Enterprise Products Partners L.P. (NYSE:EPD) reported weaker third-quarter earnings as lower commodity prices and softer margins weighed on results, even as strong pipeline volumes and a major buyback expansion underscored the company's confidence in long-term demand.
The U.S. pipeline operator posted earnings of 61 cents per share, below analysts’ expectations of 68 cents. That compares with 65 cents per share a year earlier.
Quarterly revenue fell 12.7% to $12.02 billion from $13.78 billion a year ago, but came in slightly ahead of estimates of $11.93 billion.
Also read: Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan
The company’s total gross operating margin was $2.4 billion in the third quarter of 2025, compared with $2.5 billion in the third quarter of 2024.
The company reported operating income of $1.69 billion for the quarter, down from $1.78 billion in the year-ago quarter. Adjusted EBITDA totaled $2.41 billion, compared with $2.44 billion in the same quarter of the previous year.
Distributable cash flow (DCF) was $1.8 billion in the third quarter of 2025, down from $2.0 billion a year earlier. Adjusted cash flow from operations was $2.1 billion, unchanged from the same quarter a year earlier.
Enterprise repurchased about $80 million of its common units during the third quarter of 2025. The company expanded its common unit buyback authorization from $2 billion to $5 billion, leaving $3.6 billion in remaining capacity. The multi-year program offers an additional way for the partnership to return capital to investors.
Enterprise invested $2.0 billion in capital in the third quarter of 2025, including $1.2 billion on growth projects, $583 million on acquiring Midland Basin natural gas gathering systems from Occidental Petroleum Corporation (NYSE:OXY), and $198 million in sustaining capex.
As of Sept. 30, 2025, Enterprise had total debt outstanding of $33.9 billion. The partnership reported consolidated liquidity of about $3.6 billion, including available borrowing capacity under its revolving credit facilities and unrestricted cash on hand.
Segment Performance
Enterprise Products Partners’ NGL Pipelines & Services segment posted a gross operating margin of $1.3 billion, unchanged from a year earlier. The natural gas processing and NGL marketing business generated $354 million, down from $371 million. NGL pipeline volumes climbed 9% to 4.7 million BPD.
The Crude Oil Pipelines & Services segment saw gross operating margin fall to $371 million from $401 million. Total crude oil pipeline volumes reached a record 2.6 million BPD in the third quarter of 2025, up from 2.5 million BPD a year earlier.
Natural Gas Pipelines & Services reported a margin of $339 million, down from $349 million. Total natural gas pipeline volumes reached a record 21.0 TBtus/d in the third quarter of 2025.
The Petrochemical & Refined Products Services segment reported a gross operating margin of $370 million, up from $363 million a year earlier. Gains were driven by the refined products pipelines and ethylene export businesses, which added $26 million and $11 million, respectively, partially offset by lower margins in the octane enhancement business and higher operating costs in the propylene business.
“Natural gas and associated NGL production from the Permian Basin continues to drive volumetric growth across our integrated asset footprint,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner.
Price Action: EDP shares were trading higher by 0.61% to $31.31 at last check Thursday.
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