Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD)
today announced its financial results for the three months and year
ended December 31, 2024.
Fourth Quarter and Year End 2024
Financial Highlights
Three Months Ended December
31,
Year Ended December 31,
2024
2023
2024
2023
($ in millions, except per unit
amounts)
Operating income (1)
$
1,971
$
1,921
$
7,338
$
6,929
Net income (1) (2)
$
1,633
$
1,602
$
5,970
$
5,657
Fully diluted earnings per common unit
$
0.74
$
0.72
$
2.69
$
2.52
Total gross operating margin (1) (3)
$
2,628
$
2,548
$
9,984
$
9,395
Adjusted EBITDA (3)
$
2,599
$
2,499
$
9,899
$
9,318
Adjusted CFFO (3)
$
2,301
$
2,215
$
8,621
$
8,124
Adjusted FCF (3)
$
336
$
1,218
$
3,172
$
4,811
DCF (3)
$
2,155
$
2,059
$
7,839
$
7,601
Operational DCF (3)
$
2,152
$
2,024
$
7,858
$
7,538
(1)
Operating income, net income, and gross operating margin include
non-cash, mark-to-market (“MTM”) gains on financial instruments
used in our commodity hedging activities of $9 million and $20
million for the fourth quarter and year ended 2024, respectively,
compared to gains of $15 million and losses of $33 million for the
fourth quarter and year ended 2023, respectively.
(2)
Net income for the fourth quarters of 2024 and 2023 includes
non-cash, asset impairment charges of approximately $6 million and
$4 million, respectively. Net income for the years ended of 2024
and 2023 includes non-cash, asset impairment charges of
approximately $57 million and $32 million, respectively.
(3)
Total gross operating margin, adjusted earnings before interest,
taxes, depreciation and amortization (“Adjusted EBITDA”), adjusted
cash flow from operations (“Adjusted CFFO”), adjusted free cash
flow (“Adjusted FCF”), Distributable Cash Flow (“DCF”) and
Operational Distributable Cash Flow (“Operational DCF”) are
non-generally accepted accounting principle (“non-GAAP”) financial
measures that are defined and reconciled later in this press
release.
Year End 2024 Results
Enterprise reported record net income attributable to common
unitholders of $5.9 billion, or $2.69 per common unit on a fully
diluted basis, for 2024, a 7 percent increase compared to $5.5
billion, or $2.52 per common unit on a fully diluted basis, for
2023.
DCF was a record $7.8 billion for 2024, compared to $7.6 billion
for 2023. Distributions declared with respect to 2024 increased 5
percent to $2.10 per common unit annualized, compared to
distributions declared for 2023. 2024 marked Enterprise’s 26th
consecutive year of distribution growth. DCF provided 1.7 times
coverage of the distributions declared for the year, and Enterprise
retained $3.2 billion of DCF.
Enterprise repurchased approximately $219 million of its common
units on the open market in 2024, bringing total common unit
repurchases under the partnership’s authorized $2.0 billion common
unit buyback program to approximately $1.1 billion.
Adjusted CFFO was $8.6 billion for 2024, a 6 percent increase
compared to $8.1 billion for 2023. For 2024, Enterprise’s payout
ratio, comprised of declared distributions to common unitholders
and partnership common unit buybacks, was 55 percent of Adjusted
CFFO.
Total capital investments were $5.5 billion in 2024, which
included $3.9 billion for growth capital projects, $949 million for
the acquisition of Pinon Midstream, LLC (“Pinon Midstream”), and
$667 million of sustaining capital expenditures. Sustaining capital
expenditures were elevated in 2024 due to plant turnarounds in the
partnership’s petrochemicals business. Organic growth capital
investments are expected to be in the range of $4.0 billion to $4.5
billion in 2025. Sustaining capital expenditures are expected to be
approximately $525 million in 2025.
Total debt principal outstanding at December 31, 2024 was $32.2
billion, including $2.3 billion of junior subordinated notes to
which the debt rating agencies ascribe partial equity content. On
December 31, 2024, Enterprise had consolidated liquidity of
approximately $4.8 billion, comprised of available borrowing
capacity under its revolving credit facilities and unrestricted
cash on hand.
2024 K-1 Tax Packages
Enterprise’s K-1 tax packages, including all information to
fiduciaries for common units owned in tax exempt accounts, are
expected to be made available online through our website at
www.enterpriseproducts.com on or before February 28, 2025. The
mailing of the tax packages is expected to be completed by March 7,
2025.
Conference Call to Discuss Fourth
Quarter 2024 Earnings
Enterprise will host a conference call today to discuss fourth
quarter 2024 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.
