Pricing and Markets

February 3, 2021

Enterprise Propylene Comments From 2020 Results Release

Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment increased 27 percent, or $63 million to $297 million for the fourth quarter of 2020 from $234 million for the fourth quarter of 2019. Total segment pipeline transportation volumes were up 19 percent to 867 MBPD this quarter versus 729 MBPD for the same quarter in 2019, and marine terminal volumes were up 20 percent to 297 MBPD this quarter compared to the same quarter of 2019.

The partnership’s propylene business reported a $91 million increase in gross operating margin to a record $169 million for the fourth quarter of 2020. Total propylene production volumes increased 17 percent to 104 MBPD for the fourth quarter of 2020 from 89 MBPD in the fourth quarter of 2019. Enterprise’s propylene production facilities located at Mont Belvieu, which includes its propylene fractionators and propane dehydrogenation (“PDH”) unit, contributed $85 million to the quarterly increase in gross operating margin, including $30 million from the PDH facility. This increase was primarily due to higher sales margins, higher average fees, lower maintenance expenses related to the propylene fractionation facilities and an 8 MBPD increase in propylene production from the PDH facility, which on average operated at its nameplate capacity of 25 MBPD for the fourth quarter of 2020. Higher average export fees led to a $3 million increase in gross operating margin from the propylene export terminals, which benefited from a 26 percent increase in export volumes to 24 MBPD in the fourth quarter of 2020 as compared to the fourth quarter of 2019.

Gross operating margin from ethylene exports, pipelines, and related services increased $11 million this quarter compared to the fourth quarter of 2019. The partnership’s ethylene export marine terminal, which was placed into partial service in December 2019 and full service in December 2020, had gross operating margin of $5 million in the fourth quarter of 2020 on loading volumes of 12 MBPD net to our 50 percent interest at the terminal.

Enterprise’s refined products pipeline and related activities reported a $14 million decrease in gross operating margin for the fourth quarter of 2020 compared to the fourth quarter of 2019, primarily due to an $18 million decrease in gross operating margin from our TE Products Pipeline System, primarily due to a 22 MBPD reduction in NGL transportation volumes and lower deficiency fees that were partially offset by higher refined products fees.

Gross operating margin from Enterprise’s octane enhancement, isobutane dehydrogenation (“iBDH”) and related operations for the fourth quarter of 2020 decreased $19 million as a result of lower average sales margins, partially offset by higher sales volumes and lower maintenance expenses.

The partnership’s PDH and octane enhancement facilities are scheduled for planned turnarounds during the first quarter of 2021. We expect these plants to be out of service for approximately 45 days and 24 days, respectively, during the first quarter, with completion of the octane enhancement turnaround expected in April 2021. In addition, we expect to incur approximately $115 million of sustaining capital expenditures associated with these turnarounds in 2021.

https://www.businesswire.com/news/home/20210203005280/en/Enterprise-Reports-2020-Results

February 3, 2021

Enterprise Propylene Comments From 2020 Results Release

Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment increased 27 percent, or $63 million to $297 million for the fourth quarter of 2020 from $234 million for the fourth quarter of 2019. Total segment pipeline transportation volumes were up 19 percent to 867 MBPD this quarter versus 729 MBPD for the same quarter in 2019, and marine terminal volumes were up 20 percent to 297 MBPD this quarter compared to the same quarter of 2019.

The partnership’s propylene business reported a $91 million increase in gross operating margin to a record $169 million for the fourth quarter of 2020. Total propylene production volumes increased 17 percent to 104 MBPD for the fourth quarter of 2020 from 89 MBPD in the fourth quarter of 2019. Enterprise’s propylene production facilities located at Mont Belvieu, which includes its propylene fractionators and propane dehydrogenation (“PDH”) unit, contributed $85 million to the quarterly increase in gross operating margin, including $30 million from the PDH facility. This increase was primarily due to higher sales margins, higher average fees, lower maintenance expenses related to the propylene fractionation facilities and an 8 MBPD increase in propylene production from the PDH facility, which on average operated at its nameplate capacity of 25 MBPD for the fourth quarter of 2020. Higher average export fees led to a $3 million increase in gross operating margin from the propylene export terminals, which benefited from a 26 percent increase in export volumes to 24 MBPD in the fourth quarter of 2020 as compared to the fourth quarter of 2019.

