Enterprise Products 2Q Net Jumps 27%; Duncan Profit Falls 3%

Enterprise Products Partners LP's (EPD) second-quarter profit jumped 27% on higher revenue, while sister company Duncan Energy Partners LP (DEP) fell 3% on higher expenses.

Enterprise is in the midst of a planned $2.5 billion acquisition of Duncan, which the suitor's parent company had spun off in 2006 as a separate entity holding interest in some of Enterprise's mid-stream assets. Enterprise now owns Duncan's general partner and about 58% of its common units.

Enterprise has seen results soar in recent quarters, helped in part by its $3.3 billion merger with Teppco Partners LP in late 2009, creating one of the U.S.'s largest pipeline companies. The company said in May it had $5 billion worth of expansion projects slated for upcoming years as it seeks to take advantage of growing U.S. onshore oil and gas production. Among its closely watched projects is a joint venture with Energy Transfer Partners (ETP) to build a pipeline connecting the oil storage home Cushing, Okla. to the U.S. refining center of Houston, Texas.

Enterprise reported a profit of $448.5 million, or 51 cents a unit, up from $354.4 million, or 26 cents a unit, a year earlier. Revenue rose 49% to $11.2 billion driven by higher commodity prices and volumes.

Analysts polled by Thomson Reuters most recently forecast a profit of 44 cents on $9.82 billion in revenue.

Operating margin narrowed to 5.7% from 7.2% as costs and expenses rose 51%.

Duncan, meanwhile, posted a profit of $22.5 million, or 39 cents a unit, down from $23.3 million, or 40 cents a unit, a year earlier. Revenue rose 14% to $302.8 million.

Analysts forecast a 41-cent profit on $268 million in revenue.

Costs and expenses rose 9.8%.

Common units of Enterprise closed at $37.50 Monday while common units of Duncan closed at $37.55. Both stocks were inactive premarket.

-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; [e-mail]