HOUSTON — Enterprise Products Partners profits rose in the third quarter, as the company reported higher fees in some sectors and an increase in crude volume moving through its pipelines.
The Houston-based master limited partnership on Thursday reported net income of $699 million, compared with $593 million for the third quarter of 2013.
MLPs are tax-advantaged corporate structures, common in the midstream sector, that typically distribute most of their profits to investors called unit-holders. Enterprise’s distributable cash flow rose to $975 million from $908 million in the July-September period last year.
Michael Creel, CEO of Enterprise’s general partner, said record or near-record volumes in liquids pipelines, natural gas processing and natural gas liquids fractionation drove third-quarter performance. ”We benefited from cash flow growth from new assets placed in service over the past twelve months as well as the diversification of our businesses,” he said.
Enterprise reported its gross operating margin for its natural gas liquids pipelines and services segment increased 11 percent to $712 million over the third quarter of 2013.
In the natural gas area, gross margin was down to $195 million for the third quarter compared to $213 million in 2013, primarily due to the settlement of a contract dispute, the company said.
In the crude oil space, gross operating margin rose 31 percent to $191 million in the third quarter, driven in part by higher fees at the Seaway Crude Pipeline and an increase in volume at lines serving plays in Texas.
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