TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) today announced its unaudited financial results for the three months ended March 31, 2021.

Results exceed expectations across all key metrics

• Net income of $425 million, or $0.35 per diluted share (EPS)
• Adjusted EPS of $0.35 per diluted share – up 35% from 1Q 2020
• Cash flow from operations (CFFO) of $915 million – up $128 million or 16% from 1Q 2020
• Available funds from operations (AFFO) of $1.029 billion – up $109 million or 12% from 1Q 2020
• Adjusted EBITDA of $1.415 billion – up $153 million or 12% from 1Q 2020; up 6% excluding favorable winter storm effects
• Record gathering volumes of 13.6 Bcf/d; record contracted transmission capacity of 22.8 Bcf/d
• Debt-to-Adjusted EBITDA at quarter end: 4.2x
• Guidance midpoints for Adjusted EBITDA and AFFO increase by $100 million
• Dividend coverage ratio is 2.07x (AFFO basis)

CEO Perspective

Alan Armstrong, president and chief executive officer, made the following comments:

“Our natural gas business strategy continues to deliver consistently strong cash flow with first-quarter Adjusted EBITDA up 12 percent from last year, driven in part by record gathering volumes particularly in the Northeast. Severe winter weather in February boosted marketing margins and upstream sales from unusually high prices, but even excluding these weather effects, our Adjusted EBITDA was up 6 percent, underscoring the stability of our earnings regardless of external factors.”

“We continued our pace of execution in the first quarter, placing Southeastern Trail into full service in early January and progressing on Transco’s Leidy South project to bring additional gas from Appalachia to growing demand centers along the Atlantic Seaboard by next winter. We also filed our FERC application for the Regional Energy Access pipeline expansion, a low-impact project being designed in a manner that is adaptable to future renewable energy sources like clean hydrogen and RNG blending.”

Armstrong added, “As one of the nation’s largest clean energy infrastructure providers, we have a huge opportunity to leverage our natural gas-focused business as the world moves to a low-carbon future, while helping customers and the United States meet climate goals. We believe clean, affordable and reliable natural gas is an important component of today’s fuel mix and should be prioritized as one of the most important tools to aggressively displace more carbon-intensive fuels around the world.”

GAAP Measures

• First-quarter 2021 net income improved by $943 million over the prior year, reflecting $128 million of higher commodity margins in 2021 and $21 million from recently acquired upstream operations, while lower Haynesville gathering revenues were substantially offset by increased earnings from Northeast G&P equity-method investments. The improvement over last year also reflects the absence of $1.2 billion in pre-tax charges in 2020 related to impairments of equity-method investments, goodwill and goodwill at an equity investee, of which $65 million was attributable to noncontrolling interests. The provision for income taxes changed unfavorably by $345 million primarily due to higher pre-tax income.
• The severe winter weather impact in February 2021 and the associated effect on commodity prices is estimated to have had a net favorable impact on our pre-tax results of approximately $77 million, primarily within our commodity margins and results from upstream operations.
• Cash flow from operations for the first quarter of 2021 increased as compared to 2020 primarily due to the previously described commodity margin improvement in 2021.

Non-GAAP Measures

• Adjusted EBITDA increased by $153 million over the prior year, driven by the previously described benefits from commodity margins and recently acquired upstream operations, while lower Haynesville gathering revenues were substantially offset by increased contributions from Northeast G&P equity-method investments. Even excluding the net favorable impact of the severe winter weather impact in February 2021, Adjusted EBITDA was higher than the prior year.
• Adjusted Income improved by $116 million over the prior year driven by similar changes.
• Available Funds From Operations increased by $109 million, largely reflecting the previously described improved commodity margins in 2021.

Business Segment Results & Form 10-Q

Williams' operations are comprised of the following reportable segments: Transmission & Gulf of Mexico, Northeast G&P, West and Other. For more information, see the company's first-quarter 2021 Form 10-Q.

Transmission & Gulf of Mexico

• First-quarter 2021 Modified and Adjusted EBITDA decreased slightly compared to the prior year, as small increases in service revenues, commodity margins, and investee EBITDA were offset by higher operating and administrative costs. An increase in natural gas transmission service revenues related to recent expansion projects was partially offset by lower gathering volumes in the Gulf of Mexico.

Northeast G&P

• First-quarter 2021 Modified and Adjusted EBITDA increased over the prior year driven by higher gathering volumes on our Bradford and Marcellus South systems, along with the benefit of an increased ownership in Blue Racer Midstream, acquired in November 2020.
• Gross gathering volumes for first-quarter 2021, including 100% of operated equity-method investments, increased by 11% over the same period in 2020.

West

• First-quarter 2021 Modified and Adjusted EBITDA increased over the prior year primarily due to an estimated $55 million net favorable impact from the February 2021 severe winter weather, $50 million of higher commodity marketing margins driven by higher prices and the absence of prior year inventory impacts, and lower operating and administrative costs. These favorable changes were partially offset by lower Haynesville gathering revenues from lower rates and volumes, as well as lower investee EBITDA driven by reduced transportation volumes on Overland Pass Pipeline.

Other

• First-quarter 2021 Modified and Adjusted EBITDA includes $30 million from our recently acquired oil and gas producing properties. Of this amount, we estimate that approximately $22 million is attributable to the February 2021 severe winter weather.

2021 Financial Guidance

The company now expects 2021 Adjusted EBITDA between $5.2 billion and $5.4 billion and Available Funds from Operations between $3.7 billion and $3.9 billion, both a $100 million midpoint increase from guidance originally issued in February 2021. As well, the leverage ratio midpoint has been updated to ~4.2x versus ~4.25x prior for year-end 2021. The company is keeping intact 2021 growth capex guidance between $1 billion to $1.2 billion. Importantly, Williams expects to generate positive free cash flow (after capital expenditures and dividends), allowing it to retain financial flexibility.

Williams' First-Quarter 2021 Materials to be Posted Shortly; Q&A Webcast Scheduled for Tomorrow

Williams' first-quarter 2021 earnings presentation will be posted at www.williams.com. The company’s first-quarter 2021 earnings conference call and webcast with analysts and investors is scheduled for Tuesday, May 4, at 9:30 a.m. Eastern Time (8:30 a.m. Central Time). Participants who wish to join the call by phone must register using the following link: http://www.directeventreg.com/registration/event/5942459

A webcast link to the conference call is available at www.williams.com. A replay of the webcast will be available on the website for at least 90 days following the event.