Gross operating margin from ethylene exports, pipelines, and related services increased $11 million this quarter compared to the fourth quarter of 2019. The partnership’s ethylene export marine terminal, which was placed into partial service in December 2019 and full service in December 2020, had gross operating margin of $5 million in the fourth quarter of 2020 on loading volumes of 12 MBPD net to our 50 percent interest at the terminal.

Enterprise’s refined products pipeline and related activities reported a $14 million decrease in gross operating margin for the fourth quarter of 2020 compared to the fourth quarter of 2019, primarily due to an $18 million decrease in gross operating margin from our TE Products Pipeline System, primarily due to a 22 MBPD reduction in NGL transportation volumes and lower deficiency fees that were partially offset by higher refined products fees.

Gross operating margin from Enterprise’s octane enhancement, isobutane dehydrogenation (“iBDH”) and related operations for the fourth quarter of 2020 decreased $19 million as a result of lower average sales margins, partially offset by higher sales volumes and lower maintenance expenses.

The partnership’s PDH and octane enhancement facilities are scheduled for planned turnarounds during the first quarter of 2021. We expect these plants to be out of service for approximately 45 days and 24 days, respectively, during the first quarter, with completion of the octane enhancement turnaround expected in April 2021. In addition, we expect to incur approximately $115 million of sustaining capital expenditures associated with these turnarounds in 2021.

https://www.businesswire.com/news/home/20210203005280/en/Enterprise-Reports-2020-Results

February 2, 2021

SES Announces Spray Foam Increase

February 1, 2021

The Urethane industry has continued to experience raw material price increases along with significant product shortages. MDI, along with Polyol and fire retardants have had several price increases over the past several
months. SES has absorbed these and other increases that have resulted in a significant increase in our product costing. In addition to the severity of the increases, the industry is also burdened with significant supply shortages and logistical challenges. SES will continue to work hard to provide you with quality products in a timely manner.

SES must now implement an increase of $0.10/lb effective February 15, 2021 on all SES products shipped after February 12, 2021. This increase will be reflected on all orders shipped after Monday, February 15, 2021.

We continue to value your business and will continue to invest in resources to support your growth and performance in the industry.

Should you have any questions regarding your account or desire more details regarding the increases, please discuss with your account representative. Thank you for your continued support.

February 2, 2021

SES Announces Spray Foam Increase

February 1, 2021

The Urethane industry has continued to experience raw material price increases along with significant product shortages. MDI, along with Polyol and fire retardants have had several price increases over the past several
months. SES has absorbed these and other increases that have resulted in a significant increase in our product costing. In addition to the severity of the increases, the industry is also burdened with significant supply shortages and logistical challenges. SES will continue to work hard to provide you with quality products in a timely manner.

SES must now implement an increase of $0.10/lb effective February 15, 2021 on all SES products shipped after February 12, 2021. This increase will be reflected on all orders shipped after Monday, February 15, 2021.

We continue to value your business and will continue to invest in resources to support your growth and performance in the industry.

Should you have any questions regarding your account or desire more details regarding the increases, please discuss with your account representative. Thank you for your continued support.

February 2, 2021

BASF Announces MDI Increases

February 1, 2021

Dear Valued Customer,

Effective February 15, 2021 or as contracts allow, BASF Corporation is raising the price for Lupranate PMDI products and PMDI blends by $ 0.20 per pound. BASF is raising the price of Lupranate MMDI products and MMDI blends by $0.10 per pound.

Your BASF Account Manager will provide details of this announced increase and is available to answer any questions you may have. We appreciate your continued support of BASF Urethane Chemicals.