Group 1 - The article discusses the performance of Enterprise Products Partners (EPD) and highlights its recent positive market response following a strong quarterly earnings report [2] - The author emphasizes the cyclical nature of the oil and gas industry, suggesting that patience and experience are crucial for investors [2] - The investing group, Oil & Gas Value Research, focuses on identifying undervalued oil companies and midstream companies that present compelling investment opportunities [2] Group 2 - The article indicates that the author has a beneficial long position in EPD shares, which reflects confidence in the company's future performance [3] - The article is presented as an analysis rather than a recommendation, urging investors to conduct their own research [4][5]

Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [5][20] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [12] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, contributing to a record $8.7 billion for the full year [12][14] - The distribution declared for Q4 2025 was $0.55 per common unit, a 2.8% increase from Q4 2024 [12] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [7] - The company is fully contracted on its ethane export terminals and processing trains, with significant growth expected in 2026 and double-digit growth anticipated in 2027 [8][18] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 per barrel lower than in 2024, impacting pricing and spreads [6] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs in the following year [9] Company Strategy and Development Direction - The company aims for modest growth in 2026, with expectations of double-digit growth in 2027 as new assets ramp up [8][18] - The partnership with Exxon is seen as a significant opportunity, with plans to expand the Bahia pipeline to 1 million barrels per day [9][71] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has changed, with lower commodity prices affecting margins [6] - The company expects discretionary free cash flow to be around $1 billion in 2026, with a focus on buybacks and debt retirement [19] Other Important Information - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [14] - The company has returned $5 billion of capital to equity investors in 2025, with a payout ratio of 58% [14] Q&A Session Summary Question: Outlook for 2026 and 2027 growth - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with modest cash flow and EBITDA growth anticipated [28] Question: NGL export cadence and earnings contribution - Management explained that the ramp-up of earnings from NGL exports will continue into 2026, with full utilization expected by the second quarter [31] Question: Impact of Waha prices on operations - Management clarified that the company benefits from both low and high Waha prices through gas transport capacity and storage assets [34] Question: Producer customers' plans for 2026 - Management reported that Midland volumes are outperforming expectations, with a record number of well connects [36] Question: Negotiating power of large EMPs - Management expressed confidence in their ability to negotiate favorable contracts regardless of the size of the EMPs involved [41] Question: Buyback strategy and pace - Management confirmed that 50%-60% of free cash flow is expected to be allocated towards buybacks, with a mix of opportunistic and programmatic purchases [50] Question: Demand trends in international markets - Management noted that demand for U.S. LPG remains resilient, with strong interest in export capacity [55]

Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [5][22] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [12] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, contributing to a record $8.7 billion for the full year [12][15] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [6][7] - The company is fully contracted on its ethane export terminals and processing trains, with expectations for modest growth in 2026 and double-digit growth in 2027 as new assets ramp up [8][19] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 a barrel lower than in 2024, impacting price spreads and overall performance [6] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs by next year [9] Company Strategy and Development Direction - The company aims for modest adjusted EBITDA and cash flow growth in 2026, with a target of 10% growth in 2027 as new assets come online [19][22] - The partnership with ExxonMobil is seen as a significant opportunity, with plans for expansion and collaboration on various projects [9][72] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is shaped by new market realities, including lower commodity prices and weaker spreads [6][19] - The company expects discretionary free cash flow to be around $1 billion in 2026, with a focus on buybacks and debt retirement [20][21] Other Important Information - The company repurchased approximately $50 million of its common units in Q4 2025, totaling about $300 million for the year [14] - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [15][16] Q&A Session Summary Question: Outlook for 2026 and 2027 growth - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with a more favorable outlook for 2027 [30] Question: NGL export cadence and earnings contribution - Management explained that the Neches River Terminal's ramp-up will continue into 2026, with full utilization expected by the second quarter [32] Question: Impact of Waha prices on operations - Management clarified that low Waha prices benefit gas transport capacity, while higher prices allow for monetization through storage assets [35] Question: Producer customers' plans for 2026 - Management reported that Midland volumes are outperforming expectations, with a record number of well connections [37] Question: Negotiating power of larger E&Ps - Management expressed confidence in their ability to negotiate favorable contracts regardless of E&P size [42] Question: Buyback strategy and methodology - Management confirmed that 50%-60% of discretionary free cash flow is expected to be allocated towards buybacks [52] Question: Demand trends in international markets - Management noted resilient demand for U.S. LPG in new markets, indicating healthy long-term interest in export capacity [57] Question: Opportunities for collaboration with Exxon - Management highlighted ongoing collaboration with Exxon across multiple projects, emphasizing the potential for future growth [72]

Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [4] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [11] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, leading to a record $8.7 billion for the full year [11][12] - The distribution declared for Q4 2025 was $0.55 per common unit, a 2.8% increase from Q4 2024 [11] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [5] - The company has fully contracted its ethane export terminals and processing trains, with expectations for modest growth in 2026 and double-digit growth in 2027 as assets ramp up [6][17] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 per barrel lower than in 2024, impacting pricing and spreads [4] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs by next year [7][8] Company Strategy and Development Direction - The company aims for modest adjusted EBITDA and cash flow growth in 2026, with a target of 10% growth in 2027 [17] - The partnership with ExxonMobil is seen as a significant opportunity, with plans to expand the Bahia pipeline to 1 million barrels per day [14][68] - The company is focusing on long-term agreements with producers and petrochemical customers to support growth in various segments [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is shaped by new market realities, including lower crude oil prices and weaker commodity-sensitive business performance [4][5] - The management expressed confidence in the company's ability to navigate challenges and highlighted strong customer relationships as a key driver of future success [11] Other Important Information - The company repurchased approximately $50 million of its common units in Q4 2025, totaling about $300 million for the year [12] - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [13] Q&A Session Summary Question: Can you walk us through the 2026 growth outlook? - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with modest cash flow and EBITDA growth anticipated [26][28] Question: Can you expand on the NGL export cadence and earnings contribution? - Management explained that the ramp-up of earnings from the Matrix River expansion will continue into 2026, with full utilization expected by the second quarter [30] Question: How does EPD benefit from changes in Waha prices? - Management stated that the company benefits from both low and high Waha prices through gas transport capacity and storage assets [32] Question: What are producer customers saying about their plans for 2026? - Management reported that Midland volumes are outperforming expectations, with a record number of well connects and significant growth anticipated in the Delaware Basin [35] Question: Can you discuss the partnership with Exxon and future opportunities? - Management expressed optimism about the partnership with Exxon, highlighting multiple areas for collaboration and potential growth [68] Question: What is the outlook for the Haynesville Acadian expansion? - Management confirmed that the expansion is driven by a mix of private and public producers, enhancing the gathering system's capacity [82]

February 3, 2026 NYSE: EPD Fourth Quarter 2025 Earnings Support Slides Qualifying Statements This supplemental package contains earnings support slides highlighting major variances for the quarter. Forward-Looking Statements This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team (including information published by third parties). When used in this presentation, words such as "antici ...

The midstream energy space is generally less vulnerable to fluctuations in oil and natural gas prices. Despite this, the outlook for the Zacks Oil and Gas - Pipeline MLP industry is gloomy. With the conservative spending of exploration and production companies, demand for transportation and storage assets is not going to be lucrative.Despite these developments, players like Enterprise Products Partners LP (EPD) , Energy Transfer LP (ET) and Plains All American Pipeline LP (PAA) are well-positioned to sail t ...