About Williams

Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. www.williams.com

MEDIA CONTACT:
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(800) 945-8723

INVESTOR CONTACT:
Danilo Juvane
(918) 573-5075

• Achieved higher net income attributable to limited partners, Adjusted EBITDA and distributable cash flow (DCF) for first quarter 2021 compared to first quarter 2020 due to higher commodity prices, asset optimization and increased billings related to Winter Storm Uri
• Fully funded the partnership’s capital program and distributions for first quarter 2021 while reducing total debt levels
• Contracted or extended over 250,000 dekatherms per day (Dth/d) of transportation capacity during first quarter 2021
• Locked in favorable pipe pricing for the Gulf Run Pipeline project relative to market through strategic sourcing efforts

OKLAHOMA CITY--(BUSINESS WIRE)--Enable Midstream Partners, LP (NYSE: ENBL) today announced financial and operating results for first quarter 2021.

Net income attributable to limited partners was $164 million for first quarter 2021, an increase of $52 million compared to $112 million of net income for first quarter 2020. Net income attributable to common units was $155 million for first quarter 2021, an increase of $52 million compared to $103 million of net income for first quarter 2020. Net cash provided by operating activities was $223 million for first quarter 2021, an increase of $23 million compared to $200 million for first quarter 2020. Adjusted EBITDA was $328 million for first quarter 2021, an increase of $42 million compared to $286 million for first quarter 2020. DCF was $261 million for first quarter 2021, an increase of $47 million compared to $214 million for first quarter 2020.

For first quarter 2021, DCF exceeded declared distributions to common unitholders by $189 million, resulting in a distribution coverage ratio of 3.63x.

Enable uses derivatives to manage commodity price risk, and the gain or loss associated with these derivatives is recognized in earnings. Enable’s net income attributable to limited partners and net income attributable to common units for first quarter 2021 included a $14 million loss on commodity derivative activity, compared to a $20 million gain on commodity derivative activity for first quarter 2020, resulting in a decrease in net income of $34 million. The decrease of $34 million is comprised of a decrease related to the change in fair value of commodity derivatives of $20 million and a decrease in realized gain on commodity derivatives of $14 million.

For additional information regarding the non-GAAP financial measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio, please see “Non-GAAP Financial Measures.”

MANAGEMENT PERSPECTIVE

“Our first quarter results highlight the strength of Enable’s fully integrated midstream platform, which is a vital link between sources of production and downstream markets,” said Rod Sailor, president and CEO. “This was demonstrated during Winter Storm Uri when Enable employees worked with producers and end-users to ensure that natural gas supply continued to serve demand in critical areas.

“Looking to the future, Enable continues to be well-positioned to benefit from improving commodity prices and the pending merger with Energy Transfer. Teams from both companies are currently working hard to plan for a seamless integration.”

BUSINESS HIGHLIGHTS

While Enable experienced production curtailments during first quarter 2021 due to Winter Storm Uri, substantially all production impacted by the storm is back online, and average daily March natural gas gathered volumes were approximately 4% higher than the average daily natural gas gathered volumes for first quarter 2021. As of April 26, 2021, there were 10 rigs across Enable’s footprint that were drilling wells expected to be connected to Enable’s gathering systems. Four of those rigs were in the Anadarko Basin, five were in the Ark-La-Tex Basin and one was in the Williston Basin. Producers have an inventory of drilled but uncompleted wells (DUCs) behind Enable’s gathering systems with 88 DUCs in the Anadarko Basin, 11 DUCs in the Ark-La-Tex Basin and 82 DUCs in the Williston Basin. These 181 DUCs provide an inventory of wells producers can complete without investing drilling capital.

In the transportation and storage segment, Enable contracted or extended over 250,000 Dth/d of firm transportation capacity in first quarter 2021 at a volume-weighted average contract life of over four years. Backed by a firm, five-year commitment, Enable Gas Transmission, LLC’s MASS project was placed into service April 1, 2021. The project transports natural gas from the Anadarko and Arkoma Basins to delivery points with access to emerging Gulf Coast markets and growing demand markets in the Southeast.

Enable continues to advance its Gulf Run Pipeline project, a project designed to move U.S. natural gas supplies from northern Louisiana to the Gulf Coast. The planned 42” pipeline scope provides for approximately 1.7 billion cubic feet per day (Bcf/d) of capacity, allowing for contracting upside potential beyond the cornerstone shipper’s 1.1 Bcf/d commitment. As a result of strategic sourcing efforts, pipe pricing for the project has been locked in at favorable levels relative to market, and the cost for the project is currently estimated at approximately $540 million. The contractor bidding process is expected to begin in the second quarter of 2021, and the project is anticipated to be placed into service in late 2022, subject to FERC approval.

ENERGY TRANSFER TRANSACTION UPDATE

On April 7, 2021, the Securities and Exchange Commission declared effective the Form S-4 registration statement filed in connection with Energy Transfer LP’s (NYSE: ET) merger with Enable. CenterPoint Energy, Inc. and OGE Energy Corp. collectively own approximately 79% of Enable’s outstanding common units and have each delivered written consents to approve the merger. While the consents of CenterPoint Energy, Inc. and OGE Energy Corp. are sufficient to approve the transaction, all unitholders as of the record date have the opportunity to return written consents before the consent deadline.

Enable and Energy Transfer have been working together to plan for a successful merger of the two companies. The transaction is expected to close in mid-2021, subject to the satisfaction of customary closing conditions, including Hart-Scott-Rodino Act clearance.

QUARTERLY DISTRIBUTIONS

As previously announced, on April 27, 2021, the board of directors of Enable’s general partner declared a quarterly cash distribution of $0.16525 per unit on all outstanding common units for the quarter ended March 31, 2021. The distribution is unchanged from the previous quarter and represents Enable’s 28th consecutive quarterly distribution since the partnership’s initial public offering in April 2014. The quarterly cash distribution of $0.16525 per unit on all outstanding common units will be paid May 25, 2021, to unitholders of record at the close of business May 13, 2021.

