Enterprise Products Partners L.P.(US:EPD)2025-10-29 21:50Financial Performance - Net income attributable to common unitholders for Q3 2025 was $1.3 billion, down from $1.4 billion in Q3 2024, with fully diluted earnings per common unit at $0.61 compared to $0.65 in the prior year[3] - Total revenues for the three months ended September 30, 2025, were $12,023 million, a decrease from $13,775 million in the same period of 2024[26] - Operating income for the three months ended September 30, 2025, was $1,686 million, compared to $1,780 million for the same period in 2024[26] - Net income attributable to common unitholders for the three months ended September 30, 2025, was $1,338 million, down from $1,417 million in 2024[26] - Non-GAAP Adjusted EBITDA for the three months ended September 30, 2025, was $2,405 million, compared to $2,442 million in 2024[26] - Non-GAAP Free Cash Flow for the three months ended September 30, 2025, was $(226) million, compared to $907 million in 2024[26] - Free Cash Flow (FCF) for Q3 2025 was $(226) million, compared to $907 million in Q3 2024, while Adjusted FCF was $96 million versus $943 million in the same period[42] - Total gross operating margin for the three months ended September 30, 2025, was $2,385 million, a decrease of 2.8% from $2,454 million in 2024[52] - Adjusted EBITDA for the nine months ended September 30, 2025, was $7,257 million, slightly down from $7,300 million in 2024, indicating a decrease of 0.6%[49] Cash Flow and Distributions - Distributable Cash Flow (DCF) for Q3 2025 was $1.8 billion, a decrease from $2.0 billion in Q3 2024, with a distribution declared of $0.545 per common unit, reflecting a 3.8% increase year-over-year[4] - The company retained $635 million of DCF in Q3 2025, with a payout ratio of 58% of Adjusted CFFO for the twelve months ended September 30, 2025[5] - Distributable Cash Flow (DCF) for the nine months ended September 30, 2025, was $5,777 million, an increase of 1.6% from $5,684 million in 2024[44] - Operational DCF for the twelve months ended September 30, 2025, reached $7,894 million, reflecting a 6.5% increase compared to $7,406 million in 2024[44] - The company anticipates a decrease in cash distributions paid to noncontrolling interests from $(90) million in 2024 to $(68) million in 2025[42] Capital Investments - Total capital investments in Q3 2025 amounted to $2.0 billion, including $1.2 billion for growth projects and $583 million for the acquisition of natural gas gathering systems[6] - The company anticipates organic growth capital investments of approximately $4.5 billion in 2025 and $2.2 billion to $2.5 billion in 2026[6] - Capital expenditures for Q3 2025 were $1,375 million, up from $1,174 million in Q3 2024, representing an increase of 17%[56] - Total capital investments for the nine months ended September 30, 2025, reached $4,333 million, compared to $3,508 million in the same period of 2024, reflecting a growth of 23%[56] - The total capital investments for the twelve months ended September 30, 2025, reached $6,349 million, indicating a substantial increase from previous periods[56] Operational Metrics - Natural gas pipeline volumes reached a record 21.0 TBtus/d in Q3 2025, an 8% increase from 19.5 TBtus/d in Q3 2024, while equivalent pipeline transportation volumes rose to 13.9 million BPD, up 7% year-over-year[12][14] - NGL pipeline transportation volumes for the three months ended September 30, 2025, were 4,694 MBPD, an increase from 4,303 MBPD in 2024[31] - Crude oil pipeline transportation volumes for the three months ended September 30, 2025, were 2,631 MBPD, compared to 2,537 MBPD in 2024[31] - Gross operating margin from the NGL fractionation business decreased to $203 million in Q3 2025 from $248 million in Q3 2024, with total NGL fractionation volumes at 1.6 million BPD[20] - Gross operating margin from Permian Basin and Rocky Mountain NGL Pipelines increased by $16 million due to higher transportation volumes of 138 MBPD[22] Market Conditions - The weighted-average indicative market price for NGLs was $0.56 per gallon in Q3 2025, slightly down from $0.57 per gallon in Q3 2024[41] - Average WTI crude oil prices for 2024 are projected at $75.73 per barrel, with a decline to $66.74 per barrel in 2025[39] - Natural gas prices for Q1 2025 are expected to be $3.65 per MMBtu, up from $2.25 per MMBtu in Q1 2024[37] - The average price for isobutane in Q1 2025 is projected to be $1.07 per gallon, compared to $1.14 per gallon in Q1 2024[37] - The average price for propane in Q1 2025 is expected to be $0.90 per gallon, down from $0.84 per gallon in Q1 2024[37] Debt and Financial Position - Total debt principal outstanding at the end of the period was $33,897 million, unchanged from the previous year[26] - The company reported a net cash flow used in investing activities of $(1,935) million for Q3 2025, compared to $(1,152) million in Q3 2024[42] - Net cash flow provided by operating activities for the nine months ended September 30, 2025, was $6,113 million, an increase from $5,757 million in 2024[42] - Net cash flow provided by operating activities for the twelve months ended September 30, 2025, was $8,471 million, up from $8,171 million in 2024, representing a growth of 3.7%[49] Asset Management - The company reported asset impairment charges of $17 million for the three months ended September 30, 2025, compared to $27 million in 2024, a decrease of 37%[49] - The change in fair market value of derivative instruments for the nine months ended September 30, 2025, was $24 million, compared to a loss of $11 million in 2024, indicating a significant improvement[44] - Cash used for asset acquisitions in Q3 2025 amounted to $583 million, with no cash used in Q3 2024[56] - Cash used for business combinations, net of cash received, was $949 million for the nine months ended September 30, 2025, with no activity reported in the same period of 2024[56] - Investments in unconsolidated affiliates were minimal, with only $1 million reported for both the nine months ended September 30, 2025, and 2024[56]