Core Viewpoint - Dividend investors should consider energy companies for high yields, as they provide essential services and have a history of increasing dividends [1][8] Group 1: Black Hills - Black Hills (BKH) serves approximately 1.35 million customers across several states and offers a 4.5% dividend yield, having increased its dividend for 55 consecutive years [2][3] - The company's customer growth rate is nearly three times that of the U.S. population growth, supported by a $4.7 billion capital investment budget [3] - Management anticipates earnings growth of 4% to 6% year-over-year, which should support continued dividend increases [3] Group 2: Chevron - Chevron (CVX) provides a 4.9% dividend yield and has increased its dividend for 38 consecutive years, outperforming the average energy stock yield of 3.1% [4][5] - The company's diversified business model includes upstream, midstream, and downstream operations, which helps mitigate the volatility of oil prices [5] - Chevron maintains a low debt-to-equity ratio of approximately 0.15%, allowing flexibility to manage debt regardless of oil price fluctuations [5] Group 3: Enterprise Products Partners - Enterprise Products Partners (EPD) operates a significant midstream business in North America, focusing on pipelines and storage, with a distribution yield of 6.8% [6][7] - The company has increased its distribution for 26 consecutive years, supported by a $7.6 billion capital investment plan [7] - Distributable cash flow covered the distribution by 1.7 times in 2024, providing a buffer against potential downturns [7]

Core Viewpoint - Enterprise Products Partners (EPD) is recognized for its consistent growth in the energy midstream sector, having increased its cash distribution for 26 consecutive years, currently yielding 6.8% due to robust cash flow and strategic investments [1][5]. Group 1: Financial Performance - In the first quarter, Enterprise Products Partners generated $2 billion in distributable cash flow, marking a 5% increase from the previous year, driven by Permian-driven volume growth and strong energy demand [3]. - The company covered its cash distribution by 1.7 times, resulting in $894 million of excess free cash flow, which was allocated to fund growth capital projects [4]. - The distribution was increased by 3.9% over the past year, with cash flow growing faster than the distribution, enhancing payout safety [5]. Group 2: Growth Prospects - Enterprise Products Partners has $6 billion in growth capital projects expected to come online by the end of 2025, which will accelerate its growth rate [2][6]. - The company has $7.6 billion in major capital projects under construction, with an additional $700 million in potential projects that could be approved in the next two years [8]. - With capital spending projected to decrease and cash flow rising, the company anticipates significant excess free cash flow starting next year, providing flexibility for distribution increases, unit repurchases, or further investments [9]. Group 3: Strategic Initiatives - The upcoming projects include natural gas processing plants and enhancements at marine terminals, which are expected to generate stable cash flow and support continued distribution increases [6][7]. - The company is positioned to maintain a strong balance sheet with a leverage ratio of 3.1 times, the lowest in the midstream sector, contributing to its A-rated credit status [4].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $2.4 billion, with a distribution coverage ratio of 1.7 times and retained DCF of $842 million [6][14][17] - Net income attributable to common unitholders was $1.4 billion, or $0.64 per common unit, compared to $0.66 per common unit in Q1 2024 [14] - The partnership declared a distribution of $0.0535 per common unit, a 3.9% increase from Q1 2024 [15] Business Line Data and Key Metrics Changes - The company moved 13.2 million barrels of oil equivalent per day and 2 million barrels per day of liquid hydrocarbon exports [6] - PDH facilities experienced downtime, with PDH 1 down for 63 days due to unplanned maintenance, but both PDH plants are now operational [6][7] Market Data and Key Metrics Changes - The company noted a strong demand for U.S. hydrocarbons globally, particularly from China and India, despite ongoing tariff discussions [8][10] - LPG exports have not been significantly disrupted, with 85% to 90% of LPG exports contracted [22][61] Company Strategy and Development Direction - The company plans to bring online two gas processing plants in the Permian in Q3 2025 and several other projects throughout the year, indicating a focus on expanding processing and export capacity [7][16] - The management emphasized the importance of U.S. energy production and exports, aligning with the administration's pro-energy policies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for U.S. oil, natural gas, and natural gas liquids, despite global market volatility [10][12] - The outlook for the Permian Basin remains positive, with expectations of continued production growth [35][39] Other Important Information - Total capital investments in Q1 2025 were $1.1 billion, with $964 million allocated for growth capital projects [16] - The company has returned approximately $58 billion to unitholders since its IPO in 1998 [16] Q&A Session Summary Question: Current status of U.S. LPG exports and competitive landscape - Management indicated that U.S. LPG is being rerouted effectively, with no disruptions in exports, and highlighted the capital efficiency of their expansion projects [22][23] Question: Outlook for projects coming online