Call at this time. All participants are in a listen-only mode. After the speaker's presentation, there will be a question answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 1 again.
Operator: Enterprise call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Libby Strait, Vice President of Investor Relations. Please go ahead.
Operator: Enterprise call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Libby Strait, Vice President of Investor Relations. Please go ahead.
Please be advised that today's conference is being recorded, I would now like to hand the conference over to your speaker today Libby Strait vice president of investor relations. Please go ahead.
Good morning and welcome to the Enterprise Products Partners conference. Call to discuss, fourth quarter 2025 earnings.
Our speakers today will be co-chief executive officers of Enterprises General partner, Jim Teague and Randy Fowler.
Other members of our senior management team are also in attendance for the call today.
Libby Strait: Good morning and welcome to the Enterprise Products Partners conference call to discuss Q4 2025 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's General Partner, Jim Teague, and Randy Fowler. Other members of our senior management team are also in attendance for the call today. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available to Enterprise's management team. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.
Libby Strait: Good morning and welcome to the Enterprise Products Partners conference call to discuss Q4 2025 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's General Partner, Jim Teague, and Randy Fowler. Other members of our senior management team are also in attendance for the call today. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available to Enterprise's management team. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.
During this call, we'll make forward-looking statements within the meaning of section. 21e the Securities. Exchange Act of 1934 based on the beliefs of the company as well as assumptions made by and information currently available to Enterprises management teams.
Other management beliefs of the expectations reflected in such forward-looking statements are reasonable. It can give no Assurance of such expectations will prove to be correct.
Please refer to our latest filings with the SEC, for a list of factors that may cause actual results to differ materially from those. In the forward-looking statements made during this call with that. I'll turn it over to Jim. Thank you.
Thank you, lady lady.
The headline for the fourth quarter is a record 2.7 million available.
Surpassing the previous record.
Of 2.67 in the fourth quarter of 2024.
Libby Strait: With that, I'll turn it over to Jim.
Libby Strait: With that, I'll turn it over to Jim.
We brought on a number of Assets in 2025.
A.J. Teague: Thank you. Thank you, Libby. Libby, the headline for Q4 is a record $2.7 billion of EBITDA, surpassing the previous record of $2.6 billion set in Q4 2024. We brought on a number of assets in 2025: Frac 14 in mid-October, Mentone West and Orion mid-year, several gathering and treating projects in the Permian, the Neches River Terminal ethane export train mid-year, mid-year startup of diluent exports to Canada, and finally, the Bahia NGL Pipeline in December. All these assets performed well, but they also filled holes created by a decline in our commodity-sensitive businesses and marketing spreads. Market realities shaped the year. Crude oil prices averaged about $12 a barrel lower than in 2024. That reduced many of the price and spreads we benefited from over the prior three years. Our propane margins were weaker in 2025.
Jim Teague: Thank you. Thank you, Libby. Libby, the headline for Q4 is a record $2.7 billion of EBITDA, surpassing the previous record of $2.6 billion set in Q4 2024. We brought on a number of assets in 2025: Frac 14 in mid-October, Mentone West and Orion mid-year, several gathering and treating projects in the Permian, the Neches River Terminal ethane export train mid-year, mid-year startup of diluent exports to Canada, and finally, the Bahia NGL Pipeline in December. All these assets performed well, but they also filled holes created by a decline in our commodity-sensitive businesses and marketing spreads. Market realities shaped the year. Crude oil prices averaged about $12 a barrel lower than in 2024. That reduced many of the price and spreads we benefited from over the prior three years. Our propane margins were weaker in 2025.
Track 14 in mid October.
Men down West, and Orion near.
Several Gathering and treating projects in the permanent.
At night just River terminal, ethane export train mid year.
Midyear startup of billion exports to Canada.
And finally, we're here at NGO pipeline in December.
all these assets for,
But they also fills holes created.
By decline in our commodity. Sensitive businesses and marketing spreads.
New Market, realities shaped the year.
Good oil. Prices averaging about 12 dollars a barrel lower.
In 2024.
That reduced many of the price and spreads, we've been updated limited from Over the prior 3 years.
Our team Market, margins. Were weaker in 2025?
A large 10-year LPG, export contract, originally signed at Double Digit fees.
Which we contracted at market rate.
A.J. Teague: A large 10-year LPG export contract originally signed at double-digit fees was recontracted at market rates. RGP/PGP spreads were 14 cents a pound in Q4 2024, but only 3 cents a pound in Q4 2025, which is an extension reflection of the weakness in the housing market. During 2024 and 2025, we renegotiated our RGP purchase agreements to a fixed-fee structure, which makes our splitter business largely spread agnostic. The splitters are now essentially at a note. We were fully contracted on our ethane export terminals and all 20 processing trains that we will have online in the Permian by year-end. For ethane exports, typically ships must be built and receiving terminals constructed to ultimately ramp to full utilization in our docks. With that being said, however, the ships seem to be coming earlier than the receiving.
Jim Teague: A large 10-year LPG export contract originally signed at double-digit fees was recontracted at market rates. RGP/PGP spreads were 14 cents a pound in Q4 2024, but only 3 cents a pound in Q4 2025, which is an extension reflection of the weakness in the housing market. During 2024 and 2025, we renegotiated our RGP purchase agreements to a fixed-fee structure, which makes our splitter business largely spread agnostic. The splitters are now essentially at a note. We were fully contracted on our ethane export terminals and all 20 processing trains that we will have online in the Permian by year-end. For ethane exports, typically ships must be built and receiving terminals constructed to ultimately ramp to full utilization in our docks. With that being said, however, the ships seem to be coming earlier than the receiving.
Rgp pgp spreads, were 14 cents a pound. And the fourth quarter of 2024, but only 3 cents a pound and the fourth quarter of 2025, which is an extension of reflection of the weakness in the housing market.
During 24 and 25, we renegotiated our rgp perch purchase agreements to a fixed fee structure.
Which makes our split splitter, business largely spread agnostic.
There is Splitters are now essentially at a notice.
We're fully contracted on our ethene export Terminals and all 20 processing trains that we have we will have online and that permanent by year end.
Grandpa and exports.
Typically ships must be built in receiving terminals constructed to ultimately ramp to full unit utilization.
And, and our dogs, with that being said, however, the ship seemed to be coming earlier than the receiving.
The processing while production growth goes over time. The 2 trains we brought on
Midpoint mid year 2025 are virtually full today.
Our X LPG exports are highly contracted through the end of this decade.
And we continue to see strong interest for additional long-term commitments.
A.J. Teague: For processing, while production growth builds over time, the two trains we brought on in mid-year 2025 are virtually full today. Our LPG exports are highly contracted through the end of this decade, and we continue to see strong interest for additional long-term commitments. We expect modest growth in 2026 as these assets and the assets we're bringing on in 2026 continue to ramp. We expect to see double-digit growth in 2027 once these assets reach full utilization. NASAIR is doubted by HEA in the beginning, but that is to be expected when you first. The HEA and Chinook as an integrated system has 1.2 million barrels daily capacity, and we're running at 80%. Having Exxon as a UJI partner and agreeing to expand Bahia to 1 million barrels per day is a win for both Enterprise and Exxon, associated with the UJI or a dozen downstream agreements.
Jim Teague: For processing, while production growth builds over time, the two trains we brought on in mid-year 2025 are virtually full today. Our LPG exports are highly contracted through the end of this decade, and we continue to see strong interest for additional long-term commitments. We expect modest growth in 2026 as these assets and the assets we're bringing on in 2026 continue to ramp. We expect to see double-digit growth in 2027 once these assets reach full utilization. NASAIR is doubted by HEA in the beginning, but that is to be expected when you first. The HEA and Chinook as an integrated system has 1.2 million barrels daily capacity, and we're running at 80%. Having Exxon as a UJI partner and agreeing to expand Bahia to 1 million barrels per day is a win for both Enterprise and Exxon, associated with the UJI or a dozen downstream agreements.
We expect modest growth in 2026. So, these assets and the assets, we're bringing on in 2026 continued to ramp
we expect to see double digit growth in 2027 once these assets reach, full utilization,
Next layer is doubted by here in the beginning.
but that is to be expected when you first
We're running at 80%.
Having Exxon is a uji partner and agreeing to expand by here to 1 million barrels per day.
As a win for both Enterprise and Exxon.
Associated with the uji or a dozen Downstream agreements.
On the export front, Enterprise continues to expand its mgl export franchise.
In 2025, we loved it.
A.J. Teague: On the export front, Enterprise continues to expand its NGL export franchise. In 2025, we loaded between 350 and 360 million barrels across 744 ships, and that will only grow as we complete phase two of the Neches River Terminal and the LPG expansion of the Houston Ship Channel. By next year, we expect to be exporting near 1.5 million barrels daily of NGLs or 550 million on an annual basis. Little history lesson. We've been doing international business since 1983, and we built our LPG import terminal. In 1999, we expanded the facility to include export capabilities. Many of our customers have been with us for more than 20 years. They know us. They know how we behave. They like how we operate. They are more than just customers. Relationships like that tend to be very sticky.
Jim Teague: On the export front, Enterprise continues to expand its NGL export franchise. In 2025, we loaded between 350 and 360 million barrels across 744 ships, and that will only grow as we complete phase two of the Neches River Terminal and the LPG expansion of the Houston Ship Channel. By next year, we expect to be exporting near 1.5 million barrels daily of NGLs or 550 million on an annual basis. Little history lesson. We've been doing international business since 1983, and we built our LPG import terminal. In 1999, we expanded the facility to include export capabilities. Many of our customers have been with us for more than 20 years. They know us. They know how we behave. They like how we operate. They are more than just customers. Relationships like that tend to be very sticky.
Between 350 and 360 million, barrels across 744 ships. And that will only grow as we complete Phase 2 of the nature's river terminal and
LPG expansion of the Houston Ship Channel.
My next year, we expect the exporting near 1 and a half million barrels day of NGL.
Or 550 million.
On a manual basis.
Little history lesson.
We've been doing international business since 1983 and we built our LPG, import terminal.
1999, we expanded the facility.
Throwing it to include export capabilities.
Many of our customers have been with us for more than 20 years.
I know us.
They know how we behave.
They like how we operate. They are more than just customers relationships. Like that tend to be very sticky.
We look, we spend a lot of time with our customers around the world and domestically, for example, over the holidays, I was in Thailand meeting with 3, large, petrochemical company.
Cristiano was in Europe in the fourth quarter and we could be back in March.
A.J. Teague: We spend a lot of time with our customers around the world and domestically. For example, over the holidays, I was in Thailand meeting with three large petrochemical companies. Christiana was in Europe in Q4, and we'd be back in March. On the crude team, Carrie Weaver was in Asia in October, and Jay Bany will be in Europe later this month. In NGLs, God bless Tyler Cott and his travels. Tyler was in Asia in November with stops in Korea and India and will be in Europe this month and back to Asia in March. Finally, Tug and I will be in Japan next month to visit several export customers. We're equally focused on our domestic customers, be they producers, petrochemicals, refiners, traders, or wholesale. We deliver roughly 25 million barrels a month of ethane to US crackers. That's around 300 million barrels a year.
Jim Teague: We spend a lot of time with our customers around the world and domestically. For example, over the holidays, I was in Thailand meeting with three large petrochemical companies. Christiana was in Europe in Q4, and we'd be back in March. On the crude team, Carrie Weaver was in Asia in October, and Jay Bany will be in Europe later this month. In NGLs, God bless Tyler Cott and his travels. Tyler was in Asia in November with stops in Korea and India and will be in Europe this month and back to Asia in March. Finally, Tug and I will be in Japan next month to visit several export customers. We're equally focused on our domestic customers, be they producers, petrochemicals, refiners, traders, or wholesale. We deliver roughly 25 million barrels a month of ethane to US crackers. That's around 300 million barrels a year.
On the crew team, Carrie Weber was in Asia in October J. Bainy will be in Europe later this month.
We've been doing international business since 1983.
G o, God bless, Tyler caught.
And we built our LPG import terminal.
1999, we expanded the facility.
To include export capabilities.
Travels Tyler was in Asian November, which stops in Korea in India and will be in Europe this month and and back to Asia and March.
Many of our customers have been with us for more than 20 years.
I know us.
Finally tug and I'll be in Japan next month to visit several export customers.
They know how we belong behind.
They like how we operate. They are more than just customer relationships. Like, that tends to be very sticky.
We're equally focused on our domestic customers but our producers have chemicals with honors Traders, or wholesale. We deliver roughly 25 million barrels a month.
I'm not going to us crackers. That's
it's around 300 million barrels a year.
We look, we spend a lot of time with our customers around the world and domestically, for example, over the holidays, I was in Thailand meeting with 3, large, petrochemical company.
Cristiano was in Europe in the fourth quarter, and we could be back in March.
