Enterprise Products Partners (NYSE: EPD) reported Q2 EPS of $0.47, $0.01 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $5.75 billion versus the consensus estimate of $7.49 billion.

“Our results for the second quarter of 2020 highlight the diversification of Enterprise’s integrated midstream system, the quality of our customers, cost savings, and the responsiveness of our employees to one of the most challenging quarters in the history of the U.S. energy industry,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “Our fee-based businesses, storage assets, marketing business and cost control enabled us to generate $1.6 billion in distributable cash flow and provide 1.6 times coverage of our cash distribution to partners. Volumetric highlights for the second quarter include total pipeline volumes of 9.6 million BPD, on a barrel equivalent basis; record NGL fractionation volumes of 1.2 million BPD; and NGL marine terminal export volumes of 701 MBPD. As prices for certain NGLs, crude oil and refined products fell precipitously during the second quarter due to collapsing demand for refined products as a result of the pandemic, our storage services provided valuable flexibility for our customers. During the quarter, we were also able to benefit by using uncontracted storage capacity to capture contango opportunities in NGLs, crude oil and refined products and will continue to see this benefit for the remainder of 2020. Just as we have during previous commodity price cycles in 2008/2009 and 2015/2016, the performance of our durable fee-based businesses and our storage and marketing activities provided a natural hedge that enabled us to largely offset the weakness in our natural gas gathering, processing and petrochemical businesses during the second quarter of 2020.”

“During the second quarter of 2020, refining industry utilization rates bottomed in April at approximately 68 percent, which negatively impacted our propylene fractionation and octane enhancement businesses due to lower feedstock availability and a decrease in international demand, respectively. Currently, the refining industry has recovered to near 80 percent operating rates, which is supporting a recovery in our propylene fractionation and octane enhancement activities as we begin the third quarter of 2020. With respect to crude oil and natural gas, we are continuing to see production increasing from the lows experienced in May,” stated Teague.

“To provide some perspective on the continuing recovery in our volumes, based on average field operating data thus far in July, we have seen total gross natural gas processing inlet volumes and NGL production from the plants we operate recover to 88 percent and 98 percent, respectively, of March 2020 activity levels. Aggregate gross volumes at Enterprise-operated NGL fractionators for July are averaging 107 percent of March levels, which includes the benefit of our tenth fractionator in the Mont Belvieu area that began service in March 2020. Total gross volumes for Enterprise-operated NGL pipelines in July are averaging 104 percent of March levels. Aggregate gross volumes for Enterprise-operated crude oil pipelines in July are averaging approximately 80 percent of March levels. Total gross volume from our Mont Belvieu propylene fractionation plants for July is averaging 107 percent of March production levels,” said Teague.

“Looking ahead to the third quarter of 2020, two major assets are scheduled to begin initial service: our eleventh NGL fractionator in the Mont Belvieu-area and the Midland-to-ECHO segment of the Wink to Webster joint venture crude oil pipeline. Our discussions with industry participants regarding potential joint ventures associated with certain of our growth capital projects continue, but have been slowed due to the impacts of COVID-19.”

“While we are encouraged by efforts to reopen the global economy, the pace and the scope of the reopening is uncertain at this time and may extend well into 2021. In addition, the energy industry is going through a period of significant financial restructuring that has been accelerated by the impacts of the pandemic. With our integrated system and business diversification, we believe Enterprise is well positioned to navigate this period. We continue to focus on maintaining a strong balance sheet, financial flexibility and ample liquidity while providing a reliable income stream to our investors,” concluded Teague.

For earnings history and earnings-related data on Enterprise Products Partners (EPD) click here.