As also previously announced, the board declared a quarterly cash distribution of $0.5873 per unit on all outstanding Series A Preferred Units for the quarter ended March 31, 2021. On Feb. 18, 2021, the Series A Preferred Units converted from a fixed annual rate of 10% to a floating rate, with the holders receiving a quarterly cash distribution based on a percentage of the stated liquidation preference equal to the sum of a three-month LIBOR rate plus 8.5%, which was 8.7375% for the relevant days in the three months ended March 31, 2021. The quarterly cash distribution of $0.5873 per unit on all outstanding Series A Preferred Units will be paid May 14, 2021, to unitholders of record at the close of business April 26, 2021.

KEY OPERATING STATISTICS

Natural gas gathered volumes were 4.09 trillion British thermal units per day (TBtu/d) for first quarter 2021, a decrease of 10% compared to 4.52 TBtu/d for first quarter 2020. The decrease was primarily a result of lower production activity and weather-related impacts from Winter Storm Uri.

Natural gas processed volumes were 2.06 TBtu/d for first quarter 2021, a decrease of 16% compared to 2.44 TBtu/d for first quarter 2020. The decrease was due to lower processed volumes across all basins.

Crude oil and condensate gathered volumes were 113.79 thousand barrels per day (MBbl/d) for first quarter 2021, a decrease of 19% compared to 141.25 MBbl/d for first quarter 2020. The decrease was primarily due to a decrease in crude oil and condensate gathered volumes in the Anadarko Basin, partially offset by an increase in crude oil gathered volumes in the Williston Basin.

Transported natural gas volumes were 6.10 TBtu/d for first quarter 2021, a decrease of 7% compared to 6.56 TBtu/d for first quarter 2020. The decrease was primarily due to decreased production in the Anadarko Basin, which contributed to lower utilization of Enable’s interstate and intrastate pipelines.

Interstate transportation firm contracted capacity was 6.52 Bcf/d for first quarter 2021, an increase of 1% compared to 6.48 Bcf/d for first quarter 2020.

Intrastate transportation average deliveries were 1.65 TBtu/d for first quarter 2021, a decrease of 20% compared to 2.07 TBtu/d for first quarter 2020. The decrease was primarily due to decreased production activity in the Anadarko Basin and weather-related impacts from Winter Storm Uri.

FIRST QUARTER FINANCIAL PERFORMANCE

Revenues were $970 million for first quarter 2021, an increase of $322 million compared to $648 million for first quarter 2020. Revenues are net of $136 million of intercompany eliminations for first quarter 2021 and $63 million of intercompany eliminations for first quarter 2020.

Gathering and processing segment revenues were $624 million for first quarter 2021, an increase of $147 million compared to $477 million for first quarter 2020. The increase in gathering and processing segment revenues was primarily due to:

• an increase in revenues from natural gas liquids (NGL) sales primarily due to an increase in the average realized sales price from higher average market prices for NGL products combined with higher recoveries of ethane, partially offset by lower processed volumes,
• an increase in revenues from natural gas sales due to higher average sales prices and
• an increase in processing service revenues due to higher consideration received from percent-of-proceeds, percent-of-liquids and keep-whole processing arrangements due to higher average market prices, partially offset by lower processed volumes under fee-based arrangements.

These increases were partially offset by:

• a decrease in changes in the fair value of natural gas, condensate and NGL derivatives,
• an increase in realized losses on natural gas, condensate and NGL derivatives,
• a decrease in natural gas gathering revenues due to lower gathered volumes, inclusive of volume curtailments and production freeze-offs related to Winter Storm Uri, partially offset by higher assessed producer imbalance penalties and
• a decrease in crude oil, condensate and produced water gathering revenues primarily due to a decrease in gathered crude oil and condensate volumes in the Anadarko Basin, partially offset by an increase in gathered crude oil volumes in the Williston Basin.

Transportation and storage segment revenues were $482 million for first quarter 2021, an increase of $248 million compared to $234 million for first quarter 2020. The increase in transportation and storage segment revenues was primarily due to:

• an increase in revenues from natural gas sales primarily due to higher average sales prices,
• an increase in volume-dependent transportation and storage revenues due to an increase in assessed shipper imbalance penalties, partially offset by lower off-system intrastate transported volumes due to decreased production activity in the Anadarko Basin, inclusive of disruptions in natural gas supply associated with Winter Storm Uri and the recognition in 2020 of $1 million of revenue upon the settlement of the Enable Mississippi River Transmission, LLC (MRT) rate case with no comparable item in 2021 and
• an increase in revenues from NGL sales due to higher average sales prices, partially offset by lower volumes.

These increases were partially offset by:

• a decrease in firm transportation and storage services due to the recognition in 2020 of $16 million of previously reserved revenue upon the settlement of the MRT rate case with no comparable item in 2021, partially offset by higher interstate contracted capacity and
• a decrease in changes in the fair value of natural gas derivatives.

Gross margin was $451 million for first quarter 2021, an increase of $29 million compared to $422 million for first quarter 2020.

Gathering and processing segment gross margin was $226 million for first quarter 2021, a decrease of $40 million compared to $266 million for first quarter 2020. The decrease in gathering and processing segment gross margin was primarily due to:

• a decrease in changes in the fair value of natural gas, condensate and NGL derivatives,
• an increase in realized losses on natural gas, condensate and NGL derivatives,
• a decrease in revenues from natural gas sales due to higher intra month natural gas purchase costs during Winter Storm Uri,
• a decrease in natural gas gathering fees due to lower gathered volumes, inclusive of volume curtailments and production freeze-offs related to Winter Storm Uri, partially offset by higher assessed producer imbalance penalties and
• a decrease in crude oil, condensate and produced water gathering revenues primarily due to a decrease in gathered crude oil and condensate volumes in the Anadarko Basin, partially offset by an increase in gathered crude oil volumes in the Williston Basin.

These decreases were partially offset by:

• an increase in revenues from NGL sales primarily due to an increase in the average realized sales price from higher average market prices for NGL products combined with higher recoveries of ethane, partially offset by lower processed volumes and
• an increase in processing service revenues due to higher consideration received from percent-of-proceeds, percent-of-liquids and keep-whole processing arrangements due to higher average market prices, partially offset by lower processed volumes under fee-based arrangements.

