Enterprise Products Partners L.P.
EPD · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $0.75 EPS for Sep 2026 across 8 estimates, ranging $0.72 to $0.79.
EPD Jun 2026
- 12.00%
- -0.18%
- $0.75
- $0.84
- —
- $18.27B
Reported results
- $18.27B
- 22.49%
- $2.25B
- 12.31%
- $1.84B
Highlights
- Earnings: Second-quarter EPS was $0.84, beating the $0.75 consensus by 12%; net income attributable to common unitholders reached a record $1.84 billion, up 28% year over year.
- Cash generation: Operational DCF rose 21% year over year to a record $2.31 billion, covering the $0.56-per-unit distribution by 1.9 times and leaving $1.1 billion retained.
- EBITDA: Adjusted EBITDA increased 17% to a record $2.83 billion, while adjusted cash flow from operations rose 19% to $2.52 billion.
- Volumes: Equivalent pipeline volumes increased 8% to a record 14.7 MMBPD, and marine terminal volumes rose 33% to a record 2.8 MMBPD.
- Segment growth: Gross operating margin increased to $1.55 billion in NGL Pipelines & Services, $556 million in Natural Gas Pipelines & Services, $485 million in Crude Oil Pipelines & Services and $418 million in Petrochemical & Refined Products Services.
- International demand: April and May demand for U.S. energy, including a rush to backfill Middle East-related supply disruptions, lifted marine volumes; management said terminal volumes returned to normal in June and July.
- Capital program: Second-quarter capital investment was approximately $1.2 billion, including $1.0 billion of growth capital and $140 million of sustaining capital; 2026 growth spending is expected at $2.9-$3.4 billion net of asset-sale proceeds.
- Expansion: Enterprise approved a 150 MBPD NGL fractionator and two 300 MMcf/d gas-processing plants, taking organic growth projects under construction to $6.5 billion.
- Capital returns: The partnership repurchased $159 million of common units during the quarter and declared a $0.56 distribution, or $2.24 annualized, up 2.8%.
Analysis
Enterprise delivered a broad-based second quarter beat, with EPS of $0.84 versus the $0.75 consensus. Net income attributable to common unitholders rose 28% year over year to $1.84 billion, while operating income increased 25% to $2.25 billion. Revenue was $18.27 billion, up from $11.36 billion a year ago and $14.39 billion in the first quarter of 2026, although revenue was amplified by higher commodity-related sales. The print also improved sequentially: net income was up from $1.48 billion in Q1 and operating income from $1.90 billion.
The quarter was defined primarily by throughput and cash flow. Record equivalent pipeline volumes of 14.7 MMBPD and marine terminal volumes of 2.8 MMBPD supported a 21% increase in Operational DCF to $2.31 billion. NGL processing and marketing benefited from higher margins and equity production, while all four operating segments grew gross operating margin. The results included a $77 million year-over-year increase in unrealized mark-to-market gains, but management also highlighted new assets, including Frac 14 and the Neches River Terminal expansion. Enterprise is simultaneously increasing its growth commitment, with $6.5 billion of organic projects under construction, while retaining $1.1 billion of quarterly DCF after distributions for growth spending and buybacks.
Earnings and cash flow
Enterprise's earnings growth was supported by higher operating profitability and strong cash conversion. Total gross operating margin rose $514 million year over year to a record $2.99 billion, including a $77 million increase in unrealized mark-to-market gains. Adjusted EBITDA increased 17% to $2.83 billion, and adjusted cash flow from operations rose 19% to $2.52 billion. GAAP operating income was $2.25 billion, compared with $1.80 billion in the year-ago quarter and $1.90 billion in Q1 2026.
- Net income: Net income attributable to common unitholders was $1.84 billion, versus $1.44 billion in Q2 2025 and $1.48 billion in Q1 2026.
- Cash flow: Operational DCF was $2.31 billion, up from $1.91 billion a year earlier, while adjusted free cash flow increased to $1.34 billion from $812 million.
