HOUSTON–(BUSINESS WIRE)–Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three months ended March 31, 2026.
Financial Highlights (1Q 2026 compared to 1Q 2025, as applicable)
- Operating income: $1.9 billion, up 8%
- Net income attributable to common unitholders: $1.5 billion, $0.68 per diluted common unit, up 6%
- Adjusted EBITDA: $2.7 billion, up 10%
- Operational DCF: $2.1 billion, which provided 1.8x coverage of distributions declared for 1Q 2026, up 5%; retained $1.5 billion of DCF
- Adjusted CFFO: $2.3 billion, up 10%
- Common unit repurchases: $116 million; 31% cumulative utilization of $5.0 billion buyback program
- For the 12 months ended March 31, 2026, the payout ratio, comprised of distributions to common unitholders and common unit buybacks, was 57% of Adjusted CFFO
- Distributions declared: $0.55 per common unit, or $2.20 per common unit annualized, up 2.8%
- Total debt principal outstanding: $34.2 billion as of March 31, 2026
- Consolidated liquidity (available liquidity under revolving credit facilities plus unrestricted cash on hand): $3.3 billion as of March 31, 2026
Capital Investment and Operational Highlights (1Q 2026 compared to 1Q 2025, as applicable)
- Record natural gas processing plant inlet volumes: 8.3 Bcf/d, up 7%, driven by a 9% increase in Permian plant inlet volumes
- Record equivalent pipeline transportation volumes: 14.2 MMBPD, up 7%
- Record marine terminal volumes: 2.3 MMBPD, up 15%
- Record NGL fractionation volumes: 1.9 MMBPD, up 16%
- Assets placed into service: Mentone West 2 Gas Processing Plant
- Announced two additional 300 MMcf/d natural gas processing plants in the Permian Basin
- Capital investments for 1Q 2026: $988 million, comprised of $783 million for growth capital projects and $205 million for sustaining capital expenditures
- Growth capital spending for 2026, net of $596 million of proceeds from asset sales, is expected to be in the range of $2.3 to $2.6 billion; and $580 million for sustaining capital expenditures
Conference Call to Discuss First Quarter 2026 Earnings
Enterprise will host a conference call today to discuss first quarter 2026 earnings. The call will be webcast live beginning at 9:00 a.m. CT and may be accessed by visiting the partnership’s website at www.enterpriseproducts.com.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), distributable cash flow (“DCF”), Operational distributable cash flow (“Operational DCF”), Adjusted cash flow from operations (“Adjusted CFFO”), total gross operating margin, and adjusted free cash flow (“Adjusted FCF”) are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release.
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, “MMBPD” means million 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, “TBtus/d” means trillion British thermal units per day, and “PDH” means propane dehydrogenation.
“Enterprise began 2026 with a strong start in the first quarter,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “Contributions from new assets placed in service over the past year and continuing to volumetrically ramp up, such as the Bahia NGL pipeline, NGL fractionator 14 and three Permian natural gas processing plants, led to record volumes across most of our integrated system. In total, our partnership set 12 new operational records during the quarter including for natural gas processing inlet volumes of 8.3 Bcf/d, equivalent pipeline volumes of 14.2 MMBPD, NGL fractionation volumes of 1.9 MMBPD and marine terminal volumes of 2.3 MMBPD. This volume growth together with higher utilization rates at our PDH facilities, an increase in natural gas pipeline and marketing volumes and margins and higher values for 234 MBPD of equity NGL-equivalent production led to a quarter of strong earnings and cash flow.”
“For the quarter, we generated $2.7 billion of DCF, including approximately $600 million of proceeds received in the first quarter of 2026 from the final payment for our sale of a 40 percent interest in the Bahia NGL pipeline to ExxonMobil. Our DCF for the quarter supported a 2.8 percent increase in our cash distribution rate to common unitholders and allowed us to retain $1.5 billion of DCF to reinvest in the growth of the partnership and fund $116 million of buybacks in the first quarter,” said Teague.
“Our commercial team in the Permian continues to have success in underwriting new natural gas processing plants and related infrastructure to support future growth from our oil and gas producer customers. To accommodate this production growth, Enterprise will build two additional 300 MMcf/d natural gas processing plants, one each in the Midland and Delaware Basins that are expected to begin operations during 2027. These plants will increase our natural gas processing capacity by an additional 12 percent. Since the Navitas Midstream acquisition in 2022, we have been increasing our natural gas processing capacity in the Permian at a 17 percent compound annual growth rate. With the trend of higher ratios of natural gas and NGL production to crude oil production, we expect natural gas and NGL production growth from the Permian to be 1.6 times that of crude oil production growth. This provides visibility to the need for additional investments in natural gas gathering, treating and processing capacity to facilitate further development of the basin. The NGL volumes from these new plants will flow into our integrated system of downstream NGL pipelines, fractionators, distribution pipelines to domestic markets and marine terminals to serve international markets. We now have approximately $5.3 billion of major growth capital projects under construction,” stated Teague.
