Enterprise Reports First Quarter 2026 Earnings

About this update from Enterprise Products Partners L.p.

HOUSTON, April 28, 2026 --( BUSINESS WIRE )--Enterprise Products Partners L.P. ("Enterprise") (NYSE: EPD) today announced its financial results for the three months ended March 31, 2026. Financial Highlights (1Q 2026 compared to 1Q 2025, as applicable) Capital Investment and Operational Highlights (1Q 2026 compared to 1Q 2025, as applicable) Conference Call to Discuss First Quarter 2026 Earnings Enterprise will host a conference call today to discuss first quarter 2026 earnings. The call will be webcast live beginning at 9:00 a.m. CT and may be accessed by visiting the partnership’s website at www.enterpriseproducts.com . Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), distributable cash flow ("DCF"), Operational distributable cash flow ("Operational DCF"), Adjusted cash flow from operations ("Adjusted CFFO"), total gross operating margin, and adjusted free cash flow ("Adjusted FCF") are non-generally accepted accounting principle ("non-GAAP") financial measures that are defined and reconciled later in this press release. As used in this press release, "NGL" means natural gas liquids, "LPG" means liquefied petroleum gas, "BPD" means barrels per day, "MBPD" means thousand barrels per day, "MMBPD" means million barrels per day, "MMcf/d" means million cubic feet per day, "Bcf/d" means billion cubic feet per day, "BBtus/d" means billion British thermal units per day, "TBtus/d" means trillion British thermal units per day, and "PDH" means propane dehydrogenation. "Enterprise began 2026 with a strong start in the first quarter," said A.J. "Jim" Teague, co-chief executive officer of Enterprise’s general partner. "Contributions from new assets placed in service over the past year and continuing to volumetrically ramp up, such as the Bahia NGL pipeline, NGL fractionator 14 and three Permian natural gas processing plants, led to record volumes across most of our integrated system. In total, our partnership set 12 new operational records during the quarter including for natural gas processing inlet volumes of 8.3 Bcf/d, equivalent pipeline volumes of 14.2 MMBPD, NGL fractionation volumes of 1.9 MMBPD and marine terminal volumes of 2.3 MMBPD. This volume growth together with higher utilization rates at our PDH facilities, an increase in natural gas pipeline and marketing volumes and margins and higher values for 234 MBPD of equity NGL-equivalent production led to a quarter of strong earnings and cash flow." "For the quarter, we generated $2.7 billion of DCF, including approximately $600 million of proceeds received in the first quarter of 2026 from the final payment for our sale of a 40 percent interest in the Bahia NGL pipeline to ExxonMobil. Our DCF for the quarter supported a 2.8 percent increase in our cash distribution rate to common unitholders and allowed us to retain $1.5 billion of DCF to reinvest in the growth of the partnership and fund $116 million of buybacks in the first quarter," said Teague. "Our commercial team in the Permian continues to have success in underwriting new natural gas processing plants and related infrastructure to support future growth from our oil and gas producer customers. To accommodate this production growth, Enterprise will build two additional 300 MMcf/d natural gas processing plants, one each in the Midland and Delaware Basins that are expected to begin operations during 2027. These plants will increase our natural gas processing capacity by an additional 12 percent. Since the Navitas Midstream acquisition in 2022, we have been increasing our natural gas processing capacity in the Permian at a 17 percent compound annual growth rate. With the trend of higher ratios of natural gas and NGL production to crude oil production, we expect natural gas and NGL production growth from the Permian to be 1.6 times that of crude oil production growth. This provides visibility to the need for additional investments in natural gas gathering, treating and processing capacity to facilitate further development of the basin. The NGL volumes from these new plants will flow into our integrated system of downstream NGL pipelines, fractionators, distribution pipelines to domestic markets and marine terminals to serve international markets. We now have approximately $5.3 billion of major growth capital projects under construction," stated Teague. "As a result of the recent disruption of exports from the Middle East, we are seeing strong demand for the security and reliability of U.S. energy exports. We are experiencing this uptick in demand across all of our marine terminals including record demand for the partnership’s ethylene export facility. I would like to congratulate our engineering and operations team for expediting the second phase of our Neches River NGL marine terminal. We began LPG commissioning activities at the terminal earlier this month and will also begin ethane commissioning activities later in May. These efforts enable Enterprise to promptly respond to the increase in global demand for U.S. energy," concluded Teague. Review of First Quarter 2026 Results Total gross operating margin was $2.6 billion for the first quarter of 2026 compared to $2.4 billion for the first quarter of 2025. NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment was $1.5 billion for the first quarter of 2026 compared to $1.4 billion for the first quarter of 2025. Gross operating margin from the natural gas processing business and related NGL marketing activities was $415 million for the first quarter of 2026 compared to $373 million for the first quarter of 2025. Natural gas processing plant inlet volumes were a record 8.3 Bcf/d in the first quarter of 2026, a 7 percent increase compared to the first quarter of 2025. Total fee-based natural gas processing volumes increased 4 percent, or 297 MMcf/d, to a record 7.5 Bcf/d in the first quarter of 2026, compared to the first quarter of 2025. Total equity NGL-equivalent production volumes were 234 MBPD and 225 MBPD in the first quarters of 2026 and 2025, respectively. The following highlights summarize selected variances within this business, with results for the first quarter of 2026 as compared to the first quarter of 2025: Gross operating margin from the NGL pipelines and storage business was $832 million for the first quarter of 2026 compared to $831 million for the first quarter of 2025. Total NGL pipeline volumes were a record 4.9 MMBPD in the first quarter of 2026, a 434 MBPD, or 10 percent, increase over the first quarter of 2025. Total NGL marine terminal volumes were a record 1.1 MMBPD in the first quarter of 2026, a 103 MBPD increase compared to the first quarter of 2025. The following highlights summarize selected variances