Review of Segment Performance for the Fourth Quarter of 2012

NGL Pipelines & Services – Gross operating margin for the NGL Pipelines & Services segment was $632 million for the fourth quarter of 2012 compared to $635 million for the same quarter of 2011.

Enterprise’s natural gas processing and related NGL marketing business generated gross operating margin of $330 million for the fourth quarter of 2012 compared to $396 million for the fourth quarter of 2011. This $66 million decrease was largely due to the effects of a decrease in NGL prices and natural gas processing margins as well as a decrease in equity NGL production from our Rocky Mountain, Permian Basin and East Texas natural gas processing plants. These decreases were partially offset by an increase in gross operating margin from higher fee-based processing volumes at our South Texas and Louisiana facilities. The South Texas facilities include two processing trains at our new Yoakum, Texas natural gas processing complex that began operations in mid-2012. Enterprise’s equity NGL production (the NGLs that the partnership earns title to as a result of providing processing services) decreased to 96 MBPD for the fourth quarter of 2012 compared to 112 MBPD for the fourth quarter of 2011 largely due to a decrease in ethane volume extracted in the fourth quarter of 2012. Enterprise reported a 15 percent increase in fee-based processing volumes to a record 4.7 Bcfd for the fourth quarter of 2012 compared to 4.1 Bcfd for the fourth quarter of 2011.

Gross operating margin from the partnership’s NGL pipelines and storage business increased $50 million to $220 million for the fourth quarter of 2012 from $170 million for the fourth quarter of 2011. Enterprise’s South Texas NGL pipelines, which include the new Eagle Ford NGL pipeline completed in mid-2012, reported a $27 million increase in gross operating margin on higher volumes. Gross operating margin from our NGL export dock on the Houston Ship Channel and a related pipeline increased $8 million due to higher volumes during the fourth quarter of 2012. The remainder of the increase in gross operating margin for this business in the fourth quarter of 2012 was attributable to over twenty NGL pipelines and storage and terminal facilities. NGL pipeline volumes were a record 2.5 million BPD for the fourth quarter of 2012, a 269 MBPD increase from the fourth quarter of 2011.

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