Enterprise Products Partners (EPD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose to $13.5 billion, up $2.8 billion year-over-year, driven by higher sales volumes and prices in NGLs, crude oil, and petrochemicals, partially offset by lower natural gas prices.

• Net income attributable to common unitholders was $1.41 billion ($0.64 per unit), a 12% increase year-over-year.

• Distributable cash flow (DCF) increased to $1.81 billion, with a 1.6x coverage ratio and $661 million DCF retained in Q2.

• Achieved 26th consecutive year of distribution increases, with distributions up 5% year-over-year to $0.525 per unit for Q2 2024, payable August 14.

• Major capital projects under construction total $6.7 billion, including new processing plants, pipelines, and LPG export expansions, all backed by long-term contracts.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $2.4 billion, up from $2.17 billion in Q2 2023; trailing 12 months: $9.7 billion.

• Adjusted cash flow from operations rose 11% to $2.1 billion compared to Q2 2023.

• Distribution coverage ratio for Q2 and six months ended June 30, 2024: 1.6x; payout ratio of adjusted CFFO at 55%.

• Consolidated leverage ratio at 3.0x net, within target range of 3.0x ±0.25x.

• Consolidated liquidity at $3.4 billion at quarter-end.

Outlook and guidance

• Growth capital expenditures for 2024 estimated at $3.5–$3.75 billion; 2025 guidance remains $3.25–$3.75 billion.

• 2024 sustaining capital expenditures revised to $600 million due to higher turnaround costs.

• Approximately $6.7 billion in growth capital projects are scheduled for completion by the end of 2026.

• Management expects sufficient liquidity and cash flow to fund capital investments and working capital needs for the foreseeable future.

• Expect PDH 2 to be running at full rates by September.