Enterprise Declares Quarterly Distribution Increase
October 12 2017 - 4:11PM
Business Wire
Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”)
announced today that the board of directors of its general partner
declared an increase in the quarterly cash distribution paid to
limited partners to $0.4225 per common unit, or $1.69 per unit on
an annualized basis.
The quarterly distribution will be paid on Tuesday, November 7,
2017, to unitholders of record as of the close of business on
Tuesday, October 31, 2017. This distribution, which represents a
4.3 percent increase over the distribution declared with respect to
the third quarter of 2016, is the 53rd consecutive quarterly
increase.
“We are pleased to announce our 62nd distribution increase since
our initial public offering in 1998,” said A. J. “Jim” Teague,
chief executive officer of the general partner of Enterprise. “We
elected to moderate the quarterly increase in our distribution rate
with respect to the third quarter of 2017 to $0.0025 per unit
compared to the second quarter of 2017. Based on current
expectations, we plan to recommend to our board that we continue
this level of quarterly distribution growth, $0.0025 per unit per
quarter, for 2018 as well. We will reassess our distribution growth
rate for 2019 as we consider our investment opportunities and
alternatives for returning capital to investors.”
“While small, this moderation in distribution growth will
compound to further strengthen our distribution coverage, increase
our retained distributable cash flow available to fund growth
capital opportunities, and reduce unitholder dilution. Most
importantly, we believe the combination of our expected increases
in distributable cash flow from new projects going into service
during the remainder of 2017 and 2018 and this moderation in
distribution growth will get us closer to self-funding the equity
portion of our capital investments in the future. Currently, we
have approximately $9 billion of capital projects under
construction with additional projects under development. By 2019,
we believe we could have the potential to fund the equity portion
of a $2.5 billion annual capital investment program and consider a
common unit buyback program. We believe this step enhances our
partnership’s financial flexibility, further strengthens our
balance sheet and creates greater long-term value for our limited
partners,” stated Teague.
Enterprise will announce its earnings for the third quarter of
2017 on Thursday, November 2, 2017, before the New York Stock
Exchange opens for trading. While we are still in the process of
finalizing our third quarter of 2017 financial results, we
currently expect our distribution coverage for the third quarter of
2017 to be approximately 1.2 times.
Enterprise will host a conference call today at 4 p.m. CT with
analysts and investors to discuss this distribution increase and
allocation of capital resources. The call will be webcast live on
the Internet and may be accessed through the “Investors” section of
the partnership’s website, www.enterpriseproducts.com. To listen to
the webcast, participants should access the partnership’s website
at least 15 minutes prior to the start of the conference call to
download and install any necessary audio software. A replay of the
webcast will be available for one week following the conference
call and may be accessed one hour after completion of the call.
Following the announcement of Enterprise’s earnings on November
2, the partnership will host a conference call at 9 a.m. CT with
analysts and investors to discuss earnings. The call will be
webcast live on the Internet and may be accessed through the
“Investors” section of the partnership’s website. A replay of the
webcast will be available for one week following the conference
call and may be accessed one hour after completion of the call.
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage, and export and import terminals; crude oil gathering,
transportation, storage, export and terminals; petrochemical and
refined products transportation, storage and terminals; and a
marine transportation business that operates primarily on the
United States inland and Intracoastal Waterway systems. The
partnership’s assets include approximately 50,000 miles of
pipelines; 260 million barrels of storage capacity for NGLs, crude
oil, refined products and petrochemicals; and 14 billion cubic feet
of natural gas storage capacity. This release is intended to be a
qualified notice under Treasury Regulation Section 1.1446-4(b).
Brokers and nominees should treat one hundred percent (100.0%) of
Enterprise’s distributions to non-U.S. investors as being
attributable to income that is effectively connected with a United
States trade or business. Accordingly, Enterprise’s distributions
to non-U.S. investors are subject to federal income tax withholding
at the highest applicable effective tax rate.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner expect, believe or anticipate
will or may occur in the future are forward-looking statements.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from expectations, including required approvals by regulatory
agencies, the possibility that the anticipated benefits from such
activities, events, developments or transactions cannot be fully
realized, the possibility that costs or difficulties related
thereto will be greater than expected, the impact of competition,
and other risk factors included in Enterprise’s reports filed with
the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except as required by law, Enterprise
does not intend to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171012006417/en/
Enterprise Products Partners L.P.Randy Burkhalter, (713)
381-6812 or (866) 230-0745Investor RelationsorRick Rainey, (713)
381-3635Media Relations
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