Enterprise Products Partners L.P. (Enterprise Products Partners) is a North American midstream energy company providing a range of services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, and certain petrochemicals. It is also engaged in the development of pipeline and other midstream energy infrastructure in the continental United States and Gulf of Mexico. The Company conducts substantially all of its business through its wholly owned subsidiary, Enterprise Products Operating L.P. (Operating Partnership). The Company is owned 98% by its limited partners and 2% by its general partner, Enterprise Products GP, LLC (Enterprise Products GP). Enterprise Products GP is owned by Enterprise GP Holdings. The Company operates in four business segments: NGL Pipelines & Services, Onshore Natural Gas Pipelines & Services, Offshore Pipelines & Services and Petrochemical Services. In September 2006, the Company formed Duncan Energy Partners, to acquire, own and operate a diversified portfolio of midstream energy assets from the Company. NGL Pipelines & Services
The Company's NGL Pipelines & Services business segment includes its natural gas processing business and related NGL marketing activities; NGL pipelines aggregating approximately 13,295 miles and related storage facilities, including its Mid-America Pipeline System, and NGL fractionation facilities located in Texas and Louisiana. This segment also includes the Company's import and export terminal operations.
At the core of the Company's natural gas processing business are 23 processing plants located in Texas, Louisiana, Mississippi, New Mexico and Wyoming. In natural gas processing activities, Enterprise Products Partners enter into margin-band contracts, percent-of-liquids contracts, percent-of-proceeds contracts, fee-based contracts, hybrid contracts (mixed percent-of-liquids and fee-based) and keepwhole contracts. The Company's percent-of-liquids, hybrid and keepwhole contracts give the right (but not the obligation) to process natural gas for a producer. its NGL marketing activities generate revenues from the sale and delivery of NGLs obtained through its processing activities and purchases from third parties on the open market. These sales contracts may also include forward product sales contracts.
The Company's NGL pipeline, storage and terminalling operations include approximately 13,295 miles of NGL pipelines, 162 million barrels of underground NGL and related product storage working capacity and two import/export facilities. The Company's NGL pipelines transport mixed NGLs and other hydrocarbons to fractionation plants; distribute and collect NGL products to and from petrochemical plants and refineries, and deliver propane to customers along the Dixie Pipeline and certain sections of the Mid-America Pipeline System.
Enterprise Products Partners' NGL and related product storage facilities are integral parts of its operations. In general, the Company's underground storage wells are used to store its own and its customers' mixed NGLs, NGL products and petrochemical products. The Company operates NGL import and export facilities located on the Houston Ship Channel in southeast Texas. Its import facility is primarily used to offload volumes for delivery to its NGL storage and processing facilities near Mont Belvieu, Texas. Its export facility includes an NGL products chiller and related equipment used for loading refrigerated marine tankers for third-party export customers.
The Company owns or has interests in seven NGL fractionation facilities located in Texas and Louisiana. NGL fractionation facilities separate mixed NGL streams into purity NGL products. The three primary sources of mixed NGLs fractionated in the United States are domestic natural gas processing plants, domestic crude oil refineries, and imports of butane and propane mixtures. The mixed NGLs delivered from domestic natural gas processing plants and crude oil refineries to the Company's NGL fractionation facilities are typically transported by NGL pipelines and, to a lesser extent, by railcar and truck.
Onshore Natural Gas Pipelines & Services
The Company's Onshore Natural Gas Pipelines & Services business segment includes approximately 18,889 miles of onshore natural gas pipeline systems that provide for the gathering and transmission of natural gas in Alabama, Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. It also owns two salt dome natural gas storage facilities located in Mississippi and lease natural gas storage facilities located in Texas and Louisiana. The Company's onshore natural gas pipeline systems provide for the gathering and transmission of natural gas from onshore developments, such as the San Juan, Barnett Shale, Permian, Piceance and Greater Green River supply basins in the Western United States, or from offshore developments in the Gulf of Mexico through connections with offshore pipelines. Typically, these systems receive natural gas from producers, other pipelines or shippers through system interconnects and redeliver the natural gas to processing facilities, local gas distribution companies, industrial or municipal customers or to other onshore pipelines. The Company's San Juan Gathering, Permian Basin and Jonah pipeline systems provide aggregating and bundling services, in which it purchases and resells natural gas for certain small producers.
