摘要:As outlined in the SWAT analysis, EPD has many opportunities to execute in the coming year and beyond. At current oil and gas market prices, net income should continue to grow at a modest rate of 5% to 7% in 2013.Due to the volatility of the oil and gas markets this percentage increase could be magnified either direction accordingly.
Products on the entire midstream operations of natural gas, crude oil, and natural gas liquid movements through marine, truckload, and pipeline capabilities. In year ending December 2012, Enterprise Products generated 41.4% of revenue from their onshore crude oil pipelines and services, 35.6% from NGL pipelines and services, 14.5% from Petrochemical and Refined Products services, 4.8% from onshore natural gas pipelines and services and .45% from offshore pipelines and services.
Enterprise Products operates a large network of 24 natural gas processing plants with the capacity to process 12.28 Bcf/d located from Texas and Louisiana up to Wyoming. In addition, Enterprise Products operates nearly 17,000 miles of NGL pipeline, over 5,000 miles onshore crude oil pipeline and nearly 20,000 miles of natural gas pipeline. Coupled with 123 barges and a strong and growing tractor/tanker fleet, Enterprise Products strong operation capabilities have strengthened in the midstream industry.
Strength II – Organic Growth Initiatives and Acquisition Growth
Enterprise Products completed $2.5 billion in growth capital projects and acquisitions in 2009 and 2010. With $5 billion in capital projects currently under development, including in the fast growing NGL segment,EPDis showing no sign of slowing down. In addition to Enterprise Products lengthy history of acquiring various business units to spur growth and create value the company is committed to growing organically within its business framework. According to Business Wire, Enterprise Products has acquired sufficient transportation commitments to support a 270 mile pipeline system to deliver ethane from their Mont Belvieu, Texas facility to multiple petrochemical facilities in Texas and Louisiana (Business Wire, 2013). Lastly, Enterprise Products vast presence in the Eagle Ford Shale located in South Texas continues to expand its crude oil gathering operation.
Strength III –Limited Partnership
Enterprise Products is the largest publicly traded energy partnerships in the United States.According to Yahoo
Finance, 37% of shares are held by insiders ensuring managements objectives align with shareholders (Yahoo Finance). With their recent acquisition of Enterprise GP Holdings L.P., all incentive distribution rights to general partners has been eliminated lowering the long term cost of equity capital relative to many of their competitors (Enterprise Products L.P., 2013). This will free up more capital to strengthen their current business as well as fund additional opportunities in the future.
Weakness I -- Limited Cash Reserves
Enterprise Products cash and short term investments on its balance sheet have declined drastically from 239 million in 2008 to 20 million in 2012. Their current ratio and quick ratio have declined three out of the last four years as indicated in Appendix D (Net Advantage, 2013) . These declining liquidity ratios coupled with a declining net working capital could hamper short term business operations and indicate trouble with the short term solvency. EPD’s liquidity issues are addressed further within the financial section.
Opportunity I – Inorganic Growth
In the past three years, Enterprise Products has invested billions in new acquisitions and shows no sign of slowing down. Since going public in 1998, Enterprise Products has kept their number on
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