Transportation and storage segment gross margin was $225 million for first quarter 2021, an increase of $69 million compared to $156 million for first quarter 2020. The increase in transportation and storage segment gross margin was primarily due to:

• an increase in system management activities primarily due to higher average natural gas sales prices,
• an increase in volume-dependent transportation and storage revenues due to an increase in assessed shipper imbalance penalties, partially offset by lower off-system intrastate transported volumes due to decreased production activity in the Anadarko Basin, inclusive of disruptions in natural gas supply associated with Winter Storm Uri, and the recognition in 2020 of $1 million of revenue upon the settlement of the MRT rate case with no comparable item in 2021 and
• a reduction in lower of cost or net realizable value adjustments related to natural gas storage inventories.

These increases were partially offset by:

• a decrease in firm transportation and storage services due to the recognition in 2020 of $16 million of previously reserved revenue upon the settlement of the MRT rate case with no comparable item in 2021, partially offset by higher interstate contracted capacity and
• a decrease in changes in the fair value of natural gas derivatives.

Operation and maintenance and general and administrative expenses were $121 million for first quarter 2021, a decrease of $5 million compared to $126 million for first quarter 2020. The decrease in operation and maintenance and general and administrative expenses was primarily due to a decrease in payroll-related costs as a result of lower headcount, a decrease in field equipment rentals, a decrease in operation and maintenance outside services and a decrease due to insurance proceeds partially offset by remediation costs associated with our Williston Basin operations. These decreases were partially offset by an increase in professional services primarily due to transaction costs related to the pending merger with Energy Transfer, an increase in the allowance for doubtful accounts and an increase due to lower capitalized overhead costs.

Depreciation and amortization expense was $106 million for first quarter 2021, an increase of $2 million compared to $104 million for first quarter 2020. The increase in depreciation and amortization expense was primarily due to revised estimates of remaining useful lives for certain assets.

There were no impairments of property, plant and equipment and goodwill for first quarter 2021, compared to $28 million of impairments for first quarter 2020.

Interest expense was $42 million for first quarter 2021, a decrease of $5 million compared to $47 million for first quarter 2020. The decrease was primarily due to lower debt levels and lower interest rates on short-term borrowings.

Capital expenditures were $80 million for first quarter 2021, compared to $54 million for first quarter 2020. Expansion capital expenditures were $64 million for first quarter 2021, compared to $38 million for first quarter 2020. Maintenance capital expenditures were $16 million for first quarter 2021, compared to $16 million for first quarter 2020.

EARNINGS CONFERENCE CALL AND WEBCAST

A conference call discussing first quarter results is scheduled today at 10 a.m. EDT (9 a.m. CDT). The toll-free dial-in number to access the conference call is 833-968-1938, and the international dial-in number is 778-560-2726. The conference call ID is 4373909. Investors may also listen to the call via Enable’s website at https://investors.enablemidstream.com. A replay of the conference call will be available on Enable’s website.

AVAILABLE INFORMATION

Enable files annual, quarterly and other reports and other information with the U.S. Securities and Exchange Commission (SEC). Enable’s SEC filings are also available at the SEC’s website at https://www.sec.gov which contains information regarding issuers that file electronically with the SEC. Information about Enable may also be obtained at the offices of the NYSE, 20 Broad Street, New York, New York 10005, or on Enable’s website at https://enablemidstream.com. On the Investor Relations section of Enable’s website, https://investors.enablemidstream.com, Enable makes available free of charge a variety of information to investors. Enable’s goal is to maintain the Investor Relations section of its website as a portal through which investors can easily find or navigate to pertinent information about Enable, including but not limited to:

• Enable’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after Enable electronically files that material with or furnishes it to the SEC;
• press releases on quarterly distributions, quarterly earnings and other developments;
• governance information, including Enable’s governance guidelines, committee charters and code of ethics and business conduct;

• information on events and presentations, including an archive of available calls, webcasts and presentations;
• news and other announcements that Enable may post from time to time that investors may find useful or interesting; and
• opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity. For more information, visit https://enablemidstream.com.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100%) of Enable’s distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Enable’s distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. Brokers and nominees, and not Enable, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

NON-GAAP FINANCIAL MEASURES

Enable has included the non-GAAP financial measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio in this press release based on information in its consolidated financial statements.

Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio are supplemental financial measures that management and external users of Enable’s financial statements, such as industry analysts, investors, lenders and rating agencies may use, to assess:

• Enable’s operating performance as compared to those of other publicly traded partnerships in the midstream energy industry, without regard to capital structure or historical cost basis;
• The ability of Enable’s assets to generate sufficient cash flow to make distributions to its partners;
• Enable’s ability to incur and service debt and fund capital expenditures; and
• The viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

This press release includes a reconciliation of Gross margin to total revenues, Adjusted EBITDA and DCF to net income attributable to limited partners, Adjusted EBITDA to net cash provided by operating activities and Adjusted interest expense to interest expense, the most directly comparable GAAP financial measures as applicable, for each of the periods indicated. Distribution coverage ratio is a financial performance measure used by management to reflect the relationship between Enable’s financial operating performance and cash distributions. Enable believes that the presentation of Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio provides information useful to investors in assessing its financial condition and results of operations. Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio should not be considered as alternatives to net income, operating income, total revenue, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP measures. Additionally, because Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio may be defined differently by other companies in Enable’s industry, its definitions of these measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Media
Leigh Ann Williams
(405) 553-6947

Investor
Matt Beasley
(405) 558-4600

FORT WORTH, Texas--(BUSINESS WIRE)--Basic Energy Services, Inc. (OTCQX: BASX) (“Basic” or the “Company”) today announced that it has completed a sale-leaseback transaction related to certain real property in Los Angeles County, California. The purchase price for the property consisted of $10.5 million, subject to a holdback of approximately $2.6 million for certain improvements to be constructed at the property. The Company is entitled to reimbursement of any remaining balance of said holdback funds to the extent not fully expended for the intended purpose. The Company has entered into a simultaneous lease of the property for an initial term of three years.

About Basic Energy Services

Basic Energy Services provides wellsite services essential to maintaining production from the oil and gas wells within its operating areas. The Company’s operations are managed regionally and are concentrated in major United States onshore oil-producing regions located in Texas, California, New Mexico, Oklahoma, Arkansas, Louisiana, Wyoming, North Dakota, Colorado and Montana. Our operations are focused in prolific basins that have historically exhibited strong drilling and production economics in recent years as well as natural gas-focused shale plays characterized by prolific reserves. Specifically, the Company has a significant presence in the Permian Basin, Bakken, Los Angeles and San Joaquin Basins, Eagle Ford, Haynesville and Powder River Basin. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company’s website at www.basices.com.