Fourth Quarter
and Year End 2024 Volume Highlights
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Equivalent pipeline transportation volumes
(million BPD) (1)
13.6
12.7
12.9
12.2
NGL, crude oil, refined products &
petrochemical pipeline volumes (million BPD)
8.3
7.8
7.8
7.3
Marine terminal volumes (million BPD)
2.1
2.3
2.2
2.1
Natural gas pipeline volumes (TBtus/d)
19.9
18.9
19.3
18.4
NGL fractionation volumes (million
BPD)
1.6
1.6
1.6
1.6
Propylene plant production volumes
(MBPD)
106
102
102
101
Natural gas processing plant inlet volumes
(Bcf/d)
7.6
7.1
7.4
6.7
Fee-based natural gas processing volumes
(Bcf/d)
7.0
6.2
6.7
5.8
Equity NGL-equivalent production volumes
(MBPD)
203
185
203
175
(1)
Represents total NGL, crude oil, refined products and
petrochemical transportation volumes plus equivalent energy volumes
where 3.8 million British thermal units (“MMBtus”) of natural gas
transportation volumes are equivalent to one barrel of NGLs
transported.
As used in this press release, “NGL” means natural gas liquids,
“LPG” means liquefied petroleum gas, “PDH” means propane
dehydrogenation, “BPD” means barrels per day, “MBPD” means thousand
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 and “TBtus/d” means trillion British thermal
units per day.
“Our record 2024 financial performance was driven by record
volumes across our midstream system,” said A. J. “Jim” Teague,
co-chief executive officer of Enterprise’s general partner. “For
the year, we reported record natural gas processing inlet volumes
of 7.4 Bcf/d, a 10 percent increase from 2023; record total
equivalent pipeline volumes of 12.9 million BPD, a 6 percent
increase compared to 2023; record NGL fractionation volumes of 1.6
million BPD, a 3 percent increase compared to 2023; and record
marine terminal volumes of 2.2 million BPD, a 6 percent increase
from 2023. The volume growth across our system was largely
attributable to natural gas and NGL volume growth associated with
our investments in Permian Basin infrastructure and our downstream
value chain.”
“We see these opportunities continuing for the next several
years. We currently have approximately $7.6 billion of major growth
capital projects under construction. These projects will go into
service over the next three years. Substantially all of these
projects are related to our natural gas and NGL businesses serving
the Permian Basin and related expansions to our downstream
infrastructure to support growing domestic and international
demand. These projects are supported by long-term contracts and
provide visibility to continuing net income and cash flow per unit
growth,” said Teague.
“In 2025, $6 billion of major organic growth projects are
expected to be completed and begin generating cash flow. These
include two natural gas processing plants in the Permian Basin, our
Bahia NGL pipeline, Fractionator 14, the first phase of our NGL
export facility on the Neches River and expansions of our ethane
and ethylene marine terminals on the Houston Ship Channel. This
growth in cash flow will support future distribution increases and
returns of capital,” said Teague.
Fourth Quarter 2024
Results
Enterprise reported net income attributable to common
unitholders of $1.6 billion, or $0.74 per common unit on a fully
diluted basis, for the fourth quarter of 2024, a 3 percent increase
compared to $1.6 billion, or $0.72 per common unit on a fully
diluted basis, for the same quarter in 2023.
DCF was $2.2 billion for the fourth quarter of 2024 compared to
$2.1 billion for the fourth quarter of 2023. Distributions declared
with respect to the fourth quarter of 2024 increased 3.9 percent to
$2.14 per common unit annualized, compared to distributions
declared for the fourth quarter of 2023. DCF provided 1.8 times
coverage of the distributions declared for the fourth quarter of
2024, and Enterprise retained $985 million of DCF.
Enterprise repurchased approximately 2.1 million of its common
units on the open market for $63 million in the fourth quarter of
2024.
Total capital investments were $2.0 billion in the fourth
quarter of 2024, which included $946 million for organic growth
capital projects, $949 million for the acquisition of Pinon
Midstream and $113 million of sustaining capital expenditures.
“Consistent with our full-year 2024 results, our strong fourth
quarter financial performance is related to record volumes in the
fourth quarter of 2024 in our natural gas and NGL businesses. Inlet
natural gas processing volumes were a record 7.6 billion cubic feet
per day, a 7 percent increase compared to the fourth quarter of
2023. NGL pipeline volumes in the fourth quarter of 2024 were a
record 4.8 million BPD, a 12 percent increase compared to the same
quarter in 2023. NGL marine volumes were a record 1.0 million BPD,
a 9 percent increase compared to the fourth quarter of 2023.
Finally, equivalent pipeline volumes were a record 13.6 million BPD
in the fourth quarter of 2024, a 6 percent increase compared to
2023. This growth in volumes, earnings and cash flow are directly
related to the investments we have made in these businesses that
continue to benefit from production growth in the Permian Basin as
well as increases in domestic and international demand,” said
Teague.
Review of Fourth Quarter 2024
Results
Total gross operating margin was $2.6 billion for the fourth
quarter of 2024 compared to $2.5 billion for the fourth quarter of
2023.
