Enterprise Products Partners L.P. Q4 FY2025 earnings call

• Record fourth quarter EBITDA of $2.7 billion, surpassing the prior year's record. - Brought on multiple assets in 2025 including mid-October assets, Mendon West, Permian gathering/treating projects, Neches River terminal ethane export train, diluent exports to Canada, and NGL pipeline in December. - Renegotiated RTP purchase agreements to a fixed fee structure. - Expanding NGL export franchise with phase two of Neches River terminal and LPG expansion on Houston Ship Channel. - Strong customer relationships with long-term customers, and management traveling to meet with global customers. - Capital investments in 2025 were $1.3 billion, with organic growth capital investments of $4.4 billion.

In the fourth quarter, Enterprise Products Partners achieved a record $2.7 billion of EBITDA, surpassing the prior record of $2.6 billion set in 2024. Net income attributable to common unitholders was $1.6 billion or $0.75 per common unit on a fully diluted basis for 2025. Adjusted cash flow from operations for the full year 2025 was a record $8.7 billion. The company's NGL export franchise saw loading of between 350-360 million barrels across 744 ships in 2025. Ethane export terminals are fully contracted, and processing trains in the Permian are nearly full. LPG exports are highly contracted through the end of the decade.

• Expect modest adjusted EBITDA and cash flow growth in 2026 as 2025 assets ramp and 2026 assets begin operations. - Anticipate 10%+ growth in adjusted EBITDA and cash flow in 2027. - Growth capital expenditures for 2026 expected to be in the range of $2.5 billion to $2.9 billion netting to $1.9 billion to $2.3 billion after asset sale proceeds. - Sustaining capital expenditures expected to be approximately $580 million in 2026. - Distribution of 55¢ per common unit for 2025, a 2.8% increase over 2024, paid on February 13. - Partnership repurchased approximately $300 million of common units in 2025, utilizing ~29% of the $5 billion buyback program.

• Commodity price volatility, as crude oil prices averaged lower in 2025, affecting price spreads. - Market spreads weakness, such as RGP, PGP spreads narrowing significantly. - Uncertainty in asset ramp-up timelines, as ships for ethane exports may come earlier than receiving terminals. - Dependence on producer activity cadence affecting the pace of capital expenditures.

Q: Could you walk us through the 2026 and 2027 outlook, especially on growth and risk to achieving double-digit growth in 2027?

A: Jim Teague noted fourth quarter was weighted more ratable. Randy Fowler said modest cash flow and EBITDA growth in 2026, with 10%+ growth in 2027 as assets ramp. Risks include commodity environment.

Q: Can you expand on the cadence and ramp up of earnings contribution from Neches River terminal expansions?

A: Tyler Cott said ethane export ramp continued into early 2026, second train to come online by end of next year, ramping with propane then shifting to ethane.

Q: How is Enterprise Products Partners impacted by changes in Waha prices?

A: Todd Hanley said they benefit from lower Waha price via gas transport capacity and higher gas price via storage assets.

Q: Thoughts on negotiating power with large E&Ps and Midland to ECHO crude pipeline contracts?

A: Jim Teague said their team is good at win-win deals. Jay Bainey said ~20% of Midland to ECHO crude contracts roll off in 2028 but are being worked on for extension/blending.

Q: Details on buybacks and pace, and impact of freeze-offs?

A: Randy Fowler said 55%-60% of free cash flow in 2026 allocated to buybacks. Tug Hanley said freeze-offs saw production fall off but optimization made up for it, not expecting Yuri-level uplift again.

Q: Demand trends for international NGL customers and 2026 vs 2025?

A: Tyler Cott said demand resilient, US LPG finding new markets like India and Southeast Asia, still strong interest in export capacity.

Q: Partnership with Exxon and carbon capture opportunities?

A: Jim Teague said they collaborate in many areas but carbon capture not in portfolio.

Q: Natural gas segment management and Haynesville Acadian expansion?

A: Tug Hanley and Natalie Gayden discussed managing natural gas marketing space, bundling GMP deals, and details of Haynesville Acadian expansion as mix of private and public producers.

Q: 2027 CapEx guidance and UJI with Exxon?

A: Randy Fowler spoke to 2027 CapEx range and Justin Kleiderer discussed opportunities with Exxon in the UJI, including downstream agreements.

Q: 2027 EBITDA growth and NGL marketing expectations?

A: Randy Fowler and Tug Hanley discussed 2027 EBITDA growth drivers and NGL marketing in Q4 and expectations for 2026.

Q: Potential for more OxyGathering-type deals and macro outlook?

A: Jim Teague said fewer deals on the horizon currently given macro outlook