In total, we move over 14 million barrels per day of oil, equivalent to our 50,000 mile pipeline Network.
On the crew team, Carrie Weber was in Asia in October. J. Baney will be in Europe later this month.
Additionally, the price looks at its storage Cubs as a critical part of its infrastructure to support its customers.
Pushing Midland, Houston and Mont belby.
A.J. Teague: In total, we move over 14 million barrels per day of oil equivalent to our 50,000-mile pipeline network. Additionally, Enterprise looks at its storage hubs as a critical part of its infrastructure to support its customers: Cushing, Midland, Houston, and Mont Belvieu. These are all open-access systems where our customers can trade freely without any concern of being held hostage. We are proud of our record $2.7 billion of EBITDA in Q4. But as investors look to the future, I would encourage you to look beyond the numbers. Enterprise's long-term success is driven by our culture, our teamwork, our creativity, and our laser focus on customer relationships. Those intangibles are what give rise to the numbers you see each quarter. Randy.
Jim Teague: In total, we move over 14 million barrels per day of oil equivalent to our 50,000-mile pipeline network. Additionally, Enterprise looks at its storage hubs as a critical part of its infrastructure to support its customers: Cushing, Midland, Houston, and Mont Belvieu. These are all open-access systems where our customers can trade freely without any concern of being held hostage. We are proud of our record $2.7 billion of EBITDA in Q4. But as investors look to the future, I would encourage you to look beyond the numbers. Enterprise's long-term success is driven by our culture, our teamwork, our creativity, and our laser focus on customer relationships. Those intangibles are what give rise to the numbers you see each quarter. Randy.
Nl's God bless, Tyler, caught and his travels, Tyler was in Asian November, which stops in Korea and India, and will be in Europe this month. And now, and back to Asia in March.
These are all open access systems where our customers can trade freely without any concern of being held hostage.
Finally talking, I'll be in Japan next month to visit several export customers.
We're proud of our record 2.7 billion of EA in the fourth quarter, but as investors look to them to to the future, I would encourage you to look beyond the numbers.
We're equally focused on our domestic customers but our producers have chemicals with honors Traders, or wholesale. We deliver roughly 25 million barrels a month.
I think the U.S. crackers. That's...
It's around 300 million barrels a year.
Enterprise long-term success is driven by our culture, our teamwork, our creativity and our laser focus on customer relationships, those intangibles for woodwork, give rise to the numbers. You see each quarter
Thank you, Jim. Uh, good morning everyone.
In total we move over 14 million barrels per day of oil and equipment to our 50,000 mile pipeline Network. Additionally the price looks at its storage Cubs as a critical part of its infrastructure to support its customers.
Pushing Midland, Houston, and Mont Belvieu.
Starting with the income statement items, net income attributable. The common unit holders was 1.6 billion or 75 cents per common unit on a fully diluted basis for the fourth quarter of 2025.
Randy Fowler: Thank you, Jim. Good morning, everyone. Starting with the income statement items, net income attributable to common unit holders was $1.6 billion or $0.75 per common unit on a fully diluted basis for Q4 2025. In Q4, our adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital, grew 5% to $2.4 billion. This strong finish propelled us to a record $8.7 billion in adjusted cash flow from operations for the full year 2025. We declared a distribution of $0.55 per common unit for Q4 2025, which is a 2.8% increase over the distribution declared for Q4 2024. The distribution will be paid on 13 February to common unit holders of record as of the close of business on 30 January.
Randy Fowler: Thank you, Jim. Good morning, everyone. Starting with the income statement items, net income attributable to common unit holders was $1.6 billion or $0.75 per common unit on a fully diluted basis for Q4 2025. In Q4, our adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital, grew 5% to $2.4 billion. This strong finish propelled us to a record $8.7 billion in adjusted cash flow from operations for the full year 2025. We declared a distribution of $0.55 per common unit for Q4 2025, which is a 2.8% increase over the distribution declared for Q4 2024. The distribution will be paid on 13 February to common unit holders of record as of the close of business on 30 January.
These are all open access systems where our customers can trade freely without any concern of the health hostage.
If we're proud of our record, 2.7 billion of EBA and the fourth quarter. But as investors look to be in future to the future, I would encourage you to look beyond the numbers.
And the fourth quarter, our adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital grew 5% to 2.4 billion dollars, this strong finish propelled us to a record. 8.7 billion dollars in adjusted cash flow from operations for the full year 2025
We declared a distribution of 55 cents per common unit for the fourth quarter 2025 which is a 2.8% increase over the distribution declared for the fourth quarter of 2024.
Long-term success is driven by our culture, our teamwork, our creativity, and our laser focus on customer relationships. Those intangibles are what give rise to the numbers you see each quarter.
Thank you, Jim. Uh, good morning everyone.
The distribution will be paid on February 13th to come in unit holders of record as of the close of business on January 30th.
Starting with the income segments items, net income attributable, to common unit holders was 1.6 billion or 75 cents per common unit on a fully diluted basis for the fourth quarter of 2025.
And the fourth quarter, our adjusted cash flow from operations, which is cash flow.
Approximately million dollars inclusive of these purchases. The partnership is utilized approximately 29% of its authorized 5 billion buyback program.
Randy Fowler: The partnership repurchased approximately $50 million of its common units in Q4, bringing total repurchases in 2025 to approximately $300 million. Inclusive of these purchases, the partnership has utilized approximately 29% of its authorized $5 billion buyback program. In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 4.7 million common units on the open market for $150 million in 2025. This includes 1.2 million common units purchased on the open market for $37 million during Q4 of 2025. For 2025, Enterprise will have returned $5 billion of capital to our equity investors, comprised of approximately $4.7 billion or 94% in distributions to limited partners and $300 million through buybacks, resulting in a payout ratio of adjusted cash flow from operations of 58%.
Randy Fowler: The partnership repurchased approximately $50 million of its common units in Q4, bringing total repurchases in 2025 to approximately $300 million. Inclusive of these purchases, the partnership has utilized approximately 29% of its authorized $5 billion buyback program. In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 4.7 million common units on the open market for $150 million in 2025. This includes 1.2 million common units purchased on the open market for $37 million during Q4 of 2025. For 2025, Enterprise will have returned $5 billion of capital to our equity investors, comprised of approximately $4.7 billion or 94% in distributions to limited partners and $300 million through buybacks, resulting in a payout ratio of adjusted cash flow from operations of 58%.
From operating activities before changes in working capital grew 5% to 2.4 billion dollars, this strong finish propelled us to a record. 8.7 billion dollars in adjusted cash flow from operations for the full year 2025
In addition to BuyBacks our distribution, reinvestment plan, and employee unit. Purchase plan purchased a combined 4.7 million common units on the open market for 150 million in 2025.
This includes 1.2 million common units purchased on the open market for 37 million during the fourth quarter of 2025.
We declared a distribution of 55 cents per common unit for the fourth quarter 2025 which was a 2.8% increase over the distribution, Claire to the fourth quarter of 2024, a distribution will be paid on February 13th to call when you have hours of record as of the close of business on January 30th.
The partnership we purchased approximately 50 million of its common units. In the fourth quarter. Bringing total free purchases in 2025 to approximately dollars inclusive of these purchases. The partnership is utilized approximately 29% of its Park. Rise 5 billion by that program.
For 2025 Enterprise will have returned 5 billion dollars of capital to our Equity. Investors comprised of approximately 4.6 4.7 billion dollars or 94% in distributions to limited partners and 300 million. Through BuyBacks resulting in a payout ratio uh of adjusted cash flow from operations of 58%. Since our 1998 IPO we have prioritized unit holder value by responsibly returning nearly 62 billion dollars through distributions and buybacks all while building 1 of the largest energy infrastructure networks in North America.
In addition to 5x, our distribution reinvestment plan and employee unit purchase plan purchased a combined 4.7 million common units on the open market for $150 million in 2025.
Randy Fowler: Since our 1998 IPO, we have prioritized unit holder value by responsibly returning nearly $62 billion through distributions and buybacks, all while building one of the largest energy infrastructure networks in North America. Total capital investments were $1.3 billion in Q4 2025, which included $1 billion for growth capital projects and $203 million of sustaining capital expenditures. For 2025, organic growth capital investments were $4.4 billion, with about $100 million of expenditures slipping into 2026. We also had $620 million of sustaining capital expenditures. With the completion of major projects such as the Bahia NGL Pipeline and the first phase of the Neches River Terminal, we continue to believe our organic growth capital expenditures in the near term will return to our mid-cycle range. With that said, our commercial teams have had great success in completing major agreements with producers since our last earnings call.
Randy Fowler: Since our 1998 IPO, we have prioritized unit holder value by responsibly returning nearly $62 billion through distributions and buybacks, all while building one of the largest energy infrastructure networks in North America. Total capital investments were $1.3 billion in Q4 2025, which included $1 billion for growth capital projects and $203 million of sustaining capital expenditures. For 2025, organic growth capital investments were $4.4 billion, with about $100 million of expenditures slipping into 2026. We also had $620 million of sustaining capital expenditures. With the completion of major projects such as the Bahia NGL Pipeline and the first phase of the Neches River Terminal, we continue to believe our organic growth capital expenditures in the near term will return to our mid-cycle range. With that said, our commercial teams have had great success in completing major agreements with producers since our last earnings call.
This includes 4.2 million common units purchased on the open market for 37 million during the fourth quarter of 2025.
Total Capital Investments were 1.3 billion dollars in the fourth quarter 2025, which included, 1 billion for growth, capital projects, and 203 million of sustaining Capital expenditures.
For 2025 organic growth. Capital Investments were 4.4 billion dollars with about 100 million dollars of expenditures slipping into 2026.
We also had 62 million of sustaining Capital expenditures.
With the completion of major projects, such as the Bahia, natural gas, liquid Pipeline and the first phase of the niches River terminal, we continue to believe our organic growth Capital expenditures in the near term will return to our mid-cycle range.
And 300 million through BuyBacks resulting in a payout ratio uh of adjusted cash flow from operations on 58%. Since our 1998 IPO we have prioritized unit holder value by responsibly returning nearly 62 billion dollars through distributions and buybacks all while building 1 of the largest energy infrastructure networks in North America
With that said, our commercial teams have had great success in completing major agreements. With producers since our last earnings call,
Total capital investments were $1.3 billion in the fourth quarter 2025, which included $1 billion for growth capital projects and $203 million of sustaining capital expenditures.
Randy Fowler: In November, we announced Exxon Mobil's acquisition of an undivided joint interest in the Bahia NGL pipeline and the related expansion of Bahia to 1 million barrels a day and a 92-mile extension to connect Exxon's Cowboy processing complex as well as Enterprise plants in the Delaware Basin. In January, we executed agreements to provide a large producer in the Delaware Basin with integrated services including acid gas gathering and treating, natural gas processing, and NGL transportation and fractionation services. These long-term agreements support our building a 24-inch trunk line to extend the partnership's acid gas gathering system in northern Lea County, a fifth treater at our Dark Horse facility, and a third acid gas injection well.
Randy Fowler: In November, we announced Exxon Mobil's acquisition of an undivided joint interest in the Bahia NGL pipeline and the related expansion of Bahia to 1 million barrels a day and a 92-mile extension to connect Exxon's Cowboy processing complex as well as Enterprise plants in the Delaware Basin. In January, we executed agreements to provide a large producer in the Delaware Basin with integrated services including acid gas gathering and treating, natural gas processing, and NGL transportation and fractionation services. These long-term agreements support our building a 24-inch trunk line to extend the partnership's acid gas gathering system in northern Lea County, a fifth treater at our Dark Horse facility, and a third acid gas injection well.
In November, we announced Exxon Mobile's acquisition of an undivided joint interest in Bahia natural gas liquid Pipeline and the related expansion of the here to 1 million barrels a day and a 92. Me extension to connect exons, Cowboy processing complex, as well as Enterprise plants in the Delaware basin.
For 2025 organic growth. Capital Investments were 4.4 billion dollars with about 100 million dollars of expenditure slipping into 2026.
We also had 620 million dollars of sustaining Capital expenditures.
In January, we actually executed agreements to provide a large producer in the Delaware Basin with integrated services, including acid, gas Gathering and treating natural, gas processing, and NGL transportation, and fractionation services.
With the completion of major projects such as the Baja natural, gas, liquid pipelines and the first phase of the niches River terminal, we continue to believe our organic growth Capital expenditures in the near term will return to our mid-cycle range.
These long-term agreement supports our building, a 24-inch trunk line to extend the Partnerships acid gas Gathering system in Northern Lake County.
a fifth traitor at our door, quality, Dark Horse facility and a third acid gas injection will
In addition.
We executed long-term agreements with hanesville producers to an extension of our hanesville natural gas Gathering system along with Downstream agreements to provide natural, gas processing, treating and transportation services on the Acadian system.
