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DATE
Thursday, Oct. 29, 2026
CALL PARTICIPANTS
- VP of Finance and Investor Relations – Joe Theriac
- Co-Chief Executive Officer – Jim Teague
- Co-Chief Executive Officer – Randy Fowler
TAKEAWAYS
- Adjusted EBITDA — $2.8 billion, representing a 16% increase compared to the third quarter of 2025 driven by Permian production growth and new asset contributions.
- Net Income Attributable to Common Unitholders — $1.6 billion, or $0.75 per diluted common unit, reflecting a 21% increase from the prior year.
- Operational Distributable Cash Flow — $2.3 billion, an increase of 27% year over year, which provided 1.9x coverage for declared distributions.
- Equivalent Pipeline Volumes — 14.8 million barrels per day, representing a record for the partnership and a 7% increase versus the third quarter of 2025.
- Natural Gas Processing Inlet Volumes — 8.5 billion cubic feet per day, hitting a record level driven by a 12% increase in Permian Basin processing.
- Permian Basin Plant Inlet Volumes — 4.6 billion cubic feet per day, reaching a record and reflecting a three-year compound annual growth rate of 19%.
- Marine Terminal Volumes — 2.5 million barrels per day, an increase of 28% year over year supported by higher NGL and crude oil exports.
- Distribution — $0.56 per common unit, representing a 2.8% increase over the distribution declared in the third quarter of 2025.
- NGL Pipeline Transportation Volumes — 5.0 million barrels per day, a record for the partnership and a 6% increase from the prior year.
- LPG Export Expansion — 300,000 barrels per day, scheduled for completion in the fourth quarter of 2026 to increase total loading capacity to 1.1 million barrels per day.
- Growth Capital Projects — $6.3 billion, representing the total value of sanctioned projects currently under construction through 2028.
- 2026 Growth Capital Expenditures — $2.9 billion to $3.4 billion, a range net of approximately $600 million in proceeds from asset sales.
- 2027 Growth Capital Expenditures — $3 billion, an initial estimate management expects to update following its annual budget cycle.
- Permian Production Growth Forecast — 34% through 2030, an upward revision for wet natural gas and NGL production growth due to higher gas-to-oil ratios.
- Common Unit Repurchases — $112 million, part of a $387 million year-to-date total that has utilized 36% of the $5 billion buyback program.
- Total Debt — $33.7 billion, with a weighted average life of 17 years and a weighted average cost of debt at 4.7%.
- Consolidated Leverage Ratio — 2.9x, calculated on a net basis after adjusting for hybrid debt equity treatment and cash on hand.
- Natural Gas Pipeline Volumes — 22.7 trillion BTUs per day, representing a record and an 8% increase compared to the third quarter of 2025.
- NGL Fractionation Volumes — 1.9 million barrels per day, driven by the addition of Fractionator 14 which was placed in service in late 2025.
- Petrochemical & Refined Products Gross Operating Margin — $430 million, up from $370 million in the prior year due to demand for octane enhancement additives.
- Consolidated Liquidity — $4.8 billion, including availability under credit facilities and unrestricted cash on hand as of Sept. 30, 2026.
- Payout Ratio — 54% of adjusted cash flow from operations, reflecting the combined total of distributions and buybacks over the last 12 months.
- NGL Marine Terminal Volumes — 1.2 million barrels per day, an increase of 288,000 barrels per day compared to the third quarter of 2025.
- Crude Oil Marine Terminal Volumes — 926,000 barrels per day, an increase from 720,000 barrels per day in the prior-year period.
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RISKS
- Fowler stated, “2027 may be more modest compared to what we’re going to wind up reporting for 2026,” indicating that current tailwinds from geopolitical conflicts and pricing spreads may not persist.
SUMMARY
Enterprise Products Partners L.P. (EPD +2.60%) reported third-quarter performance driven by record volumes across its integrated natural gas and NGL value chains, particularly from Permian Basin production. Management reported an upward revision in its long-term Permian production forecast, citing higher gas-to-oil ratios as a factor for future infrastructure requirements. The partnership is nearing the completion of export expansions at the Houston Ship Channel intended to meet international demand for NGLs and petrochemicals. As part of a planned leadership transition, Co-Chief Executive Officer Jim Teague will retire in January 2027, and Co-Chief Executive Officer Randy Fowler will assume the sole role. The company stated it will continue to prioritize organic growth projects over large-scale acquisitions, supported by a leverage ratio of 2.9x and a backlog of sanctioned capital projects through 2028.
- Management revised its 2025 to 2030 Permian wet natural gas and NGL production growth forecast to 34%, citing actual production data from existing wells.
- Fowler noted that the partnership prioritizes organic growth because it historically provided more consistent returns and fewer surprises compared to acquisitions at current market multiples.
- The partnership expects to commission a 300,000 barrels per day LPG export expansion at the Houston Ship Channel before the end of 2026, bringing total loading capacity to 1.1 million barrels per day.
- Corey Johnson attributed the revised Permian forecast to changes in observed resource quality, citing actual results from the rock as the primary driver behind higher gas production.
- Regarding the LPG export market, Tyler Cott stated, “we’re pretty highly contracted, about 90% through the end of the decade.”
- The Bahia NGL pipeline expansion to 1 million barrels per day is expected to start in the fourth quarter of 2027, with completion continuing through mid-2028.
INDUSTRY GLOSSARY
- NGL: Natural gas liquids, such as ethane, propane, and butane, that are separated from natural gas.
- DCF: Distributable cash flow, a measure of cash available to be paid to unit holders.
- GOR: Gas-to-oil ratio, the volume of gas produced relative to the volume of oil from a well.
- LPG: Liquefied petroleum gas, primarily propane and butane, often used for heating or as fuel.
- Fractionation: The process of separating a mixture of NGLs into individual purity products.
- Inlet Volumes: The amount of raw natural gas entering a processing facility for treatment.
- CAGR: Compound annual growth rate, a measure of the mean annual growth rate over a specified period longer than one year.
Full Conference Call Transcript
Operator: Thank you for standing by, and welcome to Enterprise Products Partners L.P.’s third quarter 2026 earnings conference call. Currently, all participants are in a listen-o
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
