Enterprise Products Partners L.P. (NYSE: EPD)

Enterprise Products Partners L. P. is a publicly traded Delaware limited partnership that owns and operates a large integrated midstream energy network in North America.

The partnership was formed in April 1998 to own and operate certain natural gas liquids related businesses of EPCO and its common units are listed on the New York Stock Exchange under the ticker symbol EPD.

It links producers of natural gas natural gas liquids crude oil and petrochemicals to domestic consumers and international markets.

Its asset base includes gathering systems processing plants fractionation units storage facilities pipelines marine terminals and marine transportation assets.

Enterprise Products Partners L. P. conducts substantially all of its business through its operating subsidiary Enterprise Products Operating LLC and its consolidated affiliates.

The partnership has no direct employees all management administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement or by other service providers.

The partnership is managed by its general partner Enterprise Products Holdings LLC which is under the control of the Duncan family voting trusts.

Enterprise Products Partners L. P. generates revenue from two main sources the sale of energy commodities and fee based midstream services.

Commodity sales include natural gas natural gas liquids crude oil petrochemicals and refined products which are marketed to buyers under term and spot contracts.

Fee based revenues come from gathering treating processing transportation storage fractionation and marine terminal services that are charged under long term contracts or regulated tariffs.

The partnership’s marketing activities support asset utilization by moving volumes through its networks and also provide additional gross operating margin from commodity price spreads.

Revenues are influenced by changes in commodity prices volumes and demand for midstream infrastructure.

In recent periods the majority of total revenue has come from commodity sales while fee based contributions have provided a stable base of earnings that is less sensitive to price swings.

The company reports its operations in four business segments that are organized by the type of service or product they handle.

These segments are NGL Pipelines & Services Crude Oil Pipelines & Services Natural Gas Pipelines & Services and Petrochemical & Refined Products Services.

Each segment contributes to the partnership’s total revenues and gross operating margin which is the primary measure used by management to evaluate segment performance.

Gross operating margin includes equity in earnings of unconsolidated affiliates and excludes general and administrative costs interest expense and income tax effects.

• NGL Pipelines & Services includes natural gas gathering treating and processing plants that extract natural gas liquids from the gas stream.

• It also owns and operates NGL pipeline systems storage complexes fractionation units and marine terminals used for exporting liquefied petroleum gases and ethane.

• The segment provides fee based transportation fractionation storage and export services to producers processors and exporters.

• Volumes of NGLs moved through its pipelines and terminals are a key driver of its earnings.

• Key assets in this segment include the Mid-America Pipeline System the Seminole NGL Pipeline the Chaparral Pipeline the Shin Oak NGL Pipeline the Eastern ethane pipelines ATEX and Aegis the Mont Belvieu area storage complex the Dixie Pipeline and related terminals the Tri-States NGL Pipeline the South Texas NGL Pipeline System and the Enterprise Hydrocarbons Terminal.

• Crude Oil Pipelines & Services comprises crude oil gathering lines transportation pipelines storage facilities and marine terminals that move crude oil from production areas to refineries and export points.

• The segment offers fee based pipeline transportation storage and terminal services to crude oil producers refiners and traders.

• It also engages in crude oil marketing activities that buy and sell crude oil under term and spot arrangements.

• Throughput on its crude oil pipelines and marine terminals contributes directly to segment gross operating margin.

• Major assets in this segment include the Seaway Pipeline the Cushing storage hub the Houston Ship Channel terminal system and various regional crude oil gathering networks in the Permian and Eagle Ford basins.

• Natural Gas Pipelines & Services consists of natural gas gathering systems treating and processing facilities transportation pipelines and storage assets that move gas from wells to markets.

• The segment provides fee based gathering processing transportation and storage services to natural gas producers utilities and industrial consumers.

• It also markets natural gas under contracts that capture price differentials between receipt and delivery points.

• Growth in natural gas volumes and processing capacity supports the segment’s earnings.

• Notable assets in this segment are the Delaware Basin Gathering System the Midland Basin Gathering System the Texas Intrastate System and various treating plants located in the Rockies Louisiana and Mississippi regions.

• Petrochemical & Refined Products Services includes propylene production facilities butane isomerization units octane enhancement plants isobutane dehydrogenation and high purity isobutylene production assets.

• It also operates pipelines storage tanks and marine terminals that transport petrochemicals and refined products to customers.

• The segment offers fee based transportation storage and export services for ethylene propylene butane and refined product streams.

• Additionally it runs a marine transportation business that moves cargoes on U. S. inland and intracoastal waterways.

• Key facilities in this segment are the Mont Belvieu area propylene production units the butane isomerization plants the octane enhancement facilities the isobutane dehydrogenation and high purity isobutylene units the TW Products System the TE Products Pipeline System and the marine terminal operations at Morgan’s Point and Neches River.

Enterprise Products Partners L. P. ranks among the largest midstream energy providers in North America competing with companies such as Kinder Morgan Williams Companies ONEOK and Energy Transfer.

Its competitive advantages stem from the scale and geographic diversity of its asset network which spans major supply basins including the Permian Midland Delaware and Gulf Coast regions.

The partnership’s focus on long term fee based contracts and its integrated value chain allow it to generate stable cash flows even when commodity prices fluctuate.

Additionally its access to capital markets and its investment grade credit ratings support its ability to fund growth projects and maintain financial flexibility.

The company’s size also enables it to achieve economies of scale in operations and to invest in large infrastructure projects that smaller rivals may find difficult to undertake.

The partnership serves a diverse set of customers that include natural gas crude oil and NGL producers petrochemical and refined product manufacturers exporter utilities and industrial end users.

Specific relationships mentioned in the filing involve affiliates of Occidental Petroleum which supply natural gas gathering and processing volumes in the Midland Basin.

In general Enterprise Products Partners L. P. contracts with producers who dedicate acreage and volumes with refiners who need feedstock and with exporters who require marine terminal access.

The customer list also includes integrated energy companies that purchase NGLs for petrochemical manufacturing and refiners that take delivery of crude oil for processing.

This broad customer base helps sustain demand for its midstream services across multiple commodity chains and provides a degree of diversification that reduces reliance on any single sector.