NGL Pipelines & Services – Gross operating margin
from the NGL Pipelines & Services segment increased by $168
million, or 12 percent, to a record $1.5 billion for the fourth
quarter of 2024 compared to the fourth quarter of 2023.
Gross operating margin from the natural gas processing business
and related NGL marketing activities increased 30 percent to $483
million for the fourth quarter of 2024 compared to $371 million for
the fourth quarter of 2023. Natural gas processing plant inlet
volumes were a record 7.6 Bcf/d in the fourth quarter of 2024, a 7
percent increase compared to 7.1 Bcf/d in the fourth quarter of
2023. Total fee-based natural gas processing volumes increased 757
MMcf/d to a record 7.0 Bcf/d in the fourth quarter of 2024 compared
to the fourth quarter of 2023. Total equity NGL-equivalent
production volumes were 203 MBPD and 185 MBPD in the fourth
quarters of 2024 and 2023, respectively. The following highlights
summarize selected variances within this business, with results for
the fourth quarter of 2024 as compared to the fourth quarter of
2023:
- Gross operating margin from Permian Basin natural gas
processing facilities, including the Midland Basin and Delaware
Basin assets, increased $70 million primarily due to higher
processing volumes and higher average processing margins, including
the impact of hedging. In March of 2024 we began service at the
Leonidas plant in the Midland Basin and the Mentone 3 plant in the
Delaware Basin. Permian Basin processing plant inlet volumes
increased 798 MMcf/d, including increases of 408 MMcf/d in the
Delaware Basin and 390 MMcf/d in the Midland Basin.
- Gross operating margin from NGL marketing activities increased
$69 million primarily due to higher sales volumes and higher
average sales margins.
- Gross operating margin from Rockies natural gas processing
facilities decreased $24 million primarily due to higher operating
costs and lower average processing margins, including the impact of
hedging, and lower processing volumes. Rockies plant inlet volumes
decreased 156 MMcf/d largely due to downtime at our Chaco
plant.
Gross operating margin from the NGL pipelines and storage
business increased 6 percent to a record $822 million for the
fourth quarter of 2024 compared to the fourth quarter of 2023.
Total NGL pipeline transportation volumes were a record 4.8 million
BPD in the fourth quarter of 2024, a 12 percent increase over the
fourth quarter of 2023. Total NGL marine terminal volumes increased
9 percent to a record 1.0 million BPD for the fourth quarter of
2024 compared to the fourth quarter of 2023. The following
highlights summarize selected variances within this business, with
results for the fourth quarter of 2024 as compared to the fourth
quarter of 2023:
- On a combined basis, the pipelines serving the Permian Basin
and Rocky Mountain regions reported a $14 million increase in gross
operating margin. This includes the Mid-America, Seminole, Shin
Oak, and Chaparral NGL pipeline systems. The favorable variance was
primarily driven by a 331 MBPD, net to our interest, increase in
transportation volumes, partially offset by higher operating
costs.
- Gross operating margin from LPG-related activities at the
Enterprise Hydrocarbons Terminal (“EHT”) increased $7 million
primarily due to a 50 MBPD increase in LPG export volumes. Gross
operating margin from the Houston Ship Channel Pipeline System
increased $4 million primarily due to a 75 MBPD increase in
transportation volumes.
- Gross operating margin from the Mont Belvieu area storage
complex increased $7 million primarily due to higher storage
revenues.
Gross operating margin from the NGL fractionation business
increased 6 percent, to $243 million, for the fourth quarter of
2024, compared to the fourth quarter of 2023. Total NGL
fractionation volumes increased 39 MBPD, to a record 1.6 million
BPD, for the fourth quarter of 2024, compared to the fourth quarter
of 2023. The following highlights summarize selected variances
within this business, with results for the fourth quarter of 2024
as compared to the fourth quarter of 2023:
- Gross operating margin from our Mont Belvieu area NGL
fractionation complex increased $15 million primarily due to higher
ancillary service revenues and lower operating costs. Fractionation
volumes increased 50 MBPD, net to our interest, primarily due to
the acquisition of the remaining 25 percent equity interest in
fractionators 7 and 8 in February 2024.
Crude Oil Pipelines & Services – Gross operating
margin from the Crude Oil Pipelines & Services segment was $417
million for the fourth quarter of 2024 compared to $456 million for
the fourth quarter of 2023. Gross operating margin for the fourth
quarter of 2024 includes non-cash, MTM gains of $4 million related
to hedging activities compared to non-cash, MTM gains of $22
million in the fourth quarter of 2023. Total crude oil pipeline
transportation volumes were 2.6 million BPD in the fourth quarter
of 2024, a 15 MBPD decrease compared to the fourth quarter of 2023.