in 2025 - Management confirmed that many projects are expected to be fully contracted upon completion, with a rapid ramp-up in EBITDA anticipated [26][32] Question: Impact of recent market price volatility on buybacks - Management noted that excess distributable cash flow is expected to increase significantly in 2026, allowing for potential buybacks and debt paydown [53] Question: Update on PDH utilization and outlook for the segment - Both PDH plants are running well, with expectations to maintain current operational rates [43][44] Question: Global demand and potential impacts of tariff policies - Management acknowledged a demand slowdown internationally but emphasized that pricing will adjust to clear the market [61][71] Question: CapEx plans and potential adjustments due to market conditions - Management indicated that current projects are well contracted and unlikely to slow down despite tariff concerns [70][72]

Group 1 - Enterprise Products Partners (EPD) is one of 246 individual stocks in the Oils-Energy sector, which ranks 14 in the Zacks Sector Rank [2] - EPD currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [3] - The Zacks Consensus Estimate for EPD's full-year earnings has increased by 2.5% over the past quarter, reflecting improving analyst sentiment [4] Group 2 - EPD has returned approximately 0% year-to-date, outperforming the average loss of 5.4% in the Oils-Energy sector [4] - EPD is part of the Oil and Gas - Production Pipeline - MLB industry, which ranks 202 in the Zacks Industry Rank, with an average loss of 5.8% this year [6] - Another stock in the Oils-Energy sector, Complete Solaria, Inc. (SPWR), has increased by 14.5% year-to-date, with a consensus EPS estimate rise of 129.6% over the past three months [5][7]

Capital Allocation and Returns - Since IPO, the company has returned $58 billion of capital to equity investors via LP distributions and common unit buybacks[9] - Distributions for 1Q 2025 were $0.535/unit, a 3.9% increase over 1Q 2024[9] - Buybacks in 1Q 2025 totaled $60 million, representing 1.8 million common units[9] - For the trailing 12 months ended 1Q 2025, buybacks amounted to $239 million, representing 8 million common units[9] - The Adjusted CFFO Payout Ratio was 56% for the trailing 12 months ended 1Q 2025[9] Capital Expenditures and Liquidity - Growth Capital Expenditures are projected to range from $40 billion to $45 billion in 2025 and $20 billion to $25 billion in 2026[9] - Sustaining Capital Expenditures are estimated at approximately $525 million in 2025[9] - The Leverage Ratio was 31x for the trailing 12 months ended 1Q 2025, with a target ratio of 30x (+/– 025x)[9] - As of March 31, 2025, liquidity stood at $36 billion, comprising available credit capacity and unrestricted cash[9] Operational Performance and Growth Projects - Natural Gas Processing Plant Inlet Volume reached 77 Bcf/d in 1Q 2025, reflecting a 9% CAGR[20] - Equivalent Pipeline Transportation Volume reached 132 MMBPD in 1Q 2025, reflecting an 8% CAGR[21] - The company has $76 billion of major capital projects under construction, with $6 billion of these projects slated to come online in 2025[24, 27] Gross Operating Margin (GOM) Analysis - Total GOM for 1Q 2025 was $2431 million[41] - NGL Segment GOM for 1Q 2025 was $1418 million, an increase of $78 million compared to 1Q 2024[41, 44] - Crude Oil Segment GOM for 1Q 2025 was $374 million, a decrease of $37 million compared to 1Q 2024[41, 47]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $2.4 billion with a distribution coverage ratio of 1.7 times and retained DCF of $842 million [6][14] - Net income attributable to common unitholders was $1.4 billion or $0.64 per common unit, compared to $0.66 per common unit in Q1 2024 [14] - Distribution declared was $0.0535 per common unit, a 3.9% increase from Q1 2024 [15] - Total debt principal outstanding was approximately $31.9 billion with a weighted average cost of debt of 4.7% [17] Business Line Data and Key Metrics Changes - The company moved 13.2 million barrels of oil equivalent per day and 2 million barrels per day of liquid hydrocarbon exports [6] - PDH facilities experienced downtime; PDH1 was down for 63 days due to unplanned maintenance, but both PDH plants are now operational [6][7] - Total capital investments in Q1 2025 were $1.1 billion, including $964 million for growth capital projects [16] Market Data and Key Metrics Changes - The company noted a strong demand for U.S. hydrocarbons globally, particularly from China and India, despite tariff uncertainties [8][10] - LPG exports have not been significantly disrupted, with 85% to 90% of LPG exports contracted [22][60] Company Strategy and Development Direction - The company plans to bring online two gas processing plants in the Permian and several other projects throughout 2025 [7][16] - The focus remains on increasing capacity to gather, process, transport, and export hydrocarbons, with a significant backlog of wells expected to be connected [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for U.S. energy production and exports, citing supportive policies from the current administration [12] - The company anticipates continued growth in the Permian Basin, with expectations of connecting a similar number of wells in 2025 as in 2024 [39] Other Important Information - The company has returned approximately $58 billion to unitholders since its IPO in 1998 through distributions and buybacks [16] - The expected range of growth capital expenditures for 2025 is $4 billion to $4.5 billion, with sustaining capital expenditures around $525 million [16] Q&A Session Summary Question: