Enterprise Products Partners L.P. (NYSE:EPD) on Monday reported second-quarter 2025 earnings that beat analyst expectations on earnings per share but missed on revenue, while setting multiple operating volume records across its midstream network.
Enterprise posted earnings of 66 cents per unit, up 3% from 64 cents in the same quarter a year earlier and beating the consensus estimate of 64 cents. However, revenue came in at $11.36 billion, missing analysts’ expectations of $14.19 billion.
Distributable cash flow (DCF) rose 7% year over year to $1.9 billion, providing 1.6 times coverage of the company’s declared $0.545 per-unit distribution, up 3.8% from a year ago. Enterprise retained $748 million of DCF to reinvest in growth.
Adjusted cash flow from operations remained steady at $2.1 billion, and for the 12 months ended June 30, stood at $8.6 billion. Enterprise repurchased $110 million worth of common units during the quarter and reported a 12-month payout ratio of 57%.
“In a seasonally weaker quarter challenged by macroeconomic and commodity headwinds, Enterprise reported solid earnings and cash flow,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner.
Operating Records and Segment Highlights
Despite broader market challenges, the company set five new operating records:
- Natural gas processing inlet volumes: 7.8 billion cubic feet per day (Bcf/d), up 3% year over year
- Natural gas pipeline volumes: 20.4 trillion Btus per day (TBtus/d), up 9%
- Crude oil pipeline volumes: 2.6 million barrels per day (BPD), a new high
- Refined products and petrochemical pipelines: 1.0 million BPD
- Total NGL pipeline volumes: 4.6 million BPD, up 5%
Gross operating margin rose to $2.5 billion, up from $2.4 billion in the prior year’s quarter.
- NGL Pipelines & Services held flat at $1.3 billion, with higher pipeline and terminal volumes offsetting lower NGL marketing and Rockies processing margins.
- Natural Gas Pipelines & Services surged 42% to $417 million, driven by stronger marketing margins, increased Permian volumes, and higher throughput on the Texas Intrastate System.
- Crude Oil Pipelines & Services fell to $403 million from $417 million, with lower marine terminal volumes and marketing activity partially offset by lower costs and storage revenues.
- Petrochemical & Refined Products slipped to $354 million from $392 million due to weaker octane enhancement margins, though pipeline volumes hit a record.
Enterprise reaffirmed that approximately $6 billion in organic growth projects will enter service in the second half of 2025. These include:
- Two new Permian gas processing plants, Mentone West 1 and Orion, boosting processing capacity across the Delaware and Midland Basins to over 4.4 Bcf/d.
- Commissioning of the Neches River Terminal in mid-July, with a 120,000 BPD ethane refrigeration train now operational.
- Frac 14 and the Bahia NGL pipeline, scheduled to come online in Q4.
Enterprise invested $1.3 billion in the second quarter of 2025, including $1.2 billion in growth capital and $117 million in sustaining capex.
The company reaffirmed full-year 2025 organic growth capex guidance of $4.0 billion to $4.5 billion and $525 million in sustaining expenditures.
As of June 30, the company had total debt of $33.1 billion and consolidated liquidity of $5.1 billion, including credit capacity and unrestricted cash.
Price Action: EPD shares are trading lower by 1.38% to $31.12 at last check Monday.
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