Total crude oil marine terminal volumes were 841 MBPD in the fourth
quarter of 2024 compared to 1.0 million BPD in the fourth quarter
of 2023. The following highlights summarize selected variances
within this segment, with results for the fourth quarter of 2024 as
compared to the fourth quarter of 2023:
- On a combined basis, our Texas in-basin crude oil pipelines,
terminals and other marketing activities (excluding our
Midland-to-ECHO System and Seaway Pipeline) reported a $42 million
decrease in gross operating margin primarily due to lower sales
volumes, lower non-cash MTM earnings, and higher operating costs.
Crude oil transportation volumes, net to our interest, increased 3
MBPD.
Natural Gas Pipelines & Services – Gross operating
margin for the Natural Gas Pipelines & Services segment
increased 13 percent to $323 million for the fourth quarter of 2024
compared to the fourth quarter of 2023. Total natural gas
transportation volumes were a record 19.9 TBtus/d in the fourth
quarter of 2024, 5 percent higher than in the fourth quarter of
2023. The following highlights summarize selected variances within
this segment, with results for the fourth quarter of 2024 as
compared to the fourth quarter of 2023:
- Permian natural gas gathering, including the Delaware Basin and
Midland Basin gathering systems, reported a combined $21 million
increase in gross operating margin primarily due to a 1.1 TBtus/d
increase in gathering volumes and higher treating revenues,
partially offset by higher operating costs. These results include
earnings from the Pinon Midstream gathering and treating system in
the Delaware Basin, which was acquired in October 2024.
- Gross operating margin from the Texas Intrastate System
increased $19 million primarily due to higher transportation and
other revenues, partially offset by higher operating costs.
Transportation volumes increased 230 BBtus/d.
- Gross operating margin from our natural gas marketing business
increased $9 million primarily due to higher sales volumes.
- Gross operating margin from our Rocky Mountain Gatherings
Systems decreased $11 million primarily due to higher operating
costs, a 140 BBtus/d decrease in gathering volumes, and lower
average gathering fees.
Petrochemical & Refined Products Services – Gross
operating margin for the Petrochemical & Refined Products
Services segment was $348 million for the fourth quarter of 2024
compared to $439 million for the fourth quarter of 2023. Total
segment pipeline transportation volumes were 947 MBPD in the fourth
quarter 2024 compared to 899 MBPD in the fourth quarter of 2023.
Total marine terminal volumes were 296 MBPD in the fourth quarter
of 2024 compared to 352 MBPD for the fourth quarter of 2023. The
following highlights summarize selected variances within this
segment, with results for the fourth quarter of 2024 as compared to
the fourth quarter of 2023:
- Propylene production and related activities reported a $45
million decrease in gross operating margin primarily due to higher
operating costs and lower average sales margins, partially offset
by higher propylene processing revenues. Total propylene and
associated by-product production volumes for the fourth quarter of
2024 were 106 MBPD, net to our interest. In the fourth quarter of
2024, the PDH 1 facility experienced 15 days of unplanned downtime
and the PDH 2 facility experienced 23 days of unplanned downtime.
Comparatively, PDH 2 experienced 51 days of unplanned downtime in
the fourth quarter of 2023. Additionally, a planned turnaround
impacting one of our propylene splitters reduced operating rates in
the fourth quarter of 2024.
- Gross operating margin from our octane enhancement and related
plant operations decreased $30 million primarily due to lower
average sales margins.
- Gross operating margin from our refined products pipelines and
related activities decreased $21 million primarily due to lower
average sales margins from refined products marketing
activities.
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, FCF, 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.
Enterprise Products Partners
L.P.