“As a result of the recent disruption of exports from the Middle East, we are seeing strong demand for the security and reliability of U.S. energy exports. We are experiencing this uptick in demand across all of our marine terminals including record demand for the partnership’s ethylene export facility. I would like to congratulate our engineering and operations team for expediting the second phase of our Neches River NGL marine terminal. We began LPG commissioning activities at the terminal earlier this month and will also begin ethane commissioning activities later in May. These efforts enable Enterprise to promptly respond to the increase in global demand for U.S. energy,” concluded Teague.
Review of First Quarter 2026 Results
Total gross operating margin was $2.6 billion for the first quarter of 2026 compared to $2.4 billion for the first quarter of 2025.
NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment was $1.5 billion for the first quarter of 2026 compared to $1.4 billion for the first quarter of 2025.
Gross operating margin from the natural gas processing business and related NGL marketing activities was $415 million for the first quarter of 2026 compared to $373 million for the first quarter of 2025. Natural gas processing plant inlet volumes were a record 8.3 Bcf/d in the first quarter of 2026, a 7 percent increase compared to the first quarter of 2025. Total fee-based natural gas processing volumes increased 4 percent, or 297 MMcf/d, to a record 7.5 Bcf/d in the first quarter of 2026, compared to the first quarter of 2025. Total equity NGL-equivalent production volumes were 234 MBPD and 225 MBPD in the first quarters of 2026 and 2025, respectively. The following highlights summarize selected variances within this business, with results for the first quarter of 2026 as compared to the first quarter of 2025:
- Permian natural gas processing, including the Delaware and Midland Basin facilities, reported a $47 million increase in gross operating margin primarily due to higher average processing margins and higher fee-based processing volumes.
- The higher fee-based processing volumes were primarily due to the three natural gas processing plants beginning operations in the past twelve months: Mentone West 1 and Orion in the third quarter of 2025 and Mentone West 2 in the first quarter of 2026. Permian Basin processing plant inlet volumes increased 345 MMcf/d.
Gross operating margin from the NGL pipelines and storage business was $832 million for the first quarter of 2026 compared to $831 million for the first quarter of 2025. Total NGL pipeline volumes were a record 4.9 MMBPD in the first quarter of 2026, a 434 MBPD, or 10 percent, increase over the first quarter of 2025. Total NGL marine terminal volumes were a record 1.1 MMBPD in the first quarter of 2026, a 103 MBPD increase compared to the first quarter of 2025. The following highlights summarize selected variances within this business, with results for the first quarter of 2026 as compared to the first quarter of 2025:
- On a combined basis, the pipelines serving the Permian and Rocky Mountain regions reported a $22 million increase in gross operating margin. The Bahia NGL Pipeline was placed into service during the fourth quarter of 2025.
- Gross operating margin from the Morgan’s Point and Neches River Terminals increased $6 million primarily due to an increase in ethane export volumes. The first phase of the Neches River Terminal was placed in service in July 2025.
- Gross operating margin from LPG-related activities at the Enterprise Hydrocarbons Terminal (“EHT”) decreased $42 million primarily due to lower average loading fees largely due to the recontracting of a legacy agreement.
Gross operating margin from the NGL fractionation business was $256 million for the first quarter of 2026 compared to $214 million for the first quarter of 2025. Total NGL fractionation volumes were a record 1.9 MMBPD for the first quarter of 2026 compared to 1.7 MMBPD for the first quarter of 2025. The following highlight summarizes selected variances within this business, with results for the first quarter of 2026 as compared to the first quarter of 2025:
- Gross operating margin from our Mont Belvieu area NGL fractionation complex increased $33 million primarily due to higher average fractionation fees and higher volumes partially offset by higher operating costs. The higher fractionation volumes were primarily due to Frac 14 which was placed into service in the fourth quarter of 2025.