With that said, our commercial teams had great success in completing major agreements. With producers, since our last earnings call in November, we announced ExxonMobil's acquisition of an undivided joint interest in the HIA Africans Liquid Pipeline and the related expansion of that to 1 million barrels, and a 92-mile extension to connect Exxon's Cowboy processing complex as well as Enterprise plants in the Delaware Basin.
Randy Fowler: In addition, we executed long-term agreements with Haynesville producers to an extension of our Haynesville natural gas gathering system, along with downstream agreements to provide natural gas processing, treating, and transportation services on the Acadian system. We have also had success in executing agreements with petrochemical customers that support incremental extensions of our ethane, ethylene, and propylene pipeline systems. As a result of these successes and visibility to potential projects, we expect growth capital expenditures for 2026 to be in the range of $2.5 to 2.9 billion, netting to $1.9 to 2.3 billion after applying approximately $600 million in proceeds from asset sales already received earlier this year, which represents the final installment from Exxon on the Bahia sale. The pace of some of these expenditures will depend on the cadence of producer activity. However, we believe we will be at the higher end of this range.
Randy Fowler: In addition, we executed long-term agreements with Haynesville producers to an extension of our Haynesville natural gas gathering system, along with downstream agreements to provide natural gas processing, treating, and transportation services on the Acadian system. We have also had success in executing agreements with petrochemical customers that support incremental extensions of our ethane, ethylene, and propylene pipeline systems. As a result of these successes and visibility to potential projects, we expect growth capital expenditures for 2026 to be in the range of $2.5 to 2.9 billion, netting to $1.9 to 2.3 billion after applying approximately $600 million in proceeds from asset sales already received earlier this year, which represents the final installment from Exxon on the Bahia sale. The pace of some of these expenditures will depend on the cadence of producer activity. However, we believe we will be at the higher end of this range.
In January, we actually executed agreements to provide a large producer in the Delaware Basin with integrated services, including acid, gas Gathering, and treating natural, gas processing, and AGL transportation and Recreation services.
We have also had success in executing agreements with petrochemical customers that support incremental extensions of our ethane ethylene and propylene pipeline systems. As a result of these successes and visibility to potential projects. We expect growth Capital expenditures for 2026 to be in the range of 2.5 to 2.9 billion.
These long-term agreements support our building a 24-inch Truck Line to extend the partnership's acid gas gathering system in northern Lake County, a fifth Treater at our Dore, Quality Dark Horse facility, and a third acid gas injection well.
In addition.
Netting to 1.9 to 2.3 billion after applying approximately 600 million dollars in proceeds, from asset sales already received earlier this year, which represents the final installment from Exxon on the Baja sale?
The pace of some of these expenditures will depend on the Cadence of producer activity. However, we believe we will be at the higher end of this range.
We executed long-term agreements with Haynesville producers for an extension of our Panola natural gas gathering system, along with downstream agreements to provide natural gas processing, treating, and transportation services on the Acadian system.
Sustaining Capital expenditures are expected to be approximately 580 million in 2026.
Randy Fowler: Sustaining capital expenditures are expected to be approximately $580 million in 2026, which includes approximately $80 million for the turnaround of our octane enhancement facility that should be completed later this month. As Jim noted earlier, we expect modest adjusted EBITDA and cash flow growth in 2026 as assets completed in 2025 ramp in volume and as assets that are completed throughout 2026 begin operations. We expect this to ultimately lead to 10% area growth in adjusted EBITDA and cash flow in 2027 compared to 2026. Enterprise's adjusted cash flow for 2025 was $3.1 billion. And this adjusted free cash flow, that's our cash flow from operations less capital investments and acquisitions. Subtracting distributions to limited partners results in 2025 discretionary free cash flow of a negative $1.6 billion.
Randy Fowler: Sustaining capital expenditures are expected to be approximately $580 million in 2026, which includes approximately $80 million for the turnaround of our octane enhancement facility that should be completed later this month. As Jim noted earlier, we expect modest adjusted EBITDA and cash flow growth in 2026 as assets completed in 2025 ramp in volume and as assets that are completed throughout 2026 begin operations. We expect this to ultimately lead to 10% area growth in adjusted EBITDA and cash flow in 2027 compared to 2026. Enterprise's adjusted cash flow for 2025 was $3.1 billion. And this adjusted free cash flow, that's our cash flow from operations less capital investments and acquisitions. Subtracting distributions to limited partners results in 2025 discretionary free cash flow of a negative $1.6 billion.
We have also had success in executing agreements with petrochemical customers that support incremental extensions of our ethylene and propylene pipeline systems. As a result of these successes and visibility to potential projects, we expect growth capital expenditures for 2026 to be in the range of $2.5 to $2.9 billion.
Ramping volume and as assets that are completed throughout 2026 begin operations.
We expect this to ultimately lead to 10% area growth and adjusted Ava and cash flow in 2027 compared to 2026.
Netting to 1.9 to 2.3 billion after applying approximately 600 million dollars in proceeds from asset sales. Are you received earlier this year, which represents the final installment from Exxon on the behalf sale?
Enterprises adjusted cash flow for 2025 was 3.1 billion dollars and this adjusted free cash flow. That's our cash flow from operations, less Capital Investments and acquisitions.
Subtracting distributions to limited partners.
The pace of some of these expenditures will depend on the Cadence of producer activity. However, we believe we will be at the higher end of this range. Sustaining Capital expenditures are expected to be approximately 580 million in 2026.
Which includes approximately 80 million dollars for the turnaround of our octane. Enhancement facility, that should be completed later this month.
results in 2025, discretionary free cash flow of a negative 1.6 billion based on our currently expected lower level of net capital investments in 2026,
As Jim noted earlier, we expect modest adjusted, even job and cash flow growth in 2026 as assets are completed in 2025, with ramp and volume. And as assets that are completed throughout 2026, we get operations.
Randy Fowler: Based on our currently expected lower level of net capital investments in 2026, which is comprised of capital expenditures plus acquisitions less proceeds from asset sales, and the net increase in distributions, we expect discretionary free cash flow has the potential to be in the $1 billion area in 2026. In terms of allocation of capital, we see cash distributions to partners growing commensurate with operational distributable cash flow per unit growth. In the near term, we expect for our discretionary free cash flow to be split between buybacks and retiring debt. In 2026, we currently expect this split would be approximately 50% to 60% in buybacks. Future growth in cash distributions to partners can also be further enhanced by the percent of common units we retired through buybacks. Our total debt principal outstanding was $34.7 billion as of 31 December 2025.
Randy Fowler: Based on our currently expected lower level of net capital investments in 2026, which is comprised of capital expenditures plus acquisitions less proceeds from asset sales, and the net increase in distributions, we expect discretionary free cash flow has the potential to be in the $1 billion area in 2026. In terms of allocation of capital, we see cash distributions to partners growing commensurate with operational distributable cash flow per unit growth. In the near term, we expect for our discretionary free cash flow to be split between buybacks and retiring debt. In 2026, we currently expect this split would be approximately 50% to 60% in buybacks. Future growth in cash distributions to partners can also be further enhanced by the percent of common units we retired through buybacks. Our total debt principal outstanding was $34.7 billion as of 31 December 2025.
We expect this to ultimately lead to 10% area growth and adjusted EBITDA and cash flow in 2027 compared to 2026.
which is, uh, comprised of capital expenditures plus Acquisitions, less proceeds, from asset sales and the net increase in distributions. We expect discretionary free cash flow as the pet potential to be in the 1 billion dollar area in 2026. In terms of allocation of capital we see cash distributions to Partners growing, commensurate with operational distribute, distributable, cash flow, per unit growth,
In the near term. We expect for our discretionary. Free cash flow to be split between BuyBacks and retiring debt.
Enterprises adjusted cash flow for 2025 was 3.1 billion dollars and this adjusted free cash flow. That's our cash flow from operations less Capital Investments and acquisition subtracting distributions to limited partners.
In 2026, we currently expect this. Split would be approximately 50 to 60% in BuyBacks.
Future growth and cash, distributions to Partners. Can also be further enhanced by the percent of common units. We retired through BuyBacks.
results in 2025, discretionary free cash flow of a negative 1.6 billion based on our currently expected lower level of net capital investments in 2026,
our total debt principal outstanding was 34.7 billion, as of the December, 31, 2025,
Assuming the final maturity date of our hybrids, the weighted average, life of our debt portfolios, approximately 17 years, our weighted average cost of debt was 4.7% and approximately 98% of our debt was fixed rate.
Plus acquisitions, less proceeds from asset sales, and the net increase in distributions. We expect discretionary free cash flow as the potential to be in the $1,226 million range in terms of allocation of capital. We see cash distributions to partners growing, commensurate with operational distributable cash flow per unit growth.
Randy Fowler: Assuming the final maturity date of our hybrids, the weighted average life of our debt portfolio is approximately 17 years. Our weighted average cost of debt was 4.7%, and approximately 98% of our debt was fixed rate. At December 31, our consolidated liquidity was approximately $5.2 billion, including availability under our credit facilities and unrestricted cash. Adjusted EBITDA increased 4% to $2.7 billion for the fourth quarter compared to $2.6 billion for the fourth quarter of 2024. Adjusted EBITDA for 2025 reached a record high, just shy of the $10 billion mark. We ended the year with a consolidated leverage ratio of 3.3 times on a net basis after adjusting debt for the partial equity content of our hybrid debt and reduced by the partnership's unrestricted cash on hand.
Randy Fowler: Assuming the final maturity date of our hybrids, the weighted average life of our debt portfolio is approximately 17 years. Our weighted average cost of debt was 4.7%, and approximately 98% of our debt was fixed rate. At December 31, our consolidated liquidity was approximately $5.2 billion, including availability under our credit facilities and unrestricted cash. Adjusted EBITDA increased 4% to $2.7 billion for the fourth quarter compared to $2.6 billion for the fourth quarter of 2024. Adjusted EBITDA for 2025 reached a record high, just shy of the $10 billion mark. We ended the year with a consolidated leverage ratio of 3.3 times on a net basis after adjusting debt for the partial equity content of our hybrid debt and reduced by the partnership's unrestricted cash on hand.
December 31. Our Consolidated liquidity was approximately 5.2 billion including availability under our credit facilities and unrestricted cash.
In the near term. We expect for our discretionary. Free cash flow to be split between BuyBacks and retiring debt.
Adjusted Eva do increased 4% to 2.7 billion dollars for the fourth quarter.
In 2026, we currently expect this. Split would be approximately 50 to 60% in BuyBacks.
Compared to 2.6 billion for the fourth quarter of 2024.
Future growth and cash distributions.
Uh, just to keep it off for 2025 reached a record high, just shy of the 10 billion dollar mark.
Partners can also be further enhanced by the percent of common units. We retired through buyback.
Our total debt, principal outstanding, was $34.7 billion as of December 31, 2022.
Assuming the final maturity date of our hybrids, the weighted average life of our debt portfolios is approximately 17 years. Our weighted average cost of debt was 4.7%, and approximately 98% of our debt was fixed rate.
31, our Consolidated liquidity was approximately 5.2 billion including availability under our credit facilities and unrestricted cash.
Randy Fowler: Our current leverage ratio reflects significant investment in large-scale projects that we recently brought into service in the midstream asset acquisition from Occidental, where the debt is on the balance sheet, but the resultant annual adjusted EBITDA generation from these investments has yet to flow into our trailing 12-month EBITDA figures. Our leverage target remains 3 times ± a quarter turn or 2.75 times to 3.25 times. We believe our leverage will return to within our target range by the end of 2026 when we have a full year of adjusted EBITDA from some of these projects. With that, Libby, we can open it up for questions.
Randy Fowler: Our current leverage ratio reflects significant investment in large-scale projects that we recently brought into service in the midstream asset acquisition from Occidental, where the debt is on the balance sheet, but the resultant annual adjusted EBITDA generation from these investments has yet to flow into our trailing 12-month EBITDA figures. Our leverage target remains 3 times ± a quarter turn or 2.75 times to 3.25 times. We believe our leverage will return to within our target range by the end of 2026 when we have a full year of adjusted EBITDA from some of these projects. With that, Libby, we can open it up for questions.
We ended the year with a Consolidated, leverage ratio of 3.3 times on a net basis after adjusting for, um, adjusting debt for the partial Equity, content of our hybrid debt, and reduced by the Partnerships unrestricted, cash on hand, our current leverage ratio, reflects significant investment in large scale projects that we recently brought into service in the Midstream asset acquisition from accidental, where the debt is on the balance sheet, but the resultant annual adjusted even Dodge generation from these Investments has yet to flow into our trailing 12-month evad doll figures.
Adjusted EBITDA increased 4% to $2.7 billion for the fourth quarter.
Our leverage Target remains 3 times plus or minus a quarter turn or 2.75 times the 3.25 times.
