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Enterprise releases 4Q16 and 2016 annual results

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World Pipelines,

Enterprise Products Partners L.P. (Enterprise) has recently announced its financial results for both 4Q16 and 2016 as a whole.

The company reported increased operating income of US$3.6 billion from US$3.5 billion for 2015. The net cash flow provided by operating activities for 2016 increased to US$4.1 billion from US$4.0 billion in 2015. Total gross operating margin for 2016 was US$5.2 billion compared to US$5.3 billion in 2015. Distributable cash flow (excluding the proceeds from asset sales) increased to US$4.1 billion in 2016, compared to US$4.0 billion in 2015.

Enterprise increased distributions declared with respect to 2016 to US$1.61 per unit, a 5.2% increase compared to distributions paid with respect to 2015.

Enterprise retained US$709 million of distributable cash flow in 2016 to reinvest in the growth of the partnership.

“Enterprise reported solid results in 2016, despite another challenging year for the US energy industry,” stated Jim Teague, CEO of Enterprise’s general partner. “Our performance for 2016 was highlighted by 11.7% volume growth for our NGL, refined products and petrochemical pipeline and marine terminal assets to a record 4.6 million bpd, which more than offset the impact of a 7.3% decline in volumes on our onshore crude oil pipelines and marine terminals compared to 2015.”

“During 2016, we successfully completed US$2.2 billion of organic growth projects that began commercial operations. […] Due to the increase in activity and expected crude oil volume growth from the Permian Basin, we have elected to increase the capacity of our Midland-to-ECHO pipeline to 450 000 bpd,” said Teague.

Crude oil pipelines and services

The gross operating margin from Enterprise’s crude oil pipelines and services segment was US$221 million for 4Q16 compared to US$258 million for 4Q15. Total crude oil pipeline volumes were 1.4 million bpd for both 4Q16 and 4Q15.

Enterprise’s South Texas and Eagle Ford crude oil pipeline systems reported an aggregate US$27 million decrease in gross operating margin for the 4Q16 compared to 4Q15, which was primarily due to lower volumes and average fees. Pipeline volumes on these system were 360 million bpd for the 4Q16 compared to 456 million bpd for 4Q15. Gross operating margin from the EFS Midstream assets increased by US$5 million, to US$55 million for 4Q16.

The gross operating margin from Enterprise’s crude oil marketing and related activities decreased US$29 million in 4Q16 compared to 4Q15. Gross operating margin attributable to Enterprise’s ownership in the Seaway crude pipeline increased by US$8 million in the 4Q16 compared to 4Q15, primarily due to a 25% increase in transportation volumes and higher fees on the Seaway Loop pipeline.

Enterprise’s West Texas crude oil pipeline system reported a US$9 million increase in gross operating margin in 4Q16 compared to 4Q15, which was primarily due to a 23 million bpd increase in transportation volumes.

Natural gas pipelines and services

Enterprise’s natural gas pipelines and services segment reported a gross operating margin of US$201 million for 4Q16 compared to US$194 million for the 4Q15.

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