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Enterprise Reports Record Results For 2012

Stock quotes in this article: EPD 

Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $143 million in the fourth quarter of 2012 compared to $137 million in the fourth quarter of 2011.

The partnership’s propylene business reported gross operating margin of $34 million for the fourth quarter of 2012 compared to $44 million in the fourth quarter of 2011 primarily due to lower volumes and sales margins and higher operating expenses. Propylene fractionation volumes were 69 MBPD in the fourth quarter of 2012 compared to 75 MBPD for the same quarter of 2011. Related propylene pipeline volumes were 116 MBPD during the fourth quarter of 2012 compared to 119 MBPD in the fourth quarter of 2011.

Enterprise’s butane isomerization business reported gross operating margin of $25 million in the fourth quarter of 2012 compared to $32 million in the fourth quarter of 2011 due to a decrease in isomerization volumes and lower revenues from the sales of by-products. Butane isomerization volumes during the fourth quarter of 2012 were 93 MBPD compared to 106 MBPD in the fourth quarter of 2011.

Gross operating margin for Enterprise’s octane enhancement and high-purity isobutylene business was $13 million for the fourth quarter of 2012 compared to $27 million for the fourth quarter of 2011 largely due to lower volumes as our octane enhancement plant began its annual turnaround in December 2012, which has historically been done in the first quarter. The octane enhancement plant completed its turnaround and returned to full operations in mid-January 2013.

Enterprise’s refined products pipelines and related services business reported gross operating margin of $53 million for the fourth quarter of 2012 compared to $18 million for the fourth quarter of 2011. This $35 million increase in gross operating margin was largely due to lower operating expenses and improved performance in refined products marketing, which more than offset a 25 MBPD decrease in pipeline volumes. Pipeline volumes for this business were 589 MBPD for the fourth quarter of 2012 compared to 614 MPBD for the fourth quarter of 2011.

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