Safe Harbor Statement

This release includes “forward-looking statements” within the meaning of the federal and securities laws. Forward-looking statements are not statements of historical fact and reflect Basic’s current views about future events. The words “believe,” “estimate,” “expect,” “anticipate,” “project,” “intend,” “seek,” “could,” “should,” “may,” “potential” and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Although Basic believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions and estimates, certain risks and uncertainties could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. These risks and uncertainties include without limitation, risks associated with a future closing of the transaction and settlement of the holdback described therein and the satisfaction of the conditions thereto. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made and Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Trey Stolz
Director of Financial Planning & Analysis
Basic Energy Services, Inc.
817-334-4100

--(BUSINESS WIRE)--#EBA--Join the International Swaps and Derivatives Association, Inc. (ISDA) at its 35^th Annual General Meeting (AGM), being held virtually for the first time from Monday May 10 until Wednesday May 12, 2021.

Keynote addresses include:

• Ashley Alder, Chairman of the Board, International Organization of Securities Commissions and Chief Executive Officer, Securities and Futures Commission, Hong Kong
• José Manuel Campa, Chairperson, European Banking Authority
• Mairead McGuinness, Commissioner for Financial Services, European Commission
• Daniel Pinto, Co-President and Chief Operating Officer, JP Morgan Chase

The AGM will include sessions on:

• The timetable for LIBOR cessation and upcoming transition milestones
• Lessons learned from the coronavirus pandemic and the forthcoming regulatory agenda
• Challenges in complying with phase 5 of the initial margin requirements for non-cleared derivatives
• The role of derivatives in environmental, social and governance and sustainable finance
• Developments in the digitization and automation of derivatives markets

Additional information regarding the conference, including an agenda, is available on the ISDA's website. An updated agenda will be available in due course.

WHEN: Virtual sessions are held on Monday May 10 – Wednesday May 12, 2021.

Since 1985, ISDA has worked to make the global derivatives markets safer and more efficient. Today, ISDA has over 925 member institutions from 75 countries. These members comprise a broad range of derivatives market participants, including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure, such as exchanges, intermediaries, clearing houses and repositories, as well as law firms, accounting firms and other service providers. Information about ISDA and its activities is available on the Association’s website: www.isda.org. Follow us on Twitter, LinkedIn, Facebook and YouTube.

All press attending this conference must register in advance
Please send your name, affiliation, and contact details to Lauren Dobbs This email address is being protected from spambots. You need JavaScript enabled to view it.

ISDA _® is a registered trademark of the International Swaps and Derivatives Association, Inc.

Lauren Dobbs
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+1 212-901-6019

• Generates 1Q21 earnings of $0.73 per share on consolidated revenue of $528 million
• Reports robust backlog of nearly $5.2 billion driven by Naval Reactors bookings and other wins
• Reiterates 2021 guidance: non-GAAP earnings range of $3.05 to $3.20 per share
• Initiates new $500 million share repurchase authorization
• Commences new multi-year guidance framework for growth, free cash flow and capital allocation

LYNCHBURG, Va.--(BUSINESS WIRE)--$BWXT #earnings--BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported first quarter 2021 revenue of $528 million, a 2.6% decrease compared with $542 million in the first quarter 2020. Net income for the first quarter 2021 was $69.7 million, or $0.73 per diluted share, compared with GAAP net income of $75.5 million, or $0.79 per diluted share and non-GAAP net income of $75.6 million, or $0.79 per diluted share, in the prior-year period. A reconciliation of non-GAAP results is detailed in Exhibit 1.

“Solid first quarter results were complemented by the achievement of several important milestones including new wins in microreactor programs, new agreements and progress in medical isotopes, and completion and booking of the multi-year pricing agreement with Naval Reactors," said Rex D. Geveden, president and chief executive officer. "Not only do these milestones boost backlog to near-record levels, but they also strategically position the company to execute and continue to grow.”

“We also commenced a new multi-year guidance framework in our presentation materials, which we see as the first step towards a more comprehensive business outlook at an investor day later this year. Our focus over the medium-term will be to drive smart, long-term growth across the company, efficiently convert profits into cash, and return more than 50% of free cash flow to investors,” said Geveden.

Segment Results

Nuclear Operations Group (NOG) segment revenue was $402 million for the first quarter 2021, a 5.1% decrease from the prior-year period, driven by higher production volume which was more than offset by lower long-lead material production. NOG operating income was $74.4 million in the first quarter 2021, an 18% decrease compared with the prior-year period driven by the less long-lead material production and fewer favorable contract adjustments that were driven in part by the negative impacts from COVID absences early in the year, resulting in first quarter 2021 segment operating margin of 18.5%.

Nuclear Power Group (NPG) segment revenue was $107 million for the first quarter 2021, a 22% increase from the prior-year period primarily due to higher field service, parts manufacturing and fuel handling activity, partially offset by lower component manufacturing volume. NPG operating income was $10.3 million for the first quarter 2021, a 22% and 20% respective GAAP and non-GAAP increase from the prior-year period driven primarily from higher volume. First quarter 2021 segment operating margin was 9.6%.

Nuclear Services Group (NSG) segment operating income was $5.7 million for the first quarter 2021, down slightly compared with $6.4 million of operating income for the first quarter 2020 driven by the sale of the U.S. commercial nuclear services business in 2020, which was partially offset by better contract performance.

Cash and Capital Returned to Shareholders

The Company generated $98.4 million of cash from operating activities in the first quarter 2021, compared with $6.4 million of cash utilized in operating activities in the first quarter 2020 driven primarily from the receipt of a single $88.7 million cash payment on January 4, 2021, that historically was received before the end of the prior fiscal year. As of March 31, 2021, the Company’s cash balance, net of restricted cash, was $57.7 million.

On April 30, 2021, the BWXT Board of Directors approved a new share repurchase authorization for $500 million with no expiration date and declared a quarterly cash dividend of $0.21 per common share. The dividend will be payable on June 9, 2021, to shareholders of record on May 19, 2021.

