Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three and nine months ended September 30, 2013. Net income attributable to limited partners for the third quarter of 2013 was $592 million compared to $587 million for the third quarter of 2012. Earnings per unit for the third quarter of 2013 were $0.64 per unit on a fully diluted basis compared to $0.66 per unit on a fully diluted basis for the third quarter of 2012.
On October 14, 2013, Enterprise declared an increase in its quarterly cash distribution rate with respect to the third quarter of 2013 to $0.69 per unit, which represents a 6 percent increase over the $0.65 per unit rate that was paid with respect to the third quarter of 2012. Enterprise generated distributable cash flow of $908 million for the third quarter of 2013 compared to $743 million for the third quarter of 2012. Enterprise’s distributable cash flow for the third quarter of 2013 provided 1.5 times coverage of the cash distribution that will be paid on November 7, 2013 to unitholders of record on October 31, 2013.
Distributable cash flow for the third quarters of 2013 and 2012 included aggregate proceeds from asset sales and insurance recoveries of $57 million and $11 million, respectively. Distributable cash flow for the third quarter of 2012 included a $70 million loss on the settlement of interest rate hedges associated with senior notes we issued during the third quarter of 2012. Excluding proceeds from the sale of assets and insurance recoveries and the loss on the interest rate hedges, distributable cash flow would have been $851 million for the third quarter of 2013 and $802 million for the third quarter of 2012. Using these adjusted amounts, distributable cash flow for the third quarter of 2013 would have provided 1.4 times coverage of the cash distribution declared with respect to the third quarter of 2013 and would have represented a 6 percent increase in distributable cash flow compared to the third quarter of 2012. For the third quarter of 2013, the partnership retained $286 million of distributable cash flow, which is available to reinvest in growth capital projects, reduce debt, and decrease the need to issue additional equity. During the first nine months of 2013, Enterprise retained $907 million of distributable cash flow. Distributable cash flow is a non-generally accepted accounting principle (“non-GAAP”) financial measure that is discussed and reconciled later in this press release.
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