Crude Oil Pipelines & Services – Gross operating margin from the Crude Oil Pipelines & Services segment was $329 million for the first quarter of 2026 compared to $374 million for the first quarter of 2025. Total crude oil pipeline volumes were a record 2.6 MMBPD in the first quarter of 2026, a 165 MBPD increase compared to the first quarter of 2025. Total crude oil marine terminal volumes were 866 MBPD in the first quarter of 2026 compared to 736 MBPD in the first quarter of 2025. The following highlight summarizes selected variances within this segment, with results for the first quarter of 2026 as compared to the first quarter of 2025:
- On a combined basis, gross operating margin from our crude oil assets and crude oil marketing decreased a net $45 million primarily due to lower average sales margins and lower transportation-related revenues, partially offset by higher other revenues at EHT.
Natural Gas Pipelines & Services – Gross operating margin for the Natural Gas Pipelines & Services segment was $496 million for the first quarter of 2026 compared to $357 million for the first quarter of 2025. Total natural gas pipeline volumes were a record 21.2 TBtus/d in the first quarter of 2026, a 4 percent increase compared to 20.3 TBtus/d for the same quarter in 2025. The following highlights summarize selected variances within this segment, with results for the first quarter of 2026 as compared to the first quarter of 2025:
- Natural gas marketing gross operating margin increased $111 million due to higher average sales margins.
- Texas Intrastate System gross operating margin increased $15 million primarily due to higher capacity reservation fees and other revenues and higher transportation volumes.
- On a combined basis, gross operating margin from our Acadian Gas System and Haynesville Gathering System increased $8 million primarily due to higher transportation volumes.
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $314 million for the first quarter of 2026 compared to $315 million for the first quarter of 2025. Total segment pipeline volumes were 1.1 MMBPD in the first quarter of 2026 compared to 949 MBPD in the first quarter of 2025. Total marine terminal volumes were 383 MBPD in the first quarter of 2026 compared to 311 MBPD for the first quarter of 2025. The following highlights summarize selected variances within this segment, with results for the first quarter of 2026 as compared to the first quarter of 2025:
- Propylene production and related activities reported a $67 million increase in gross operating margin primarily due to higher propylene sales volumes and higher average sales margins.
- Gross operating margin from our octane enhancement and related plant operations decreased $46 million primarily due primarily to a planned turnaround at the Octane Enhancement facility. This facility resumed partial operations earlier this month and is expected to resume full rates in May.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of total gross operating margin, Adjusted CFFO, Adjusted FCF, DCF, Operational 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 marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; 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. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.
|
Enterprise Products Partners L.P. |
Exhibit A |
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|
Condensed Statements of Consolidated Operations – UNAUDITED |
|||||||||||
|
($ in millions, except per unit amounts) |
|||||||||||
|
|
For the Three Months |
|
For the Twelve |
||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
Revenues |
$ |
14,386 |
|
|
$ |
15,417 |
|
|
$ |
51,565 |
|
|
Costs and expenses: |
|
|
|
|
|
||||||
|
Operating costs and expenses |
|
12,503 |
|
|
|
13,690 |
|
|
|
44,253 |
|
|
General and administrative costs |
|
64 |
|
|
|
60 |
|
|
|
255 |
|
|
Total costs and expenses |
|
12,567 |
|
|
|
13,750 |
|
|
|
44,508 |
|
|
Equity in income of unconsolidated affiliates |
|
76 |
|
|
|
94 |
|
|
|
343 |
|
|
Operating income |
|
1,895 |
|
|
|
1,761 |
|
|
|
7,400 |
|
|
Other income (expense): |
|
|
|
|
|
||||||
|
Interest expense |