Exhibit A
Condensed Statements of Consolidated
Operations – UNAUDITED
($ in millions, except per unit
amounts)
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Revenues
$
14,201
$
14,622
$
56,219
$
49,715
Costs and
expenses:
Operating costs and expenses
12,276
12,757
49,045
43,017
General and administrative costs
60
59
244
231
Total costs and expenses
12,336
12,816
49,289
43,248
Equity in income of
unconsolidated affiliates
106
115
408
462
Operating
income
1,971
1,921
7,338
6,929
Other income
(expense):
Interest expense
(346
)
(325
)
(1,352
)
(1,269
)
Other, net
18
5
49
41
Total other expense, net
(328
)
(320
)
(1,303
)
(1,228
)
Income before income
taxes
1,643
1,601
6,035
5,701
Benefit from (provision for) income
taxes
(10
)
1
(65
)
(44
)
Net
income
1,633
1,602
5,970
5,657
Net income
attributable to noncontrolling interests
(13
)
(34
)
(69
)
(125
)
Net income
attributable to preferred units
(1
)
–
(4
)
(3
)
Net income
attributable to common unitholders
$
1,619
$
1,568
$
5,897
$
5,529
Per common unit data
(fully diluted):
Earnings per common unit
$
0.74
$
0.72
$
2.69
$
2.52
Average common units outstanding (in
millions)
2,190
2,192
2,192
2,194
Supplemental
financial data:
Net cash flow provided by operating
activities
$
2,358
$
2,366
$
8,115
$
7,569
Net cash flow used in investing
activities
$
2,000
$
977
$
5,433
$
3,197
Net cash flow used in financing
activities
$
1,193
$
1,383
$
2,164
$
4,258
Total debt principal outstanding at end of
period
$
32,207
$
29,021
$
32,207
$
29,021
Non-GAAP Distributable Cash Flow (1)
$
2,155
$
2,059
$
7,839
$
7,601
Non-GAAP Operational Distributable Cash
Flow (1)
$
2,152
$
2,024
$
7,858
$
7,538
Non-GAAP Adjusted EBITDA (2)
$
2,599
$
2,499
$
9,899
$
9,318
Non-GAAP Adjusted Cash flow from
operations (3)
$
2,301
$
2,215
$
8,621
$
8,124
Non-GAAP Free Cash Flow (4)
$
393
$
1,369
$
2,666
$
4,256
Non-GAAP Adjusted Free Cash Flow (4)
$
336
$
1,218
$
3,172
$
4,811
Gross operating margin by segment:
NGL Pipelines & Services
$
1,548
$
1,380
$
5,548
$
4,898
Crude Oil Pipelines & Services
417
456
1,646
1,707
Natural Gas Pipelines & Services
323
286
1,277
1,077
Petrochemical & Refined Products
Services
348
439
1,547
1,694
Total segment gross operating margin
(5)
2,636
2,561
10,018
9,376
Net adjustment for shipper make-up rights
(6)
(8
)
(13
)
(34
)
19
Non-GAAP total gross operating margin
(7)
$
2,628
$
2,548
$
9,984
$
9,395
(1)
See Exhibit F for reconciliation to GAAP
net cash flow provided by operating activities.
(2)
See Exhibit G for reconciliation to GAAP
net cash flow provided by operating activities.
(3)
See Exhibit E for reconciliation to GAAP
net cash flow provided by operating activities.
(4)
See Exhibit D for reconciliation to GAAP
net cash flow provided by operating activities.
(5)
Within the context of this table, total
segment gross operating margin represents a subtotal and
corresponds to measures similarly titled within the financial
statement footnotes provided in our quarterly and annual filings
with the U.S. Securities and Exchange Commission (“SEC”).
(6)
Gross operating margin by segment for NGL
Pipelines & Services and Crude Oil Pipelines & Services
reflects adjustments for non-refundable deferred transportation
revenues relating to the make-up rights of committed shippers on
certain major pipeline projects. These adjustments are included in
managements’ evaluation of segment results. However, these
adjustments are excluded from non-GAAP total gross operating margin
in compliance with guidance from the SEC.
(7)
See Exhibit H for reconciliation to GAAP
total operating income.
Enterprise Products Partners L.P.
Exhibit B
Selected Operating Data –
UNAUDITED
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Selected operating
data: (1)
NGL Pipelines & Services, net:
NGL pipeline transportation volumes
(MBPD)
4,768
4,258
4,355
4,040
NGL marine terminal volumes (MBPD)
1,005
922
915
821
NGL fractionation volumes (MBPD)
1,637
1,598
1,608
1,556
Equity NGL-equivalent production volumes
(MBPD) (2)
203
185
203
175
Fee-based natural gas processing volumes
(MMcf/d) (3,4)
6,994
6,237
6,670
5,848
Natural gas processing inlet volumes
(MMcf/d) (5)
7,579
7,060
7,395
6,706
Crude Oil Pipelines & Services,
net:
Crude oil pipeline transportation volumes
(MBPD)
2,595
2,610
2,510
2,461
Crude oil marine terminal volumes
(MBPD)
841
1,000
955
913
Natural Gas Pipelines & Services,
net:
Natural gas pipeline transportation
volumes (BBtus/d) (6)
19,925
18,915
19,272
18,376
Petrochemical & Refined Products
Services, net:
Propylene production volumes (MBPD)
106
102
102
101
Butane isomerization volumes (MBPD)
120
117
118
112
Standalone DIB processing volumes
(MBPD)
194
191
198
176
Octane enhancement and related plant sales
volumes (MBPD) (7)
33
40
37
36
Pipeline transportation volumes, primarily
refined products and petrochemicals (MBPD)
947
899
933
836
Refined products and petrochemicals marine
terminal volumes (MBPD) (8)
296
352
309
320
Total, net:
NGL, crude oil, petrochemical and refined
products pipeline transportation volumes (MBPD)
8,310
7,767
7,798
7,337
Natural gas pipeline transportation
volumes (BBtus/d)
19,925
18,915
19,272
18,376
Equivalent pipeline transportation volumes
(MBPD) (9)
13,553
12,745
12,870
12,173
NGL, crude oil, refined products and
petrochemical marine terminal volumes (MBPD)
2,142
2,274
2,179
2,054
(1)
Operating rates are reported on a net
basis, which take into account our ownership interests in certain
joint ventures and include volumes for newly constructed assets
from the related in-service dates and for recently purchased assets
from the related acquisition dates.
