Enterprise Products Revenue Down on Energy Prices

Enterprise Products Partners L.P., one of the largest pipeline companies in the U.S., said its fourth-quarter revenue was cut by 40% from the same period last year, pressured by low energy prices.

The company kept profit stable, however, by cutting total costs and expenses by 43%. Revenue was below Wall Street expectations but earnings met expectations.

The partnership retained $302 million of distributable cash flow for the third quarter.

The company said it currently expects to spend $2.5 billion to $2.8 billion for "growth" capital projects, $1 billion for the final payment of its June $2.15 billion purchase of Texas oil and gas pipelines and processing plants and $275 million for sustaining capital expenditures.

Enterprise Products said it was on schedule to complete construction of four projects in 2016, including two natural gas processing plants, an ethane export terminal and a propane dehydrogenation facility.

The Houston-based energy company's assets include 49,0000 miles of pipelines.

Overall, the company posted a profit of $684.8 million, or 34 cents a share, up from $659.8 million, or 34 cents a share a year earlier. Revenue dropped 40% to $6.16 billion.

Analysts surveyed by Thomson Reuters had forecast per-share earnings of 34 cents a share on revenue of $8.01 billion.

Enterprise has become one of the energy industry's most powerful middlemen, using pipelines, storage tanks and ports to get fuel from one place to another.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 07:15 ET (12:15 GMT)

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