Both enterprising and productive, Enterprise Products Partners is the #1 player in the North American natural gas, natural gas liquids (NGL), and crude oil industries, with a range of processing, transportation, and storage services. Operations include natural gas processing, NGL fractionation, petrochemical services, and crude oil transportation, including 50,200 miles of pipelines, 27 billion cu. ft. of natural gas storage, and 192 million barrels of NGL, refined products, and crude oil storage capacity. It also has about 20 NGL fractionators, and some 120 barges and 60 tow boats. The hub of Enterprise Products Partners' business is Houston's Mont Belvieu refinery complex.
In 2010 the company owned the general partner of Duncan Energy Partners and 58% of its stock. To boost market share, in 2011 it bought 100% of Duncan Energy Partners for $2.4 billion.
The company reported robust sales growth in 2010 thanks to its expanded activities and higher commodity prices.
To raise cash and to focus on its core marine business, in 2011 Enterprise sold its bunker fuel transportation business (including 21 tank barges and 15 towboats) to Kirby Corp. for $53.2 million. It also sold its Mississippi natural gas storage facilities to a Boardwalk Pipeline Partners' joint venture for $550 million.
Enterprise's strategy is focused on building and managing an integrated network of midstream energy assets (including salt domes, and fractionation and natural gas processing plants) to take advantage of growing US market demand for natural gas, NGLs, crude oil and refined products. In a major expansion move, in 2009 the company acquired rival TEPPCO Partners L.P. in a $26 billion all-stock deal, which boosted its pipelines and oil, refined products, and NGL storage capacity. The TEPPCO Partners purchase made the company the largest publicly traded energy partnership in the US. The expanded company's assets include 60 liquid storage terminals, 25 natural gas storage facilities, 17 fractionation facilities, and six offshore hub platforms.
The company is investing heavily in serving shale plays, especially the Eagle Ford in South Texas, and is building midstream facilities to serve the surge in natural gas production. In 2010 it opened a fourth NGL fractionator at its Mont Belvieu facility to process Eagle Ford hydrocarbons, and a fifth in 2012.
That year Enterprise joined Enbridge Energy Partners and Anadarko Petroleum in advancing development of the Texas Express Pipeline by the companies' joint venture. The 20-inch diameter pipeline will extend about 580 miles, from Skellytown, Texas, to the Mont Belvieu NGL fractionation complex. The pipeline also provides access to other producers in several regions: West Texas, the Rocky Mountains, southern Oklahoma, and the Mid-continent area. The pipeline, which secured 15-year contracts from several shippers, is expected to begin service in 2013.
In 2010, in a move to increase its footprint in the lucrative Haynesville/Bossier Shale play, Enterprise acquired two natural gas gathering and treating systems in northwest Louisiana and East Texas from M2 Midstream LLC for $1.2 billion.
That year the company acquired Enterprise GP Holdings, which controlled the general partner of Enterprise Products Partners. The $8 billion deal is aimed at reducing long-term capital costs and simplifying the business structure of Enterprise Products Partners.
Chairman Dan Duncan controls a 40% stake in Enterprise. – less