Overview of Enterprise Products Partners L.P.

Enterprise Products Partners L.P. is a leading North American provider of midstream energy services. The company owns and operates a network of pipelines, processing plants, storage facilities, and marine terminals that link producers of natural gas, natural gas liquids (NGLs), and crude oil to domestic consumers and international markets.

Enterprise’s fully integrated midstream operations include natural gas gathering, processing, and transportation; NGL transportation, fractionation, and storage; crude oil gathering, transportation, and storage; and petrochemical and refined products transportation and storage. The company is committed to operating its assets safely and in an environmentally responsible manner.

Financial Performance Highlights

For the first quarter of 2025, Enterprise reported total revenues of $15.4 billion, up from $14.8 billion in the first quarter of 2024. This increase was primarily due to higher marketing revenues from the sale of NGLs, petrochemicals, refined products, and natural gas.

However, total operating costs and expenses also increased, rising from $13.0 billion to $13.8 billion quarter-over-quarter. This was driven by higher costs of sales associated with the increased marketing activities, as well as higher maintenance, employee compensation, and utility costs.

As a result, operating income decreased from $1.82 billion in Q1 2024 to $1.76 billion in Q1 2025. Net income attributable to common unitholders declined from $1.46 billion to $1.39 billion over the same period.

Segment Performance

Enterprise operates in four business segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.

The NGL Pipelines & Services segment saw gross operating margin increase from $1.34 billion to $1.42 billion, driven by higher volumes and margins in natural gas processing and NGL transportation. However, NGL fractionation margin declined due to higher operating costs.

Gross operating margin in the Crude Oil Pipelines & Services segment decreased from $411 million to $374 million, primarily due to lower crude oil marketing sales volumes and margins.

The Natural Gas Pipelines & Services segment experienced a $45 million increase in gross operating margin, benefiting from higher volumes and fees on the company’s Delaware Basin and Texas Intrastate gathering and transportation systems.

In the Petrochemical & Refined Products Services segment, gross operating margin fell from $444 million to $315 million. This was mainly attributable to lower margins in propylene production, octane enhancement, and ethylene export activities.

Liquidity and Capital Resources

As of March 31, 2025, Enterprise had $3.6 billion in consolidated liquidity, consisting of $3.4 billion in available borrowing capacity under revolving credit facilities and $220 million in unrestricted cash. The company may issue additional debt and equity securities to fund future capital investments.

Enterprise declared a quarterly cash distribution of $0.535 per common unit for the first quarter of 2025, up from $0.515 per unit in the prior-year period. The company’s distribution coverage ratio remained steady at 1.7x.

Enterprise has approximately $7.6 billion in growth capital projects scheduled for completion by the end of 2026, including natural gas gathering and processing expansions, an additional NGL fractionator, and export terminal enhancements. The company expects total capital investments of $4.5 billion to $5.0 billion in 2025.

Strengths and Weaknesses

Strengths:

• Diversified midstream asset network providing integrated services across the energy value chain
• Stable cash flows from fee-based contracts and hedging activities
• Strong liquidity position and access to capital markets
• Commitment to safe and environmentally responsible operations

Weaknesses:

• Exposure to commodity price volatility impacting marketing activities
• Rising costs due to inflation, which could outpace revenue growth
• Concentration of operations in certain geographic regions, such as the Permian Basin
• Potential for project delays or cost overruns on major capital investments

Outlook

While the current high-cost environment has not materially impacted Enterprise’s historical results, a prolonged period of elevated inflation could pose a risk if costs increase at a faster rate than the company’s revenues. However, Enterprise’s business model, which includes provisions for cost pass-through and rate escalations in many of its long-term contracts, helps mitigate the impact of inflation.

The company’s substantial portfolio of growth projects, focused on expanding natural gas, NGL, and export infrastructure, positions Enterprise to benefit from continued energy demand and production growth, particularly in the Permian Basin. Successful execution of these capital investments will be crucial to maintaining the company’s competitive position and generating future cash flows.

Overall, Enterprise appears well-positioned to navigate the current market environment, with a strong balance sheet, diversified asset base, and strategic growth initiatives underway. However, the company remains exposed to commodity price and volume risks that could impact its financial performance going forward.