Compared to 2.6 billion for the fourth quarter of 2024 adjusted e for 2025, reached a record high, just shy of the 10 billion dollar mark.
We believe our leverage will return to within our target range by the end of 2026 when we have a full year of adjusted even D. From some of these projects with that, that Libby we can open it up for questions. Thank
Thank you, Randy operator. We are ready to open the call for questions.
As a reminder to ask a question. Please press star 1, 1 on your telephone, and wait, for your name to be announced.
Libby Strait: Thank you, Randy. Operator, we are ready to open the call for questions.
Libby Strait: Thank you, Randy. Operator, we are ready to open the call for questions.
To withdraw your question. Please press star 1 1 again. We ask that you please limit yourselves to 1 question and 1 follow-up question.
Operator: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourselves to one question and one follow-up question. Our first question comes from the line of Spiro Dounis from Citi.
Operator: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourselves to one question and one follow-up question. Our first question comes from the line of Spiro Dounis from Citi.
Our first question comes from the line of Spyro Dunes from City.
[Analyst] (Citi): Thanks, operator. Good morning, everybody. Wanted to start with the 2026 and 2027 outlook comments. So you exited 2025 really strong. I just wonder, can you guys maybe walk us through some of the puts and takes off this fourth quarter exit rate as you think about 2026 growth? Just trying to get a sense of what's ratable here and if you guys see yourself still landing in that 3% to 5% growth range. And on 2027, you mentioned double-digit growth. Just curious how you're thinking about the risk to achieving that level of growth. Maybe another way of asking, what commodity environment underwrites that level?
Spiro Dounis: Thanks, operator. Good morning, everybody. Wanted to start with the 2026 and 2027 outlook comments. So you exited 2025 really strong. I just wonder, can you guys maybe walk us through some of the puts and takes off this fourth quarter exit rate as you think about 2026 growth? Just trying to get a sense of what's ratable here and if you guys see yourself still landing in that 3% to 5% growth range. And on 2027, you mentioned double-digit growth. Just curious how you're thinking about the risk to achieving that level of growth. Maybe another way of asking, what commodity environment underwrites that level?
We believe our leverage will return to within our target range by the end of 2026 when we have a full year of adjusted— even though from some of these projects with that, that—Libby, we can open it up for questions. Thank you, Randy. Operator, we are ready to open the call for questions.
Operator morning, everybody. Uh, wanted to start with the 26th and 27th Outlook comments. Uh, so you exited 25 really strong. Just wondering if you guys maybe walk us through some of the puts and takes office, fourth quarter exit rate, as you think about 26 growth, you're trying to get a sense of what's rateable here. And if you guys see yourself still Landing in that 3 to 5% growth range. And and on 27, you mentioned double digit growth. Uh, just curious how you're thinking about the risks to achieving that level of growth. Maybe another way of asking what commodity environment underwrites that level
I think, um, Spyro this champ
As a reminder, to ask a question, please press *1, 1 on your telephone and wait for your name to be announced.
Script. I mentioned.
To withdraw your question, please press star 1 1 again. We ask that you please limit yourselves to one question and one follow-up question.
Our first question comes from the line of Spyro Dunes from Citi.
We didn't have as many outside spreads, as, uh, we had the 3 previous years so I think this, uh, I think it's fourth quarter. Uh, weighted, um, more writable than not.
A.J. Teague: I think, Spiro, this is Jim. I think, given that in my script I mentioned, we didn't have as many outside spreads as we had the three previous years. So, I think fourth quarter's weighted more ratable than not.
Jim Teague: I think, Spiro, this is Jim. I think, given that in my script I mentioned, we didn't have as many outside spreads as we had the three previous years. So, I think fourth quarter's weighted more ratable than not.
Thank you.
Hey, Spyro and just, as a, as a follow up on the second part of your question, I think, probably as as we mentioned, we're sort of looking at modest, uh, uh, cash flow and even dog growth in 2026 compared to 2025. So probably at the lower end of that 3 to 5% range.
Operator: Thank you.
Operator: Thank you.
Randy Fowler: Hey, Spiro. And just as a follow-up on the second part of your question, I think probably, as we mentioned, we're sort of looking at modest cash flow and EBITDA growth in 2026 compared to 2025. So probably at the lower end of that 3% to 5% range.
Randy Fowler: Hey, Spiro. And just as a follow-up on the second part of your question, I think probably, as we mentioned, we're sort of looking at modest cash flow and EBITDA growth in 2026 compared to 2025. So probably at the lower end of that 3% to 5% range.
Thanks, operator. Good morning, everybody. Uh, wanted to start with the '26 and '27 outlook comments. Uh, so you exited '25 really strong. Just wondering if you guys could maybe walk us through some of the puts and takes off this fourth quarter exit rate. As you think about '26 growth, I'm trying to get a sense of what's readable here, and if you guys see yourselves still landing in that 3% to 5% growth range. And on '27, you mentioned double-digit growth. Uh, just curious how you're thinking about the risks to achieving that level of growth. Maybe another way of asking: what commodity environment underwrites that level?
I think um, Spyro this Jim
Thank you. 1 moment for our next question.
Our next question comes from the line of Teresa Chen from Barkley's.
I think, uh, given that, you know, in my script I mentioned we didn't have as many outside spreads as, uh, we had the 3 previous years. So I think this, uh, I think it fourth quarter, waited um, more writable than not.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Teresa Chen from Barclays.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Teresa Chen from Barclays.
Thank you.
[Analyst] (Barclays): Good morning. Under comments related to the NGL export cadence, specifically on the phases of Neches River ramping up over time, can you expand on the cadence and ramp-up of earnings contribution from these expansions? How should we think about the ramp and steady-state contribution as we move through 2026 and into 2027?
Theresa Chen: Good morning. Under comments related to the NGL export cadence, specifically on the phases of Neches River ramping up over time, can you expand on the cadence and ramp-up of earnings contribution from these expansions? How should we think about the ramp and steady-state contribution as we move through 2026 and into 2027?
Morning, um, under comments related to the NGL export, Cadence, um, uh, specifically on the phases of nature's river ramping up over time. Can you expand on the Cadence and ramp up of earnings contribution? From these expansions, how how should we think about the ramp and steady state contribution as we move through 2026 and into 2027?
Hey, Spyro, and just as a follow-up on the second part of your question, I think probably, as we mentioned, we’re sort of looking at modest, uh, uh, cash flow. We need a dog road in 2026 compared to 2025, so probably at the lower end of that 3% to 5% range.
Todd Hanley: Hey, Teresa. This is Tyler Cott. I'll speak to the volume, which should correlate to the earnings. So Neches River came online last year. As you know, in Q4, we started to ramp volumes of ethane in earnest. That ramp will continue into the first several months of this year. I would say by Q2, our overall ethane export capacity should be very near full utilization, at which time our second train at Neches River will come online. And that will have a ramp-up profile over the next several months, largely propane at first, but then shifting to mostly ethane by around the end of next year.
Tug Hanley: Hey, Teresa. This is Tyler Cott. I'll speak to the volume, which should correlate to the earnings. So Neches River came online last year. As you know, in Q4, we started to ramp volumes of ethane in earnest. That ramp will continue into the first several months of this year. I would say by Q2, our overall ethane export capacity should be very near full utilization, at which time our second train at Neches River will come online. And that will have a ramp-up profile over the next several months, largely propane at first, but then shifting to mostly ethane by around the end of next year.
Our next question comes from the line of Teresa Chen from Barkley's.
Hey, hey Teresa. This is Tyler Cod. I'll speak to the volume, which should correlate to the earnings. So, uh, NES River came online. Last year, as you know, the fourth quarter. We started a ramp volumes of ethane in Earnest that ramp will continue uh into the first several months of this year. I would say by the second quarter our overall FAA and Export capacity should be very near a full utilization at which time our second train in nature's river will come online and that will have a ramp up profile over the next several months largely propane at first, but then shifting to mostly ethane. Um, by around the end of next year,
thank you. 1 moment for our next question.
Our next question comes from the line of Michael bloom from Wells, Fargo.
Morning. Um, under comments related to the NGL export cadence, um, uh, specifically on the phases of Nature's River ramping up over time—can you expand on the cadence and ramp-up of earnings contribution from these expansions? How should we think about the ramp and steady state contribution as we move through 2026 and into 2027?
Operator: Thank you. One moment for our next question. Our next question comes from the line of Michael Bloom from Wells Fargo.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Michael Bloom from Wells Fargo.
[Analyst] (Wells Fargo): Thanks. Good morning, everyone. Wanted to ask, as you know, Waha prices have been pretty volatile the last few months. Q4, prices really low, spreads were wide. Then, of course, in January, we've had this winter storm, so Waha prices spiked. So I wonder if you could just remind us how EPD is impacted by changes in Waha prices in both directions.
Michael Blum: Thanks. Good morning, everyone. Wanted to ask, as you know, Waha prices have been pretty volatile the last few months. Q4, prices really low, spreads were wide. Then, of course, in January, we've had this winter storm, so Waha prices spiked. So I wonder if you could just remind us how EPD is impacted by changes in Waha prices in both directions.
Thanks, uh, good morning everyone. Um, wanted to ask as, you know, waha prices have been pretty volatile the last few months, um, you know, fourth quarter prices, really low, spreads were wide. Then, of course, in Wynne in January, we've had this winter storm, so waha prices Spike. So I wonder if you could just remind us how epd is impacted by changes in waha prices and in both directions,
Hey, hey Teresa. This is Tyler Cod. I'll speak to the volume, which should correlate to the earnings. So, uh, nature River came online last year, as you know, the fourth quarter, we started a ramp volumes of ethane in Earnest that ramp will continue uh into the first several months of this year. I would say by the second quarter our overall Ethan export capacity should be very near uh full utilization at which time. Our second train in nature's river will come online and that will have a ramp up Pro profile over the next several months. Largely propane at first but then shifting to mostly ethane. Um, by around the end of next year,
Yeah, this is Todd speaking. Um so as far as a little waha price we have gas transport capacity. So we benefit from a uh higher. We call it west east or west of South spreads um we'll be able to monetize that.
Thank you. One moment for our next question.
Todd Hanley: Yeah, this is Todd speaking. So as far as a low Waha price, we have gas transport capacity. So we benefit from a higher, we call it, west-to-east or west-to-south spreads. We'll be able to monetize that. And with respect to recent volatility and a higher gas price, we do have storage assets that can monetize that as well. So we benefit from volatility on both sides.
Tug Hanley: Yeah, this is Todd speaking. So as far as a low Waha price, we have gas transport capacity. So we benefit from a higher, we call it, west-to-east or west-to-south spreads. We'll be able to monetize that. And with respect to recent volatility and a higher gas price, we do have storage assets that can monetize that as well. So we benefit from volatility on both sides.
And with respect to recent volatility, um, on a higher gas price, we do have uh, storage assets that can monetize that as well. So, we benefit from volatility on both sides.
Our next question comes from the line of Michael Bloom from Wells Fargo.
Great. Thanks for that. And then um I'm wondering if you just give us a little color on what your producer customers are telling you in terms of their plans for 2026 and and how you see that translating into Supply growth? Uh, actually in the premium, thanks.
[Analyst] (Wells Fargo): Great. Thanks for that. And then I'm wondering if you could just give us a little color on what your producer customers are telling you in terms of their plans for 2026 and how you see that translating into supply growth, especially in the Permian. Thanks.
Michael Blum: Great. Thanks for that. And then I'm wondering if you could just give us a little color on what your producer customers are telling you in terms of their plans for 2026 and how you see that translating into supply growth, especially in the Permian. Thanks.
Thanks Zach. Good morning everyone. Um, wanted to ask as, you know, waha prices have been pretty volatile the last few months, um, you know, fourth quarter price is really low, spreads were wide. Then of course, in win in January, we've had this winter storm, so waha prices Spike. So I wonder if you just remind us how EP is impacted, by changes in waha prices, and in both directions,
Natalie Gayden: This is Natalie Gayden. On the G&P side, our Midland volumes are outperforming the expectations, tracking pretty closely with last year's volume growth. So just to give you some color, well connects are at a record high this year of 590. And then in the Delaware, same kind of thing. The growth curve is steepening there, and we've got an estimated 500 wells turning to production this year and more next year. So we're definitely keeping our running shoes on.
Natalie Gayden: This is Natalie Gayden. On the G&P side, our Midland volumes are outperforming the expectations, tracking pretty closely with last year's volume growth. So just to give you some color, well connects are at a record high this year of 590. And then in the Delaware, same kind of thing. The growth curve is steepening there, and we've got an estimated 500 wells turning to production this year and more next year. So we're definitely keeping our running shoes on.
Yeah, this is Todd speaking. Um so as far as a low waha price we have gas transport capacity. So we benefit from a uh higher. We call it west east or west west of South spreads um we'll be able to monetize that.
