Enterprise Q2 net income up 10% on demand recovery

July 29, 2021
Enterprise Products Partners LP (EPP) had net income of $1.1 billion for second-quarter 2021, compared with $1.0 billion for second-quarter 2020. Enterprise attributed improved earnings to the ongoing recovery in demand.

Enterprise Products Partners LP (EPP) had net income of $1.1 billion for second-quarter 2021, compared with $1.0 billion for second-quarter 2020. Enterprise attributed the improved earnings to ongoing recovery in demand for crude oil, NGLs, primary petrochemicals, and refined products as the global economy continues to reopen from COVID-related lockdowns.

EPP’s liquids pipelines transported 6.4 million b/d during second-quarter 2021, within 4% of 2019 volumes of 6.7 million b/d. The company’s natural gas pipelines transported 14.2 bcfd for the second quarter, equaling 2019 volumes. NGL fractionation volumes for second-quarter 2021 remained at what EPP described as near record levels of 1.2 million b/d. Propylene production was a company-record 113,000 b/d. Liquid volumes handled by the company’s marine terminals for second-quarter 2021 were 1.6 million b/d, which still lagged 2019 volumes of 1.9 million b/d, primarily due to weakness in crude oil and refined product exports, EPP said.

“Enterprise’s major construction projects remain on-time and on-budget,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “The next two growth projects scheduled for completion in the fourth quarter of 2021 are the Gillis natural gas pipeline that will connect Haynesville Shale production with the LNG markets in southwest Louisiana and a natural gasoline treater in Chambers County, Tex.,” Teague added.

Total capital spending in second-quarter 2021 was $634 million, which included $117 million of sustaining capital expenditures. For the first 6 months of 2021, Enterprise’s capital spending was $1.3 billion, including $261 million of sustaining capital expenditures. Included in sustaining capital expenditures for the first 6 months were $97 million associated with the planned turnarounds of PDH, octane enhancement, and high-purity isobutylene plants.

EPP’s expects growth capital investments associated with sanctioned projects for 2021 and 2022 to total $1.7 billion and $800 million, respectively. These estimates do not include capital investments associated with Enterprise’s proposed deepwater Seaport Oil Terminal, which remains subject to governmental approval. The company expects sustaining capital expenditures of about $440 million for 2021.