The fact that the oil and gas industry is a cyclical business isn’t a new concept. But the dynamics of the current downcycle certainly are a new concept since the U.S., the largest consumer of hydrocarbons, is now a large enough producer that it can provide these hydrocarbons to other parts of the world. Though the markets are cyclical, shale production has flipped the industry on its head.

No longer an importer, the U.S. is now open for business as an exporter. Of course, the current arbitrage levels don’t support large amounts of U.S. crude exports, but domestically-produced gas and liquids are economically desirable to export.

This is a situation that Enterprise Products Partners LP was preparing for as the oil and gas markets were riding high 18-24 months ago. At the time, the company planned to build and reconfigure terminals to export ethane, propane and butane, and was securing approval to export condensate. The company is now set up to export crude oil.

An oft-repeated phrase has been that companies are playing defense, but that isn’t the case at Enterprise, which is treating the current environment not as a crisis but as a normal cycle. “In a crisis you’re trying to survive. At Enterprise, we’re not in a crisis, but today’s environment is a crisis for many in our business and they are in survival mode,” Jim Teague, CEO, said during the company’s recent analyst day presentation.

Indeed, he noted that Enterprise embraces change and volatility because of the opportunities that these market dynamics bring with them. “When you have chaos, invariably you have opportunities that aren’t necessarily there otherwise. The key is finding the opportunities inherent in chaos,” Teague said.

While the current downcycle is a difficult one, the company is managing through it and anticipates coming out even stronger, according to Teague. This approach is attributed to the company’s long-held strategy of focusing on demand over supply as well as its overall value chain.

“We’ve managed our financials in a prudent and conservative manner, which has resulted in a strong and durable balance sheet. A demand focus built around a dynamic, integrated value system and a strong balance sheet uniquely positions Enterprise to lead in cultivating markets,” Teague said.

In the midst of the downturn last year, the company placed nearly $3 billion of capital projects into service while also completing its nearly $6 billion merger with Oiltanking Partners and acquiring Pioneer Natural Resources Co.’s Eagle Ford Shale midstream system for more than $2 billion. The company has $6 billion worth of capital projects set to be brought online this year along with increased volumes on the Front Range, Texas Express and ATEX pipelines.

“We are being extremely aggressive using our value chain to fill up capacity that we have available because of throughput going down. When you have a value chain, you can give aggressive deals in one part and make money in another part. There are very few companies that have that capability but we use the entirety of the value chain in order to get more volume through our plants,” he said. The company might not be getting the same returns as in 2013 and 2014, but it’s still making more money than most other operators.

Teague noted that lower prices should result in an uptick in demand. Currently the U.S. LPG export market remains strong and LNG exports are starting to take off as new terminals are brought online. Additionally, Enterprise began exporting crude oil from the Houston Ship Channel in January and is set to complete its ethane export terminal this summer.

The focus on demand and the foresight to look ahead is why Enterprise has been so focused on the export market. Teague said that five years ago the company didn’t own any docks and now it owns about 20.

“We saw a lot of capacity for excess domestic production. We saw domestic production exceeding demand in virtually all areas as time went on. Prices have changed that a little bit, but we still see the need for exports,” Bill Ordemann, the company’s executive vice presidentof commercial, said.

Exports will continue to play a major role in the company’s future as Ordemann said that total exports are expected to exceed 1 million barrels per day in 2017.

Frank Nieto can be reached at fnieto@hartenergy.com.