During the first quarter 2021, the Company returned $40.3 million of cash to shareholders, including $20.0 million in share repurchases and $20.3 million in dividends.

2021 Guidance

BWXT reiterated all components of 2021 guidance:

• Non-GAAP EPS range of $3.05 – $3.20 (excludes pension and post-retirement benefits mark-to-market)
• Consolidated revenue growth of low-single digits vs. 2020 results
  • NOG revenue up slightly
  • NPG revenue growth of ~6%
• Non-GAAP operating income and margin
  • NOG operating margin of “high teens” with upside from CAS pension reimbursement
  • NPG operating margin of ~13%
  • NSG operating income range of $25-30 million
• Capital expenditures of ~$250 million

The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results. See reconciliation of non-GAAP results in Exhibit 1 for additional information.

Full Earnings Release Available on BWXT Website

A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/q12021-release

BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com.

Forward-Looking Statements

BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent they may be viewed as an indicator of future revenues; our plans and expectations for the NOG, NPG and NSG segments including the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes; disruptions to our supply chain and/or operations, changes in government regulations and other factors, including any such impacts of, or actions in response to the COVID-19 health crisis; and our expectations for 2021 and beyond. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to execute contracts in backlog; the lack of, or adverse changes in, federal appropriations to government programs in which we participate; the demand for and competitiveness of nuclear products and services; capital priorities of power generating utilities; the impact of COVID-19 on our employees, contractors, suppliers, customers and other partners and their business activities; the extent to which the length and severity of the COVID-19 health crisis exceeds our current expectations; the potential recurrence of subsequent waves or strains of COVID-19 or similar diseases; adverse changes in the industries in which we operate and delays, changes or termination of contracts in backlog. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see BWXT’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2020 and subsequent quarterly reports on Form 10-Q. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Va., BWXT provides safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,700 employees, BWXT has 12 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXTech and learn more at www.bwxt.com

Investor Contact:
Mark Kratz
Vice President, Investor Relations
980-365-4300
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Media Contact:
Jud Simmons
Director, Media and Public Relations
434-522-6462
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HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three months ended March 31, 2021.

Enterprise reported net income attributable to common unitholders of $1.3 billion, or $0.61 per unit on a fully diluted basis, for the first quarter of 2021, compared to $1.4 billion, or $0.61 per unit on a fully diluted basis, for the first quarter of 2020. Net income for the first quarter of 2021 was reduced by non-cash, asset impairment charges of approximately $66 million, or $0.03 per fully diluted unit. The impairment charges include $43 million related to our coal bed natural gas gathering system and Val Verde treating facility in the San Juan Basin that was held-for-sale at March 31, 2021. Net income for the first quarter of 2020 included an aggregate $187 million, or $0.08 per fully diluted unit, of deferred income tax benefits associated with the settlement of the Liquidity Option Agreement on March 5, 2020, and the subsequent accounting for the related deferred tax liability.

Net cash flow provided by operating activities, or cash flow from operations (“CFFO”), was $2.0 billion for both the first quarters of 2021 and 2020. Distributions declared with respect to the first quarter of 2021 increased 1.1 percent to $0.45 per unit, or $1.80 per unit annualized, compared to distributions declared for the first quarter of 2020. Enterprise’s payout ratio to common unitholders of distributions and partnership unit buybacks for the twelve months ended March 31, 2021 was 68% of CFFO. For the twelve months ended March 31, 2021, Free Cash Flow (CFFO less capital investments, or “FCF”) was $3.1 billion compared to $3.4 billion for the twelve months ended March 31, 2020.

Distributable Cash Flow (“DCF”) was $1.7 billion for the first quarter of 2021 compared to $1.6 billion for the first quarter of 2020. DCF for the first quarter of 2021 included $81 million of cash proceeds from the monetization of interest rate hedging instruments and asset sales. Excluding these non-operating amounts, DCF provided 1.7 times coverage of the distribution declared with respect to the first quarter of 2021. Enterprise retained $746 million of DCF for the first quarter of 2021, and $2.7 billion for the twelve months ended March 31, 2021.

First Quarter 2021 Highlights

• Gross operating margin, operating income and net income attributable to common unitholders included non-cash, mark-to-market (“MTM”) gains on financial instruments used in our commodity hedging activities of $16 million for the first quarter of 2021 and $30 million for the first quarter of 2020.
• Capital investments were $682 million during the first quarter of 2021, including $144 million of sustaining capital expenditures. Sustaining capital expenditures for the first quarter of 2021 included approximately $81 million of expenditures related to the turnaround of the partnership’s Propane Dehydrogenation Unit (“PDH”) and Octane Enhancement facilities.

As used in this press release, “NGL” means natural gas liquids, “LPG” means liquefied petroleum gas, “BPD” means barrels per day, “MBPD” means thousand barrels per day, “MMcf/d” means million cubic feet per day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means billion British thermal units per day and “TBtus/d” means trillion British thermal units per day.

“The value of Enterprise’s diversified and integrated midstream system was exhibited again during a volatile first quarter of 2021,” said A. J. “Jim” Teague, co-chief executive officer on Enterprise’s general partner. “Our propylene, NGL, refined products and natural gas businesses benefited from greater demand associated with the early stages of an economic recovery, winter demand and higher commodity prices. This was offset by plant and pipeline disruptions and lower volumes attributable to the impacts of two back-to-back major winter storms, Uri and Viola, and turnarounds at our PDH and octane enhancement facilities.”

“During the winter storms, from February 15 through February 19, most of our Texas assets went offline at some point either from us voluntarily reducing our power requirements by shutting down certain facilities, our participation in ERCOT’s Load Resources program, which redeploys industrial power supplies to human need, or from power blackouts. In addition, our Texas Intrastate natural gas pipeline, natural gas processing plants and storage facilities were impacted by rolling blackouts. The economic impact of lost revenues from these disruptions, higher power and natural gas costs, as well as losses on natural gas hedges, were mitigated by sales of natural gas to electricity generators, natural gas utilities and industrial customers to assist them in meeting their needs. Our system was also impacted by lower volumes due to many of our producer, petrochemical and refinery customers experiencing disruptions both during and following the storms as repairs were made to freeze-damaged facilities. I want to thank our employees for their tireless, around-the-clock actions to schedule and keep natural gas flowing on our pipeline system and troubleshooting and restarting assets during the historic frigid conditions,” stated Teague.