- Commodity exposure: The weighted-average indicative NGL price increased to $0.68 per gallon from $0.58, and higher NGL equity production values and marketing margins contributed to the result.
Volumes and segment growth
The quarter showed broad-based volume growth across Enterprise's midstream network. Equivalent pipeline transportation volumes rose 8% to a record 14.7 MMBPD, while natural gas pipeline volumes increased 3% to 21.0 TBtus/d. New and expanded assets helped lift NGL and export activity, while higher margins also contributed to segment performance.
- NGL Pipelines & Services: Gross operating margin rose to $1.55 billion from $1.30 billion. NGL pipeline volumes increased 8% to 4.9 MMBPD, fractionation volumes rose to 1.9 MMBPD from 1.7 MMBPD, and equity NGL-equivalent production increased 7% to 230 MBPD.
- Natural Gas Pipelines & Services: Gross operating margin reached a record $556 million, up from $417 million. Permian gas-processing inlet volumes increased 14% to 4.3 Bcf/d, supporting higher processing margins and volumes.
- Crude Oil Pipelines & Services: Gross operating margin increased to $485 million from $403 million. Crude pipeline volumes reached a record 3.0 MMBPD, and marine terminal volumes rose to 1.1 MMBPD from 811 MBPD.
- Petrochemical and refined products: Gross operating margin rose to $418 million from $354 million. Pipeline volumes increased to a record 1.2 MMBPD, while propylene production volumes rose 14% to a record 134 MBPD.
Marine demand normalises
Marine terminals were a major contributor to the quarter, with total equivalent volumes up 33% to 2.8 MMBPD. Management attributed the April and May strength partly to robust international demand for U.S. energy and an initial rush to replace volumes disrupted by hostilities and navigation restrictions in the Middle East. The Neches River Terminal's second phase entered service in May, and combined ethane and propane exports at key NGL terminals increased by 143 MBPD and 141 MBPD, respectively.
- Temporary boost: Management said marine terminal volumes returned to normal levels in June and July after the initial Middle East-related surge.
- Ongoing disruption: Damage to production facilities, longer shipping routes and navigation restrictions were still disrupting global energy trade, leaving demand conditions uncertain.
- Next project: The Houston Ship Channel LPG export marine terminal expansion remains scheduled to begin operations by year-end 2026.
Growth capital program
Enterprise continued to convert volume growth into a larger organic project backlog. It approved construction of Frac 15, a 150 MBPD NGL fractionator at Mont Belvieu, plus Plant 13 in the Delaware Basin and Plant 11 in the Midland Basin. Each gas-processing plant will have 300 MMcf/d of capacity, with expected service dates in the third quarter of 2028 and first quarter of 2029, respectively.
- Spending: Second-quarter capital investment was approximately $1.2 billion, including $1.0 billion of growth capital and $140 million of sustaining capital.
- Backlog: Organic growth projects under construction now total $6.5 billion, supported by Permian production growth and international demand for U.S. NGLs.
- 2026 outlook: Growth capital spending, net of $599 million of asset-sale proceeds, is expected at $2.9-$3.4 billion, with sustaining capital spending of $600 million.
Distributions and buybacks
The stronger cash generation preserved substantial internal funding while supporting capital returns. Operational DCF covered declared distributions by 1.9 times, and Enterprise retained $1.1 billion after paying approximately $1.2 billion of cash distributions to unitholders.
- Distribution: The quarterly distribution was $0.56 per common unit, or $2.24 annualized, an increase of 2.8% from the year-ago level.
- Repurchases: Enterprise bought back $159 million of common units in the quarter and $405 million over the preceding 12 months, representing 34% cumulative utilization of its $5.0 billion authorization.
- Total payout: Distributions and common-unit repurchases represented 56% of adjusted cash flow from operations over the 12 months ended June 30, 2026.