This is Natalie Gayden. Um, our on the G&P side, our Midland volumes are outperforming the expectations tracking pretty closely with last year's volume growth. So just to give you some color, well, connects are at a record high this year of 590 and then in the Delaware, same kind of thing. The growth curve is steepening there. And we've got an estimated 500 Wells, uh, turning to production this year and, and more next year. So we're definitely keeping our running shoes on.
And with respect to recent volatility, um, on a higher gas price, we do have uh, storage assets that can monetize that as well. So, we benefit from volatility on both sides.
Thank you. 1 moment for our next question.
Our next question comes from the line of Gene and Salsbury from Bank of America.
Great, thanks for that. And then, um, I want to just give us a little color on what your producer customers are telling you in terms of their plans for 2026, and how you see that translating into the PLAG growth, uh, especially in the premium. Thanks.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jean Ann Salisbury from Bank of America.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jean Ann Salisbury from Bank of America.
[Analyst] (Bank of America): Hey, good morning. I don't think you have a ton of exposure to the EMPs announced in the merger yesterday. But just as a more high-level, I guess, theoretical question, can you give your thoughts on how much more negotiating power a large EMP would have over midstream contracts versus two small EMPs, and if there is more consolidation, if that is kind of a negative for midstream?
Jean Ann: Hey, good morning. I don't think you have a ton of exposure to the EMPs announced in the merger yesterday. But just as a more high-level, I guess, theoretical question, can you give your thoughts on how much more negotiating power a large EMP would have over midstream contracts versus two small EMPs, and if there is more consolidation, if that is kind of a negative for midstream?
Hey, good morning. Um, I don't think you have a ton of exposure to the emps. Um, announced in the merger yesterday but just as a more, high level I guess, theoretical question, can you give your thoughts of how much more negotiating power a large EMP would have over Midstream contracts versus 2? Small amps and if there is more consolidation, if that if that is kind of a negative for midstream
That's right. And you want me to?
IG man, this is Jim.
This is Natalie Gayden. Um, our on the G&P side, our Midland volumes are outperforming the expectations tracking pretty closely with last year's volume growth. So just to give you some color, well, connects are a record high this year of 590 and then in the Delaware, same kind of thing. The growth curve is steeping there and we've got an estimated 500 Wells trying to production this year and more next year. So we're definitely keeping our running shoes on.
At uh, seeing value in.
Uh, doing win-win deals.
for producers, whether they be
[Company Representative] (Enterprise Products Partners): Well, you want to try it, and you want me too.
[Company Representative] (Enterprise Products Partners): Well, you want to try it, and you want me too.
Thank you. 1 moment for our next question.
Large Majors or large independents.
A.J. Teague: Hi, Jean Ann. This is Jim.
Jim Teague: Hi, Jean Ann. This is Jim.
[Analyst] (Bank of America): Hi, Jim.
Jean Ann: Hi, Jim.
Our next question comes from the line of Gan and Salsbury from Bank of America.
A.J. Teague: With the people we have, I don't think it makes a difference. Our folks are pretty good at seeing value and doing win-win deals with producers, whether they be large majors or large independents.
Jim Teague: With the people we have, I don't think it makes a difference. Our folks are pretty good at seeing value and doing win-win deals with producers, whether they be large majors or large independents.
[Analyst] (Bank of America): Okay. Very clear. And then as a follow-up.
Jean Ann: Okay. Very clear. And then as a follow-up.
A.J. Teague: Did you expect any other answer, Jean Ann?
Jim Teague: Did you expect any other answer, Jean Ann?
Okay. Very clear. Um and then as a if you expect that, did you expect any other answer Jan? No, not really. Not really. Um but I I appreciate it. Um and uh I I guess there's a follow-up. Um do most of the Midland to Echo crude pipeline contracts roll off in 2028 2029. Um, I know that there have been some discussion of of blending and extending, so not sure if that should kind of be later at this point.
Good morning. Um, I don't think you have a ton of exposure to the emps, um, announced in the merger yesterday, but this is a more high level I guess. Theoretical question, can you give your thoughts of how much more negotiating power a large EMP would have over a Midstream contracts versus 2? Small amps. If there is more consolidation, if that if that is kind of a negative
[Analyst] (Bank of America): No, not really. Not really. But I appreciate it. And I guess as a follow-up, do most of the Midland to Echo crude pipeline contracts roll off in 2028, 2029? I know that there had been some discussion of blending and extending, so not sure if that should kind of be later at this point.
Jean Ann: No, not really. Not really. But I appreciate it. And I guess as a follow-up, do most of the Midland to Echo crude pipeline contracts roll off in 2028, 2029? I know that there had been some discussion of blending and extending, so not sure if that should kind of be later at this point.
Yeah, Gina and this is Jay bainy. Uh,
Right, and you want me to?
I man, this is Jim.
Hi Jim.
James Bany: Yeah, Jean Ann. This is Jay Bany. So for 2028, we have our first contracts roll off. But over really the course of last year and the year prior, we have done not only new contracts to fill that space, but blend and extend. So it's roughly about 20% you'll see roll off in 2028, but we'll be working on that this year next.
James Bany: Yeah, Jean Ann. This is Jay Bany. So for 2028, we have our first contracts roll off. But over really the course of last year and the year prior, we have done not only new contracts to fill that space, but blend and extend. So it's roughly about 20% you'll see roll off in 2028, but we'll be working on that this year next.
So, for 28, we have our first, uh, contracts roll off. But over the really the course of last year, and the year prior, you know, we've done, uh, not only new contracts to fill that space, But blend and extend, so, uh, it's roughly about 20%, uh, you'll see roll off in 28, uh, but we'll be working on that this year, next,
Great. Thank you.
With the people we have, I don't think it's like a difference. Our folks are pretty good at, uh, at, uh, seeing value and doing when when deals with producers, whether that be large Majors or large independents.
Thank you. 1 moment for our next question.
Our next question comes from the line of Jeremy tonette from JP Morgan Securities LLC.
Hi, good morning.
Good morning.
[Analyst] (Bank of America): Great. Thank you.
Jean Ann: Great. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeremy Tonet from J.P. Morgan.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jeremy Tonet from J.P. Morgan.
Very clear. Um, and then did you expect any other answer? No, not really, not really. Um, but I appreciate it. Um, and I guess with a follow-up, do most of the Midland to Echo crude pipeline contracts roll off in 2028, 2029? I know that there has been some discussion of blending and extending, so not sure if that should kind of be later at this point.
[Analyst] (J.P. Morgan): Hi. Good morning.
Jeremy Tonet: Hi. Good morning.
Todd Hanley: Good morning.
Tug Hanley: Good morning.
[Analyst] (J.P. Morgan): Appreciate the color on the 10% EBITDA step up 2025 into 2027 there. Just want to dive in a little bit more with regards to buybacks and the pace thereof. Is there any kind of formula that you think about or other methodology when you think about the buybacks? I think I recall if there's $1 billion of free cash flow, it might be 50% to 60% deployed towards buybacks. And so just kind of trying to figure out how that might work out over the course of the year.
Jeremy Tonet: Appreciate the color on the 10% EBITDA step up 2025 into 2027 there. Just want to dive in a little bit more with regards to buybacks and the pace thereof. Is there any kind of formula that you think about or other methodology when you think about the buybacks? I think I recall if there's $1 billion of free cash flow, it might be 50% to 60% deployed towards buybacks. And so just kind of trying to figure out how that might work out over the course of the year.
Appreciate the caller on the 10%. Uh, I bit a step up 25 into 27 there. Just want to dive in a little bit more with regards to BuyBacks and and the pace thereof. Uh is there any um, kind of formula that you think about or other methodology when when you think about the BuyBacks I think I recall if there's a billion of free cash flow, it might be 50 to 60% deployed towards BuyBacks. And so just kind of trying to figure out how that might uh, you know, work out over the course of the year.
New contracts to fill that space with blending extend, so, uh, it's roughly about 20%. Uh, you'll see roll off in 28, uh, but we'll be working on that this year, next,
Great. Thank you.
yeah, Jeremy and uh, you know, when the prepare of remarks, I pretty much, you know, based on where we currently are when we see 2026,
Thank you. 1 moment for our next question.
uh with uh, with
Our next question comes from the line of Jeremy Tonette from J.P. Morgan Securities LLC.
Hi, good morning.
Randy Fowler: Yeah, Jeremy, in the prepared remarks, I'd pretty much based on where we currently are, when we see 2026 with free cash flow in the neighborhood of $1 billion, we really see that split where 55% to 60% of the buyback would be or 50% to 60% 55% to 60% of the cash flow would be allocated towards the buybacks. And that would really be a it would be some level of opportunistic and some level of programmatic purchases is the way we're currently thinking about it.
Randy Fowler: Yeah, Jeremy, in the prepared remarks, I'd pretty much based on where we currently are, when we see 2026 with free cash flow in the neighborhood of $1 billion, we really see that split where 55% to 60% of the buyback would be or 50% to 60% 55% to 60% of the cash flow would be allocated towards the buybacks. And that would really be a it would be some level of opportunistic and some level of programmatic purchases is the way we're currently thinking about it.
Good morning.
Free cash flow in the neighborhood of uh, billion dollars. We really see that split where 55 to 60% of the buyback, uh, would be uh, or 50 to 60%, 555 to 60% of the cash flow would be allocated towards the BuyBacks and that would really be a a, you know, it would be some level of opportunistic of some level of programmatic purchases. Um, is the way we're currently thinking about it.
Appreciate the caller on the 10% uh even a step up 25 into 27 there. Just want to dive in a little bit more with regards to BuyBacks and and the pace thereof. Uh, is there any um, kind of formula that you think about or other methodology when when you think about the BuyBacks I I think I recall if there's a billion of free cash flow, it might be 50 to 60% deployed to or to buy back and so just kind of trying to figure out how that might uh you know work out over the course of the year.
Got it. Thank you for that and maybe if I could just pick up on the freeze offs uh um 1 more time I wouldn't expect it to be the same type of uplift is Yuri as we saw in the past but could we see the potential for sizable uplift as uh as you know? Um optimization opportunities might have been greater than what you typically see.
yeah, Jeremy and uh, you know, when the prepared remarks I pretty much, you know, based on where we currently are where we see 2026
[Analyst] (J.P. Morgan): Got it. Thank you for that. And maybe if we could just pick up on the freeze-offs one more time. I wouldn't expect it to be the same type of uplift as Yuri, as we saw in the past. But could we see the potential for sizable uplift as optimization opportunities might have been greater than what you typically see?
Jeremy Tonet: Got it. Thank you for that. And maybe if we could just pick up on the freeze-offs one more time. I wouldn't expect it to be the same type of uplift as Yuri, as we saw in the past. But could we see the potential for sizable uplift as optimization opportunities might have been greater than what you typically see?
uh with uh, with
Yeah, this is Tug. Um, you know, I'll just say we saw a production fall off similar to Prior winter events, um, and we're able to more than make that up by optimizing our system. But your was a, a, I would say an exception to every winter storm. So I would not be expecting that.
Got it. Thank you for that.
Todd Hanley: Yeah, this is Todd. I'll just say we saw production fall off similar to prior winter events, and we were able to more than make it up by optimizing our system. But Yuri was, I would say, an exception to every winter storm, so I would not be expecting that.
Tug Hanley: Yeah, this is Todd. I'll just say we saw production fall off similar to prior winter events, and we were able to more than make it up by optimizing our system. But Yuri was, I would say, an exception to every winter storm, so I would not be expecting that.
Thank you. 1 moment for our next question.
Free cash flow in the neighborhood of, uh, a billion dollars. We really see that split, where 55 to 60% of the buyback, uh, would be—uh, or 50 to 60%, 55 to 60% of the cash flow would be allocated towards the buybacks. And that would really be a, you know, it would be some level of opportunistic and some level of programmatic purchases, um, is the way we're currently thinking about it.
Our next question comes from the line of John my from Goldman Sachs.
[Analyst] (J.P. Morgan): Got it. Thank you for that.
Jeremy Tonet: Got it. Thank you for that.
Operator: Thank you. One moment for our next question. Our next question comes from the line of John Mackay from Goldman Sachs.
Operator: Thank you. One moment for our next question. Our next question comes from the line of John Mackay from Goldman Sachs.
Hey team, thank you for the time. Jimmy, you spent a while talking through your kind of international customer base on the NGL side, can you share a little bit more color for us on what you're hearing in terms of demand Trends and maybe have a comparison to to this time last year?
Got it. Thank you for that. And maybe if we could just pick up on the freeze off uh um 1 more time, I wouldn't expect it to be the same type of uplift is Yuri as we saw in the past but could we see the potential for sizable uplift as uh as you know? Um optimization opportunities might have been greater than what you typically see.
Mullet toddler taken.