Core Viewpoint - The energy sector, particularly midstream businesses, offers high-yield investment opportunities for income-focused investors in 2026, despite the overall volatility of oil and natural gas commodities [1]. Industry Overview - The energy industry is divided into upstream, midstream, and downstream segments, with upstream and downstream being inherently volatile due to commodity price fluctuations. In contrast, midstream businesses, which own energy infrastructure assets, are more stable as they primarily charge fees for asset usage [2][3]. Midstream Business Characteristics - Midstream companies connect upstream producers to downstream processors and charge fees based on the volume of energy transported rather than commodity prices, leading to more consistent revenue streams [3]. High-Yield Midstream Options - Three notable midstream companies with attractive dividend yields are Enbridge, Enterprise Products Partners, and Energy Transfer, each offering different risk and yield profiles [4]. Enbridge (ENB) - Current Price: $48.28, Market Cap: $105 billion, Dividend Yield: 5.58%, has diversified operations including oil and natural gas pipelines and clean energy, and has increased its dividend for 30 consecutive years [5][6]. Enterprise Products Partners (EPD) - Current Price: $33.10, Market Cap: $72 billion, Dividend Yield: 6.57%, operates solely in oil and natural gas midstream assets, and has a history of conservative management with 27 years of annual dividend increases [7][8]. Energy Transfer (ET) - Current Price: $18.16, Market Cap: $62 billion, Dividend Yield: 7.25%, has the highest yield among the three but previously cut its distribution in 2020 to strengthen its balance sheet, with plans for gradual distribution growth of 3% to 5% annually [9][10].

Energy Transfer and Enterprise Products Partners have similar distribution growth rates, but one has a higher yield.Enterprise Products Partners (EPD 0.27%) and Energy Transfer (ET 1.68%) are two of the largest midstream businesses in North America. They provide services to energy companies, helping to move oil and natural gas around the world for a fee.While the energy sector is generally pretty volatile, these two master limited partnerships (MLPs) have reliable, cash-generating businesses to back their l ...

