Enterprise Products Partners Q2 Profit Up 91% - Update

(RTTNews) - Midstream energy company Enterprise Products Partners L.P. (EPD: News ) on Monday reported a 91% increase in profit for the second quarter, helped by strong volumes across the company's midstream system which operated at or near record level, reflecting strong demand for natural gas liquids. Earnings per share for the quarter topped analysts' expectations.

The company said that last year's results have been recast to reflect the merger of Teppco Partners, L.P. with the company. The Teppco merger was completed on October 26, 2009.

Enterprise Products' net income for the second quarter grew to $357.2 million or $0.46 per unit from $186.6 million or $0.32 per unit in the prior-year period.

The year-ago quarter's results were reduced by $34 million or $0.07 per unit, associated with the termination of the Texas Offshore Port System or TOPS project.

On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter surged 39% to $7.54 billion from $5.43 billion in the comparable period of the prior year, primarily attributable to higher sales volumes and energy prices. Analysts had a consensus revenue estimate for the quarter of $7.99 billion.

Michael Creel, president and chief executive officer of Enterprise, said, "During the second quarter of 2010, we continued to see strong volumes across our midstream system which operated at or near record levels. NGL, crude oil, refined products and petrochemical pipeline volumes averaged 4 million barrels per day, while natural gas pipeline volumes were a record 12.7 trillion Btu per day and equity NGL production was a record 125,000 barrels per day."

The company's operating income for the second quarter grew 31% from the year-ago period to $815 million, supported by improvement in domestic and global economic activity; strong demand for NGLs and propylene by the petrochemical industry, NGL production growth in the Rockies; and natural gas volume growth from shale plays in Texas and Louisiana.

Enterprise's NGL, crude oil, refined products and petrochemical pipeline volumes for the second quarter were 3.98 million barrels per day or MBPD, up from 3.78 MBPD in the year-ago period. Total natural gas pipeline volumes were 12.73 trillion British thermal units per day or Tbtud, up from 12.13 Tbtud in the year-ago period.

Total onshore natural gas pipeline volumes for the quarter increased to 11.42 TBtud from 10.67 TBtud in the year-ago period. Total offshore natural gas pipeline volumes were 1.31 TBtud, down from 1.46 TBtud last year.

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