(2)
Primarily represents the NGL and
condensate volumes we earn and take title to in connection with our
processing activities. The total equity NGL-equivalent production
volumes also include residue natural gas volumes from our natural
gas processing business.
(3)
Volumes reported correspond to the revenue
streams earned by our gas plants. “MMcf/d” means million cubic feet
per day.
(4)
Fee-based natural gas processing volumes
are measured at either the wellhead or plant inlet in MMcf/d.
(5)
Natural gas processing inlet volumes is an
operational measure representing the physical, unprocessed rich
natural gas passing through meters located at or near the inlet of
our natural gas processing plants or at the wellhead for all
natural gas processing facilities that we operate. Substantially
all natural gas processing inlet volumes are processed under
service contracts that are either fee-based, commodity-based or a
combination of both. Natural gas processing inlet volumes are
reflected in “Fee-based natural gas processing volumes” for volumes
processed under fee-based service contracts, “Equity NGL-equivalent
production volumes” for volumes processed under commodity-based
service contracts or both of the aforementioned categories for
volumes processed under service contracts that have both fee and
commodity-based terms.
(6)
“BBtus/d” means billion British thermal
units per day.
(7)
Reflects aggregate sales volumes for our
octane enhancement and isobutane dehydrogenation (“iBDH”)
facilities located at our Mont Belvieu area complex and our
high-purity isobutylene production facility located adjacent to the
Houston Ship Channel.
(8)
In addition to exports of refined
products, these amounts include loading volumes at our ethylene
export terminal.
(9)
Represents total NGL, crude oil, refined
products and petrochemical transportation volumes plus equivalent
energy volumes where 3.8 million British thermal units (“MMBtus”)
of natural gas transportation volumes are equivalent to one barrel
of NGLs transported.
Enterprise Products Partners L.P.
Exhibit C
Selected Commodity Price Information –
UNAUDITED
Polymer
Refinery
Natural
Normal
Natural
Grade
Grade
Gas,
Ethane,
Propane,
Butane,
Isobutane,
Gasoline,
Propylene,
Propylene,
$/MMBtu (1)
$/gallon (2)
$/gallon (2)
$/gallon (2)
$/gallon (2)
$/gallon (2)
$/pound (3)
$/pound (3)
2023 by quarter:
First Quarter
$3.44
$0.25
$0.82
$1.11
$1.16
$1.62
$0.50
$0.22
Second Quarter
$2.09
$0.21
$0.67
$0.78
$0.84
$1.44
$0.40
$0.21
Third Quarter
$2.54
$0.30
$0.68
$0.83
$0.94
$1.55
$0.36
$0.15
Fourth Quarter
$2.88
$0.23
$0.67
$0.91
$1.07
$1.48
$0.46
$0.17
2023 Averages
$2.74
$0.25
$0.71
$0.91
$1.00
$1.52
$0.43
$0.19
2024 by quarter:
First Quarter
$2.25
$0.19
$0.84
$1.03
$1.14
$1.54
$0.55
$0.18
Second Quarter
$1.89
$0.19
$0.75
$0.90
$1.26
$1.55
$0.47
$0.21
Third Quarter
$2.15
$0.16
$0.73
$0.97
$1.08
$1.48
$0.53
$0.28
Fourth Quarter
$2.79
$0.22
$0.78
$1.13
$1.12
$1.50
$0.42
$0.24
2024 Averages
$2.27
$0.19
$0.78
$1.01
$1.15
$1.52
$0.49
$0.23
(1)
Natural gas prices are based on Henry-Hub
Inside FERC commercial index prices as reported by Platts, which is
a division of S&P Global, Inc.
(2)
NGL prices for ethane, propane, normal
butane, isobutane and natural gasoline are based on Mont Belvieu
Non-TET commercial index prices as reported by Oil Price
Information Service, which is a division of Dow Jones.
(3)
Polymer grade propylene prices represent
average contract pricing for such product as reported by IHS Markit
("IHS”), which is a division of S&P Global, Inc. Refinery grade
propylene prices represent weighted-average spot prices for such
product as reported by IHS.
