains of $96 million, or $0.10 per unit, and $58 million, or $0.06 per unit, respectively, attributable to asset sales and insurance recoveries.

(3) Net income and fully diluted earnings per unit include non-cash asset impairment charges for the second quarters of 2014 and 2013 of $4 million, or less than $0.01 per unit, and $27 million, or $0.03 per unit, respectively. Non-cash asset impairment charges for the six months ended June 30, 2014 and 2013 were $13 million, or $0.01 per unit, and $38 million, or $0.04 per unit, respectively, with both amounts on a fully diluted basis.

1. Enterprise increased its cash distribution with respect to the second quarter of 2014 to $0.72 per unit, or $2.88 per unit on an annualized basis, which represents a 5.9 percent increase from the distribution paid with respect to the second quarter of 2013. This is the 40^th consecutive quarterly increase and the 49^th increase since the partnership’s initial public offering in 1998. The distribution with respect to the second quarter of 2014 will be paid on August 7, 2014 to unitholders of record as of the close of business on July 31, 2014;
2. Enterprise reported distributable cash flow of $954 million for the second quarter of 2014, which provided 1.4 times coverage of the $0.72 per unit cash distribution that will be paid to common unitholders. Enterprise retained approximately $293 million of distributable cash flow for the second quarter of 2014;
3. Enterprise’s natural gas liquid (“NGL”), crude oil, refined products and petrochemical pipeline volumes for the second quarter of 2014 increased 7 percent to a record 5.2 million barrels per day (“BPD”) compared to the second quarter of 2013. Total natural gas pipeline volumes decreased 6 percent to 13.2 trillion British thermal units per day (“TBtud”) for the second quarter of 2014 compared to the second quarter of 2013. NGL fractionation volumes for the second quarter of 2014 increased 25 percent to a record 845 thousand barrels per day (“MBPD”). Fee-based natural gas processing volumes for the second quarter of 2014 increased 8 percent to a record 4.9 billion cubic feet per day (“Bcfd”), while equity NGL production for the second quarter of 2014 increased 15 percent to 136 MBPD;Enterprise made capital investments of approximately $697 million during the second quarter of 2014, including $77 million of sustaining capital expenditures;
4. Affiliates of privately-held Enterprise Products Company (“EPCO”), which collectively own our general partner and approximately 36 percent of our outstanding limited partner interests, expect to purchase an additional $25 million of common units from Enterprise in August 2014 through the distribution reinvestment plan. This purchase would bring total purchases by these affiliates in 2014 to $75 million. EPCO had previously stated an interest in purchasing up to $100 million of Enterprise common units in 2014; and
5. On July 15, 2014, Enterprise announced a two-for-one split of its common units. The split will be accomplished by distributing one additional common unit for each common unit outstanding. The additional common units will be distributed on August 21, 2014 to holders of record as of the close of business on August 14, 2014. All earnings per unit and other unit-related information contained in this press release are on a pre-split basis.

For detailed report visit: http://phx.corporate-ir.net/phoenix.zhtml?c=80547&p=irol-newsArticle&ID=1953448

Source: Enterprise Products Partners L.P.

Enterprise Products Partners L.P.
Randy Burkhalter, (713) 381-6812
Vice President, Investor Relations
or
Rick Rainey, (713) 381-3635
Vice President, Media Relations