Current U.S. LPG rerouting and competitive landscape - Management indicated that trade flows are balancing, with no disruptions in exports, and highlighted their capital-efficient expansion plans [22][23] Question: Incremental EBITDA from upcoming projects - Management confirmed that many projects are expected to be fully contracted upon coming online, leading to a rapid ramp-up in EBITDA [26][32] Question: Impact of recent market price volatility on buybacks - Management discussed their strategy for excess distributable cash flow and indicated a significant increase in cash flow expected in 2026 [53] Question: Outlook for the petchem and refined product segment - Management noted that both PDH plants are running well and expressed optimism for the segment's performance for the remainder of the year [42][44] Question: Global demand and tariff impacts - Management acknowledged a demand slowdown internationally but emphasized that pricing would adjust to clear the market [61] Question: CapEx plans in light of potential demand slowdown - Management stated that current projects are well contracted and unlikely to slow down despite tariff concerns [70] Question: Update on major capital projects - Management confirmed that major capital projects are progressing well and are expected to come online ahead of schedule [81]

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[Executive Summary](index=1&type=section&id=Executive%20Summary) Enterprise reported a slight decrease in net income for Q1 2025, offset by a 5% increase in Distributable Cash Flow and a 3.9% rise in distributions, alongside $60 million in unit repurchases and $3.6 billion in liquidity [Q1 2025 Financial Performance Highlights](index=1&type=section&id=Q1%202025%20Financial%20Performance%20Highlights) Enterprise reported a slight decrease in net income and earnings per common unit for Q1 2025 compared to Q1 2024, but achieved a 5% increase in Distributable Cash Flow (DCF) and a 3.9% increase in distributions declared | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------------------------ | :------ | :------ | :----------- | | Net income attributable to common unitholders | $1.4 billion | $1.5 billion | -6.67% | | Fully diluted earnings per common unit | $0.64 | $0.66 | -3.03% | | Distributable Cash Flow (DCF) | $2.0 billion | $1.9 billion | +5.26% | | Distributions declared per common unit | $0.535 | N/A | +3.9% | - DCF provided **1.7 times coverage** of the distribution declared for Q1 2025, with **$842 million** of DCF retained[3](index=3&type=chunk) [Capital Investments, Buybacks, and Liquidity](index=1&type=section&id=Capital%20Investments%2C%20Buybacks%2C%20and%20Liquidity) The company repurchased approximately $60 million of common units in Q1 2025, utilizing 60% of its authorized $2.0 billion buyback program, while total capital investments were $1.1 billion and consolidated liquidity remained at approximately $3.6 billion | Metric | Q1 2025 | | :------------------------------------------ | :------ | | Common unit repurchases | **~$60 million** | | Authorized buyback program utilized | **~60%** of **$2.0 billion** | | Adjusted cash flow from operations (Adjusted CFFO) | **$2.1 billion** | | Total capital investments | **$1.1 billion** | | Growth capital projects | **$960 million** | | Sustaining capital expenditures | **$102 million** | | Total debt principal outstanding (March 31, 2025) | **$31.9 billion** | | Consolidated liquidity (March 31, 2025) | **~$3.6 billion** | - Expectations for organic growth capital investments are in the range of **$4.0 billion to $4.5 billion** in 2025, and **$2.0 billion to $2.5 billion** in 2026[6](index=6&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Enterprise will host a conference call on April 29, 2025, at 9:00 a.m. CT to discuss its first quarter 2025 earnings, which will be webcast live on the partnership's website - Conference call to discuss Q1 2025 earnings will be held on Tuesday, April 29, 2025, at 9:00 a.m. CT[1](index=1&type=chunk)[8](index=8&type=chunk) - The call will be webcast live and accessible via the partnership's website at www.enterpriseproducts.com[8](index=8&type=chunk) [First Quarter 2025 Financial and Operational Highlights](index=2&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) This section provides a comprehensive overview of the company's financial and operational performance for the first quarter of 2025 [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) The company's Q1 2025 financial highlights show a slight decline in operating income, net income, and EPS compared to Q1 2024, while DCF and Operational DCF increased | Metric | Q1 2025 ($ millions, except per unit) | Q1 2024 ($ millions, except per unit) | Change (YoY) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------- | | Operating income | $1,761 | $1,822 | -3.35% | | Net income | $1,406 | $1,483 | -5.19% | | Fully diluted earnings per common unit | $0.64 | $0.66 | -3.03% | | Total gross operating margin | $2,431 | $2,490 | -2.37% | | Adjusted EBITDA | $2,444 | $2,469 | -1.01% | | Adjusted CFFO | $2,111 | $2,147 | -1.68% | | Adjusted FCF | $1,055 | $1,079 | -2.22% | | DCF | $2,013 | $1,915 | +5.12% | | Operational DCF | $2,009 | $1,942 | +3.45% | - Operating income, net income, and gross operating margin for Q1 2025 include mark-to-market (MTM) losses on financial instruments of **$42 million**, compared to **$4 million** in Q1 2024[9](index=9&type=chunk) [Key Operational Volumes](index=2&type=section&id=Key%20Operational%20Volumes) Enterprise experienced significant volume growth in natural gas and NGL pipelines and processing, with