Enterprise Products Partners L.P. (NYSE:EPD) Q2 2019 Earnings Conference Call - Final Transcript

Jul 31, 2019 • 10:00 am ET

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Enterprise Products Partners L.P. (NYSE:EPD) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Jason and I will be your conference operator today. At this time, I would like to welcome everyone to the Enterprise Products Partners Second Quarter 2019 Earnings Call. [Operator Instructions]. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. Randy Burkhalter, VP of Investor Relations, you may begin your call.

Executive
Randy Burkhalter

Thank you, Jason. Good morning and welcome everyone to the Enterprise Products Partners conference call to discuss earnings for the second quarter. Our speakers today will be Jim Teague, Chief Executive Officer and Randy Fowler, President and Chief Financial Officer of Enterprises' General Partner. Other members of our senior management team are also in attendance for the call today.

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 currently available Enterprise's management team. Although management believes that the expectations -- 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 will turn the call over to Jim.

Executive
A. J. Teague

Thank you, Randy. Before I get into the script, I wanted to acknowledge a person sitting directly to my left, Bill Ordemann, who will be retiring later in August. So this will be his first -- his last earnings call and I fully intend to direct almost all questions to Bill. Last quarter, we talked about what should drive -- what should drive investors back into energy stocks and the conclusion was show me the cash, which we did. We continued to show the cash with a record $1.7 billion of DCF in the second quarter, which provided a record 1.8 times coverage giving us $3.4 billion of DCF for the first 6 months of 2019. After increasing distributions for the 60th consecutive quarter, we retained $753 million of distributable cash in the second quarter and a total of $1.4 billion for the first half. Adjusted EBITDA for the second quarter was $2.1 billion, that's up 18% in the same quarter a year ago for, a total adjusted EBITDA of $4.1 billion for the first 6 months, which is up 17% compared to the first 6 months of last year. Our results continue to provide us healthy excess cash at the flexibility to fund our projects and maintain a solid balance sheet without having to issue equity. Continuing the trend of previous quarters, Enterprise again reported a number of records during the quarter. In total, we reported 16 operational and financial records, including record volumes in our liquid pipelines at 6.6 million barrels a day, our marine terminals of 2 million barrels per day, gross NGL fractionation volumes of 1.2 million