Enterprise Products Partners L.P.(US:EPD)2025-05-07 14:36Commodity Prices - For Q1 2025, the weighted-average indicative market price for NGLs was $0.67 per gallon, up from $0.62 per gallon in Q1 2024, representing an increase of 8.06%[180]. - In Q1 2025, the average price of WTI crude oil was $71.42 per barrel, compared to $76.96 per barrel in Q1 2024, reflecting a decrease of 7.03%[181]. - The average price of natural gas in Q1 2025 was $3.65 per MMBtu, significantly higher than $2.25 per MMBtu in Q1 2024, indicating an increase of 62.22%[177]. Revenue and Operating Performance - Total revenues for Q1 2025 increased by $657 million to $15,417 million compared to Q1 2024, primarily due to higher marketing revenues[190]. - Revenues from NGLs and petrochemicals increased by a combined net $613 million, driven by higher sales volumes, which contributed $1.3 billion, partially offset by lower average sales prices[191]. - Total revenues for the first quarter of 2025 were $15,417 million, compared to $14,760 million in the first quarter of 2024, reflecting a year-over-year increase of approximately 4.4%[188]. Operating Costs and Expenses - Total operating costs and expenses for Q1 2025 rose by $716 million to $13,750 million compared to Q1 2024[193]. - Cost of sales increased by $600 million in Q1 2025, with NGLs and petrochemicals contributing a net increase of $640 million due to higher volumes[194]. - General and administrative costs decreased by $6 million to $60 million in Q1 2025, primarily due to lower employee compensation costs[197]. Operating Income and Margins - Operating income for Q1 2025 decreased by $61 million to $1,761 million compared to Q1 2024[199]. - Gross operating margin for Q1 2025 was $2,431 million, a decrease from $2,490 million in Q1 2024[209]. - Gross operating margin from NGL Pipelines & Services segment increased to $1,418 million in Q1 2025 from $1,340 million in Q1 2024[211]. Cash Flow and Liquidity - Net cash flow provided by operating activities for Q1 2025 was $2.314 billion, an increase of $203 million compared to Q1 2024[254]. - At March 31, 2025, the company had $3.6 billion of consolidated liquidity, including $3.4 billion of available borrowing capacity[244]. - The company declared a quarterly cash distribution of $0.535 per common unit, totaling $1.17 billion for the first quarter of 2025[246]. Debt and Financing - As of March 31, 2025, EPO's total consolidated debt obligations amounted to $31.887 billion, with an average maturity of approximately 18.3 years[248]. - Interest expense for Q1 2025 was $340 million, up from $331 million in Q1 2024, primarily due to increased debt principal outstanding[200]. - EPO repaid $1.15 billion in senior notes during Q1 2025, resulting in a net cash outflow of $332 million related to debt transactions[264]. Capital Investments and Future Plans - The company expects total capital investments for 2025 to be between $4.5 billion and $5.0 billion, including growth capital investments of $4.0 billion to $4.5 billion[270]. - The company plans to expand its natural gas processing capacity with multiple projects scheduled for completion between 2025 and 2026[271]. - Capital investments for growth projects increased by $50 million quarter-over-quarter, primarily due to higher investments in natural gas processing trains and related expansions, which accounted for a $92 million increase[276]. Market and Economic Conditions - The company reported that its consolidated revenues and cost of sales are significantly influenced by fluctuations in energy commodity prices, which can impact gross operating margin and cash available for distribution[183]. - Inflation rates in the U.S. have remained elevated in 2025, but the company has provisions in long-term contracts to offset cost increases, helping to stabilize net operating results[185]. - Changes in energy commodity prices may impact demand for natural gas, NGLs, crude oil, petrochemicals, and refined products, affecting sales and midstream services[254].