Enterprise Products Shows Strong Earnings Results as Growth Projects Enter Operation

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Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream company Enterprise Products Partners (NYSE:EPD) (Houston, Texas) on Monday reported strong earnings in first-quarter 2018. The company reported net income of $901 million, compared with $761 million in the same quarter last year. Enterprise's liquids pipelines carried record volumes during the quarter. Industrial Info is tracking more than $5.3 billion in active Enterprise projects.

During the quarter, the company spent $1.1 billion in capital investments and anticipates spending $3.2 billion to $3.4 billion for the year. In the company's conference call, Chief Executive Officer Jim Teague provided updates on some of the company's projects, including those recently completed.

Among the projects recently placed into service is the Midland-to-Sealy crude oil pipeline in Texas. Construction on 450,000-barrel-per-day (BBL/d) pipeline began in the first half of 2017. The capacity can be expanded up to 575,000 BBL/d. Primoris Services Corporation (Dallas, Texas), Holloman Corporation (Houston) and Pumpco Incorporated (Giddings, Texas) were general contractors on the project, which had an estimated total investment value (TIV) of $760 million. For more information, see Industrial Info's project report.

Among the company's largest active projects is the construction of an iso-butane dehydrogenation unit at its facility in Mont Belvieu, Texas. The plant will produce 425,000 metric tons per year of isobutylene. Construction on the $1 billion project kicked off earlier this year, with Optimized Process Designs LLC (Katy, Texas) providing engineering, procurement and construction (EPC). Teague said Enterprise is still aiming for a startup of the unit in the second half of next year. For more information, see Industrial Info's project report.

Teague said, "We have several ethylene projects, including ethylene storage, a new pipeline and our joint venture ethylene export dock all scheduled for late 2019." Enterprise's ethylene export terminal in La Porte, Texas, is a joint venture with Navigator Holdings Limited (London, England). The facility will have a loading rate of 1,000 tons per hour and refrigerated storage capacity of 30,000 tons. Construction is expected to kick off this summer. For more information, see Industrial Info's project report.

"We started commissioning our first gas processing plant in Orla [Texas] in the Delaware Basin in April," said Teague. "We also have two other processing plants under construction at Orla, with completion of our second plant expected in the fourth quarter of this year and our third plant in the first half of 2019." Each train will process 300 million cubic feet per day of natural gas and 40,000 BBL/d of natural gas liquids (NGL), bringing the total plant capacity to 900 million cubic feet per day and 120,000 BBL/d of NGL when all three trains are completed. For additional information, see Industrial Info's project reports on Train 1, Train 2 and Train 3.

"We're also in the process of commissioning our ninth fractionator at Mont Belvieu, which is scheduled to be fully operational this quarter. Obviously, fractionation is in high demand and is a key component in our value chain," said Teague. The train will add 85,000 BBL/d of fractionation capacity to the facility, bringing total plant capacity to 685,000 BBL/d. S&B Engineers and Constructors Limited (Houston) is project manager. The project has an estimated TIV of $500 million. For more information, see Industrial Info's project report.

Teague said the company's $1 billion Shin Oak NGL pipeline is progressing well. The 571-mile, 24-inch-diameter will run from Enterprise's fractionator in Seminole, Texas, to Mont Belvieu. The pipeline will carry 250,000 BBL/d of NGL and is expandable to up to 600,000 BBL/d. Teague said, "This pipeline is expected to begin operation in 2019. We feel strongly that capacity expansions are eminent in order to keep up with the needs of our Permian customers." For more information, see Industrial Info's project report.

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