Enterprise GP Shares Slip As 2Q Earnings Drop 21%

   DOW JONES NEWSWIRES 
 

Enterprise GP Holdings LP's (EPE) shares fell a day after the company reported second-quarter earnings dropped 21% on a charge linked to leaving an offshore oil port and pipeline partnership and a drop in revenue.

The firm owns the general partner of pipeline operators Enterprise Products Partners LP (EPD) and Teppco Partners LP (TPP), which agreed to merge in June. Last month Enterprise Products Partners reported a 44% plunge in revenue as the lower prices offset record volume, while Teppco also reported a sharp drop in revenue.

Enterprise GP reported a profit of $39.1 million, or 28 cents per unit, down from $49.4 million, or 40 cents per unit, a year earlier. The latest results included a $68.4 million charge as Enterprise Products and Teppco exited the Texas Offshore Port System partnership in April, though nearly all of that charge was related to a noncontrolling interest.

Revenue decreased 48% to $5.43 billion on the price declines.

Analysts surveyed by Thomson Reuters expected 37 cents a share on $5.46 billion in revenue.

President and Chief Executive Ralph S. Cunningham said Enterprise GP generated record distributable cash flow for the fifth consecutive quarter, excluding merger-related costs.

Shares were recently down 1.9% at $29.40.

-By Joan E. Solsman and Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]