Enterprise Products Partners (EPD) Q2 2024 earnings summary

Executive summary

• Net income attributable to common unitholders rose 12% year-over-year to $1.4 billion ($0.64/unit) for Q2 2024, with Adjusted EBITDA of $2.4 billion and strong cash flow performance.

• Distributable cash flow reached $1.8 billion with 1.6x coverage, and $661 million retained in the quarter.

• Achieved 26th consecutive year of distribution increases, with distributions up 5% year-over-year to $0.525/unit for Q2 2024, payable August 14.

• Major capital projects under construction total $6.7 billion, including new processing plants and LPG export expansions, all backed by long-term contracts.

• Returned $4.6 billion to equity holders in the trailing twelve months ended June 30, 2024, including $40 million in buybacks during Q2 2024.

Financial highlights

• Q2 2024 revenue was $13.5 billion, up from $10.7 billion in Q2 2023, with operating income increasing to $1.77 billion.

• Adjusted cash flow from operations increased 11% to $2.1 billion compared to the prior year.

• Distribution coverage ratio for Q2 and six months ended June 30, 2024, was 1.6x; payout ratio was 55% of Adjusted CFFO.

• Liquidity stood at $3.4 billion at quarter-end, with total debt principal outstanding at $30.6 billion and an 18-year average maturity.

• Purchased 1.4 million common units for $40 million in Q2; $176 million in buybacks over the last 12 months.

Outlook and guidance

• Growth capital expenditures for 2024 estimated at $3.5–$3.75 billion; 2025 guidance at $3.25–$3.75 billion; 2026 at $2.0–$2.5 billion.

• Sustaining capital expenditures for 2024 forecasted at $600 million, up due to higher turnaround costs.

• $6.7 billion in growth projects are scheduled for completion by the end of 2026, supporting future earnings and cash flow.

• Management expects sufficient liquidity and cash flow to fund capital investments and working capital needs for the foreseeable future.

• PDH 2 plant expected to be at full rates by September after turnaround completion in August.