This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Enterprise Reports Results For The Third Quarter Of 2012

Stocks in this article: EPD

This shift to more fee-based natural gas processing volumes and less equity NGL production reflects a desire by producers to pay a fee to process their natural gas production and retain their NGL production along with the associated commodity price risk to increase their revenue and return on investment. We view this development as a “win/win” as it provides producers with higher returns on capital and greater economic incentive to drill while providing Enterprise with an increase in fee-based volumes and cash flow.

Fee-based natural gas processing volumes and equity NGL production from the partnership’s processing plants in South Texas increased by 33 percent and 223 percent, respectively, to 1.9 Bcfd and 17 MBPD, respectively, associated with natural gas and NGL production growth from the Eagle Ford shale. These increases in South Texas volumes were primarily due to the start-up of two natural gas processing trains at the Yoakum plant. The first train began commercial operations in May 2012 while the second train began operations in late August 2012. The increase in equity NGL production from the South Texas plants partially offset a 22 MBPD decrease from Enterprise’s natural gas processing plants in the Rocky Mountains due to lower production and reduced recoveries of ethane.

Gross operating margin from the partnership’s NGL pipelines and storage business increased $49 million, or 34 percent, to $195 million for the third quarter of 2012 from $146 million for the third quarter of 2011. NGL pipeline volumes increased by 232 MBPD, or 10 percent, in the third quarter of 2012 to 2.5 million BPD compared to the third quarter of 2011.

The Mid-America and Seminole pipeline systems and related NGL terminals reported a $15 million increase in gross operating margin primarily due to an increase in system-wide tariffs that became effective in July 2012 and other fees. Enterprise’s South Texas NGL pipeline systems reported a $16 million increase in gross operating margin on a 110 MBPD increase in NGL volumes compared to the third quarter of 2011. This increase was primarily attributable to the partnership’s Eagle Ford NGL pipeline, which began operations in April 2012. Enterprise’s NGL storage assets reported an $11 million increase in gross operating margin for the third quarter of 2012 compared to the same quarter of 2011. The partnership’s marine terminals on the Houston Ship Channel and related pipeline facilities reported an aggregate increase in gross operating margin of $8 million for the third quarter of 2012 compared to the third quarter of last year primarily due to higher volumes.

5 of 11

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs