Enterprise Products Partners L.P. (EPD) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 2, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Q1 2023 Enterprise Products Partners L.P. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Randy Burkhalter, VP of Investor Relations. Please go ahead.

Randy Burkhalter

Thank you, Gigi, and welcome, everyone. Good morning, and welcome to the Enterprise Products Partners conference call to discuss first quarter earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's General Partner, Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call today.

During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available to Enterprise's management team. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.

And so with that, I'll turn the call over to Jim.

Jim Teague

Thank you, Randy. Today, we announced Enterprise is off to another good start for the year. We reported adjusted EBITDA of $2.3 billion for the first quarter of '23. We generated $1.9 billion of distributable cash flow, providing 1.8x coverage. We retained $863 million of DCF for the first quarter. We reported 7 operating records and 1 financial record in the quarter, mostly related to our pipeline activities and export volumes across multiple commodities.

We had record pipeline and fee-based natural gas processing volumes, record NGL and marine terminal volumes and near-record total marine terminal volumes. In March alone, our marine terminals loaded over 70 million barrels of NGLs, crude oil, refined products and petrochemicals for export.

Our NGL and natural gas pipeline businesses as well as our natural gas marketing and octane enhancement activities also reported strong increases in gross operating margin compared to the first quarter of last year. We also saw strong margins in our refined products business, offset by lower volumes in our propylene business, where PDH 1 was down for 24 days during the first quarter for planned maintenance.