Enterprise Products Partners L.P. (NYSE:EPD) Q1 2017 Earnings Conference Call - Final Transcript

May 02, 2017 • 10:00 am ET

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Enterprise Products Partners L.P. (NYSE:EPD) Q1 2017 Earnings Conference Call - Final Transcript

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Operator
Operator

Good morning. My name is Nicole and I will be your conferencing operator today. At this time, I would like to welcome everyone to the Enterprise Products Partners Q1 2017 Earnings Conference Call.

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

[Operator Instructions] It is now my pleasure to hand the conference over to Mr. Randy Burkhalter. Please go ahead, sir.

Executive
Randy Burkhalter

Thank you, Nicole. Good morning, everyone, and welcome to our first quarter call. Our speakers today will be Jim Teague, Chief Executive Officer of Enterprise's General Partner; and Bryan Bulawa, Chief Financial Officer. Other members of our senior management team are in attendance today for the call. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information readily available to Enterprise's management team. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.

And with that, I'll turn the call over to Jim.

Executive
Jim Teague

Thank you, Randy. Our business continued to perform well in the first quarter, benefiting from our integrated systems, the momentum from an improved price environment, but I think most of all from the relentless drive of our employees. As demand-oriented projects such as ethylene plants, fire generation, and LNG exports begin to come online, we believe the US is entering into a period of strong demand growth.

While many companies have been busy trying to weather the storm of the last two years, we've positioned ourselves for the demand phase of the cycle and are set to benefit from the demand increases that are coming for US hydrocarbons. It felt good to see the word record in our press release, and with production coming back and a number of our own long lead time projects coming online, we hope to be using that word more.

Total gross operating margin was $1.5 billion, up 11% from first quarter of last year. EBITDA was a record $1.4 billion and our distributable cash flow was up 7% with a coverage ratio of 1.3. Three of our four business segments reported higher gross operating margins than the same quarter last year. We had record NGL pipeline transportation volumes, record marine terminal volumes, and record onshore liquids pipeline transportation volumes of 5.4 million barrels a day.

Our biggest demand project, our PDH, remains on target to be up and running in the third quarter. Permitting and engineering is moving along for our iBDH plant, which is expected to be up in the second half of 2019. Both of these projects are similar as