ENTERPRISE PRODUCTS PARTNERS L.P. Q1 FY2025 earnings call

• Adjusted EBITDA stood at $2.4 billion with $842 million retained DCF and a 1.7x coverage ratio. • The company moved 13.2 million barrels of oil equivalent per day and 2 million barrels per day of liquid hydrocarbon exports. • The PDH 1 facility experienced 63 days of unplanned maintenance in Q1 2025, but both PDH plants are now operational. • Upcoming projects in 2025 include two gas processing plants in the Permian, the Bahia NGL pipeline, Frac 14, NGL exports on the Neches River, and enhancements at Morgan's Point. • A distribution of $0.535 per common unit was declared for Q1 2025, a 3.9% increase from Q1 2024. • Approximately 1.8 million common units were purchased for $60 million in Q1 2025, with total repurchases over 12 months amounting to $239 million. • Total capital investments in Q1 2025 were $1.1 billion, including $964 million in growth capital and $102 million in sustaining capital.

Adjusted EBITDA for the first quarter of 2025 was $2.4 billion. Retained DCF was $842 million. The company moved 13.2 million barrels of oil equivalent a day and 2 million barrels a day of liquid hydrocarbon exports. The PDH 1 facility was down for 63 days in the first quarter of 2025 due to unplanned maintenance. As of last week, both PDH plants are online. For the remainder of 2025, the company is set to bring on two gas processing plants in the Permian, the Bahia NGL pipeline in the fourth quarter, Frac 14 at the Mont Belvieu complex in the third quarter, the first phase of NGL exports on the Neches River in the fourth quarter, and enhancements at the Morgan's Point ethane and ethylene terminal in the fourth quarter. Revenue contribution: Adjusted EBITDA of $2.4 billion, retained DCF of $842 million, and movement of 13.2 million boe/d and 2 million b/d liquid hydrocarbon exports.

• Growth capital expenditures for 2025 are expected to be between $4 billion and $4.5 billion, and between $2.0 billion and $2.5 billion for 2026. • Sustaining capital expenditures in 2025 are expected to be approximately $525 million. • A distribution of $0.535 per common unit was declared for Q1 2025, marking a 3.9% increase from Q1 2024. • Upcoming projects such as gas processing plants, pipelines, and terminal enhancements are expected to contribute to future EBITDA.

• Market volatility and potential impacts of tariffs on LPG and ethane exports. • Uncertainty in global energy demand and economic conditions affecting hydrocarbon markets. • Potential operational issues with PDH facilities if maintenance or mechanical problems reoccur.

Q: You are a major LPG exporter. Can you tell us what you're seeing real time today is all U.S. LPG currently being rerouted away from China? And as my follow-up, more broadly, can you talk about how you see the competitive landscape for LPG exports here in light of the tariffs and significant capacity being built by you and others?

A: Tug Hanley stated they are currently seeing trade flows work the balance, no disruption on exports, limited direct exposure to China, and their brownfield expansion of the Houston Ship Channel is capital efficient with $400 million for 300,000 b/d capacity, expecting competitive terminal fees.

Q: Teague wanted to go back to some of the projects you had sort of listed off coming online later this year. I think in total, something like $6 billion of projects starting up in 2025, which just sort of basic midstream multiple gets you about $800 million of incremental EBITDA. So curious, how much of that would you say sort of hardwired doesn't really rely on a lot of incremental growth here? And how should we think about that EBITDA ramp in cadence?

A: Tug Hanley said processing plants coming online will be close to full in Midland and 60%-75% full in Delaware, exports 85%-90% contracted, and they have 12 projects with 8 supply projects, confident they'll be fairly full when operational.

Q: I wanted to touch on the petchem and refined products segment. With the return to utilization or full utilization for PDH, what is your outlook for the segment for the remainder of the year? And then maybe if you could touch on some of the smaller components as well, including the conversion of your -- the 20% of your propylene production to fee-based how much volumetric exposure do you have there as well as the octane spread for MTPE to U.S. Gulf Coast gasoline? What is your outlook there as well, please?

A: Chris D'Anna said both PDHs are running well, PDH 1 is above nameplate, RGP and PGP conversion to fixed fee reduces volatility, and MTBE outlook with 75% spread hedged and expecting summer fall widening.

Q: I just wanted to touch on the topic of buybacks, if I could and how recent market price volatility might have impacted your view on the near term there and thoughts, I guess moving forward in '26 as CapEx tapers off a bit there if there might be room for buybacks to step up a little bit next year?

A: Randall Fowler said excess distributable cash flow in 2026 should be around $3.6 billion, with $2 billion to $2.5 billion growth CapEx, leaving $1.5 billion for debt paydown and buybacks.

Q: I want to go back to the NGL exports and some of the kind of global dynamics, understand the comments on tariffs, ultimately, maybe at least for right now not being a major issue. Just curious, are you seeing any sort of slowdown though in terms of a broader macro impact meaning we could see kind of lower demand in Asia for some of these products and, therefore, see some knock-on effects? Or is everything going pretty well there so far?

A: Jim Teague said recently signed contracts with Southeast Asian companies, Tug Hanley said fully contracting ethane and LPG exports, but price will solve demand slowdown as propane has to price lower to compete.

Q: I wanted to ask you, can you give an update on the progress you are making at the Mentone West and Mentone West 2 get those projects online?

A: Graham Bacon said both projects are coming online, construction is going well, early commissioning on first Mentone West project, likely ahead of schedule.

Q: I wanted to ask the CapEx question from another angle, which is -- are there any things on the drawing board that could potentially cause 2026 growth CapEx to be materially higher than $2 billion to $2.5 billion? Or is that very unlikely at this point?

A: Jim Teague said very unlikely, Randall Fowler said they are at peak levels of growth CapEx, operational leverage from past investments makes future CapEx manageable.

Q: Hi, good morning. Thanks for taking the question here. Would just like to maybe talk about the inorganic side of CapEx? And just in light of kind of where everything is trading now public and private if you see maybe a growing opportunity to capitalize on some of these defers prices? Or if maybe there's kind of just a standoff between a bid-ask spread situation where sellers are more unwilling to transact at this level? Just any high-level thoughts you have around how that might factor into the strategy moving forward?

A: Jim Teague said if it doesn't fit their system, they're probably not interested, price matters.

Q: Looking at the slides, it looked like some of the movements on a quarter-over-quarter basis in segment margin were related to marketing. If you could just maybe provide some incremental detail around the moving pieces there?

A: Tug Hanley said on NGL marketing, additional LPG contracts stepped up at lower rates than spot rates last year, and on natural gas marketing, winter volatility in January and February helped, and high west to east spreads were beneficial.