Onshore Crude Oil Pipelines & Services – Gross operating margin from Enterprise’s Onshore Crude Oil Pipelines & Services segment increased to $146 million for the third quarter of 2013 compared to $118 million for the third quarter of 2012. Total onshore crude oil pipeline volumes increased by 432 MBPD, or 53 percent, to a record 1.3 million BPD for the third quarter of 2013 from the third quarter of 2012.
Enterprise’s South Texas crude oil pipeline system reported a $51 million increase in gross operating margin on a 97 percent, or 146 MBPD, increase in volume compared to the third quarter of last year. These increases were primarily due to the continued ramp-up of volumes on our Eagle Ford crude oil pipeline extension, which began operations in June 2012. Enterprise’s share of equity income from the Seaway crude oil pipeline increased by $13 million for the third quarter of 2013 compared to the same quarter of 2012 due to an increase in volumes attributable to capital investments made to reverse crude oil flows on the Seaway pipeline to enable the delivery of crude oil from the storage hub in Cushing, Oklahoma to the Gulf Coast. The initial reversal was completed and began operations during May 2012, and the addition of pump stations increased the pipeline’s capacity beginning in January 2013. Enterprise’s crude oil marketing business reported a $41 million decrease in gross operating margin as the result of lower sales margins due in part to the tightening of regional crude oil price spreads.
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $117 million for the third quarter of 2013 compared to $182 million for the third quarter of 2012.
Gross operating margin for Enterprise’s octane enhancement and high-purity isobutylene business was $41 million for the third quarter of 2013 compared to $50 million for the third quarter of 2012. This decrease was primarily due to lower octane enhancement sales margins and volumes and higher maintenance expenses during the third quarter of 2013. The octane enhancement plant lost ten days of production in July 2013 due to an unplanned outage. Octane enhancement plant production volumes were 17 MBPD in the third quarter of 2013 compared to 18 MBPD for the third quarter of 2012.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts