Enterprise Products Posts Record Midstream Volumes in 2024

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Enterprise Products Posts Record Midstream Volumes in 2024

Enterprise Products Partners L.P. posted record midstream volumes in 2024, due to natural gas and natural gas liquids (NGL) volume growth in the Permian Basin. The partnership reported net income attributable to common unitholders of $5.9 billion for 2024, a 7 percent increase year over year compared to $5.5 billion in the previous year. Distributable […]

Enterprise Products Partners L.P. posted record midstream volumes in 2024, due to natural gas and natural gas liquids (NGL) volume growth in the Permian Basin.

The partnership reported net income attributable to common unitholders of $5.9 billion for 2024, a 7 percent increase year over year compared to $5.5 billion in the previous year.

Distributable cash flow for 2024 was a record $7.8 billion, compared to $7.6 billion in the previous year. Distributions declared with respect to 2024 increased 5 percent to $2.10 per common unit annualized, compared to distributions declared for 2023, Enterprise said in its most recent earnings release.

For the quarter ended December 2024, Enterprise reported revenue of $14.2 billion, down 2.9 percent over the same period last year, while earnings per share (EPS) was marked at $0.74, compared to $0.72 in the year-ago quarter.

The reported fourth-quarter revenue was lower than the Zacks Consensus Estimate of $14.31 billion, while EPS was slightly higher with the consensus estimate being $0.69.

Enterprise reported net income attributable to common unitholders of $1.6 billion, or $0.74 per common unit on a fully diluted basis, for the fourth quarter, a 3 percent increase compared to $1.6 billion, or $0.72 per common unit on a fully diluted basis, for the same quarter in 2023.

For 2024, the partnership’s total capital investments were $5.5 billion, which included $3.9 billion for growth capital projects, $949 million for the acquisition of Pinon Midstream, LLC, and $667 million of sustaining capital expenditures, according to the release. Sustaining capital expenditures were elevated in 2024 due to plant turnarounds in the partnership’s petrochemicals business.

Organic growth capital investments are expected to be in the range of $4.0 billion to $4.5 billion in 2025, while sustaining capital expenditures are expected to be approximately $525 million in 2025, Enterprise stated.

“Our record 2024 financial performance was driven by record volumes across our midstream system,” A. J. Teague, co-CEO of Enterprise’s general partner, said. “For the year, we reported record natural gas processing inlet volumes of 7.4 Bcfpd [billion cubic feet per day], a 10 percent increase from 2023; record total equivalent pipeline volumes of 12.9 million bpd [barrels per day], a 6 percent increase compared to 2023; record NGL fractionation volumes of 1.6 million bpd, a 3 percent increase compared to 2023; and record marine terminal volumes of 2.2 million bpd, a 6 percent increase from 2023. The volume growth across our system was largely attributable to natural gas and NGL volume growth associated with our investments in Permian Basin infrastructure and our downstream value chain.”

“We see these opportunities continuing for the next several years. We currently have approximately $7.6 billion of major growth capital projects under construction. These projects will go into service over the next three years. Substantially all of these projects are related to our natural gas and NGL businesses serving the Permian Basin and related expansions to our downstream infrastructure to support growing domestic and international demand. These projects are supported by long-term contracts and provide visibility to continuing net income and cash flow per unit growth,” Teague continued.

“In 2025, $6 billion of major organic growth projects are expected to be completed and begin generating cash flow. These include two natural gas processing plants in the Permian Basin, our Bahia NGL pipeline, Fractionator 14, the first phase of our NGL export facility on the Neches River and expansions of our ethane and ethylene marine terminals on the Houston Ship Channel. This growth in cash flow will support future distribution increases and returns of capital,” he concluded.

To contact the author, email [email protected]

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