[Analyst] (Wells Fargo): Hey, team. Thank you for the time. Jim, you spent a while talking through your kind of international customer base on the NGL side. Can you share a little bit more color for us on what you're hearing in terms of demand trends and maybe how that compares to this time last year?
John Mackay: Hey, team. Thank you for the time. Jim, you spent a while talking through your kind of international customer base on the NGL side. Can you share a little bit more color for us on what you're hearing in terms of demand trends and maybe how that compares to this time last year?
Yeah, this is Todd. Um, you know, I'll just say we saw a production fall off similar to Prior winter events, um, and we're able to more than make that up by optimizing our system. But jury was a, I would say an exception to every winter storm. So I would not be expecting that.
A.J. Teague: I'm going to let Tyler take it.
Jim Teague: I'm going to let Tyler take it.
Todd Hanley: Hey, John. This is Tyler Cott. I would say overall, obviously, there's been a lot of noise in the last several months in the international and export markets, but demand has proven to be pretty resilient. US LPG is finding its way into new markets, India and Southeast Asia, other places in Asia. So demand has been pretty healthy. And maybe the ultimate barometer for us is we still have a lot of interest in our export capacity long term, both LPG and ethane.
Tug Hanley: Hey, John. This is Tyler Cott. I would say overall, obviously, there's been a lot of noise in the last several months in the international and export markets, but demand has proven to be pretty resilient. US LPG is finding its way into new markets, India and Southeast Asia, other places in Asia. So demand has been pretty healthy. And maybe the ultimate barometer for us is we still have a lot of interest in our export capacity long term, both LPG and ethane.
Got it. Thank you for that.
Hey John, this is Tyler caught. Um, I would say overall obviously there's been a a lot of noise in the last several months in in the international and Export markets. But demand has proven to be uh, pretty resilient. Um, us LPG is finding its way into new markets, uh, India and Southeast Asia other places in Asia. So um, the man has been pretty healthy and and maybe the ultimate barometer for us is we still have a lot of interest in our export capacity, long term both LPG and Fa
Thank you. One moment for our next question.
Our next question comes from the line of John My from Goldman Sachs.
Hey Tim, thank you for the time. Jimmy spent a while talking through your kind of international customer base on the NGL side. Can you share a little bit more color for us on what you're hearing in terms of demand trends, and maybe have a comparison to this time last year?
[Analyst] (Wells Fargo): Got it. Thanks. So maybe just following up quickly, maybe just to clarify what Spiro asked, it sounds like some of the ramp on the new projects that came into service last year and this year is going to pick up more in 2027, I guess. But could you just walk us through, I guess, any incremental headwinds you're expecting for 2026 versus 2025 that might offset some of that ramp?
Michael Blum: Got it. Thanks. So maybe just following up quickly, maybe just to clarify what Spiro asked, it sounds like some of the ramp on the new projects that came into service last year and this year is going to pick up more in 2027, I guess. But could you just walk us through, I guess, any incremental headwinds you're expecting for 2026 versus 2025 that might offset some of that ramp?
Got it. Thanks. And maybe just following up quickly um move to clarify with Spyro asked. You know. It sounds like some of the ramp on the new projects that came into service last year and this year is going to pick up more in in 27, I guess. But could you just walk us through? I guess, any incremental Tailwind, sorry, headwinds, you're expecting for 26 versus 25 that uh, might offset some of that, some of that ramp
Mullet, Todd or ten.
14 is full.
2 processing plants are virtually full will be.
The ethane terminal, y'all talked about would be full.
End of the year.
And LPG, slow, isn't it?
A.J. Teague: Yes. Zach, here, let me take the first shot at it, Zach. Right. Right. Frac 14 is full. The two processing plants are virtually full, will be. The ethane terminal y'all talked about would be full at the end of the year. LPG is full, isn't it? The expansion, you're well on your way to contracting that. That comes on in Q4?
Jim Teague: Yes. Zach, here, let me take the first shot at it, Zach. Right. Right. Frac 14 is full. The two processing plants are virtually full, will be. The ethane terminal y'all talked about would be full at the end of the year. LPG is full, isn't it? The expansion, you're well on your way to contracting that. That comes on in Q4?
And the expansion you're well on your way.
The Contracting debt that's on that comes on the fourth quarter. Yes.
Hey John, this is Tyler caught. Um, I would say overall obviously there's been a, a lot of noise in the last several months and in the international and Export markets. But demand has proven to be uh, pretty resilient. Um, us LPG is finding its way into new markets, uh, India and Southeast Asia other places in Asia. So the man has been pretty healthy and and maybe the ultimate barometer for us is we still have a lot of interest in our export capacity, long term both LPG and Fa
Did I answer those that I did? Um, I don't headwinds. I don't a lot of the environments. Not, I'll just say, it's a tug on the LPG contract. Well, on our way, we're, you know, 85 to 90% contracted on that even on the expansion even on the expansion. Good.
That thing we're fully. Headwinds are
Todd Hanley: Yes.
Tug Hanley: Yes.
A.J. Teague: Did I answer that all, Zach?
Jim Teague: Did I answer that all, Zach?
I don't know, $40 cruise. I
Got it. Thanks. And maybe just following up quickly um move to clarify with Spyro asked. You know. It sounds like some of the ramp on the new projects that came into service last year and this year is going to pick up more in in 27, I guess. But can you just walk us through? I guess, any incremental, Tailwind, uh sorry, headwinds you're expecting for 26 versus 25 that uh might offset some of that.
Todd Hanley: I think you did. Headwinds. I don't know. The commodity environment's not. I'll just say, as of today, on the LPG contract, well on our way. We're 85% to 90% contracted on that.
Tug Hanley: I think you did. Headwinds. I don't know. The commodity environment's not. I'll just say, as of today, on the LPG contract, well on our way. We're 85% to 90% contracted on that.
Some of that ramp.
you know, the 1, the 1 other, um,
Yes. Is that—can you let me take the first shot at it? Zack, right? 14 is full.
A.J. Teague: Even on the expansion?
Jim Teague: Even on the expansion?
Due processing plants are virtually full will be.
Todd Hanley: Even on the expansion.
Tug Hanley: Even on the expansion.
A.J. Teague: Good.
Jim Teague: Good.
Todd Hanley: Ethane, we're fully contracted.
Tug Hanley: Ethane, we're fully contracted.
A.J. Teague: Those headwinds are, I don't know, $40 crude. It's a headwind.
Jim Teague: Those headwinds are, I don't know, $40 crude. It's a headwind.
The ethane terminal, you all talked about would be full.
End of the year.
And LPG is full, isn't it?
Randy Fowler: Myself.
Randy Fowler: Myself.
Todd Hanley: The one other, I guess, commodity-sensitive business that we have is our octane enhancement business, but that's only 20,000 barrels a day. But it seems like there was a big change from 2024 to 2025, but really from 2025 to 2026, you don't see nearly that magnitude of change. So I wouldn't look for too much of a headwind there.
Tug Hanley: The one other, I guess, commodity-sensitive business that we have is our octane enhancement business, but that's only 20,000 barrels a day. But it seems like there was a big change from 2024 to 2025, but really from 2025 to 2026, you don't see nearly that magnitude of change. So I wouldn't look for too much of a headwind there.
And the expansion you're well on your way.
I guess commodity sensitive business that we have is our octane enhancement business but that's only 20,000 barrels a day. Um, but it seems like the, you know, there was a big change from 24 to 2025, but really from 25 to 26, you don't see nearly that magnitude of of of change. So I wouldn't look for too much of a headwind there.
Contracting that's on that comes on the fourth quarter.
Yes.
No, I don't think there is at all.
All right. Tim appreciate the caller. Thank you.
Did I answer those that I did? Um, I don't
Thank you. 1 moment for our next question.
Our next question comes from the line of manav Gupta from UBS.
Headwinds. In a lot of environments, I'll just say it's a tug on the LPG contract. Well, on our way, we're, you know, 85 to 90% contracted on that—even on the expansion. Even on the expansion. Good.
that thing we're fully content lines are
A.J. Teague: No, I don't think there is at all.
Jim Teague: No, I don't think there is at all.
I don't know. $40 crude, saying.
[Analyst] (Wells Fargo): All right, team. Appreciate the color. Thank you.
Michael Blum: All right, team. Appreciate the color. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Manav Gupta from UBS.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Manav Gupta from UBS.
um,
[Analyst] (UBS): Good morning. First, congrats on the beat and a strong quarter. Second, we look at your partnership with Exxon in a very optimistic way, two giants coming together. And I'm trying to understand, are there more opportunities to collaborate with Exxon? They're obviously looking to get big into power generation with the carbon capture and sequestration, and you have the infrastructure to move carbon dioxide. So can you talk a little bit more about your partnership with Exxon, and can it grow over time, and what are the opportunities over there? Thank you.
Manav Gupta: Good morning. First, congrats on the beat and a strong quarter. Second, we look at your partnership with Exxon in a very optimistic way, two giants coming together. And I'm trying to understand, are there more opportunities to collaborate with Exxon? They're obviously looking to get big into power generation with the carbon capture and sequestration, and you have the infrastructure to move carbon dioxide. So can you talk a little bit more about your partnership with Exxon, and can it grow over time, and what are the opportunities over there? Thank you.
Good morning first. Congrats on the beat and a strong quarter. Uh, second we look at your partnership with Exxon in a very optimistic way. Uh 2, Giants coming together. And I'm trying to understand are there more opportunities to collaborate with Exxon. There are obviously looking to get big into power generation with the carbon capture and sequestration and you have the infrastructure to move carbon dioxide. So can you talk a little bit more about your partnership with Exxon, and and can it grow over time and what are the opportunities over there? Thank you.
Yeah, we touch Exxon.
I guess commodity sensitive business that we have as our octane enhancement business but that's only 20,000 barrels a day. Um, but it seems like the, you know, there was a big change from 24 to 2025, but really from 25 to 26, you don't see nearly that magnitude of of of change. So I wouldn't look for too much of a headwind there.
And so many places I can't count it.
No, I don't think there is at all.
All right. Thank you.
And we will continue to try to do more deals with Exxon. We like them. I don't think carbon capture will be in the portfolio.
Thank you. 1 moment for our next question.
Thank you.
Our next question comes from the line of manav Gupta from UBS.
A.J. Teague: Yeah. We touch Exxon in so many places, I can't count it. And we will continue to try to do more deals with Exxon. We like them. I don't think carbon capture will be in the portfolio.
Jim Teague: Yeah. We touch Exxon in so many places, I can't count it. And we will continue to try to do more deals with Exxon. We like them. I don't think carbon capture will be in the portfolio.
Thank you. 1 moment for our next question.
Our next question comes from the line of Jason gableman from TD Cowen.
[Analyst] (UBS): Thank you.
Manav Gupta: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jason Gabelman from TD Cowen.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jason Gabelman from TD Cowen.
[Analyst] (J.P. Morgan): Yeah. Hey, morning. Thanks for taking my questions. I noticed in the press release, there was mention of sour gas treating and capacity expansion, and then potential opportunity to expand activity on the acquisition from Oxy. And the question is really, does that kind of support you filling up your Y-grade pipelines out of the Permian Basin to get over the 60% utilization on the Bahia pipeline, or does that present upside to that number?
Jeremy Tonet: Yeah. Hey, morning. Thanks for taking my questions. I noticed in the press release, there was mention of sour gas treating and capacity expansion, and then potential opportunity to expand activity on the acquisition from Oxy. And the question is really, does that kind of support you filling up your Y-grade pipelines out of the Permian Basin to get over the 60% utilization on the Bahia pipeline, or does that present upside to that number?
Good morning first. Congrats on the beat and a strong quarter. Uh, second we look at your partnership with Exxon in, in a very optimistic way, uh, 2, Giants coming together. And I'm trying to understand, are there more opportunities to collaborate with Exxon. They are obviously looking to get big into power generation with the carbon capture and sequestration and you have the infrastructure to move carbon dioxide. So, can you talk a little bit more about your partnership with Exxon, and and can it grow over time and what are the opportunities over there? Thank you.
Yeah, we touch Exxon and so many places. I can't count it.
Yeah, hey morning, thanks for taking my questions. Um, I I, I noticed in the press release. You there was mention of uh, sour gas Street and capacity expansion and then uh, potential opportunity to expand activity on um, the uh, acquisition from oxy. And the question is really, does that kind of support? Um you filling up your y-grade pipelines out of the Permian Basin um to get over the 60% utilization on the Baja pipeline. Um or does that present upside to that number?
First of all, we said we were at 80% utilization.
And we will continue to try to do more deals with Exxon. We like them. I don't think carbon capture will be in the portfolio.
Thank you.
Thank you. 1 moment for our next question.
so uh, we're pretty, we're pretty close to getting to the 600 as we speak or the 1.2 million as we speak Natalie, you want to speak to the other
Our next question comes from the line of Jason gableman from TD Cowen.
