Enterprise Products Partners (EPD) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EBITDA was $2.4 billion, with net income of $1.4 billion ($0.64/unit), and distributable cash flow (DCF) of $2.0 billion, supported by record operational volumes in natural gas and NGLs.

• Revenues for Q1 2025 rose to $15.4 billion, driven by higher NGL and petrochemical sales volumes, though net income declined year-over-year due to increased costs.

• Major organic growth projects totaling $7.6 billion are under construction, with $6 billion expected online in 2025, including new Permian gas plants, NGL fractionators, and export enhancements.

• Returned $4.9 billion to unitholders over the last 12 months through distributions and buybacks, maintaining 26 years of distribution growth.

• PDH 1 facility experienced 63 days of unplanned maintenance in Q1, but both PDH plants are now fully operational.

Financial highlights

• Distributable cash flow for Q1 2025 was $2.0 billion, with a 1.7x coverage ratio and $842 million retained DCF.

• Gross operating margin for Q1 2025 was $2.43 billion, down from $2.49 billion in Q1 2024.

• Distribution of $0.535 per unit declared for Q1 2025, a 3.9% increase year-over-year.

• Adjusted cash flow from operations was $2.1 billion, flat year-over-year.

• Total capital investments in Q1 2025 were $1.1 billion, with $960 million for growth and $102 million for sustaining capital.

Outlook and guidance

• Growth capital expenditures are forecasted at $4.0–$4.5 billion for 2025 and $2.0–$2.5 billion for 2026, with $525 million in sustaining capital for 2025.

• $7.6 billion of major capital projects are under construction, with $6 billion expected online in 2025.

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

• 2026 excess DCF projected to increase, with $1–$1.5 billion available for debt paydown and buybacks.

• Growth CapEx in 2026 is unlikely to exceed $2–$2.5 billion barring unforeseen projects.