• Adjusted EBITDA: $2.4 billion for Q1 2025.
• Net Income: $1.4 billion for Q1 2025, $0.64 per common unit.
• Adjusted Cash Flow from Operations: $2.1 billion for Q1 2025.
• Distribution: $0.535 per common unit, a 3.9% increase over Q1 2024.
• Common Unit Repurchases: 1.8 million units for $60 million in Q1 2025.
• Total Capital Investments: $1.1 billion in Q1 2025, including $964 million in growth capital.
• Total Debt Principal Outstanding: $31.9 billion as of March 31, 2025.
• Consolidated Liquidity: $3.6 billion at the end of Q1 2025.
• Consolidated Leverage Ratio: 3.1 times as of March 31, 2025.

• Warning! GuruFocus has detected 8 Warning Signs with EPD.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enterprise Products Partners LP (NYSE:EPD) reported an adjusted EBITDA of $2.4 billion for the first quarter of 2025, indicating strong financial performance.
• The company achieved two financial records and five operational records, showcasing operational efficiency and growth.
• EPD is set to bring online several projects in 2025, including two gas processing plants in the Permian Basin and the Bahia NGL pipeline, which are expected to enhance capacity and revenue.
• The company has a significant capital advantage in its LPG export expansion, which is expected to translate into competitive terminal fees for customers.
• EPD's distribution increased by 3.9% compared to the first quarter of 2024, reflecting a commitment to returning value to shareholders.

Negative Points

• The PDH 1 facility experienced 63 days of unplanned maintenance downtime in the first quarter, impacting potential earnings.
• Net income per common unit decreased slightly from $0.66 in Q1 2024 to $0.64 in Q1 2025, indicating a slight decline in profitability per unit.
• The company faces potential challenges from international trade dynamics, including tariffs that could impact LPG exports.
• There is a risk of a slowdown in global demand for NGLs due to macroeconomic factors, which could affect future revenue.
• EPD's crude segment experienced lower sales volumes and margins in Q1 2025, which could impact overall financial performance if not addressed.

Q & A Highlights

Q: You are a major LPG exporter. Can you tell us what you're seeing real-time today regarding US LPG being rerouted away from China? Also, how do you see the competitive landscape for LPG exports in light of tariffs and capacity expansion? A: (Tug C. Hanley, Senior VP, Hydrocarbon Marketing) We haven't seen disruptions in our ethane or LPG exports. We have limited direct exposure to China, with no contracts with Chinese entities. Our customers are international companies adept at handling volatility. Regarding competition, our Houston Ship Channel expansion is capital efficient, translating into competitive terminal fees.

Q: With $6 billion of projects starting up in 2025, how much of the projected $800 million incremental EBITDA is hardwired, and how should we think about the EBITDA ramp? A: (A. James Teague, Co-CEO) Our processing plants will be close to full capacity soon after coming online. Frac 14 will also be fully utilized. Our LPG exports are 85%-90% contracted. We have 12 projects, with 8 supply projects expected to be fairly full upon completion.

Q: Can you provide an outlook for the petchem and refined products segment, especially with PDH utilization and other components like propylene production and octane spreads? A: (Chris C. D'Anna, Senior VP, Petrochemical) Both PDH plants are running well, with PDH 1 above nameplate capacity. We've converted 20% of our propylene production to fee-based, reducing volatility. We've hedged 75% of our octane spreads, expecting them to widen during the driving season.

Q: How has recent market price volatility impacted your view on buybacks, and could buybacks increase in 2026 as CapEx tapers off? A: (W. Randall Fowler, Co-CEO) Our excess distributable cash flow over the last 12 months was $3.3 billion. By 2026, we expect mid-single-digit growth in cash flow per unit, potentially providing $1 billion to $1.5 billion for debt paydown and buybacks, as growth CapEx decreases.

Q: Are there any potential projects that could cause 2026 growth CapEx to exceed the $2 billion to $2.5 billion range? A: (W. Randall Fowler, Co-CEO) It's very unlikely. Most of our CapEx is related to ongoing projects. We expect growth CapEx to normalize to $2 billion to $2.5 billion, leveraging operational expansions from recent investments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.