A.J. Teague: First of all, we said we were at 80% utilization. So we're pretty close to getting to the 600 as we speak or the 1.2 million as we speak. Natalie, you want to speak to the other?
Jim Teague: First of all, we said we were at 80% utilization. So we're pretty close to getting to the 600 as we speak or the 1.2 million as we speak. Natalie, you want to speak to the other?
Natalie Gayden: I would just say that our G&P footprint is a stronghold on feeding the downstream pipelines. So any gas that we go win or packages of gas that we bring through the gathering and processing system are good for that. So yes, an expansion of Piñon and OxyRock volumes eventually coming in a big way in 2027 to us is good for the NGL portfolio.
Natalie Gayden: I would just say that our G&P footprint is a stronghold on feeding the downstream pipelines. So any gas that we go win or packages of gas that we bring through the gathering and processing system are good for that. So yes, an expansion of Piñon and OxyRock volumes eventually coming in a big way in 2027 to us is good for the NGL portfolio.
I would just say that our GMP footprint is a strong. Hold on, feeding the downstream pipelines. So um, any gas that we go when or packages a gas that we bring through the Gathering and processing system. Um are good for that. So yes, an expansion of pinion and and um oxy Rock volumes eventually coming in a big way in 2027 to us. Um is good for the NGL portfolio.
Yeah, hey, good morning, thanks for taking my question. Um, I noticed in the press release there was mention of, uh, sour gas treating capacity expansion, and then, uh, potential opportunity to expand activity on, um, the acquisition from Oxy. And the question is really, does that kind of support, um, you filling up your Y-grade pipelines out of the Permian Basin to get over the 60% utilization on the Baja pipeline, um, or does that present upside to that number?
First of all, we said we were at 80% utilization.
[Analyst] (J.P. Morgan): Got it. Sorry for misspeaking on that number. My follow-up, if I could ask another, is just on the opportunity on the propane side on your product pipelines in Q1 of the year, given the cold weather in the Northeast. Can you just talk about what you're seeing in that system moving propane up the product pipelines? Thanks.
Jeremy Tonet: Got it. Sorry for misspeaking on that number. My follow-up, if I could ask another, is just on the opportunity on the propane side on your product pipelines in Q1 of the year, given the cold weather in the Northeast. Can you just talk about what you're seeing in that system moving propane up the product pipelines? Thanks.
Got it and, and sorry for misspeaking on that number. Um, my my follow-up if I could ask another, um, is just on the opportunity, on the propane side on your product pipelines in the first quarter of the Year, given given the cold weather in the Northeast, uh, could you just talk about what you're seeing in that system? Moving, uh, propane up the product pipelines. Thanks,
So, uh, we're pretty close to getting to the 600 as we speak, or the 1.2 million as we speak. Natalie, you want to speak to the other—
Yeah, Jason. I'd say all of our our propane pipeline saw, um, really strong demand ramping towards the end of the year and January has been, uh, as strong, uh, potential as strong as January of, uh, 2025. It's not stronger.
All right, thanks.
[Analyst] (UBS): Yeah. Jason, I'd say all of our propane pipelines saw really strong demand ramping towards the end of the year. And January has been as strong as January of 2025, if not stronger.
Manav Gupta: Yeah. Jason, I'd say all of our propane pipelines saw really strong demand ramping towards the end of the year. And January has been as strong as January of 2025, if not stronger.
Thank you. 1 moment for our next question.
I would just say that our GMP footprint is a strong, hold on, feeding the downstream pipeline. So um, any gas that we go when our packages of gas that we bring through the Gathering and processing system. Um, are good for that. So yes, the an expansion of pinion and and um oxy Rock volumes eventually coming in a big way in 2027 to us. Um is good for the NGL portfolio.
[Analyst] (J.P. Morgan): All right. Thanks.
Jeremy Tonet: All right. Thanks.
Uh, thanks for the time, everyone. Um, I wanted to start on the natural gas segment. Um, looks like Q4 results saw a decent benefit from Gas marketing there.
Operator: Thank you. One moment for our next question. Our next question comes from the line of AJ O'Donnell from Tudor, Pickering, Holt & Co.
Operator: Thank you. One moment for our next question. Our next question comes from the line of AJ O'Donnell from Tudor, Pickering, Holt & Co.
Got it and and sorry for missing on that number. Um, my my follow-up. If I could ask another, um, is just on the opportunity on the propane side on your product pipelines in the first quarter of the Year, given given the cold weather in the Northeast, uh, could you just talk about what you're seeing in that system? Moving, uh, propane up the product pipelines. Thanks,
[Analyst] (Tudor, Pickering, Holt & Co.): Thanks for the time, everyone. I wanted to start on the natural gas segment. Looks like Q4 results saw a decent benefit from gas marketing there. I wanted to if you could talk about your intentions on how to manage that marketing space going forward, particularly in the back half of the year and into 2027 as we start to see dips around Waha narrow significantly.
A.J. O'Donnell: Thanks for the time, everyone. I wanted to start on the natural gas segment. Looks like Q4 results saw a decent benefit from gas marketing there. I wanted to if you could talk about your intentions on how to manage that marketing space going forward, particularly in the back half of the year and into 2027 as we start to see dips around Waha narrow significantly.
Um I wanted to, you know, if you could talk about your intentions on how to manage that marketing space going forward um particularly in the back half of the year and into 2027 as uh we start to see diffs around waha um narrow significantly.
Yeah, this is Tug um, with respect to that space, we do have um, an open position um, on our on our natural gas capacity.
Yeah, Jason. I'd say all of our propane pipelines—all, um, really strong demand. Ramping towards the end of the year and January's been, uh, as strong, uh, potentially as strong as January of 2025, if not stronger.
All right, thanks.
Thank you. One moment for our next question.
Todd Hanley: Yeah. This is Todd. With respect to that space, we do have an open position on our natural gas capacity. As far as managing that space long-term, if there's an opportunity to bundle with a G&P deal, provide an integrated solution for one of our customers, we'll evaluate that and contract that out long-term. And in the short-term, we'll monetize that with any short-term opportunity or volatility. And I'll pass it to Natalie.
Tug Hanley: Yeah. This is Todd. With respect to that space, we do have an open position on our natural gas capacity. As far as managing that space long-term, if there's an opportunity to bundle with a G&P deal, provide an integrated solution for one of our customers, we'll evaluate that and contract that out long-term. And in the short-term, we'll monetize that with any short-term opportunity or volatility. And I'll pass it to Natalie.
As far as management space long term. Um, if there's an opportunity to bundle the GMP deal, provide integrated solution for 1 of our customers, we'll evaluate that. And contract that at long term and in the short term, we'll monetize that um, with any short-term opportunity or volatility and I'll pass it to Natalie.
Our next question comes from the line of AJ O'Donnell from Tudor, Pickering, Holt & Company.
I don't have too much to add other than remember our Midland contracts. Um are are basically popped with few floors. So as that gas price, strengthens its um,
Uh, thanks for the time, everyone. Um, I wanted to start on the natural gas segment. Um, looks like Q4 results saw a decent benefit from gas marketing there.
Um, I wanted to
Which has been kind of supported. I guess you'll see the 4 BC, F or 4, and a half BCF. That's coming online and this year
And a stronger waha basis will get the benefit of that too.
Natalie Gayden: I don't have too much to add other than remember, our Midland contracts are basically pop with few floors. So as that gas price strengthens, which has been kind of supported, I guess you'll see the 4 BCF or 4.5 BCF that's coming online this year. And a stronger Waha basis will get the benefit of that too. As Todd mentioned, anytime we try to pair the rest of the position that we sorry, the capacity that we can sell, it's always paired with G&P.
Natalie Gayden: I don't have too much to add other than remember, our Midland contracts are basically pop with few floors. So as that gas price strengthens, which has been kind of supported, I guess you'll see the 4 BCF or 4.5 BCF that's coming online this year. And a stronger Waha basis will get the benefit of that too. As Todd mentioned, anytime we try to pair the rest of the position that we sorry, the capacity that we can sell, it's always paired with G&P.
Um, we've we've have
Has tug mentioned anytime we try to pair.
You know, if you could talk about your intentions on how to manage that marketing space going forward, um, particularly in the back half of the year and into 2027, as, uh, we start to see GIFs around Waha, um, narrow significantly.
Uh the rest of the position that we sorry, the capacity that we can sell. It's always paired with GMP.
Okay, thanks for the caller. Um 1 more. If I can sneak it in just to clarifying. Question on uh this Hainesville Acadian expansion. Curious if you could just provide some more detail behind the the project like anything about the size. Also curious like you know what type of customer is really driving that expansion or are these coming from public or private? Producers thanks.
[Analyst] (Tudor, Pickering, Holt & Co.): Okay. Thanks for the color. One more, if I can sneak it in, just a clarifying question on this Haynesville Acadian expansion. Curious if you could just provide some more detail behind the project, anything about the size. Also curious, what type of customer is really driving that expansion? Are these coming from public or private producers? Thanks.
A.J. O'Donnell: Okay. Thanks for the color. One more, if I can sneak it in, just a clarifying question on this Haynesville Acadian expansion. Curious if you could just provide some more detail behind the project, anything about the size. Also curious, what type of customer is really driving that expansion? Are these coming from public or private producers? Thanks.
Hey, this is Natalie Gayden um that's an expansion of the Gathering system. So um
Increasing treating and and our reach, I guess you could say. It's a mix of private and public.
Okay, thank you.
Natalie Gayden: Hey, this is Natalie Gayden. That's an expansion of the gathering system. So increasing treating and our reach, I guess you could say, it's a mix of privates and publics.
Natalie Gayden: Hey, this is Natalie Gayden. That's an expansion of the gathering system. So increasing treating and our reach, I guess you could say, it's a mix of privates and publics.
Thank you. 1 moment for our next question.
Our next question comes from the line of Julian Doolin Smith from Jeffrey.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Julian Dumoulin-Smith from Jefferies.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Julian Dumoulin-Smith from Jefferies.
[Analyst] (Jefferies): Hey, good morning, team. Thank you guys very much. I appreciate it. Nice to be on here. Maybe to follow up a little bit on the 2027 conversation, just to talk to the texture of the 2027 CapEx guidance, you had a few projects announcements this morning. Can you speak to how much of that initial FY 2027 CapEx is spoken for? Would new incremental project announcements represent incremental CapEx on that FY 2027 range of $2 to 2.5, by chance? And I've got a follow-up.
Julien Dumoulin-Smith: Hey, good morning, team. Thank you guys very much. I appreciate it. Nice to be on here. Maybe to follow up a little bit on the 2027 conversation, just to talk to the texture of the 2027 CapEx guidance, you had a few projects announcements this morning. Can you speak to how much of that initial FY 2027 CapEx is spoken for? Would new incremental project announcements represent incremental CapEx on that FY 2027 range of $2 to 2.5, by chance? And I've got a follow-up.
Hey, good morning team, thank you guys very much. I appreciate it. Uh, nice to be on here. Um, let me just follow up a little bit on the 27 conversation, just to talk to the texture of the 27, capex guidance. You you had a few projects announcements this morning, can you speak to how much of that initial FY 27 capex is spoken for would new incremental project. Announcements represent incremental capex on that FY 27 range of 2 to 2 and a half by chance and I've got to follow up.
Yeah. Um this is Randy uh you know the the runs that we threw out up to 2.9 billion, those are some
Randy Fowler: Yeah. This is Randy. The range that we threw out up to $2.9 billion, that includes some projects that we've got eyesight on that we've not FIDed and not announced. So I think we've got some leeway to fill up that $2.9 billion. But again, as you've heard on the call with some of the growth that we were seeing, we're expecting to be at the top end of that range for 2026. And for 2027, I think we're still in that range of $2 to 2.5 billion.
Randy Fowler: Yeah. This is Randy. The range that we threw out up to $2.9 billion, that includes some projects that we've got eyesight on that we've not FIDed and not announced. So I think we've got some leeway to fill up that $2.9 billion. But again, as you've heard on the call with some of the growth that we were seeing, we're expecting to be at the top end of that range for 2026. And for 2027, I think we're still in that range of $2 to 2.5 billion.
Do men Smith from Jeffrey.
That includes some projects that we've got. I shot on that. We've not FID and not announced. So I think we've got some leeway um to fill up that 2.9 billion. But again um as you've heard on the call with some of the growth that we were seeing we're expecting to be at the top end of that range.
for 20206 and for 2027, I think we're still in that range of
2 to 2.5.
Hey, good morning team, thank you guys very much. I appreciate it. Uh, nice to be on here. Um, maybe to follow up a little bit on the 27 conversation, just to talk to the texture of the 27, capex guidance. You you had a few projects announcements this morning, can you speak to how much of that initial FY 27 capex is spoken for would new incremental project. Announcements represent incremental capex on that FY 27 range of 2 to 2 and a half by chance and I've got a follow up.
