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

Jul 31, 2019 • 10:00 am ET


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


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W. Randall Fowler

elected to go to the debt capital markets early to stay ahead of our debt financing and refinancing needs. We priced $2.5 billion of senior unsecured notes, comprised of $1.25 billion of 30-year notes at a 4.2% coupon and $1.25 billion of 10-year notes at a 3.8% coupon. The transaction was completed on July 8th. We were very pleased with the level of demand for both tranches and are thankful for the continued support of our fixed income investors.

As of June 30, 2019, our total debt principal outstanding was $27 billion. Assuming the first call date for our hybrids, the average life of our debt portfolio was 13.8 years. Assuming the maturity date of the hybrids, that average life of the debt portfolio was 18.3 years. The average cost of our debt portfolio was 4.5%. Adjusted EBITDA for the trailing 12 months ended June 30, 2019 was $7.8 billion and our consolidated leverage ratio was 3.3 times after adjusting debt for the partial equity treatment for the hybrid debt securities and also reduce for unrestricted cash. Our consolidated liquidity was $4.7 billion at June 30, 2019, which included available borrowing capacity under our credit facilities and unrestricted cash. As of today, that same number for liquidity was approximately -- $7.9 billion, I repeat $7.9 billion, which includes the proceeds from the debt offering and the aforementioned proceeds that we received today from Altus Midstream.

Moving on to equity issuances and repurchases, Enterprise received approximately $40 million of net proceeds from the dividend reinvestment plan and employee unit purchase programs during the second quarter 2019. Beginning with the August '13 distribution payment, we elected to change the source of the funding of the DRIP and the employee unit purchase plan to open market purchases, instead of newly issued units and we will continue this until further notice, and as we do not currently need any external equity financing. We also -- during the quarter, we also bought back or repurchased 1.1 million units of buyback activity. These purchases were done at an average weighted price of $27.95. So if you would, that equates to about an 11% distributable cash flow yield. We will continue to utilize a buyback program on our opportunistic basis going forward, balancing it along with our capex needs and distribution payments.

And with that Randy, I think we can open it up for questions.

Randy Burkhalter

Thank you, Randy. Jason, we're ready now to take questions from our listeners. And I'll just remind everyone to please limit your questions to one question and one follow up. Go ahead, Jason.