Enterprise Products Partners L.P. (EPD) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 3, 2022 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 Enterprise Products Partners Second Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

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

Randy Burkhalter

Thank you, Victor. Good morning, everyone. And welcome to the Enterprise Products Partners conference call to discuss second 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 this call today.

During the 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, we can give no assurance that such expectations will prove ultimately 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 with that, I'll turn the call over to Jim.

Jim Teague

Thank you, Randy. Today, we reported record adjusted EBITDA of $2.4 billion for the second quarter and that was driven primarily by higher margins and our octane enhancement business, higher natural gas processing margins and contributions from the Midland Basin assets we recently acquired. Those assets continue to significantly exceed our expectations.

We generated a record $2 billion of DCF, excluding proceeds from assets sales providing 1.9 times coverage. We retained $974 million of DCF for the quarter taking us to $1.8 billion for the first six months. We achieved 11 financial records and four operating records and more details outlined in the press release and short, it was a good quarter. In this environment, we're not having any trouble keeping our systems full. Our Permian processing plants are running at capacity. We have two processing plants under construction, one in the Delaware, one in the Midland, and we've approved two more, one in each of those basins.