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EPD Enterprise Products Partners L.P.Earnings

Enterprise Products Tops Revenue Estimates at $17.95 Billion as Volumes Hit Records

Operational distributable cash flow rose 27% to $2.3 billion, covering the third-quarter distribution 1.9 times, and the declared distribution was up 2.8% from a year earlier.

By Zintick Team · Editor: Kratik Mehta
Published

Winter landscape with the snow-covered gas pipeline and trees in hoarfrost. Gas pipe transite snow winter.
Photo: Chatham172/Shutterstock.com

Key points

  • Revenue of $17.95 billion beat the $14.98 billion analyst consensus and rose from $12.02 billion a year earlier
  • GAAP EPS of $0.75 per diluted unit topped the $0.73 consensus, up from $0.61
  • Operational DCF rose 27% to $2.3 billion, covering the distribution 1.9 times
  • Record Permian inlet volumes of 4.6 Bcf/d, up 12%
  • 2026 growth capex guided to $2.9 billion to $3.4 billion, net of asset sale proceeds

Enterprise Products Partners L.P. (NYSE: EPD) reported third-quarter revenue of $17.95 billion, above the $14.98 billion analysts expected, and earnings of $0.75 per diluted common unit against the $0.73 consensus estimate, in an 8-K accepted Wednesday, Oct. 28. The earnings figure is GAAP, as the release reports no adjusted per-unit number. Revenue was up from $12.02 billion a year earlier, and earnings per unit rose from $0.61. Net income attributable to common unitholders was $1.6 billion, up 21%.

Volumes and margins

Adjusted EBITDA reached $2.8 billion, up 16%. Total gross operating margin rose 15% to $2.7 billion, including a $21 million increase in unrealized mark-to-market earnings on hedging instruments. The company said three of its four segments reported higher gross operating margin.

The partnership cited record volumes. Permian Basin natural gas processing inlet volumes reached 4.6 Bcf/d, up 12%, and total natural gas processing inlet volumes hit 8.5 Bcf/d, up 6%. Equivalent pipeline volumes were a record 14.8 MMBPD, up 7%, and marine terminal volumes rose 28% to 2.5 MMBPD.

Cash flow and distributions

Operational distributable cash flow was $2.3 billion, up 27%, which provided 1.9 times coverage of the $0.56 per-unit distribution declared for the quarter. The partnership retained $1.1 billion of distributable cash flow. The declared distribution was $2.24 per unit annualized, up 2.8% from a year earlier.

Enterprise repurchased $112 million of common units in the quarter and $437 million over the 12 months ended Sept. 30. Cumulative utilization of its $5.0 billion buyback program stands at 36%. The company said its payout ratio for the 12 months, counting distributions and buybacks, was 54% of adjusted cash flow from operations.

Capital plans

Enterprise said it expects 2026 growth capital spending of $2.9 billion to $3.4 billion, net of $600 million of proceeds from asset sales, and $650 million for sustaining capital expenditures. It has $6.3 billion of growth projects under construction that will begin commercial operations through 2028. The next projects due in the fourth quarter are an expansion of its Houston Ship Channel LPG marine terminal and the Athena natural gas processing plant in the Midland Basin.

Shares closed at $38.06 on Oct. 28, the last close before the filing, for a market value of about $82.19 billion.

Sources

Written with AI from the company's results filing with the SEC, analysts' estimates where we had them, and our market data, and checked against those sources before publishing. Our editorial standards.

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Filings, figures and price history are on the Enterprise Products Partners L.P. page.