Enterprise Products Partners L.P.

What they do

Enterprise owns and operates midstream energy assets through Enterprise Products Operating LLC, an indirect wholly owned subsidiary. Operations include natural gas liquids (NGL) pipelines, natural gas processing plants, NGL fractionation, petrochemical and refined products services, and marine terminals. The partnership is managed by its general partner, Enterprise Products Holdings LLC, which is a wholly owned subsidiary of Dan Duncan LLC; EPCO and its privately held affiliates owned approximately 32.5% of common units outstanding at December 31, 2025 and June 30, 2026.

Revenue drivers

• NGL and pipeline transportation — Record equivalent pipeline volumes of 14.7 MMBPD in 2Q 2026, up 8% versus 2Q 2025, indicate the scale of the fee-based NGL, crude and refined products pipeline network.
• Marine terminals — Record marine terminal equivalent volumes of 2.8 MMBPD in 2Q 2026, up 33% versus 2Q 2025, driven partly by strong international demand for U.S. energy in April and May and expansions at Neches River and Morgan's Point.
• Natural gas processing — Inlet volumes to natural gas processing plants were 8.1 Bcf/d in 2Q 2026, with a 14% increase in volumes to Permian Basin processing plants; inlet volumes were not a record for the quarter.
• Propylene production — Propylene production volumes rose 14% to a record 134 MBPD in 2Q 2026 on higher utilization rates at the company's propylene production facilities.

Recent performance

For 2Q 2026, Enterprise reported record net income attributable to common unitholders of $1.8 billion, or $0.84 per diluted common unit, up 28% versus 2Q 2025. Adjusted EBITDA was a record $2.8 billion, up 17%; Operational DCF was a record $2.3 billion, up 21%, providing 1.9x coverage of distributions declared and retaining $1.1 billion of DCF; and Adjusted CFFO was a record $2.5 billion, up 19%. Distributions declared were $0.56 per common unit, or $2.24 annualized, up 2.8%. For the 12 months ended June 30, 2026, the payout ratio, comprised of distributions to common unitholders and common unit buybacks, was 56% of Adjusted CFFO.

Strategy

Enterprise is continuing to invest in midstream growth projects. In 2Q 2026, capital investments were $1.2 billion, consisting of $1.0 billion for growth capital projects and $140 million for sustaining capital expenditures. The company announced plans to construct a new 150 MBPD NGL fractionator (Frac 15) at its Mont Belvieu area complex, a new 300 MMcf/d gas processing plant (Plant 13) in the Delaware Basin, and a new 300 MMcf/d gas processing plant (Plant 11) in the Midland Basin, with the latter two expected to begin service in the third quarter of 2028 and first quarter of 2029, respectively. For 2026, growth capital spending net of $599 million of proceeds from asset sales is expected to be $2.9 to $3.4 billion, plus $600 million for sustaining capital expenditures.

Risks

• Commodity price and demand changes — Changes in demand for and prices and production of hydrocarbon products could have a material adverse effect on Enterprise's financial position, results of operations and cash flows.
• Debt level — Enterprise's debt level may limit its future financial and operating flexibility; long-term debt was $31.20 billion at June 30, 2026.
• Construction execution — Construction of new assets, including Frac 15 and the Delaware and Midland Basin gas processing plants, is subject to operational, regulatory, environmental, political, geopolitical, legal and economic risks that may cause delays, increased costs or decreased cash flows.
• Aging asset maintenance — Several of Enterprise's assets have been in service for many years and require significant expenditures to maintain, and increases in future maintenance or repair costs or delays could materially adversely affect results.

Outlook

Management stated that Enterprise reported strong volumes, earnings and cash flow for the second quarter of 2026, with record pipeline and marine terminal volumes and growth from new assets and expansion projects placed into service or commissioning over the prior twelve months, including Frac 14 and the Neches River and Morgan's Point terminal expansions. The company expects growth capital spending for 2026, net of $599 million of asset sale proceeds, of $2.9 to $3.4 billion, plus $600 million of sustaining capital expenditures. Announced projects include Frac 15 at Mont Belvieu, Plant 13 in the Delaware Basin expected to begin service in the third quarter of 2028, and Plant 11 in the Midland Basin expected to begin service in the first quarter of 2029. The 8-K filed July 30, 2026 also disclosed entry into a material agreement and taking on a direct financial obligation.