|
(385 |
) |
|
|
(340 |
) |
|
|
(1,446 |
) |
|
Other, net |
|
8 |
|
|
|
9 |
|
|
|
33 |
|
|
Total other expense, net |
|
(377 |
) |
|
|
(331 |
) |
|
|
(1,413 |
) |
|
Income before income taxes |
|
1,518 |
|
|
|
1,430 |
|
|
|
5,987 |
|
|
Provision for income taxes |
|
(22 |
) |
|
|
(24 |
) |
|
|
(21 |
) |
|
Net income |
|
1,496 |
|
|
|
1,406 |
|
|
|
5,966 |
|
|
Net income attributable to noncontrolling interests |
|
(13 |
) |
|
|
(12 |
) |
|
|
(63 |
) |
|
Net income attributable to preferred units |
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
Net income attributable to common unitholders |
$ |
1,482 |
|
|
$ |
1,393 |
|
|
$ |
5,899 |
|
|
Per common unit data (fully diluted): |
|
|
|
|
|
||||||
|
Earnings per common unit |
$ |
0.68 |
|
|
$ |
0.64 |
|
|
$ |
2.70 |
|
|
Average common units outstanding (in millions) |
|
2,187 |
|
|
|
2,191 |
|
|
|
2,187 |
|
|
|
|
|
|
|
|
||||||
|
Supplemental financial data: |
|
|
|
|
|
||||||
|
Net cash flow provided by operating activities |
$ |
1,469 |
|
|
$ |
2,314 |
|
|
$ |
7,740 |
|
|
Net cash flow used in investing activities |
$ |
381 |
|
|
$ |
1,047 |
|
|
$ |
4,825 |
|
|
Net cash flow used in financing activities |
$ |
1,939 |
|
|
$ |
1,651 |
|
|
$ |
2,975 |
|
|
Total debt principal outstanding at end of period |
$ |
34,222 |
|
|
$ |
31,887 |
|
|
$ |
34,222 |
|
|
|
|
|
|
|
|
||||||
|
Non-GAAP Distributable Cash Flow (1) |
$ |
2,707 |
|
|
$ |
2,013 |
|
|
$ |
8,694 |
|
|
Non-GAAP Operational Distributable Cash Flow (1) |
$ |
2,111 |
|
|
$ |
2,009 |
|
|
$ |
8,006 |
|
|
Non-GAAP Adjusted EBITDA (2) |
$ |
2,692 |
|
|
$ |
2,444 |
|
|
$ |
10,212 |
|
|
Non-GAAP Adjusted Cash flow from operations (3) |
$ |
2,330 |
|
|
$ |
2,111 |
|
|
$ |
8,928 |
|
|
Non-GAAP Adjusted Free Cash Flow (3) |
$ |
1,926 |
|
|
$ |
1,055 |
|
|
$ |
4,001 |
|
|
Gross operating margin by segment: |
|
|
|
|
|
||||||
|
NGL Pipelines & Services |
$ |
1,503 |
|
|
$ |
1,418 |
|
|
$ |
5,644 |
|
|
Crude Oil Pipelines & Services |
|
329 |
|
|
|
374 |
|
|
|
1,456 |
|
|
Natural Gas Pipelines & Services |
|
496 |
|
|
|
357 |
|
|
|
1,697 |
|
|
Petrochemical & Refined Products Services |
|
314 |
|
|
|
315 |
|
|
|
1,435 |
|
|
Total segment gross operating margin (4) |
|
2,642 |
|
|
|
2,464 |
|
|
|
10,232 |
|
|
Net adjustment for shipper make-up rights (5) |
|
(18 |
) |
|
|
(33 |
) |
|
|
(9 |
) |
|
Non-GAAP total gross operating margin (6) |
$ |
2,624 |
|
|
$ |
2,431 |
|
|
$ |
10,223 |
|
| (1) |
See Exhibit E for reconciliation to GAAP net cash flow provided by operating activities. |
|
| (2) |
See Exhibit F for reconciliation to GAAP net cash flow provided by operating activities. |
|
| (3) |
See Exhibit D for reconciliation to GAAP net cash flow provided by operating activities. |
|
| (4) |
Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within the financial statement footnotes provided in our quarterly and annual filings with the U.S. Securities and Exchange Commission (“SEC”). |
|
| (5) |
Gross operating margin by segment for NGL Pipelines & Services and Crude Oil Pipelines & Services reflects adjustments for non-refundable deferred transportation revenues relating to the make-up rights of committed shippers on certain major pipeline projects. These adjustments are included in managements’ evaluation of segment results. However, these adjustments are excluded from non-GAAP total gross operating margin in compliance with guidance from the SEC. |
|
| (6) |
See Exhibit G for reconciliation to GAAP total operating income. |
|
Enterprise Products Partners L.P. |
|
|
|
Exhibit B |
|
|
Selected Operating Data – UNAUDITED |
|||||
|
|
|
|
|
|
|
|
|
For the Three Months |
|
For the Twelve |
||
|
2026 |
|
2025 |
|
2026 |
|
|
Selected operating data:(1) |
|
|
|
|
|
|
NGL Pipelines & Services, net: |
|
|
|
|
|
|
NGL pipeline transportation volumes (MBPD) |
4,881 |
|
4,447 |
|
4,756 |
|
NGL marine terminal volumes (MBPD) |
1,097 |
|
994 |
|
995 |
|
NGL fractionation volumes (MBPD) |
1,910 |
|
1,652 |
|
1,771 |
|
Equity NGL-equivalent production volumes (MBPD) (2) |
234 |
|
225 |
|
224 |
|
Fee-based natural gas processing volumes (MMcf/d) (3,4) |
7,478 |
|
7,181 |
|
7,383 |
|
