Enterprise Products Company

  • Overview

Both enterprising and productive, Enterprise Products Partners is the #1 player in the North American natural gas, natural gas liquids (NGL), and crude oil industries, with a range of processing, transportation, and storage services. Operations include natural gas processing, NGL fractionation, petrochemical services, and crude oil transportation, including 50,700 miles of pipelines, 14 billion cu. ft. of natural gas storage, and 190 million barrels of NGL, refined products, and crude oil storage capacity. It also has about 20 NGL fractionators, and some 125 barges and almost 60 tow boats. The hub of Enterprise Products Partners' business is Houston's Mont Belvieu refinery complex.

Operations

Enterprise provides midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Its services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation and storage; LPG import and export terminals; crude oil gathering and transportation, storage and terminals; and offshore production platforms; petrochemical and refined products transportation and services. The company also has a marine transportation business that operates primarily on in inland and Intracoastal Waterway systems in the US and in the Gulf of Mexico.

Financial Performance

Enterprise's revenues declined by 4% in 2012 due to lower energy commodity prices which dragged down NGL, natural gas, and petrochemical and refined products marketing revenues. This was partially offset by higher crude oil sales revenues, primarily the result of higher oil prices and an increase in sales volumes.

The company's $2.4 million of net income in 2012 was 18% up on 2011 thanks to decreased operating expenses due to lower overall cost of sales.  The cost of sales associated with NGL, natural gas and petrochemical and refined products marketing activities decreased as the result of lower energy commodity prices.

Strategy

Enterprise's strategy is focused on building and managing an integrated network of midstream energy assets (including salt domes, and fractionation and natural gas processing plants) to take advantage of growing US market demand for natural gas, NGLs, crude oil and refined products. 

The company is investing heavily in serving shale plays, especially the Eagle Ford in South Texas, and is building midstream facilities to serve the surge in natural gas production. In 2012 it opened a fifth NGL fractionator at its Mont Belvieu facility to process Eagle Ford hydrocarbons, and a fifth in 2012.

That year Enterprise joined Enbridge Energy Partners and Anadarko Petroleum in advancing development of the Texas Express Pipeline by the companies' joint venture. The 20-inch diameter pipeline will extend about 580 miles, from Skellytown, Texas, to the Mont Belvieu NGL fractionation complex. The pipeline also provides access to other producers in several regions: West Texas, the Rocky Mountains, southern Oklahoma, and the Mid-continent area. The pipeline, which secured 15-year contracts from several shippers, is expected to begin service in 2013.

In 2013 the company announced plans to develop two refined products export facilities to meet the growing demand for additional refined products export capability on the US Gulf Coast. The Beaumont marine terminal will initially handle Panamax size vessels and is expected to begin service in the first quarter of 2014, followed in mid-2014 by its expanded marine terminal on the Houston Ship Channel that will be initially sized to handle up to Aframax class vessels.

That year it also announced plans to boost its crude oil storage and distribution infrastructure serving the Southeast Texas refinery market. Enterprise’s Crude Oil Houston storage facility will be expanded to more than 6 million barrels of capacity and will have access to Enterprise’s marine terminal at Morgan’s Point on the Houston Ship Channel. It will also increase the partnership’s capability to load propane, butane and isobutane (in rich supply from the Eagle Ford and other shale gas plays) at the marine terminal complex owned by Oiltanking Partners, L.P.

Ownership

The family of Chairman Dan Duncan controls a 37% stake in Enterprise.

Company Background

In a major expansion move, in 2009 the company acquired rival  TEPPCO Partners L.P. in a $26 billion all-stock deal, which boosted its pipelines and oil, refined products, and NGL storage capacity. The TEPPCO Partners purchase made the company the largest publicly traded energy partnership in the US. The expanded company's assets include 60 liquid storage terminals, 25 natural gas storage facilities, 17 fractionation facilities, and six offshore hub platforms.

In 2010, in a move to increase its footprint in the lucrative Haynesville/Bossier Shale play, Enterprise acquired two natural gas gathering and treating systems in northwest Louisiana and East Texas from M2 Midstream LLC for $1.2 billion.

That year the company acquired Enterprise GP Holdings, which controlled the general partner of Enterprise Products Partners. The $8 billion deal was aimed at reducing long-term capital costs and simplifying the business structure of Enterprise Products Partners.

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Enterprise Products Company


1100 Louisiana St
Houston, TX 77002-5227
www.enterpriseproducts.com

STATS


  • Employer Type: Unknown
  • President: Oscar Andras
  • Managing Director: Roy Monarch
  • Coo: A Teague

Major Office Locations

  • Houston, TX
  • Houston, TX