Enterprise Products Partners (EPD) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA reached $2.44 billion for Q3 2024, up from $2.33 billion year-over-year, with distributable cash flow of $2.0 billion and a 1.7x coverage ratio.

• Net income attributable to common unitholders was $1.42 billion ($0.65/unit), up 8% year-over-year, with revenue rising to $13.8 billion, driven by higher NGL and petrochemical sales volumes.

• Five operational volumetric records were set, including 7.5 Bcf/d of natural gas processing and 12.8 million bpd of crude oil equivalent pipeline volumes.

• Major projects remain on track for 2025 completion, including new Permian processing plants, Bahia Pipeline, Frac 14, Neches River NGL export terminal, and Morgan's Point terminal expansion.

• Acquisition of Piñon Midstream completed for $950 million, enhancing Permian processing and NGL value chain.

Financial highlights

• Q3 2024 revenue was $13.8 billion (+15% year-over-year); net income was $1.43 billion; distributable cash flow was $2.0 billion with a 1.7x coverage ratio.

• Distribution per common unit increased 5% to $0.525, payable November 14; $76 million in unit repurchases in Q3 and $252 million over the last 12 months.

• Total capital return (distributions + buybacks) was $4.8 billion, with a 56% payout ratio of Adjusted Cash Flow from Operations.

• Q3 capital investments totaled $1.2 billion ($1.1B growth, $129M sustaining); total assets at September 30, 2024 were $75.1 billion.

• Consolidated liquidity at $5.6 billion as of quarter-end; total debt at quarter-end was $32.2 billion.

Outlook and guidance

• 2024 growth capital expenditures expected at $3.5–$3.75 billion; 2025 guidance updated to $3.5–$4.0 billion; 2026 growth CapEx expected to moderate to $2–$2.5 billion.

• Sustaining capital expenditures for 2024 projected at $640 million, higher due to PDH turnarounds.

• $6.9 billion of growth capital projects scheduled for completion by end of 2026, including major expansions in NGL, gas processing, and export facilities.

• Management expects sufficient liquidity and access to capital to fund investments and working capital needs.

• Buybacks anticipated in the $200–$300 million range for 2024–2025.