Enterprise Products Partners (EPD) Q1 2026 earnings summary

Executive summary

• Achieved record operational volumes and strong earnings in Q1 2026, with adjusted EBITDA up 10% to $2.7 billion and net income attributable to common unitholders rising to $1.5 billion ($0.68 per unit), up 6% year-over-year.

• Multiple operating records set across gas processing, NGL fractionation, hydrocarbon loading, and oil equivalent transport volumes, driven by new assets and higher utilization.

• Revenues declined to $14.39 billion from $15.42 billion, primarily due to lower NGL and petrochemical sales prices and volumes, partially offset by higher crude oil sales volumes.

• High utilization and strong margins across downstream and export businesses supported robust earnings and cash flow, with distributable cash flow (DCF) of $2.7 billion and a coverage ratio up to 2.3x.

• Volatile commodity prices and global supply disruptions, especially from the Middle East, drove strong demand for U.S. energy exports.

Financial highlights

• Gross operating margin reached $2.64 billion, up from $2.46 billion year-over-year, with fee-based GOM comprising 80% of the total.

• Net income attributable to common unit holders was $1.5 billion ($0.68 per unit, fully diluted), up 6% year-over-year.

• Adjusted cash flow from operations rose 10% to $2.3 billion compared to Q1 2025.

• Declared a $0.55 per unit distribution, a 2.8% increase year-over-year, marking 28 consecutive years of distribution growth.

• Returned $5.1 billion to equity investors over the past 12 months, with a 57% payout ratio of adjusted cash flow.

Outlook and guidance

• Growth capital expenditures for 2026 guided at $2.3–$2.6 billion, net of asset sale proceeds; 2027 expected at $2–$2.5 billion.

• Sustaining capital expenditures for 2026 expected at $580 million.

• Major capital projects under construction total $5.3 billion, with several new gas processing plants and pipeline expansions scheduled through 2027.

• Discretionary free cash flow for 2026 projected around $1 billion, with potential upside depending on commodity prices.

• Anticipates continued strong international demand for U.S. energy and products through 2026 and possibly into 2027.