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 51,000 miles of pipelines, 14 billion cu. ft. of natural gas storage, and 200 million barrels of NGL, refined products, and crude oil storage capacity. It also has about 22 NGL fractionators, and some 129 barges and almost 60 tow boats. The hub of Enterprise Products Partners' business is Houston's Mont Belvieu refinery complex.
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.
The NGL Pipelines and Services segment includes natural gas processing plants and related NGL marketing activities, 19,400 miles of NGL pipelines, NGL and related product storage facilities, and 15 NGL fractionators. It also includes the company's NGL import and LPG export terminal operations. NGL marketing activities use a fleet of 670 railcars, most of which are leased from third parties.
Sales and Marketing
BP is the company’s largest non-affiliated customer, accounting for 9% of Enterprises' revenues in 2013 and 9.5% in 2012.
After experiencing a revenue dip in 2012 due to lower energy commodity prices which dragged down NGL, natural gas, and petrochemical and refined products marketing revenues, in 2013 Enterprise’s revenues increased by 12%.
This increase was primarily due to higher oil prices and higher sales volumes. Revenues from the marketing of natural gas and petrochemical products also grew due to higher sales prices, partially offset by lower sales volumes.
In 2013 Enterprises’ net income grew by 7% due to higher revenue and equity income from unconsolidated affiliates.
The company’s operating cash inflow increased to $3.87 billion in 2013 (up from $2.89 billion in 2012) thanks to higher net income and a change in working capital.
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.
In 2014 it teamed up with Plains All American Pipeline to jointly begin building a new condensate gathering system into their Three Rivers terminal and doubling the mainline capacity on their Eagle Ford Joint Venture Pipeline from Three Rivers to Corpus Christi, Texas.
That year Enterprise also completed construction of the first segment of the Aegis pipeline between Mont Belvieu and Beaumont, Texas. Supplying petrochemical customers, this 60-mile segment of 20-inch diameter pipeline is part of the 270-mile Aegis ethane pipeline that will create a 500-mile header system from Corpus Christi to the Mississippi River in Louisiana.
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. Subsequently, its expanded marine terminal on the Houston Ship Channel will handle up to Aframax class vessels.
Mergers and Acquisitions
Growing its portfolio, in 2014 the company acquired the general partner and related incentive distribution rights, 15,899,802 common units and 38,899,802 subordinated units in Oiltanking Partners L.P. held by Oiltanking Holding Americas, Inc. for $4.41 billion. Oiltanking Partners is a major storage provider of crude oil, liquid chemicals, and gas product
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.
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.
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.
That year the company acquired Enterprise GP Holdings, which controlled the general partner of Enterprise. The $8 billion deal was aimed at reducing long-term capital costs and simplifying the business structure of Enterprise Products Partners.
The family of Chairman Dan Duncan controls a 37% stake in Enterprise.