Natural gas processing inlet volumes (MMcf/d) (5) |
8,252 |
|
7,719 |
|
8,038 |
|
Crude Oil Pipelines & Services, net: |
|
|
|
|
|
|
Crude oil pipeline transportation volumes (MBPD) |
2,649 |
|
2,484 |
|
2,619 |
|
Crude oil marine terminal volumes (MBPD) |
866 |
|
736 |
|
796 |
|
Natural Gas Pipelines & Services, net: |
|
|
|
|
|
|
Natural gas pipeline transportation volumes (BBtus/d) (6) |
21,171 |
|
20,310 |
|
20,916 |
|
Petrochemical & Refined Products Services, net: |
|
|
|
|
|
|
Propylene production volumes (MBPD) |
124 |
|
113 |
|
119 |
|
Butane isomerization volumes (MBPD) |
121 |
|
114 |
|
122 |
|
Standalone DIB processing volumes (MBPD) |
219 |
|
188 |
|
202 |
|
Octane enhancement and related plant sales volumes (MBPD) (7) |
29 |
|
46 |
|
37 |
|
Pipeline transportation volumes, primarily refined products and petrochemicals (MBPD) |
1,098 |
|
949 |
|
1,074 |
|
Refined products and petrochemicals marine terminal volumes (MBPD) (8) |
383 |
|
311 |
|
347 |
|
Total, net: |
|
|
|
|
|
|
NGL, crude oil, petrochemical and refined products pipeline transportation volumes (MBPD) |
8,628 |
|
7,880 |
|
8,449 |
|
Natural gas pipeline transportation volumes (BBtus/d) |
21,171 |
|
20,310 |
|
20,916 |
|
Equivalent pipeline transportation volumes (MBPD) (9) |
14,199 |
|
13,225 |
|
13,953 |
|
NGL, crude oil, refined products and petrochemical marine terminal volumes (MBPD) |
2,346 |
|
2,041 |
|
2,138 |
| (1) |
Operating rates are calculated based on total volumes divided by the number of calendar days during the applicable period. Total volumes, which include volumes for newly constructed assets from the related in-service date and for recently purchased assets from the related acquisition date, reflect volumes for assets owned by consolidated entities on a 100% basis and volumes for assets owned by our unconsolidated affiliates net to our ownership interest. |
|
| (2) |
Primarily represents the NGL and condensate volumes we earn and take title to in connection with our processing activities. The total equity NGL-equivalent production volumes also include residue natural gas volumes from our natural gas processing business. |
|
| (3) |
Volumes reported correspond to the revenue streams earned by our gas plants. “MMcf/d” means million cubic feet per day. |
|
| (4) |
Fee-based natural gas processing volumes are measured at either the wellhead or plant inlet in MMcf/d. |
|
| (5) |
Natural gas processing inlet volumes is an operational measure representing the physical, unprocessed rich natural gas passing through meters located at or near the inlet of our natural gas processing plants or at the wellhead for all natural gas processing facilities that we operate. Substantially all natural gas processing inlet volumes are processed under service contracts that are either fee-based, commodity-based or a combination of both. Natural gas processing inlet volumes are reflected in “Fee-based natural gas processing volumes” for volumes processed under fee-based service contracts, “Equity NGL-equivalent production volumes” for volumes processed under commodity-based service contracts or both of the aforementioned categories for volumes processed under service contracts that have both fee and commodity-based terms. |
|
| (6) |
“BBtus/d” means billion British thermal units per day. |
|
| (7) |
Reflects aggregate sales volumes for our octane enhancement and isobutane dehydrogenation (“iBDH”) facilities located at our Mont Belvieu area complex and our high-purity isobutylene production facility located adjacent to the Houston Ship Channel. |
|
| (8) |
In addition to exports of refined products, these amounts include loading volumes at our ethylene export terminal. |
|
| (9) |
Represents total NGL, crude oil, refined products and petrochemical transportation volumes plus equivalent energy volumes where 3.8 million British thermal units (“MMBtus”) of natural gas transportation volumes are equivalent to one barrel of NGLs transported. |
Contacts
Joe Theriac, Vice President, Finance & Investor Relations, (713) 381-6394
Rick Rainey, Vice President, Media Relations, (713) 381-3635
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