“We continue to see stronger demand for crude oil, NGLs, primary petrochemicals and refined products as the United States and the rest of the world begin to unevenly emerge from COVID-related lockdowns, restart manufacturing facilities and as excess inventories of crude oil, NGLs and refined products are reduced. On the Texas and Louisiana gulf coast, petrochemical plants and refineries are increasing utilization rates after completing repairs due to damage from the winter storms and in response to better indicative profit margins. This has led to higher commodity prices, which has supported an increase in producer drilling and completion activities, especially in the Permian Basin. At the current level of activities, we are more confident in our most recent forecasts of U.S. crude oil and NGL production,” continued Teague.

“We continue to be ‘on schedule’ to complete the expansion of our Acadian Gas system to Gillis, Louisiana to serve LNG markets, the expansion of our ethylene and propylene pipeline systems and the construction of our natural gasoline hydrotreater during the second half of 2021,” said Teague.

Review of First Quarter 2021 Results

Enterprise reported total gross operating margin of $2.3 billion for the first quarter of 2021 compared to $2.0 billion for the first quarter of 2020. Below is a review of each business segment’s performance for the first quarter of 2021.

NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment increased to $1.1 billion for the first quarter of 2021 from $1.0 billion for the first quarter of 2020.

Gross operating margin from Enterprise’s natural gas processing business and related NGL marketing activities increased 17 percent to $294 million for the first quarter of 2021 compared to $252 million for the first quarter of 2020. Included in gross operating margin for the first quarters of 2021 and 2020 were non-cash, MTM gains of $37 million, and net noncash, MTM losses of $12 million, respectively. Gross operating margin for the first quarter of 2021 from Enterprise’s NGL marketing activities increased $97 million compared to the same quarter last year, primarily due to higher average sales margins and volumes.

Gross operating margin from the partnership’s processing plants for the first quarter of this year decreased $55 million compared to the same quarter in 2020. The South Texas processing plants had a $41 million decrease in gross operating margin, primarily due to lower equity NGL production, lower average processing fees and volumes and higher operating costs. Partially offsetting these negative impacts was a $10 million increase in gross operating margin due to higher processing margins, including the impact of hedging activities. Fee-based processing volumes at our South Texas processing plants decreased 213 MMcf/d.

Lower average gas processing margins and decreased fee-based volumes, partially offset by lower operating costs, contributed to a $22 million decrease in gross operating margin for the first quarter of 2021 from Enterprise’s Rockies processing facilities, which includes the Meeker, Pioneer and Chaco plants. On a combined basis, fee-based gas processing volumes decreased 402 MMcf/d. Gross operating margin from Enterprise’s Permian Basin processing facilities for the first quarter of this year increased $10 million, primarily due to higher average processing margins and a 193 MMcf/d increase in fee-based processing volumes.

Our Texas facilities were impacted by well freeze offs and power blackouts during the first quarter of 2021 due to winter storms Uri and Viola. In addition, upstream drilling activity remains below pre-COVID levels at this point in the economic recovery. Total fee-based processing volumes from Enterprise’s gas processing facilities were 4.0 Bcf/d for the first quarter of 2021 compared to 4.7 Bcf/d for the first quarter of 2020. Total equity NGL production increased 22 MBPD to 162 MBPD this quarter compared to the first quarter of last year.

Gross operating margin from the partnership’s NGL pipelines and storage business was $627 million for the first quarter of 2021 compared to $653 million for the first quarter of 2020. NGL pipeline transportation volumes were 3.3 million BPD this quarter compared to 3.8 million BPD in the first quarter of last year.

A number of Enterprise’s NGL pipelines, including the Mid-America and Seminole NGL Pipeline Systems, Chaparral NGL Pipeline, Shin Oak NGL Pipeline, Texas Express and the Front Range Pipelines serve the Permian Basin and Rocky Mountain regions. On a combined basis, gross operating margin for the first quarter of 2021 from these pipelines decreased a net $22 million compared to the first quarter of 2020, primarily due to a 213 MBPD reduction in transportation volumes that was partially offset by higher average transportation fees. The partnership’s South Texas NGL Pipeline System had a $5 million decrease in gross operating margin primarily due to lower transportation volumes of 55 MBPD.

Gross operating margin from Enterprise Hydrocarbons Terminal (“EHT”) and the related Channel pipeline for the first quarter of 2021 decreased a combined $19 million compared to the same quarter last year, primarily due to a 95 MBPD decrease in LPG export volumes at EHT and a 144 MBPD decrease in transportation volumes on the Channel pipeline. The partnership’s marine terminal operations on the Houston Ship Channel were halted for 3 days due to the closure of the ship channel as a result of the winter storms. In total, the partnership’s NGL marine terminal volumes were 652 MBPD for the first quarter of 2021 compared to 742 MBPD for the first quarter of 2020.

Enterprise’s NGL fractionation business reported a $29 million increase in gross operating margin for the first quarter of 2021 compared to the first quarter of 2020. The partnership’s Mont Belvieu-area NGL fractionators generated a $41 million increase in gross operating margin for the first quarter of 2021 compared to the same quarter last year, primarily due to a 159 MBPD increase in fractionation volumes. Enterprise’s 10^th and 11^th NGL fractionation facilities in Chambers County, Texas began operations in March and September 2020, respectively. Total NGL fractionation volumes increased to 1.2 million BPD this quarter from 1.1 million BPD in the same quarter of 2020.

Crude Oil Pipelines & Services – Gross operating margin from the partnership’s Crude Oil Pipelines & Services segment was $400 million for the first quarter of 2021 compared to $453 million for the first quarter of 2020. Gross operating margin includes non-cash, MTM losses related to hedging activities of $1 million in the first quarter of 2021 compared to non-cash MTM gains of $11 million in the first quarter of 2020. Total crude oil pipeline transportation volumes were 1.9 million BPD for the first quarter of 2021 compared to 2.4 million BPD for the first quarter of 2020. Total crude oil marine terminal volumes were 572 MBPD this quarter compared to 985 MBPD for the first quarter of last year.