record natural gas processing plant inlet volumes and natural gas pipeline volumes, while marine terminal volumes for crude oil and refined products saw declines | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------------------------------------ | :------ | :------ | :----------- | | Equivalent pipeline transportation volumes (million BPD) | 13.2 | 12.5 | +5.60% | | NGL, crude oil, refined products & petrochemical pipeline volumes (million BPD) | 7.9 | 7.6 | +3.95% | | Marine terminal volumes (million BPD) | 2.0 | 2.3 | -13.04% | | Natural gas pipeline volumes (TBtus/d) | 20.3 | 18.9 | +7.41% | | NGL fractionation volumes (MBPD) | 1,652 | 1,642 | +0.61% | | Propylene plant production volumes (MBPD) | 113 | 106 | +6.60% | | Natural gas processing plant inlet volumes (Bcf/d) | 7.7 | 7.1 | +8.45% | | Fee-based natural gas processing volumes (Bcf/d) | 7.2 | 6.4 | +12.50% | | Equity NGL-equivalent production volumes (MBPD) | 225 | 185 | +21.62% | [Management Commentary](index=3&type=section&id=Management%20Commentary) Management provides insights into the company's Q1 2025 performance, growth projects, and strategic outlook [CEO's Remarks on Performance and Growth Projects](index=3&type=section&id=CEO%27s%20Remarks%20on%20Performance%20and%20Growth%20Projects) The co-chief executive officer highlighted strong Q1 2025 performance driven by Permian volume growth and consistent energy demand, leading to record natural gas processing and pipeline volumes, a 5% increase in DCF, and $6 billion in major organic growth projects scheduled for completion in 2025 - Performance benefited from Permian-driven volume growth and consistent domestic and international energy demand[13](index=13&type=chunk) - Reported record inlet natural gas processing volumes of **7.7 billion cubic feet per day** and record natural gas pipeline volumes of **20.3 trillion Btus per day**[13](index=13&type=chunk) - Distributable cash flow for Q1 2025 increased to **$2.0 billion**, a **5% increase** compared to Q1 2024, providing **1.7 times coverage** of the distribution and enabling **$842 million** to be retained for reinvestment[13](index=13&type=chunk) - Enterprise increased its cash distribution to partners by **3.9%** to **$0.535 per unit** for Q1 2025[13](index=13&type=chunk) - Approximately **$6 billion** of major organic growth projects are scheduled for completion and cash flow generation in 2025, including two Permian natural gas processing plants, NGL fractionator 14, the first phase of an NGL export facility, Bahia NGL pipeline, and enhancements at Morgan's Point marine terminal[13](index=13&type=chunk) [Segment Performance Review](index=3&type=section&id=Review%20of%20First%20Quarter%202025%20Results) A detailed review of the gross operating margin and key drivers for each business segment in Q1 2025 [NGL Pipelines & Services](index=3&type=section&id=NGL%20Pipelines%20%26%20Services) The NGL Pipelines & Services segment reported a gross operating margin of $1.4 billion for Q1 2025, an increase from Q1 2024, primarily driven by growth in natural gas processing and NGL pipelines and storage, despite a decrease in NGL fractionation margin | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :------------------------ | :------------------- | :------------------- | :----------- | | Gross operating margin | $1,418 | $1,340 | +5.82% | [Natural Gas Processing & NGL Marketing](index=3&type=section&id=Natural%20Gas%20Processing%20%26%20NGL%20Marketing) Gross operating margin from natural gas processing and related NGL marketing activities increased to $373 million, driven by record natural gas processing plant inlet volumes (up 8%) and fee-based volumes (up 12%), particularly from Permian facilities | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :------------------------------------------------ | :------------------- | :------------------- | :----------- | | Gross operating margin (Natural Gas Processing & NGL Marketing) | $373 | $358 | +4.19% | | Natural gas processing plant inlet volumes (Bcf/d) | 7.7 | 7.1 | +8.45% | | Total fee-based natural gas processing volumes (Bcf/d) | 7.2 | 6.4 | +12.50% | | Total equity NGL-equivalent production volumes (MBPD) | 225 | 185 | +21.62% | - Gross operating margin from Permian natural gas processing facilities increased **$46 million** due to higher processing and equity NGL-equivalent production volumes, with new plants (Leonidas, Mentone 3) contributing to an **824 MMcf/d** increase in Permian Basin processing plant inlet volumes[17](index=17&type=chunk) - Gross operating margin from NGL marketing activities decreased **$20 million** primarily due to lower average sales margins, partially offset by higher sales volumes[17](index=17&type=chunk) [NGL Pipelines & Storage](index=4&type=section&id=NGL%20Pipelines%20%26%20Storage) Gross operating margin for NGL pipelines and storage increased by $82 million, supported by a 5% increase in total NGL pipeline transportation volumes and an 11% increase in NGL marine terminal volumes, with key contributions from Permian/Rocky Mountain pipelines and the Morgan's Point Ethane Export Terminal | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :------------------------------------------ | :------------------- | :------------------- | :----------- | | Gross operating margin (NGL pipelines & storage) | $831 | $749 | +10.95% | | Total NGL pipeline transportation volumes (million BPD) | 4.4 | 4.2 | +4.76% | | Total NGL marine terminal volumes (MBPD) | 994 | 895 | +11.06% | - Combined pipelines serving the Permian and Rocky Mountain regions reported a **$22 million** increase in gross operating