Houston - Feb. 1, 2023
Enterprise Products Partners L.P. ("Enterprise") (NYSE: EPD) today announced its financial results for the three months and year ended December 31, 2022.
Year Ended 2022 Results
Enterprise reported net income attributable to common unitholders of $5.5 billion, or $2.50 per unit on a fully diluted basis for 2022, compared to $4.6 billion, or $2.10 per unit on a fully diluted basis for 2021. Net income for 2022 and 2021 was reduced by non-cash, asset impairment charges of approximately $53 million, or $0.02 per fully diluted unit, and $233 million, or $0.11 per fully diluted unit, respectively.
Distributable Cash Flow ("DCF") increased 17 percent to $7.8 billion for 2022 compared to $6.6 billion for 2021. DCF provided 1.9 times coverage of the distributions declared with respect to 2022. Enterprise retained $3.6 billion of DCF in 2022 to reinvest in the partnership, repurchase partnership units, and reduce debt. Distributions declared with regard to 2022 increased 5 percent to $1.905 per common unit, compared to distributions declared for 2021, marking the partnership’s 24th consecutive year of distribution growth.
Adjusted cash flow provided by operating activities ("Adjusted CFFO"), increased 13 percent to $8.1 billion for 2022 compared to $7.1 billion for 2021. Enterprise’s payout ratio of distributions to common unitholders and partnership unit buybacks was 54 percent of Adjusted CFFO in 2022. Adjusted Free Cash Flow ("Adjusted FCF") was $3.0 billion for 2022. Excluding $3.2 billion used for the acquisition of Navitas Midstream Partners, LLC ("Navitas Midstream") in February 2022, the partnership’s payout ratio of Adjusted FCF was 71 percent for 2022.
"We are extremely proud and grateful for the teamwork and contribution of our 7,200 employees to Enterprise’s record performance in 2022," said A. J. "Jim" Teague, co-chief executive officer of Enterprise’s general partner. "We established 25 safety, operating and financial records in 2022."
"The partnership’s performance was generated by record volumes across many of our assets, higher margins in our natural gas processing and octane enhancement businesses, and contributions from our acquisition of Navitas Midstream. This acquisition was immediately accretive to Enterprise’s cash flow per unit and has exceeded our expectations. We also increased the value of our partnership in 2022 by investing $1.6 billion in organic growth projects and asset purchases and strengthened our balance sheet by repurchasing $250 million of our common units on the open market while reducing the principal amount of our debt by $1.3 billion," continued Teague.
Fourth Quarter and Full Year 2022 Financial Highlights
(1) Net income and fully diluted earnings per common unit for the fourth quarters of 2022 and 2021 include non-cash asset impairment charges of approximately $5 million, or less than $0.01 per fully diluted unit, and $120 million, or $0.05 per unit, respectively. For the years ended December 31, 2022 and 2021, net income and fully diluted earnings per common unit include non-cash asset impairment charges of $53 million, or $0.02 per unit, and $233 million, or $0.11 per unit, respectively.
(2) Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), Adjusted CFFO, Adjusted FCF and DCF are non-generally accepted accounting principle ("non-GAAP") financial measures that are defined and reconciled later in this press release.
• Enterprise increased its cash distribution 5.4 percent to $0.49 per common unit with respect to the fourth quarter of 2022 compared to the distribution declared with respect to the fourth quarter of 2021. The distribution will be paid on February 14, 2023, to common unitholders of record as of the close of business on January 31, 2023.
• DCF for the fourth quarter of 2022 was $2.0 billion, which provided 1.9 times coverage of the $0.49 per common unit cash distribution. Enterprise retained $956 million of DCF in the fourth quarter of 2022.
• Adjusted CFFO for the fourth quarter of 2022 was a record $2.1 billion compared to $1.8 billion for the same quarter in 2021. Adjusted FCF was $1.4 billion for both the fourth quarters of 2022 and 2021.
• Capital investments in the fourth quarter of 2022 were $763 million, which included $160 million for purchases of approximately 580 miles of pipelines and related assets and $138 million of sustaining capital expenditures. Total capital investments for 2022 were $5.2 billion, including $3.2 billion for the acquisition of Navitas Midstream, $1.4 billion of investments in growth capital projects, $160 million for purchases of pipelines and related assets and $372 million of sustaining capital expenditures.
• During the fourth quarter of 2022, Enterprise purchased $120 million of its common units in the open market, bringing the total amount of common unit buybacks during 2022 to $250 million. Including these purchases in 2022, the partnership has utilized 37 percent of its authorized $2.0 billion unit buyback program. In addition, the partnership’s distribution reinvestment and employee unit purchase plans purchased $41 million and $164 million of Enterprise common units on the open market during the fourth quarter and the full year 2022, respectively.
Enterprise Products Partners L.P. press release