The South Texas Crude Oil Pipeline System had a $26 million decrease in gross operating margin for the first quarter of 2021 compared to the first quarter of 2020, primarily due to lower transportation and other fees, and a 49 MBPD decrease in transportation volumes. Gross operating margin from our equity investment in the Eagle Ford Crude Oil Pipeline decreased $11 million for the first quarter of 2021 versus the same quarter last year due to a 93 MBPD decrease in transportation volumes.

Gross operating margin from the partnership’s West Texas Crude Oil Pipeline System for the first quarter of 2021 decreased $20 million compared to the first quarter of 2020, primarily due to a 57 MBPD decrease in transportation volumes, and lower average fees. Gross operating margin from Enterprise’s Midland-to-ECHO Pipeline System and related business activities decreased $11 million for the first quarter of 2021 versus the same quarter last year, primarily due to lower average sales margins (including the impact of hedging activities), partially offset by lower operating costs. Transportation volumes on the Midland-to-ECHO Pipeline System decreased 6 MBPD.

Gross operating margin from other crude oil marketing activities for the first quarter of 2021 increased $17 million compared to the first quarter of 2020, primarily due to higher average sales margins, including the impact of hedging activities. EHT had a $9 million increase in gross operating margin due to lower operating costs. Terminal loading volumes at EHT decreased 380 MBPD during the first quarter of 2021 compared to the first quarter of 2020 due to lower export activity. Gross operating margin from our ECHO terminal decreased $5 million as a result of lower terminaling and storage revenue.

Natural Gas Pipelines & Services – Gross operating margin for the Natural Gas Pipelines & Services segment for the first quarter of 2021 increased to $535 million compared to $284 million for the first quarter of 2020. Gross operating margin for the first quarter of 2021 includes non-cash, MTM losses related to hedging activities of $3 million compared to $29 million of non-cash, MTM gains in the first quarter of 2020. Total natural gas transportation volumes were 13.7 TBtus/d for the first quarter of 2021 compared to 13.9 TBtus/d for the first quarter of 2020.

Gross operating margin from natural gas marketing activities for the first quarter of 2021 increased $266 million compared to the first quarter of last year primarily due to the resale of natural gas, including natural gas made available due to the temporary closures of our Texas-based facilities during the February 2021 winter storms. Enterprise’s Permian Basin natural gas gathering system had a $14 million increase in gross operating margin for the first quarter of 2021 due to higher condensate sales prices and volumes. This system also benefited from a 361 BBtus/d increase in gathering volumes, primarily related to deliveries to the Mentone and Orla natural gas processing facilities.

Gross operating margin from the Acadian Gas System for the first quarter of 2021 decreased $14 million, primarily due to a one-time producer payment received in the first quarter of 2020 and lower capacity reservation fees. Transportation volumes for the Acadian Gas System decreased 60 BBtus/d. The Texas Intrastate System had a $12 million reduction in gross operating margin this quarter compared to the first quarter of 2020, primarily due to lower capacity reservation fees. Transportation volumes for the Texas Intrastate System decreased 11 BBtus/d in the first quarter of 2021 compared to the first quarter of 2020.

Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $282 million for the first quarter of 2021 compared to $279 million for the first quarter of 2020. Total segment pipeline transportation volumes were 749 MBPD this quarter compared to 712 MBPD for the first quarter of last year. Refined products and petrochemical marine terminal volumes were 266 MBPD for the first quarter of 2021 compared to 271 MBPD for the same quarter in 2020.

Gross operating margin for the first quarter of 2021 from propylene production and related activities increased $37 million, primarily due to higher fractionation fees and lower operating expenses. Total propylene production volumes decreased to 83 MBPD this quarter from 98 MBPD for the first quarter of 2020, due to the PDH facility being down for 46 days for a planned turnaround during the first quarter of 2021. Our PDH facility returned to service during the second half of March 2021.

Enterprise’s refined products pipelines and related activities reported a $27 million increase in gross operating margin for the first quarter of 2021 compared to the first quarter of last year primarily due to higher sales volumes withdrawn from storage. Gross operating margin includes $18 million of non-cash, MTM losses in the first quarter of 2021 compared to $2 million of non-cash MTM gains in the first quarter of 2020.

Gross operating margin from the partnership’s octane enhancement and related plant operations decreased $54 million for the first quarter of 2021 compared to the same quarter in 2020 due to lower average sales margins, including the impact of hedging activities, and lower sales volumes. Scheduled plant turnarounds resulted in the octane enhancement facility and the associated high-purity isobutylene facility being down for 16 days and 21 days, respectively, during the first quarter of 2021. These facilities returned to service at the beginning of May 2021 and the last week of January 2021, respectively.

Capitalization

Total debt principal outstanding at March 31, 2021 was $28.9 billion, including $2.6 billion of junior subordinated notes, to which the debt rating agencies ascribe partial equity content. At March 31, 2021, Enterprise had consolidated liquidity of approximately $5.1 billion, comprised of unrestricted cash on hand and available borrowing capacity under its revolving credit facilities.

Capital Investments

Total capital investments were $682 million in the first quarter of 2021, which included $144 million of sustaining capital expenditures. Included in sustaining capital expenditures for the first quarter of 2021 were $81 million associated with the planned turnarounds of the PDH and octane enhancement facilities.

Our current expectation for growth capital investments for 2021 and 2022 continue to be $1.6 billion and $800 million, respectively. These estimates do not include capital investments associated with Enterprise’s proposed deepwater Seaport Oil Terminal (“SPOT”), which remains subject to governmental approval. We currently expect sustaining capital expenditures to be approximately $440 million for 2021.

Conference Call to Discuss First Quarter 2021 Earnings

Enterprise will host a conference call today to discuss first quarter 2021 earnings. The call will be broadcast live over the Internet beginning at 9:00 a.m. CT and may be accessed by visiting the partnership’s website at www.enterpriseproducts.com.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of total gross operating margin, FCF, DCF and Adjusted EBITDA. The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly-titled measures of other companies because they may not calculate such measures in the same manner as we do.

Company Information and Use of Forward-Looking Statements

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and export and import terminals; crude oil gathering, transportation, storage and export and import terminals; petrochemical and refined products transportation, storage, export and import terminals and related services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 50,000 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.

This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions.

Randy Burkhalter, Vice President, Investor Relations, (713) 381-6812
Rick Rainey, Vice President, Media Relations, (713) 381-3635