Enterprise Products Partners L.P.(EPD)2025-02-28 15:44Gas Processing Capacity - The company operates 11,072 MMcf/d of net gas processing capacity and a total gas processing capacity of 12,220 MMcf/d as of February 1, 2025[36]. - Utilization rates for natural gas processing facilities were approximately 68.4%, 69.6%, and 66.5% for the years ended December 31, 2024, 2023, and 2022, respectively[40]. - The company is constructing an eighth natural gas processing train ("Orion") with a capacity of 300 MMcf/d, expected to be operational in Q3 2025[42]. - Two additional natural gas processing trains at Mentone West, each with a capacity of 300 MMcf/d, are expected to be operational in Q3 2025 and H1 2026[44]. NGL Pipeline and Marketing - The company owns and operates a total of 18,613 miles of NGL pipelines, facilitating the transportation of mixed NGLs and purity NGL products[49]. - The Mid-America Pipeline System, which is 7,103 miles long, is one of the key assets in the company's NGL pipeline network[49]. - Transportation fees for NGL pipelines are based on tariffs regulated by governmental agencies or contractual arrangements[47]. - The company’s NGL marketing results depend on the difference between NGL sales prices and associated purchase costs, with market prices subject to fluctuations[34]. - The net throughput volumes for the NGL pipelines were 4,355 MBPD, 4,040 MBPD, and 3,703 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively, indicating a year-over-year increase of 7.8% from 2023 to 2024[55]. - The Bahia NGL Pipeline, with a design capacity of 600 MBPD, is expected to be operational by the fourth quarter of 2025, enhancing transportation capacity from the Permian Basin[59]. - The overall utilization rates for NGL fractionators were 106.4%, 106.0%, and 100.0% for the years ended December 31, 2024, 2023, and 2022, respectively, reflecting consistent operational efficiency[65]. - The Mont Belvieu area NGL fractionators have a total net plant capacity of 1,498 MBPD and a total plant capacity of 1,667 MBPD, supporting significant processing capabilities[63]. - Plans to construct NGL fractionator 14 ("Frac 14") with a design capacity of 150 MBPD are underway, expected to enter service in the third quarter of 2025[66]. Storage Capacity - The company operates a total of 216.7 MMBbls of net usable storage capacity across various locations, with the largest facility in Mont Belvieu having a capacity of 169.5 MMBbls[71]. - The company operates a total of 145 above-ground tanks with a net storage capacity of 44.0 MMBbls across various terminals in Texas and Oklahoma[99]. - The EHT marine terminal can load up to 2.9 MMBPD, equating to 88 MMBbls per month, making it one of the largest facilities on the Gulf Coast[102]. Crude Oil Pipelines - Net throughput volumes for crude oil pipelines were 2,510 MBPD, 2,461 MBPD, and 2,222 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively[86]. - The South Texas Crude Oil Pipeline System has a capacity to transport approximately 450 MBPD of crude oil and condensate[95]. - The Seaway Pipeline has an aggregate transportation capacity of approximately 950 MBPD, depending on the type and mix of crude oil being transported[87]. - The Eagle Ford Crude Oil Pipeline System has a capacity to transport over 600 MBPD of crude oil and condensate[101]. Ethane and Propylene Export - Ethane loading volumes at the Morgan's Point Ethane Export Terminal averaged 213 MBPD, 198 MBPD, and 168 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively[80]. - The Neches River Ethane/Propane Export Facility is expected to be completed during the third quarter of 2025 and first half of 2026 to expand ethane and propane export capabilities[81]. - Propylene production facilities have a total capacity of 117 MBPD, with an overall utilization rate of approximately 74.2% for the year ended December 31, 2024[128]. - Global demand for propylene is increasing, with PDH facilities capable of producing up to 1.65 billion pounds per year, or approximately 25 MBPD, of polymer grade propylene (PGP)[129]. Regulatory Environment - The company is subject to federal and state regulations regarding the disposal of hazardous and non-hazardous wastes, which may impose additional costs and operational restrictions[179]. - Under CERCLA, the company could incur liability for remediation costs related to hazardous substances, potentially affecting financial performance[180]. - The FERC has set the Index Level for pipeline rates at PPI plus 0.78% for the period from July 1, 2021, to June 30, 2026, which may impact future revenue[184]. - The company’s natural gas pipelines are regulated under the NGPA, and the rates charged must be fair and equitable, affecting profitability[188]. - The potential civil penalties for violations of FERC regulations could reach approximately $1.6 million per day per violation as of January 2025, posing a financial risk[190]. Competition - The company faces competition from independent processors and major integrated oil companies in the NGL market, impacting pricing and market share[200]. - Climate change regulations may increase operating costs and compliance burdens, affecting overall profitability and market demand for fossil fuels[197]. - The company’s operations may be impacted by the designation of habitats for endangered species, potentially leading to increased costs or operational restrictions[181]. - The company faces intense competition in the NGL and related product storage business from major integrated oil companies and other storage service providers, focusing on fees, pipeline connections, and operational dependability[201]. - In the natural gas gathering business, competition is based on reputation, efficiency, system reliability, and pricing arrangements, with key competitors including independent gas gatherers and major integrated energy companies[204]. Health and Safety - The company's Total Recordable Incident Rate (TRIR) for 2024 was 0.33, which is favorable compared to the midstream industry average over the last seven years, indicating a strong commitment to health and safety[214]. - Approximately 7,800 EPCO personnel are engaged in the company's business, with 14% being female and 33% being minorities, reflecting a commitment to workforce diversity[213]. Operational Challenges - The company’s operations along the Gulf Coast may be affected by seasonal weather events, impacting throughput volumes and natural gas storage levels during winter and summer months[211]. - The company’s construction of new assets is subject to various risks, including operational, regulatory, and environmental challenges, which may lead to delays and increased costs[221]. - The company’s growth strategy may be impacted by illiquid capital markets or increased competition for investment opportunities, potentially limiting future financial flexibility[221].