WTI
Midland
Houston
LLS
Crude Oil,
Crude Oil,
Crude Oil
Crude Oil,
$/barrel (1)
$/barrel (2)
$/barrel (2)
$/barrel (3)
2023 by quarter:
First Quarter
$76.13
$77.50
$77.74
$79.00
Second Quarter
$73.78
$74.48
$74.68
$75.87
Third Quarter
$82.26
$83.85
$84.02
$84.72
Fourth Quarter
$78.32
$79.62
$79.89
$80.93
2023 Averages
$77.62
$78.86
$79.08
$80.13
2024 by quarter:
First Quarter
$76.96
$78.55
$78.85
$79.75
Second Quarter
$80.57
$81.73
$82.33
$83.60
Third Quarter
$75.10
$75.96
$76.51
$77.20
Fourth Quarter
$70.27
$71.19
$71.72
$72.50
2024 Averages
$75.73
$76.86
$77.35
$78.26
(1)
West Texas Intermediate (“WTI”) prices are
based on commercial index prices at Cushing, Oklahoma as measured
by the NYMEX.
(2)
Midland and Houston crude oil prices are
based on commercial index prices as reported by Argus.
(3)
Light Louisiana Sweet (“LLS”) prices are
based on commercial index prices as reported by Platts.
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 $0.62 per
gallon during the fourth quarter of 2024 versus $0.57 per gallon
during the fourth quarter of 2023. Fluctuations in our consolidated
revenues and cost of sales amounts are explained in large part by
changes in energy commodity prices. An increase in our consolidated
marketing revenues due to higher energy commodity sales prices may
not result in an increase in gross operating margin or cash
available for distribution, since our consolidated cost of sales
amounts would also be expected to increase due to comparable
increases in the purchase prices of the underlying energy
commodities. The same type of relationship would be true in the
case of lower energy commodity sales prices and purchase costs.
Enterprise Products Partners
L.P.
Exhibit D
Free Cash Flow and Adjusted Free Cash
Flow – UNAUDITED
($ in millions)
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Free
Cash Flow (“FCF”) and Adjusted FCF
Net cash flow provided by operating
activities (GAAP)
$
2,358
$
2,366
$
8,115
$
7,569
Adjustments to reconcile net cash flow
provided by operating activities to FCF and Adjusted FCF (addition
or subtraction indicated by sign):
Net cash flow used in investing
activities
(2,000
)
(977
)
(5,433
)
(3,197
)
Cash contributions from noncontrolling
interests
57
19
90
44
Cash distributions paid to noncontrolling
interests
(22
)
(39
)
(106
)
(160
)
FCF (non-GAAP)
$
393
$
1,369
$
2,666
$
4,256
Net effect of changes in operating
accounts, as applicable
(57
)
(151
)
506
555
Adjusted FCF (non-GAAP)
$
336
$
1,218
$
3,172
$
4,811
FCF is a non-GAAP measure of how much cash a business generates
after accounting for capital expenditures such as plants or
pipelines. Additionally, Adjusted FCF is a non-GAAP measure of how
much cash a business generates, excluding the net effect of changes
in operating accounts, after accounting for capital expenditures.
We believe that 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. We
believe that Adjusted FCF is also important to traditional
investors for the same reasons as FCF, 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 FCF and
Adjusted FCF appropriately reflect the amount of cash contributed
from and distributed to noncontrolling interests.
Enterprise Products Partners
L.P.
Exhibit E
Adjusted Cash flow from operations –
UNAUDITED
($ in millions)
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Adjusted
Cash flow from operations (“Adjusted CFFO”)
Net cash flow provided by operating
activities (GAAP)
$
2,358
$
2,366
$
8,115
$
7,569
Adjustments to reconcile net cash flow
provided by operating activities to Adjusted Cash flow from
operations (addition or subtraction indicated by sign):
Net effect of changes in operating
accounts, as applicable
(57
)
(151
)
506
555
Adjusted CFFO (non-GAAP)
$
2,301
$
2,215
$
8,621
$
8,124
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.
Enterprise Products Partners
L.P.
Exhibit F
Distributable Cash Flow and Operational
Distributable Cash Flow – UNAUDITED
($ in millions)
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Distributable Cash Flow (“DCF”) and Operational
DCF
Net income attributable to common
unitholders (GAAP)
$
1,619
$
1,568
$
5,897
$
5,529
Adjustments to net income attributable to
common unitholders to derive DCF (addition or subtraction indicated
by sign):
Depreciation, amortization and accretion
expenses (1)
628
601
2,473
2,343
Cash distributions received from
unconsolidated affiliates
116
121
483
488
Equity in income of unconsolidated
affiliates
(106
)
(115
)
(408
)
(462
)
Asset impairment charges
6
4
57
32
Change in fair market value of derivative
instruments
(9
)
(15
)
(20
)
33
Deferred income tax expense
22
7
45
12
Sustaining capital expenditures (2)
(113
)
(129
)
(667
)
(413
)
Other, net
(11
)
(18
)
(2
)
(24
)
Operational DCF (non-GAAP)
2,152
2,024
7,858
7,538
Proceeds from asset sales and other
matters
3
35
14
42
Monetization of interest rate derivative
instruments accounted for as cash flow hedges
–
–
(33
)
21
DCF (non-GAAP)
$
2,155
$
2,059
$
7,839
$
7,601
Adjustments to reconcile DCF with net cash
flow provided by operating activities (addition or subtraction
indicated by sign):
Net effect of changes in operating
accounts, as applicable
57
151
(506
)
(555
)
Sustaining capital expenditures
113
129
667
413
Other, net
33
27
115
110
Net cash flow provided by operating
activities (GAAP)
$
2,358
$
2,366
$
8,115
$
7,569
(1)
Excludes amortization of finance lease
right-of-use assets, which are a component of DCF.