The Company owns two underground salt dome natural gas storage facilities located near Hattiesburg, Mississippi that are ideally situated to serve the domestic Northeast, Mid-Atlantic and Southeast natural gas markets. It also leases underground salt dome natural gas storage caverns that serve markets in Texas and Louisiana. Offshore Pipelines & Services
The Company's Offshore Pipelines & Services business segment includes approximately 1,586 miles of offshore natural gas pipelines strategically located to serve production areas, including some of the most active drilling and development regions in the Gulf of Mexico; approximately 863 miles of offshore Gulf of Mexico crude oil pipeline systems, and six multi-purpose offshore hub platforms located in the Gulf of Mexico with crude oil or natural gas processing capabilities.
The Company's offshore natural gas pipeline systems provide for the gathering and transmission of natural gas from production developments located in the Gulf of Mexico, primarily offshore Louisiana and Texas. Typically, these systems receive natural gas from producers, other pipelines and shippers through system interconnects and transport the natural gas to various downstream pipelines, including major interstate transmission pipelines that access multiple markets in the eastern half of the United States. Enterprise Products Partners owns interests in several offshore oil pipeline systems, which are located in the vicinity of oil-producing areas in the Gulf of Mexico. Typically, these systems receive crude oil from offshore production developments, other pipelines or shippers through system interconnects and deliver the oil to either onshore locations or to other offshore interconnecting pipelines. It also has ownership interests in six multi-purpose offshore hub platforms located in the Gulf of Mexico with crude oil or natural gas processing capabilities.
The Company's Petrochemical Services business segment includes four propylene fractionation facilities, an isomerization complex and an octane additive production facility. This segment also includes approximately 679 miles of petrochemical pipeline systems. The Company's propylene fractionation business consists primarily of four propylene fractionation facilities located in Texas and Louisiana, and approximately 609 miles of various propylene pipeline systems. These operations also include an export facility located on the Houston Ship Channel and the Company's petrochemical marketing activities.
The Company's isomerization business includes three butamer reactor units and eight associated deisobutanizer units located in Mont Belvieu, Texas, which comprise the largest commercial isomerization complex in the United States. The business also includes a 70-mile pipeline system used to transport high-purity isobutane from Mont Belvieu, Texas to Port Neches, Texas. Enterprise Products Partners owns and operates an octane additive production facility located in Mont Belvieu, Texas designed to produce isooctane, which is an additive used in reformulated motor gasoline blends to increase octane, and isobutylene. The facility produces isooctane and isobutylene using feedstocks of high-purity isobutane, which is supplied using production from its isomerization units. The Company also produced methyl tertiary butyl ether (MTBE), which mandated the use of reformulated gasoline in certain areas of the United States. In recent years, MTBE has been detected in water supplies. Back to the Company Overview
EPD offers a distribution re-investment plan which re-invests distributions at a 5% discount to the average of high and low prices for five trading days prior to the distribution date (typically 6-7 days after the Ex-Dividend date).
If you want to re-invest automatically, you can own the Kinder Morgan (KMR), where distributions are paid out in additional shares but there is no discount. In fact the way the shares are bought by KMR using the average price of 10 days before the ex-Dividend date, often results in a premium, because prices typically ramp up just prior to the ex-date. EPD’s DRIP price is calculated after the ex-dividend date, when shares are typically cheaper.
So for example, a recent EPD DRIP price was $41.81 without the 5% discount and only $39.72 after the discount. If the price had been calculated the way KMR does it, the price would have been higher at $43.03.