Enterprise Products makes $5.6B profit in 2022, transports record volumes in Q4
February 1, 2023
Houston-based Enterprise Products Partners LP (NYSE: EPD) brought in a $5.62 billion profit this year as the midstream company transported record volumes through its pipeline network.
The company's total pipeline transportation volume was 11.5 million barrels of oil equivalent per day during the fourth quarter, up from 11.3 million boepd during Q3, co-CEO Jim Teague said in Q4 earnings Feb. 1. Enterprise's quarterly earnings also benefitted from higher natural gas processing margins.
The company also saw positive contributions from its $3.25 billion acquisition of The Woodlands-based Navitas Midstream Partners last year, which bolstered Enterprise's footprint in the Permian Basin.
Gross operating margins from Enterprise's natural gas liquids pipelines and services segment grew 17% to $1.29 billion in Q4, up from $1.11 billion a year prior.
Looking ahead, Enterprise has $3.6 billion in assets under construction that are slated to enter operations this year, Teague said.
"These major projects include our second facility to convert propane into polymer grade propylene (PDH 2), two natural gas processing plants in the Permian Basin and a 12th NGL fractionator at our Chambers County complex," Teague said.
Financial results
Enterprise reported 2022 net income of $5.62 billion, or $2.50 per unit, up from $4.76 billion, or $2.10 per unit, in 2021. Analyst forecasts had expected earnings of $2.49 per unit this year, according to data from Yahoo Finance.
During the fourth quarter, Enterprise brought in net income of $1.45 billion, or 65 cents per unit — up from $1.06 billion, or 47 cents per unit, during Q4 2021. Enterprise beat analyst earnings forecasts of 62 cents per unit.
The midstream company's full-year 2022 revenue was $58.19 billion, up 42% year over year from $40.81 billion in 2021. Analysts expected 2022 revenue of $58.03 billion.
Meanwhile, revenue earned in Q4 was $13.65 billion, short of analyst forecasts of $15.16 billion for the quarter, per Yahoo Finance.
In January, the Enterprise board approved a quarterly cash distribution of 49 cents per unit, up 3% from the company's previous distribution. The current quarterly distribution will be paid on Feb. 14 to Enterprise unitholders as of Jan. 31.
Enterprise spent $250 million in unit buybacks during the entire year, including $120 million in the fourth quarter.
After closing at $25.60 per unit on Jan. 31, Enterprise's stock closed up slightly at $25.68 per unit on Feb. 1, per Yahoo Finance data.
Enterprise Products Partners ranked No. 6 on the Houston Business Journal's 2022 Largest Public Companies List, based on its 2021 companywide revenue of $40.81 billion.