Enterprise Products Partners L.P. (EPD) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 1, 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 Enterprise Products Partners LP Second Quarter 2023 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 Randy Burkhalter, Vice President of Investor Relations. Please go ahead.

Randy Burkhalter

Thank you, Norma and good morning everyone and welcome to the Enterprise Products conference call today 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 the call.

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 those – 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 that made during the call today.

And so, with that, I will turn it over to Jim.

Jim Teague

Thank you, Randy. Today, we reported adjusted EBITDA of $2.2 billion for the second quarter of ‘23 compared to $2.4 billion for the second quarter of ‘22 and $2.3 billion for the first quarter of ‘23. We generated $1.7 billion of DCF, providing 1.6x coverage. Enterprise retained $639 million of DCF in the second quarter, and we’ve retained $1.5 billion year-to-date.

We had resilient financial results despite the impact of lower prices for crude and natural gas, NGLs, and petrochemicals. Our profits were negatively impacted by weaker processing margins for the first part of the year. Our petrochemical service segment continued to perform in spite of the low price and lower margin environment. During the quarter, we established six operational records, including our natural gas pipeline volumes, NGL fractionation volumes and 11.9 million barrels of oil equivalent of total pipeline volumes.

We are also extremely proud of the fact that with the increase in our distribution last quarter, we crossed the threshold of 25 consecutive years of distribution growth, literally unheard of in the midstream industry. This is truly exceptional milestone across all industries and, most importantly, a real tribute to the core principles laid out from our very beginnings that Randa continues to prioritize today.