margin, driven by a **74 MBPD** increase in transportation volumes[17](index=17&type=chunk) - Morgan's Point Ethane Export Terminal's gross operating margin increased **$19 million** due to a **68 MBPD** increase in export volumes[17](index=17&type=chunk) [NGL Fractionation](index=5&type=section&id=NGL%20Fractionation) The NGL fractionation business saw a decrease in gross operating margin to $214 million, despite a slight increase in total fractionation volumes, primarily due to higher operating costs and lower ancillary service revenues at the Mont Belvieu area complex | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :----------- | | Gross operating margin (NGL fractionation) | $214 | $233 | -8.15% | | Total NGL fractionation volumes (million BPD) | 1.7 | 1.6 | +6.25% | - Gross operating margin from the Mont Belvieu area NGL fractionation complex decreased **$15 million** primarily due to higher operating costs and lower ancillary service revenues, despite a **10 MBPD** increase in volumes[18](index=18&type=chunk) [Crude Oil Pipelines & Services](index=5&type=section&id=Crude%20Oil%20Pipelines%20%26%20Services) The Crude Oil Pipelines & Services segment experienced a decrease in gross operating margin to $374 million, primarily due to lower sales volumes and average sales margins, and a significant drop in crude oil marine terminal volumes | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :------------------------------------ | :------------------- | :------------------- | :----------- | | Gross operating margin | $374 | $411 | -8.99% | | Total crude oil pipeline transportation volumes (million BPD) | 2.5 | 2.5 | 0.00% | | Total crude oil marine terminal volumes (MBPD) | 736 | 1,100 | -33.10% | - Combined gross operating margin from crude oil assets and marketing decreased a net **$37 million** primarily due to lower sales volumes and lower average sales margins[18](index=18&type=chunk) [Natural Gas Pipelines & Services](index=5&type=section&id=Natural%20Gas%20Pipelines%20%26%20Services) The Natural Gas Pipelines & Services segment reported a strong increase in gross operating margin to $357 million, driven by record natural gas transportation volumes (up 7.4%) and a significant contribution from Permian natural gas gathering systems, including the acquired Pinon Midstream system | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :------------------------------------ | :------------------- | :------------------- | :----------- | | Gross operating margin | $357 | $312 | +14.42% | | Total natural gas transportation volumes (TBtus/d) | 20.3 | 18.9 | +7.41% | - Permian natural gas gathering, including Delaware Basin and Midland Basin Gathering Systems, reported a combined **$37 million net increase** in gross operating margin, primarily due to higher treating and other revenues and a **1.3 TBtus/d** increase in gathering volumes[18](index=18&type=chunk) - The Delaware Basin Gathering System was expanded in October 2024 by acquiring the Pinon Midstream sour gas gathering and treating system[18](index=18&type=chunk) [Petrochemical & Refined Products Services](index=6&type=section&id=Petrochemical%20%26%20Refined%20Products%20Services) The Petrochemical & Refined Products Services segment saw a substantial decrease in gross operating margin to $315 million, primarily due to lower margins in octane enhancement and propylene production, despite increased pipeline transportation volumes | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change (YoY) | | :------------------------------------ | :------------------- | :------------------- | :----------- | | Gross operating margin | $315 | $444 | -29.05% | | Total segment pipeline transportation volumes (MBPD) | 949 | 870 | +9.08% | | Total marine terminal volumes (MBPD) | 311 | 350 | -11.14% | - Gross operating margin from octane enhancement and related plant operations decreased **$83 million** due to lower average sales margins and lower deficiency revenues[21](index=21&type=chunk) - Propylene production and related activities reported a **$52 million decrease** in gross operating margin, driven by lower average propylene sales margins and maintenance downtime for the PDH 1 facility[21](index=21&type=chunk) - Gross operating margin from refined products pipelines and related activities increased **$33 million** due to higher transportation volumes and revenues, including a **$13 million contribution** from the TW Products System[21](index=21&type=chunk) [Non-GAAP Financial Measures Explanation](index=7&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The report utilizes several non-GAAP financial measures, including total gross operating margin, Adjusted CFFO, FCF, Adjusted FCF, DCF, Operational DCF, and Adjusted EBITDA, to provide additional insights into the company's performance and liquidity - Non-GAAP financial measures used include total gross operating margin, Adjusted CFFO, FCF, Adjusted FCF, DCF, Operational DCF, and Adjusted EBITDA[22](index=22&type=chunk) - These measures are defined and reconciled later in the press release and are not considered alternatives to GAAP measures such as net income or operating income[22](index=22&type=chunk) - Non-GAAP measures may not be comparable to similarly titled measures of other companies[22](index=22&type=chunk) [Company Information and Forward-Looking Statements](index=7&type=section&id=Company%20Information%20and%20Use%20of%20Forward-Looking%20Statements) This section provides an overview of the company and important disclaimers regarding forward-looking statements [Company Overview](index=7&type=section&id=Company%20Overview) Enterprise