Enterprise Products Partners LP’s crude pipeline volumes rose by 16% in the first quarter, the U.S. energy pipeline operator said on May 2, as demand recovered.
Russia’s invasion of Ukraine and worries of a supply crunch increased prices of U.S. oil and natural gas by more than 33% and 50% in the quarter respectively, driving producers to boost output and increase volumes though pipelines.
Crude oil pipeline transportation volume rose to 2.2 million bbl/d, in the quarter ended March 31, from 1.9 million bbl/d a year earlier.
Volumes climbed on the company’s Midland-to-ECHO pipeline, which transports crude from the heart of the Permian Basin, to Enterprise’s ECHO terminal in Houston, and on its crude oil gathering systems in West Texas and southeast New Mexico that connect to its terminal in Midland, Texas, Enterprise said.
Crude volumes handled by the company's marine terminals also rose 39% to 796 million bbl/d.
Natural gas pipelines transported 16.4 trillion British thermal units per day, 20% higher than in the year-ago quarter, as demand for the fuel surged in Europe after Russia's invasion of Ukraine, which Moscow calls a “special military operation.”
To capitalize on increased demand for natural gas, Enterprise in January agreed to buy Warburg Pincus-owned Navitas Midstream for $3.25 billion.
Pipeline operators, including Enterprise, have also sought to re-purpose some of their vast network of energy pipelines. Enterprise and Occidental Petroleum’s low carbon venture announced plans last month to work toward a potential CO₂ transportation and sequestration solution for the Texas Gulf Coast. Read full story
Total revenue rose 42% to $13 billion, beating analysts’ average estimate of $10.39 billion, according to Refinitiv IBES.
Excluding one-time items, profit of 59 cents per share also beat expectations of 53 cents per share.
Recommended Reading
DUG Permian, Eagle Ford: Sheffield Says Energy Security Issues Trump ESG Concerns
2022-05-18 - “Nobody’s going to drop ESG, but energy security has become 10 times more important than ESG,” Pioneer Natural Resources CEO Scott Sheffield told DUG Permian and Eagle Ford attendees.
Chevron ESG Leader Talks Finding Balance in ESG, Energy Transition
2022-04-28 - Plans for energy security and ESG must be balanced, Lisa Epifani, manager of ESG and sustainability for Chevron, said at Hart Energy’s Energy ESG Conference.
Canada Banks Face 'Greenwashing' Claims Over Sustainable Financing
2022-05-13 - The central bank and financial regulator have already warned that a lack of preparedness by the banks could expose them and investors to "sudden and large losses."
Validere Raises $43 Million for Commodity Management Platform
2022-03-15 - Series B investment led by BlackRock Funds and Mercuria Energy, with Wing VC, Greylock Partners, Pioneer Fund, NGIF and Nova Fleet.
Devon Energy Talks ESG Goals, Pathways to Reducing Emissions
2022-02-28 - Garrett Jackson, Devon Energy’s head of ESG and EHS, outlines pathway to net-zero emissions including how the U.S. shale producer plans to eliminate flaring.