within this business, with results for the first quarter of 2026 as compared to the first quarter of 2025: Gross operating margin from the NGL fractionation business was $256 million for the first quarter of 2026 compared to $214 million for the first quarter of 2025. Total NGL fractionation volumes were a record 1.9 MMBPD for the first quarter of 2026 compared to 1.7 MMBPD for the first quarter of 2025. The following highlight summarizes selected variances within this business, with results for the first quarter of 2026 as compared to the first quarter of 2025: Crude Oil Pipelines & Services – Gross operating margin from the Crude Oil Pipelines & Services segment was $329 million for the first quarter of 2026 compared to $374 million for the first quarter of 2025. Total crude oil pipeline volumes were a record 2.6 MMBPD in the first quarter of 2026, a 165 MBPD increase compared to the first quarter of 2025. Total crude oil marine terminal volumes were 866 MBPD in the first quarter of 2026 compared to 736 MBPD in the first quarter of 2025. The following highlight summarizes selected variances within this segment, with results for the first quarter of 2026 as compared to the first quarter of 2025: Natural Gas Pipelines & Services – Gross operating margin for the Natural Gas Pipelines & Services segment was $496 million for the first quarter of 2026 compared to $357 million for the first quarter of 2025. Total natural gas pipeline volumes were a record 21.2 TBtus/d in the first quarter of 2026, a 4 percent increase compared to 20.3 TBtus/d for the same quarter in 2025. The following highlights summarize selected variances within this segment, with results for the first quarter of 2026 as compared to the first quarter of 2025: Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $314 million for the first quarter of 2026 compared to $315 million for the first quarter of 2025. Total segment pipeline volumes were 1.1 MMBPD in the first quarter of 2026 compared to 949 MBPD in the first quarter of 2025. Total marine terminal volumes were 383 MBPD in the first quarter of 2026 compared to 311 MBPD for the first quarter of 2025. The following highlights summarize selected variances within this segment, with results for the first quarter of 2026 as compared to the first quarter of 2025: Use of Non-GAAP Financial Measures This press release and accompanying schedules include the non-GAAP financial measures of total gross operating margin, Adjusted CFFO, Adjusted FCF, DCF, Operational DCF and Adjusted EBITDA. The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we do. Company Information and Use of Forward-Looking Statements Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity. This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise. The weighted-average indicative market price for NGLs (based on prices for such products at Mont Belvieu, Texas, which is the primary industry hub for domestic NGL production) was $0.57 per gallon during the first quarter of 2026 versus $0.67 per gallon during the first quarter of 2025. Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices. An increase in our consolidated marketing revenues due to higher energy commodity sales prices may not result in an increase in gross operating margin or cash available for distribution, since our consolidated cost of sales amounts would also be expected to increase due to comparable increases in the purchase prices of the underlying energy commodities. The same type of relationship would be true in the case of lower energy commodity sales prices and purchase costs. Adjusted CFFO is a non-GAAP measure that represents net cash flow provided by operating activities before the net effect of changes in operating accounts. We believe that it is important to consider this non-GAAP measure as it can often be a better way to measure the amount of cash generated from our operations that can be used to fund our capital investments or return value to our investors through cash distributions and buybacks, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted FCF is a non-GAAP measure that reflects cash generated from our operations, excluding the net effect of changes in operating accounts, after accounting for capital expenditures. We believe that Adjusted FCF is important to traditional investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects and/or paying distributions, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Since we partner with other companies to fund certain capital projects of our consolidated subsidiaries, our determination of Adjusted FCF appropriately reflects the amount of cash contributed from and distributed to noncontrolling interests. DCF is an important non-GAAP liquidity measure for our common unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this liquidity measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions. DCF is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a common unitholder. Operational DCF, which is defined as DCF excluding the impact of proceeds from asset sales and other matters and monetization of interest rate derivative instruments, is a supplemental non-GAAP liquidity measure that quantifies the portion of cash available for distribution to common unitholders that was generated from our normal operations. We believe that it is important to consider this non-GAAP measure as it provides an enhanced perspective of our assets’ ability to generate cash flows without regard for certain items that do not reflect our core operations. The GAAP measure most directly comparable to DCF and Operational DCF is net cash flow provided by operating activities. Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flow provided by operating activities. We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. The term "total gross operating margin" represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets), (ii) impairment charges, (iii) gains and losses attributable to asset sales and related matters, and (iv) general and administrative costs. Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Total gross operating margin is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests. The GAAP financial measure most directly comparable to total gross operating margin is operating income. Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (5) to Exhibit A of this press release. The following table summarizes the mark-to-market gains (losses) for the periods indicated:   View source version on businesswire.com: https://www.businesswire.com/news/home/20260428369930/en/ Contacts Joe Theriac, Vice President, Finance & Investor Relations, (713) 381-6394 Rick Rainey, Vice President, Media Relations, (713) 381-3635

View stock analysis, news, and events for Enterprise Products Partners L.p.