Enterprise Products Partners L.P.(US:EPD)2025-11-06 16:56Financial Performance - Total revenues for Q3 2025 decreased by $1.8 billion to $12.023 billion compared to Q3 2024, primarily due to lower marketing revenues[214]. - Revenues from the marketing of NGLs and petrochemicals decreased by a combined $2.2 billion, with lower average sales prices accounting for a $1.6 billion decrease[215]. - Operating income for the nine months ended September 30, 2025 was $5.242 billion, a decrease from $5.367 billion in the same period of 2024[212]. - Cost of sales for Q3 2025 decreased by $1.8 billion to $8.590 billion compared to Q3 2024, driven by lower average purchase prices for NGLs and petrochemicals[221]. - Total revenues for the nine months ended September 30, 2025 decreased by $3.2 billion to $38.803 billion compared to the same period in 2024, primarily due to lower marketing revenues[217]. - Revenues from the marketing of NGLs and crude oil decreased by a combined $3.3 billion for the nine months ended September 30, 2025, mainly due to lower average sales prices[218]. - Operating income decreased by $94 million and $125 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[227]. - Total gross operating margin for the three months ended September 30, 2025, was $2,385 million, a decrease from $2,454 million in the same period of 2024[234]. Capital Investments and Financing - The company expects total organic capital investments for 2025 to approximate $5.0 billion, including $4.5 billion for organic growth and $525 million for sustaining capital expenditures[338]. - Total capital investments for the nine months ended September 30, 2025 reached $4,319 million, an increase of 24% compared to $3,485 million in 2024[341]. - Growth capital projects accounted for $3,368 million of total capital investments in the first nine months of 2025, up from $2,950 million in 2024[341]. - The company issued $2.0 billion in senior notes and had a net cash inflow of $1.7 billion related to debt transactions for the nine months ended September 30, 2025[331]. - Interest charged on debt principal outstanding increased by $27 million quarter-to-quarter and $81 million period-to-period, primarily due to the issuance of $2.5 billion and $2.0 billion of fixed-rate senior notes[230]. - Guaranteed Debt as of September 30, 2025, totaled $34.2 billion, including $30.8 billion in senior notes and $2.3 billion in junior subordinated notes[349]. Market and Pricing Trends - Average natural gas prices for Q3 2025 were $3.07 per MMBtu, compared to $2.15 per MMBtu in Q3 2024, reflecting a year-over-year increase of 42.8%[201]. - Average NGL prices for propane in Q3 2025 were $0.69 per gallon, down from $0.73 per gallon in Q3 2024, indicating a decrease of 5.5%[201]. - The average indicative gas processing gross spread for Q3 2025 was $0.30 per gallon, consistent with Q3 2024[201]. - The average WTI crude oil price for Q3 2025 was $64.93 per barrel, down from $75.10 per barrel in Q3 2024[206]. - The weighted-average indicative market price for NGLs was $0.56 per gallon in Q3 2025, a slight decrease from $0.57 per gallon in Q3 2024[204]. Operational Highlights - The first phase of the Neches River Ethane/Propane Export Facility was completed, featuring a loading dock and an ethane refrigeration train with a capacity of 120 MBPD[197]. - The first natural gas processing train at Mentone West and the eighth train in the Midland Basin were placed into service, each capable of processing over 300 MMcf/d and extracting more than 40 MBPD of NGLs[198]. - Enterprise plans to expand natural gas processing capabilities in the Midland Basin with a new processing train expected to process approximately 300 MMcf/d and extract up to 40 MBPD of NGLs, starting in Q4 2026[196]. - Gross operating margin from natural gas processing and related NGL marketing activities decreased by $17 million for the three months ended September 30, 2025, compared to the same period in 2024[241]. Cash Flow and Distributions - Net cash flow from operating activities for the nine months ended September 30, 2025, was $6,113 million, an increase of $356 million compared to the same period in 2024[321][323]. - Net cash flow provided by operating activities for Q3 2025 was $1,738 million, a decrease of 16.1% from $2,072 million in Q3 2024[336]. - Cash distributions paid to common unitholders increased by $125 million period-over-period, primarily due to higher quarterly distribution rates[331]. - The company declared a quarterly cash distribution of $0.545 per common unit, totaling $1.19 billion, to be paid on November 14, 2025[311]. - Distributable Cash Flow (DCF) for the nine months ended September 30, 2025, was $5,777 million, compared to $5,684 million for the same period in 2024[332]. Cost Management - Total operating costs and expenses for the nine months ended September 30, 2025 decreased by $3.1 billion compared to the same period in 2024[220]. - General and administrative costs remained flat for the three months ended September 30, 2025, while they increased by $5 million for the nine months ended September 30, 2025, primarily due to higher employee compensation costs[225]. - Inflation rates in the U.S. have remained elevated in 2025, impacting operating results, although the company has implemented measures to mitigate these effects[210].