Enterprise Products Partners reports 12% profit increase in Q2, but misses analyst expectations By Investing.com

HOUSTON – Enterprise Products Partners LP (NYSE: NYSE:) announced financial results for the second quarter of 2024, showing that net income attributable to common shareholders increased 12% compared to the same period last year.

The company reported net income of $1.4 billion, or $0.64 per unit on a fully diluted basis, slightly below the analyst consensus estimate of $0.66 per unit. Revenue for the quarter was substantial at $13.48 billion, but fell short of the $14.26 billion that analysts had been predicting.

The company’s distributable cash flow (DCF) was $1.8 billion for the quarter, improving from $1.7 billion in the second quarter of 2023. Declared distributions also increased 5% to $0.525 per common unit. Adjusted cash flow from operating activities (adjusted CFFO) increased, reaching $2.1 billion for the quarter, compared to $1.9 billion in the prior year.

Enterprise’s capital expenditures were significant, totaling $1.3 billion in the second quarter, including $1.0 billion for growth capital projects. The company has also been active in buying back its common units, spending approximately $40 million in the second quarter as part of its $2.0 billion buyback program.

AJ “Jim” Teague, co-CEO of Enterprise’s general partner, commented on the results: “Enterprise reported a solid second quarter in terms of both volumes and cash flow generated by our integrated midstream system.” He attributed the increase in gross operating margin primarily to new processing plants in the Permian Basin and improvements in natural gas processing margins.

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