Enterprise Products Partners L.P. (NYSE: EPD) today decreased in price, after it announced its financial results for the three months ended September 30, 2019.
Net income for the third quarter of 2019 included unrealized mark-to-market losses of $86 million, or a loss of $0.04 per fully diluted unit, primarily related to activities to hedge interest rates for future issuances of debt. Net income for the third quarter of 2018 included unrealized mark-to-market gains of $204 million, or a gain of $0.09 per fully diluted unit.
Enterprise reported Discounted Cash Flow (DCF) of $1.6 billion for the third quarter of 2019, which provided 1.7 times coverage of the $0.4425 per unit cash distribution and resulted in $665 million of retained DCF.
DCF for the first nine months of 2019 was $5.0 billion, which also provided 1.7 times coverage of the aggregate $1.32 per unit of cash distributions for that period and resulted in $2.1 billion of retained DCF.
Retained DCF is available to reinvest in growth capital projects and reduces our need to issue additional equity.
Said CEO Jim Teague, "The third quarter of 2019 was another strong quarter for Enterprise and reflected the quality of our fee based businesses.
"We reported a 4% increase in cash flow from operations to $1.6 billion compared to the same quarter in 2018. Contributions from our fee-based businesses more than offset lower cash flow from our natural gas processing business due to lower NGL prices and our NGL and crude oil marketing businesses due to a decrease in regional price spreads."
EPD shares dived 25 cents to $27.29, late Monday morning.
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