Financial Performance - Enterprise reported net income attributable to common unitholders of $5.8 billion for 2025, a slight decrease from $5.9 billion in 2024, resulting in earnings of $2.66 per common unit [3]. - Fourth quarter net income attributable to common unitholders was $1.6 billion, with fully diluted earnings of $0.75 per common unit, compared to $0.74 in Q4 2024 [8]. - Total revenues for Q4 2025 were $13,793 million, a decrease from $14,201 million in Q4 2024, while net income attributable to common unitholders was $1,644 million, compared to $1,619 million in the prior year [37]. - Net income attributable to common unitholders for Q4 2025 was $1,644 million, a slight increase from $1,619 million in Q4 2024 [54]. - Distributable Cash Flow (DCF) for the year ended December 31, 2025, reached $8,000 million, compared to $7,839 million in 2024, reflecting a growth of 2.06% [54]. Cash Flow and Distributions - Operational distributable cash flow (Operational DCF) was $7.9 billion for both 2025 and 2024, with a distribution increase of 3.6% to $2.175 per common unit for 2025 [4]. - The company reported a net cash flow provided by operating activities of $2,472 million in Q4 2025, an increase from $2,358 million in Q4 2024 [37]. - Adjusted Cash Flow from Operations (Adjusted CFFO) for Q4 2025 reached $2,427 million, compared to $2,301 million in Q4 2024, reflecting a growth of 5.5% [53]. - Free Cash Flow (FCF) for Q4 2025 was $1,212 million, significantly higher than $393 million in Q4 2024, marking a 208.5% increase [52]. - The net cash flow provided by operating activities for the year ended December 31, 2025, was $8,585 million, compared to $8,115 million in 2024, reflecting an increase of 5.77% [60]. Capital Investments and Expenditures - Total capital investments for 2025 were $5.6 billion, including $4.4 billion for growth capital projects and $632 million for acquisitions [6]. - The company expects organic growth capital investments for 2026 to be in the range of $1.9 billion to $2.3 billion, with sustaining capital expenditures around $580 million [6]. - Capital expenditures for the year ended December 31, 2025, totaled $4,988 million, up from $4,544 million in 2024, reflecting an increase of 9.76% [67]. - Total capital investments for the year ended December 31, 2025, amounted to $5,647 million, compared to $5,524 million in 2024, indicating a growth of 2.23% [67]. - Cash used for business combinations in 2025 was $949 million, consistent with the previous year's cash used for similar activities [67]. Operating Margins and Performance - Total gross operating margin for Q4 2025 was $2.7 billion, an increase from $2.6 billion in Q4 2024 [26]. - Non-GAAP total gross operating margin for Q4 2025 was $2,737 million, compared to $2,628 million in Q4 2024, indicating a positive trend in operational performance [37]. - Gross operating margin from the natural gas processing business was $439 million in Q4 2025, down from $483 million in Q4 2024, with a record inlet volume of 8.1 Bcf/d, a 5% increase year-over-year [27]. - Gross operating margin from NGL pipelines and storage reached a record $860 million in Q4 2025, an increase of $38 million compared to Q4 2024, with total NGL pipeline volumes at a record 4.9 million BPD [27]. - Natural gas pipelines and services reported a gross operating margin of $445 million in Q4 2025, up from $323 million in Q4 2024, with total pipeline volumes increasing to a record 21.1 TBtus/d, a 6% increase [30]. Pipeline Volumes and Market Trends - NGL pipeline transportation volumes increased to 4,871 MBPD in Q4 2025, up from 4,814 MBPD in Q4 2024, representing a growth of 1.2% [42]. - Natural gas pipeline transportation volumes increased to 21,062 BBtus/d in Q4 2025, compared to 19,929 BBtus/d in Q4 2024, a growth of 5.7% [42]. - Total NGL, crude oil, petrochemical, and refined products pipeline transportation volumes reached 8,583 MBPD in Q4 2025, up from 8,370 MBPD in Q4 2024, a growth of 2.5% [42]. - Crude oil pipeline transportation volumes were 2,576 MBPD in Q4 2025, slightly down from 2,595 MBPD in Q4 2024, a decrease of 0.7% [42]. - The average WTI crude oil price for 2025 is projected to be $64.84 per barrel, down from $75.73 per barrel in 2024, a decrease of 14.9% [49]. Future Outlook and Growth - The company anticipates continued growth in pipeline volumes and operating margins across its segments, driven by increased demand for midstream energy services [35]. - The acquisition of midstream assets from Occidental is expected to provide additional growth projects in natural gas gathering and processing in the Midland Basin [22]. - The Bahia NGL Pipeline, which began operations in December 2025, has a capacity of 600 MBPD and is set to expand to 1 million BPD by Q4 2027 [20].

Core Insights - Enterprise Products Partners LP (EPD) is a leading midstream player with a resilient business model supported by a pipeline network exceeding 50,000 miles, generating stable fee-based revenues from long-term shipper contracts [1][7] - The partnership has consistently returned capital to unitholders, having returned billions since its IPO and increased distributions for 27 consecutive years, maintaining steady cash flow across business cycles [2][7] - EPD has a backlog of key capital projects valued in billions currently under construction, which will secure additional cash flows and protect future distribution payments, making it an attractive option for income investors [3] Industry Comparisons - Kinder Morgan Inc. (KMI) and Enbridge Inc. (ENB) are also notable midstream companies with stable business models and predictable cash flows supported by fee-based revenues, with KMI increasing its dividend payments for the last eight years [4] - ENB projects annualized dividends of $3.77 per share for 2025 and $3.88 per share for 2026, with a projected 3% CAGR for the 2023-2026 period [4] Financial Performance - EPD units have gained 4.5% over the past year, contrasting with a 6.9% decline in the composite stocks of the industry [5] - EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.94X, which is below the broader industry average of 11.01X [8] - The Zacks Consensus Estimate for EPD's 2026 earnings has experienced one downward and one upward revision in the past week [9]