(2)
Sustaining capital expenditures are
capital expenditures (as defined by GAAP) resulting from
improvements to and major renewals of existing assets. Such
expenditures serve to maintain existing operations but do not
generate additional revenues.
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.
Enterprise Products Partners
L.P.
Exhibit G
Adjusted EBITDA - UNAUDITED
($ in millions)
For the Three Months
Ended December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Net income (GAAP)
$
1,633
$
1,602
$
5,970
$
5,657
Adjustments to net income to derive
Adjusted EBITDA (addition or subtraction indicated by sign):
Depreciation, amortization and accretion
in costs and expenses (1)
606
584
2,398
2,267
Interest expense, including related
amortization
346
325
1,352
1,269
Cash distributions received from
unconsolidated affiliates
116
121
483
488
Equity in income of unconsolidated
affiliates
(106
)
(115
)
(408
)
(462
)
Asset impairment charges
6
4
57
32
Provision for (benefit from) income
taxes
10
(1
)
65
44
Change in fair market value of commodity
derivative instruments
(9
)
(15
)
(20
)
33
Other, net
(3
)
(6
)
2
(10
)
Adjusted EBITDA (non-GAAP)
2,599
2,499
9,899
9,318
Adjustments to reconcile Adjusted EBITDA
to net cash flow provided by operating activities (addition or
subtraction indicated by sign):
Interest expense, including related
amortization
(346
)
(325
)
(1,352
)
(1,269
)
Deferred income tax expense
22
7
45
12
Benefit from (provision for) income
taxes
(10
)
1
(65
)
(44
)
Net effect of changes in operating
accounts, as applicable
57
151
(506
)
(555
)
Other, net
36
33
94
107
Net cash flow provided by operating
activities (GAAP)
$
2,358
$
2,366
$
8,115
$
7,569
(1)
Excludes amortization of major maintenance
costs for reaction-based plants, which are a component of Adjusted
EBITDA.
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.
Enterprise Products Partners
L.P.
Exhibit H
Gross Operating Margin –
UNAUDITED
($ in millions)
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Total gross operating margin
(non-GAAP)
$
2,628
$
2,548
$
9,984
$
9,395
Adjustments to reconcile total gross
operating margin to total operating income (addition or subtraction
indicated by sign):
Depreciation, amortization and accretion
expense in operating costs and expenses (1)
(594
)
(571
)
(2,343
)
(2,215
)
Asset impairment charges in operating
costs and expenses
(6
)
(3
)
(57
)
(30
)
Net gains (losses) attributable to asset
sales and related matters in operating costs and expenses
3
6
(2
)
10
General and administrative costs
(60
)
(59
)
(244
)
(231
)
Total operating income (GAAP)
$
1,971
$
1,921
$
7,338
$
6,929
(1)
Excludes amortization of major maintenance
costs for reaction-based plants and amortization of finance lease
right-of-use assets, which are components of gross operating
margin.
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 (6) to Exhibit A of
this press release.
Enterprise Products Partners
L.P.
Exhibit I
Other Information – UNAUDITED
($ in millions)
For the Three Months
Ended December 31,
For the Year Ended December
31,
2024
2023
2024
2023
Capital investments:
Capital expenditures
$
1,059
$
1,012
$
4,544
$
3,266
Cash used for business combinations, net
of cash received
949
–
949
–
Investments in unconsolidated
affiliates
–
–
–
2
Other investing activities
8
5
31
13
Total capital investments
$
2,016
$
1,017
$
5,524
$
3,281
The following table summarizes the non-cash mark-to-market gains
(losses) for the periods indicated:
For the Three Months
Ended December 31,
For the Year Ended
December 31,
2024
2023
2024
2023
Mark-to-market gains (losses) in gross
operating margin:
NGL Pipelines & Services
$
2
$
(3
)
$
(8
)
$
(25
)
Crude Oil Pipelines & Services
4
22
21
(5
)
Natural Gas Pipelines & Services
3
1
5
(1
)
Petrochemical & Refined Products
Services
–
(5
)
2
(2
)
Total mark-to-market impact on gross
operating margin
$
9
$
15
$
20
$
(33
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204651946/en/
Libby Strait, Senior Director, Investor Relations, (713)
381-4754 Rick Rainey, Vice President, Media Relations, (713)
381-3635
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