Products Partners L.P. is a leading North American midstream energy services provider, offering a wide range of services for natural gas, NGLs, crude oil, refined products, and petrochemicals, supported by extensive pipeline and storage infrastructure - Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services[23](index=23&type=chunk) - 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[23](index=23&type=chunk) - The partnership's assets include over **50,000 miles** of pipelines, over **300 million barrels** of storage capacity, and **14 billion cubic feet** of natural gas storage capacity[23](index=23&type=chunk) [Forward-Looking Statements Disclaimer](index=7&type=section&id=Forward-Looking%20Statements%20Disclaimer) The press release contains forward-looking statements regarding future results, capital expenditures, and market conditions, which are subject to various risks and uncertainties, and actual outcomes may differ materially - The press release includes forward-looking statements concerning future results, capital expenditures, project completions, liquidity, and financial market conditions[24](index=24&type=chunk) - These statements involve risks and uncertainties such as insufficient cash from operations, adverse market conditions, governmental regulations, and other factors discussed in SEC filings[24](index=24&type=chunk) - The partnership disclaims any intention or obligation to update publicly or revise such statements[24](index=24&type=chunk) [Detailed Financial Data and Reconciliations](index=8&type=section&id=Detailed%20Financial%20Data%20and%20Reconciliations) This section presents detailed financial statements, operational data, commodity price trends, and reconciliations of non-GAAP financial measures [Condensed Statements of Consolidated Operations](index=8&type=section&id=Condensed%20Statements%20of%20Consolidated%20Operations) This section presents the condensed consolidated income statement, cash flow summary, and key non-GAAP metrics for the three and twelve months ended March 31, 2025 and 2024, showing revenues, costs, net income, and various cash flow measures | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Revenues | $15,417 | $14,760 | $56,876 | | Operating costs and expenses | $13,690 | $12,974 | $49,761 | | Operating income | $1,761 | $1,822 | $7,277 | | Net income | $1,406 | $1,483 | $5,893 | | Net income attributable to common unitholders | $1,393 | $1,456 | $5,834 | | Earnings per common unit (fully diluted) | $0.64 | $0.66 | $2.66 | | Net cash flow provided by operating activities | $2,314 | $2,111 | $8,318 | | Net cash flow used in investing activities | $1,047 | $1,038 | $5,442 | | Net cash flow used in financing activities | $1,651 | $1,009 | $2,806 | | Total debt principal outstanding (end of period) | $31,887 | $29,721 | $31,887 | | Non-GAAP Distributable Cash Flow | $2,013 | $1,915 | $7,937 | | Non-GAAP Adjusted EBITDA | $2,444 | $2,469 | $9,874 | | Non-GAAP total gross operating margin | $2,431 | $2,490 | $9,925 | [Selected Operating Data](index=9&type=section&id=Selected%20Operating%20Data) This table provides detailed operational volumes across NGL, crude oil, natural gas, and petrochemical & refined products segments for the three and twelve months ended March 31, 2025 and 2024, showing specific transportation, terminal, fractionation, and production volumes | Metric | Q1 2025 | Q1 2024 | 12 Months Ended March 31, 2025 | | :---------------------------------------------------------------- | :------ | :------ | :----------------------------- | | NGL pipeline transportation volumes (MBPD) | 4,447 | 4,238 | 4,476 | | NGL marine terminal volumes (MBPD) | 994 | 895 | 940 | | NGL fractionation volumes (MBPD) | 1,652 | 1,642 | 1,670 | | Equity NGL-equivalent production volumes (MBPD) | 225 | 185 | 213 | | Fee-based natural gas processing volumes (MMcf/d) | 7,181 | 6,421 | 6,921 | | Natural gas processing inlet volumes (MMcf/d) | 7,719 | 7,144 | 7,633 | | Crude oil pipeline transportation volumes (MBPD) | 2,484 | 2,456 | 2,536 | | Crude oil marine terminal volumes (MBPD) | 736 | 1,094 | 867 | | Natural gas pipeline transportation volumes (BBtus/d) | 20,310 | 18,934 | 19,616 | | Propylene production volumes (MBPD) | 113 | 106 | 114 | | Pipeline transportation volumes, primarily refined products and petrochemicals (MBPD) | 949 | 870 | 966 | | Equivalent pipeline transportation volumes (MBPD) | 13,225 | 12,547 | 13,140 | [Commodity Price Trends](index=10&type=section&id=Commodity%20Price%20Trends) This section provides quarterly average market prices for natural gas, various NGLs, and crude oil, highlighting that the weighted-average indicative market price for NGLs increased in Q1 2025 compared to Q1 2024 [Natural Gas and NGL Prices](index=10&type=section&id=Natural%20Gas%20and%20NGL%20Prices) This section details the quarterly average market prices for natural gas and various NGLs | Commodity | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Natural Gas, $/MMBtu | $3.65 | $2.25 | | Ethane, $/gallon | $0.27 | $0.19 | | Propane, $/gallon | $0.90 | $0.84 | | Normal Butane, $/gallon | $1.06 | $1.03 | | Isobutane, $/gallon | $1.07 | $1.14 | | Natural Gasoline, $/gallon | $1.53 | $1.54 | | Polymer Grade Propylene, $/pound | $0.45 | $0.55 | | Refinery Grade Propylene, $/pound | $0.33 | $0.18 | [Crude Oil Prices](index=10&type=section&id=Crude%20Oil%20Prices) This section presents the quarterly average market prices for different crude oil benchmarks | Crude Oil | Q1 2025 ($/barrel) | Q1 2024 ($/barrel) | | :---------- | :----------------- | :----------------- | | WTI | $71.42 | $76.96 | | Midland | $72.52 | $78.55 | | Houston | $72.81 | $78.85 | - The weighted-average indicative market price for NGLs at Mont Belvieu, Texas, was **$0.67 per gallon** during Q1 2025, up from **$0.62 per gallon** during Q1 2024[39](index=39&type=chunk) - Fluctuations in energy commodity prices largely explain changes in consolidated revenues and cost of sales, but comparable increases in purchase prices mean an increase in sales prices may not result in an increase in gross operating margin or cash available for distribution[39](index=39&type=chunk) [Free Cash Flow (FCF) and Adjusted FCF Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20(FCF)%20and%20Adjusted%20FCF%20Reconciliation) This exhibit reconciles GAAP net cash flow provided by operating activities to non-GAAP FCF and Adjusted FCF, providing measures of cash generated after accounting for capital expenditures, with FCF at $1.258 billion and Adjusted FCF at $1.055 billion for Q1 2025 | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Net cash flow provided by operating activities (GAAP) | $2,314 | $2,111 | $8,318 | | FCF (non-GAAP) | $1,258 | $1,043 | $2,881 | | Adjusted FCF (non-GAAP) | $1,055 | $1,079 | $3,148 | - FCF is a non-GAAP measure reflecting cash available for reducing debt, investing in additional capital projects, and/or paying distributions[40](index=40&type=chunk) - Adjusted FCF is FCF excluding the net effect of changes in operating accounts, providing insight without fluctuations caused by timing of collections or payments[40](index=40&type=chunk) [Adjusted Cash Flow from Operations (Adjusted CFFO) Reconciliation](index=12&type=section&id=Adjusted%20Cash%20Flow%20from%20Operations%20(Adjusted%20CFFO)%20Reconciliation) This exhibit reconciles GAAP net cash flow provided by operating activities to non-GAAP Adjusted CFFO, which was $2.111 billion for Q1 2025, representing cash generated from operations before the net effect of changes in operating accounts | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Net cash flow provided by operating activities (GAAP) | $2,314 | $2,111 | $8,318 | | Adjusted CFFO (non-GAAP) | $2,111 | $2,147 | $8,585 | - Adjusted CFFO is a non-GAAP measure representing net cash flow provided by operating activities before the net effect of changes in operating accounts, used to measure cash for capital investments or investor returns without timing fluctuations[41](index=41&type=chunk) [Distributable Cash Flow (DCF) and Operational DCF Reconciliation](index=13&type=section&id=Distributable%20Cash%20Flow%20(DCF)%20and%20Operational%20DCF%20Reconciliation) This exhibit reconciles GAAP net income attributable to common unitholders to non-GAAP DCF and Operational DCF, which were $2.013 billion and $2.009 billion respectively for Q1 2025, serving as key liquidity measures for common unitholders | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Net income attributable to common unitholders (GAAP) | $1,393 | $1,456 | $5,834 | | Operational DCF (non-GAAP) | $2,009 | $1,942 | $7,925 | | DCF (non-GAAP) | $2,013 | $1,915 | $7,937 | - DCF is an important non-GAAP liquidity measure indicating the ability to provide a cash return on investment and sustain or increase quarterly cash distributions[44](index=44&type=chunk) - Operational DCF is a supplemental non-GAAP liquidity measure that quantifies cash available for distribution generated from normal operations, excluding asset sales and interest rate derivative monetization[45](index=45&type=chunk) [Adjusted EBITDA Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliation) This exhibit reconciles GAAP net income to non-GAAP Adjusted EBITDA, which was $2.444 billion for Q1 2025, a measure used by management and external users to assess financial performance without regard to financing methods or capital structures | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Net income (GAAP) | $1,406 | $1,483 | $5,893 | | Adjusted EBITDA (non-GAAP) | $2,444 | $2,469 | $9,874 | - Adjusted EBITDA is commonly used by management and external users to assess financial performance, the ability of assets to generate cash for debt, and the viability of projects[48](index=48&type=chunk) - Adjusted EBITDA may not be comparable to similarly titled measures of other companies[49](index=49&type=chunk) [Gross Operating Margin Reconciliation](index=15&type=section&id=Gross%20Operating%20Margin%20Reconciliation) This exhibit reconciles non-GAAP total gross operating margin to GAAP total operating income, with total gross operating margin reported at $2.431 billion for Q1 2025, serving as a key performance measure of core profitability | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Total gross operating margin (non-GAAP) | $2,431 | $2,490 | $9,925 | | Total operating income (GAAP) | $1,761 | $1,822 | $7,277 | - Gross operating margin is an important performance measure of the core profitability of operations and forms the basis of internal financial reporting[52](index=52&type=chunk) - Total gross operating margin represents GAAP operating income exclusive of depreciation, amortization, impairment charges, asset sales gains/losses, and general and administrative costs[53](index=53&type=chunk) [Other Financial Information](index=16&type=section&id=Other%20Financial%20Information) This section provides additional financial details, including a summary of capital investments and the mark-to-market impact on gross operating margin for the periods indicated [Capital Investments](index=16&type=section&id=Capital%20Investments) This section provides a summary of the company's capital expenditures and total capital investments | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | 12 Months Ended March 31, 2025 ($ millions) | | :------------------------ | :------------------- | :------------------- | :------------------------------------------ | | Capital expenditures | $1,062 | $1,047 | $4,559 | | Total capital investments | $1,066 | $1,055 | $5,535 | [Mark-to-Market Impact on Gross Operating Margin](index=16&type=section&id=Mark-to-Market%20Impact%20on%20Gross%20Operating%20Margin) This section details the mark-to-market impact on gross operating margin across various segments | Segment | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :-------------------------------------- | :------------------- | :------------------- | | NGL Pipelines & Services | ($5) | ($7) | | Crude Oil Pipelines & Services | ($2) | $4 | | Natural Gas Pipelines & Services | ($33) | ($2) | | Petrochemical & Refined Products Services | ($2) | $1 | | Total mark-to-market impact on gross operating margin | ($42) | ($4) |

Industry Overview - Pipeline companies are well positioned despite disruptions in energy markets, functioning similarly to toll-road businesses where energy prices have a moderate impact on results [1] - Demand for natural gas is increasing due to rising power consumption from artificial intelligence (AI) and export demand for LNG to Asia and Europe [1] Company Summaries Energy Transfer - Energy Transfer operates one of the largest integrated midstream systems in the U.S., particularly in the Permian Basin, which has low breakeven costs [3] - The company plans to increase growth capital expenditures from $3 billion in 2024 to $5 billion in 2025, with key projects like the Hugh Brinson Pipeline to support growing power demand in Texas [4] - Energy Transfer has a robust project backlog and offers a 7.9% yield with plans to grow distributions at a rate of 3% to 5% [5] Enterprise Products Partners - Enterprise Products Partners has increased its distribution for 26 consecutive years and is also well positioned in the Permian Basin [6] - The company plans to spend $4 billion to $4.5 billion on growth projects this year, up from $3.9 billion last year [6] - Enterprise has $7.6 billion in growth projects under construction, with $6 billion expected to come online this year, and offers a 7.1% yield with a 1.7 times coverage ratio [7] The Williams Companies - The Williams Companies owns the Transco pipeline system, which is valuable for transporting natural gas from Appalachia to the Gulf Coast [9] - Transco provides expansion opportunities, particularly as utilities switch from coal to natural gas, with seven expansion projects planned between 2025 and 2029 [10] - The company currently has a 3.5% yield and plans to grow its dividend by over 5% this year [11] Kinder Morgan - Kinder Morgan handles around 40% of U.S. natural gas production and has a strong presence in the Permian Basin [12] - The project backlog has increased from $3 billion at the end of 2023 to $8.8 billion by Q1 2025, with a projected return of 16.7% on these investments [13] - The stock offers a 4.5% yield and has improved its leverage from 5.1 times in 2017 to 4 times in 2024 [14]

Core Viewpoint - Enterprise Products Partners (EPD) is expected to report quarterly earnings of $0.69 per share, a 4.6% increase year-over-year, while revenues are forecasted to decline by 4.5% to $14.09 billion [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.7% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts project 'NGL Pipelines & Services net - NGL fractionation volumes per day' to reach 1,613.15 million barrels of oil, up from 1,557 million barrels in the same quarter last year [5]. - 'NGL Pipelines & Services net - Fee-based natural gas processing per day' is expected to be 7,062.97 million barrels of oil, compared to 6,363 million barrels in the same quarter last year [6]. - 'NGL Pipelines & Services net - NGL pipeline transportation volumes per day' is forecasted at 4,458.61 million barrels of oil, up from 4,157 million barrels in the same quarter last year [7]. - 'Natural Gas Pipelines & Services net - Natural gas transportation volumes per day' is estimated at 20,175.16 BBtu/D, compared to 18,600 BBtu/D a year ago [7]. - 'Petrochemical Services net - Butane isomerization volumes per day' is projected to be 120.07 million barrels of oil, slightly up from 117 million barrels last year [8]. - 'Petrochemical Services net - Propylene fractionation volumes per day' is expected to reach 104.11 million barrels of oil, compared to 96 million barrels last year [9]. - 'Petrochemical Services net - Octane enhancement and related plant sales volumes per day' is estimated at 31.03 million barrels of oil, down from 35 million barrels last year [10]. - 'NGL Pipelines & Services net - Equity NGL production per day' is projected at 196.18 million barrels of oil, up from 185 million barrels last year [11]. Gross Operating Margin Estimates - 'Gross operating margin- NGL Pipelines & Services' is expected to reach $1.46 billion, compared to $1.34 billion in the same quarter last year [11]. - 'Gross operating margin- Crude Oil Pipelines & Services' is estimated at $411.62 million, slightly up from $411 million a year ago [12]. - 'Gross operating margin- Natural Gas Pipelines & Services' is projected at $342.12 million, compared to $312 million last year [12]. - 'Gross operating margin- Petrochemical & Refined Products Services' is expected to be $352.84 million, down from $444 million last year [13]. Stock Performance - Shares of Enterprise Products have shown a return of -7.8% over the past month, compared to a -4.8% change in the Zacks S&P 500 composite [13].