Enterprise Products Partners (EPP) third-quarter 2020 net income rose 3.7% from the same period in 2019 to $1.084 billion. EPP reported total gross operating margin of $2 billion for the third quarters of both 2020 and 2019.
Total capital investments for third-quarter 2020 were $705 million, which included $83 million of sustaining capital expenditures. For the first 9 months of 2020, EPP’s capital investments totaled $2.7 billion, which included $226 million of sustaining capital expenditures. The company expects growth capital investments for 2020 of roughly $2.9 billion, net of cash contributions from noncontrolling interests. Sustaining capital expenditures for 2020 are about $300 million. Capital projects still to be completed in 2020 include a natural gas pipeline to Carthage, Tex., adding 66 million lbs of ethylene storage at EPP’s 2.2-billion lb/year export terminal, and adding three additional connecting pipelines to the terminal (OGJ Online, June 18, 2020).
For 2021 and 2022, EPP expects growth capital investments on sanctioned projects of $1.6 billion and $800 million, respectively. These estimates do not include capital investments associated with the partnership’s proposed deep water offshore crude oil terminal (SPOT), which remains subject to governmental approval.
EPP’s natural gas processing and related NGL marketing business reported gross operating margin of $257 million for third-quarter 2020 compared with $288 million for third-quarter 2019. Enterprise’s natural gas processing plants in South Texas, the Rockies, Louisiana, and Mississippi reported a $54 million decrease in gross operating margin for third-quarter 2020 compared with the third quarter of last year, primarily attributable to lower volumes and processing margins, including a $28 million loss related to hedging activities.
Gross operating margin from the crude oil pipelines and services segment was $482 million for third-quarter 2020 compared with $496 million for third-quarter 2019. Gross operating margin for both timings included $10 million of non-cash, mark-to-market gains related to hedging. Total crude oil pipeline transportation volumes were 1.7 million b/d for third-quarter 2020 compared with 2.3 million b/d for third-quarter 2019.
The company’s gross operating margin from natural gas pipelines and services segment was $208 million for third-quarter 2020 compared with $259 million for third-quarter 2019. Gross operating margin from the Acadian Gas System for third-quarter 2020 decreased $19 million, primarily due to $17 million of benefits from settlements received third-quarter 2019, and decreased reservation fees on the Haynesville Extension pipeline. Transportation volumes on the Acadian Pipeline System decreased about 11%.
Gross operating margin for the petrochemical and refined products services segment increased 9% to $315 million for third-quarter 2020. Total segment pipeline transportation volumes increased 13% to 844,000 b/d for the third quarter of this year from the third quarter of last year. The partnership’s propylene production and related businesses reported gross operating margin of $133 million for third-quarter 2020, a $2 million increase, compared to the same quarter of 2019. Gross operating margin associated with propylene production decreased by $4 million compared with third-quarter 2019. This was more than offset by higher gross operating margin from EPP’s propylene marine export terminal and certain propylene pipelines. Total propylene production was 83,000 b/d for third-quarter 2020 compared with 105,000 b/d for third-quarter 2019.