U.S. midstream company Enterprise Product Partners said it added new pipelines to its portfolio last year, which helped support an increase in product deliveries. File photo by Larry W. Smith/EPA
Feb. 1 (UPI) -- U.S. oil and gas pipeline company Enterprise Products Partners reported momentum in its fourth quarter earnings report, supported by a record volume of gas delivered through its infrastructure.
Houston-based Enterprise on Wednesday reported net income for the three-months ending in December of $1.5 billion, up from year-ago levels of $1 billion. Full-year 2022 net income of $5.6 billion was nearly a billion dollars higher than for 2021.
"Our quarterly results were driven by record total pipeline transportation volumes of 11.5 million barrels per day, on a barrel equivalent basis, higher natural gas liquid and natural gas pipeline transportation volumes, higher natural gas processing margins and increased fee-based gas processing volumes," Jim Teaque, a lead executive, said.
The company faced headwinds during the latter stages of the Trump administration after tariffs imposed on imported steel created problems for midstream companies, those working on the delivery of fossil fuel supplies.
The U.S. market relies on foreign suppliers for much of the steel used in pipelines because domestic manufacturers tend to focus on other industrial sectors such as automotive.
Enterprise in a way countered that last year with the acquisition of Navitas Midstream, which had a U.S. portfolio of an estimated 1,750 miles of pipe. Of the $763 million in total investments during the fourth quarter, Enterprise said it spent $160 million of that to buy another 580 miles of pipelines and related assets.
Total spending last year was $5.2 billion, of which $3.2 billion went toward the acquisition of Navitas.
Like others in the domestic energy sector, Teague said shareholders will enjoy a greater return on their investment, with an increase of 5.4% in distributions compared to year-ago levels. But like last year, Teague said at least part of the focus would be on overall efforts to continue growth in 2023.
"We embark on this new year with one of the strongest balance sheets in our history," he said. "This provides Enterprise the financial flexibility to invest in new growth opportunities and to help weather unforeseen macro-economic challenges."
Trading on the New York Stock Exchange under the ticker symbol EBD, shares for Enterprise were relatively flat during midday trading at $25.60 per share. The company went public last year.