Right. Exactly excellent. And and and just clarifying 27 real quickly. Uh in terms of the ibida guidance itself, you're saying you expect double digit, uh, growth here 26 versus 27 just to clarify here. Um, and and and just what are the it's go for.
[Analyst] (Jefferies): Right. Exactly. Excellent. And just clarifying 2027 real quickly in terms of the EBITDA guidance itself, you're saying you expect double-digit growth here, 2026 versus 2027, just to clarify here. And just what are the go for it.
Keith Stanley: Right. Exactly. Excellent. And just clarifying 2027 real quickly in terms of the EBITDA guidance itself, you're saying you expect double-digit growth here, 2026 versus 2027, just to clarify here. And just what are the go for it.
Yeah. Um this is Randy uh you know the the runs that we threw out up to 2.9 billion, those are some
Yeah, uh, thank you for that. Uh, yeah. The clarification is our current expectation, is that, we would see the dog growth in the neighborhood of uh, 10%, uh, 2027 over 2026. And again, from 2025 to 2026 really just modest growth.
Randy Fowler: Yeah. Thank you for that. Yeah. The clarification is our current expectation is that we would see double-digit growth in the neighborhood of 10% 2027 over 2026. And again, from 2025 to 2026, really just modest growth. And probably one other thing I would clarify from an earlier question with Spiro. I think what Jim said, a lot of that, there's a lot of ratability in our fourth-quarter earnings just from a business standpoint. But I will remind you, fourth quarter and first quarter are seasonally stronger businesses. So don't straight-line this.
Randy Fowler: Yeah. Thank you for that. Yeah. The clarification is our current expectation is that we would see double-digit growth in the neighborhood of 10% 2027 over 2026. And again, from 2025 to 2026, really just modest growth. And probably one other thing I would clarify from an earlier question with Spiro. I think what Jim said, a lot of that, there's a lot of ratability in our fourth-quarter earnings just from a business standpoint. But I will remind you, fourth quarter and first quarter are seasonally stronger businesses. So don't straight-line this.
That includes some projects that we've got. I saw on that, we've not FID and not announced, so I think we've got some leeway, um, to fill up that $2.9 billion. But again, um, as you've heard on the call, where some of the growth that we were seeing, we're expecting to be at the top end of that range.
for 20206 and for 2027, I think we're still in that range of
2 to 2.5.
And probably 1 other thing I would clarify from an earlier uh question with Spyro. I think what Jim said, a lot of that. There's a lot of rat ability in our our fourth quarter uh earnings just from a business standpoint but I will remind you fourth quarter and first quarter or seasonally stronger businesses. So don't straight line this
Right. Exactly excellent. And and, and just clarifying 27 real quickly. Uh, in terms of the IBA guidance itself, you're saying you expect double digit, uh, growth here 26 versus 27 just to clarify here.
Um, and, and just, what are the—if—go for it.
Right. Absolutely. And then just speaking of extensions on the here real quickly with the uji with Exxon. Can you talk a little bit about the opportunities there especially if you think about volumes, ultimately Landing, in the mont Bellevue complex here? I mean, just where could that go next if you think forward the next steps here?
[Analyst] (Jefferies): Right. Absolutely. And then just speaking of expansions, on the here real quickly with the UJI, with Exxon, can you talk a little bit about the opportunities there, especially as you think about volumes ultimately landing in the Mont Belvieu complex here? I mean, just where could that go next as you think forward, the next steps here, potentially incremental 2027 CapEx or onwards?
Keith Stanley: Right. Absolutely. And then just speaking of expansions, on the here real quickly with the UJI, with Exxon, can you talk a little bit about the opportunities there, especially as you think about volumes ultimately landing in the Mont Belvieu complex here? I mean, just where could that go next as you think forward, the next steps here, potentially incremental 2027 CapEx or onwards?
Yeah, uh, thank you for that. Uh, yeah. The clarification is our current expectation, is that, we would see the dog growth in the neighborhood of uh, 10%, uh, 2027 over 2026. And again, from 2025 to 2026 really just modest growth.
And probably 1 other.
Justin Kleiderer: Yeah. This is Justin Kleiderer. Yeah. So we're off on the expansion as backed by Exxon. It is a UJI, so Exxon has rights to make connections on the origin and destination front as they see fit, as Jim also alluded to. We executed 12 downstream agreements. That speaks to the overall breadth of our relationship with Exxon. So it was a good transaction for Bahia, and I think it brings Exxon Enterprise closer together. And we'll see where it goes from there.
Justin Kleiderer: Yeah. This is Justin Kleiderer. Yeah. So we're off on the expansion as backed by Exxon. It is a UJI, so Exxon has rights to make connections on the origin and destination front as they see fit, as Jim also alluded to. We executed 12 downstream agreements. That speaks to the overall breadth of our relationship with Exxon. So it was a good transaction for Bahia, and I think it brings Exxon Enterprise closer together. And we'll see where it goes from there.
To clarify from an earlier question—was it Spyro? I think what Jim said, a lot of that, there's a lot of ratability in our fourth quarter earnings just from a business standpoint. But I will remind you, fourth quarter and first quarter are seasonally stronger businesses, so don't straight line this.
Yeah this is Justin cler. Um yeah so we're off on the expansion um as backed by by Exxon um it is a uji. So Exxon has um rights to make connections on the origin and destination front as they see fit as. As Jim. Uh also alluded to we we executed 12 Downstream agreements that speaks to the overall breadth of our relationship, um, with Exxon. So it was a good transaction for Bahia. Um, and I think it brings excellent Enterprise closer together and we'll see where it goes from there.
All right, fair enough guys. Best of luck talk soon.
Thank you. 1 moment for our next question.
Right. Absolutely. And then just speaking of extensions on the here real quickly with the uji with Exxon. Can you talk a little bit about the opportunities there especially if you think about volumes, ultimately Landing in the M, Belleview complex here. I mean, just where could that go next, as you think forward, the next steps here?
Our next question comes from the line of Keith Stanley from Wolfe research.
Potentially incremental, 27 capex.
[Analyst] (Jefferies): All right. Fair enough, guys. Best of luck. Talk soon.
Keith Stanley: All right. Fair enough, guys. Best of luck. Talk soon.
Yeah, this is Justin Clier. Um, yeah, so we're off on the expansion, um, as backed by—
Operator: Thank you. One moment for our next question. Our next question comes from the line of Keith Stanley from Wolfe Research.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Keith Stanley from Wolfe Research.
[Analyst] (Wolfe Research): Hi. Good morning. And want to revisit the 2027 commentary as well, if I can, Randy. 10% growth would be over $1 billion of EBITDA growth in just one year. I was looking back. That'd be the fastest organic growth for the company, really, this decade. It sounds like a lot of that is from the LPG expansion and Neches River. But is there anything else you would highlight that's big and chunky, particularly in 2027? And then separately, I just want to make sure, Bahia, as it's a UJI, that's treated on a net basis, right? So that's not consolidated in your EBITDA or anything like that.
Julien Dumoulin-Smith: Hi. Good morning. And want to revisit the 2027 commentary as well, if I can, Randy. 10% growth would be over $1 billion of EBITDA growth in just one year. I was looking back. That'd be the fastest organic growth for the company, really, this decade. It sounds like a lot of that is from the LPG expansion and Neches River. But is there anything else you would highlight that's big and chunky, particularly in 2027? And then separately, I just want to make sure, Bahia, as it's a UJI, that's treated on a net basis, right? So that's not consolidated in your EBITDA or anything like that.
Hi, good morning, and, and want to revisit the, uh, the 2027 commentary as well. If I can, Randy 10% growth would be over a billion dollars of ebit, dog, growth in. Just 1 year. I was looking back, that'd be the fastest organic growth for the company, really? This decade. Um, it sounds like a lot of that is from the LPG expansion and they just River. But is there anything else you would highlight? That's, that's Big And Chunky, particularly in 27. And then separately I just want to make sure but he uh as it's a uji that's treated on a net basis, right? So that's not Consolidated in your
Even dot or anything like that.
By Exxon um it is a uji. So Exxon has um rights to make connections on the origin and destination front as they see fit as. As Jim. Uh also alluded to we we executed 12 Downstream agreements that speaks to the overall breadth of our relationship, um, with Exxon. So it was a good transaction for Bahia. Um, and I think it brings excellent Enterprise closer together and we'll see where it goes from there.
All right, fair enough guys. Best of luck talk soon.
I tell you what, won't we handle your last question first. Daniel, you want to take that?
Thank you. 1 moment for our next question.
Yes, you J. I will be proportionately Consolidated so we will only report our our share of that investment
Our next question comes from the line of Keith Stanley from Wolfe Research.
Good morning. And
Want to revisit the, uh, the 2027.
Yeah, and then, um, keep back on your earlier question. Um,
Randy Fowler: I'll tell you what. Won't we handle your last question first? Daniel, you want to take that? The boss.
Randy Fowler: I'll tell you what. Won't we handle your last question first? Daniel, you want to take that? The boss.
Really.
[Company Representative] (Enterprise Products Partners): Yes. UJI will be proportionately consolidated. So we will only report our share of that investment.
[Company Representative] (Enterprise Products Partners): Yes. UJI will be proportionately consolidated. So we will only report our share of that investment.
Randy Fowler: Got it. Yeah. And then to keep back on your earlier question, really, I would say across the board, I mean, if you start with our NGL segment, you'll have we've got another plant that will be coming up, a processing plant that will be coming up in the Delaware later in Q1. So you'll get a full year of benefit there. There's another processing plant that we're looking to bring on in the Midland Basin at the end of this year that you would get a full year benefit from in 2027. With the OxyRock acquisition that we made, you'll see more benefit from it in 2027. And then really, if you think about all the downstream that comes with that, and I'll go back to Treater 4, you would get a full year benefit of Treater 4.
Randy Fowler: Got it. Yeah. And then to keep back on your earlier question, really, I would say across the board, I mean, if you start with our NGL segment, you'll have we've got another plant that will be coming up, a processing plant that will be coming up in the Delaware later in Q1. So you'll get a full year of benefit there. There's another processing plant that we're looking to bring on in the Midland Basin at the end of this year that you would get a full year benefit from in 2027. With the OxyRock acquisition that we made, you'll see more benefit from it in 2027. And then really, if you think about all the downstream that comes with that, and I'll go back to Treater 4, you would get a full year benefit of Treater 4.
You know, I would say across the board. I mean if you start with our NGL segment, you'll have a you know, we we've got another plant that will be coming up processing plant, that will be coming up in the Delaware um
Andy, 10% growth would be over a billion dollars of EBITDA growth in just one year. I was looking back, that'd be the fastest organic growth for the company, really, this decade. Um, it sounds like a lot of that is from the LPG expansion and the just River. But is there anything else you would highlight that's big and chunky, particularly in '27? And then separately, I just want to make sure, but as it's a UJV, that's treated on a net basis, right? So that's not consolidated in your EBITDA or anything like that?
I tell you what, why don't we handle your last question first. Daniel, do you want to take that?
yes you I will be proportionately Consolidated so we will only report our our share of that investment
got it.
Yeah, and then, um, Keith back on your earlier question. Uh, really.
In first later in the first quarter. So you'll get a full year of benefits there, there's a lot of the processing plant that we're looking to bring on in the Midland Basin. Um, at the end of this year that you would get the full year benefit from in 2027, uh, with the oxy Rock acquisition, uh, that we made, you'll see, uh, more benefit from it in 2027. Um, and then, um, really then all the if you think about, then all the downstream that comes with that and I and I and I'll go back treat her for 4, you would get a full benefit full year benefit of Trader, 4 trigger 5 you will come in and get benefits from there as well as the uh the incremental expansions on the acid gas. And then just think about all of that flowing down through
You know, I would say across the board. I mean, if you start with our NGL segment, you'll have a—you know, we've got another plant that will be coming up, processing plant, that will be coming up in the Delaware, um...
Screen through but he a pipeline into the fractionators and then into the uh, distribution system and across the Marine Corps.
Randy Fowler: Treater 5, you will come in and get benefit from there as well as the incremental expansions on the acid gas. Then just think about all of that flowing downstream through Bahia Pipeline into the fractionators and then into the distribution system and across the marine terminals.
Randy Fowler: Treater 5, you will come in and get benefit from there as well as the incremental expansions on the acid gas. Then just think about all of that flowing downstream through Bahia Pipeline into the fractionators and then into the distribution system and across the marine terminals.
That as well. We have a lot of higher fees kicking on our padian Hazel system as well.
Todd Hanley: Yeah. This is something I'll add as well. We have a lot of higher fees kicking on our Acadian Haynesville system as well.
Tug Hanley: Yeah. This is something I'll add as well. We have a lot of higher fees kicking on our Acadian Haynesville system as well.
That's that's helpful color. Thanks for uh thanks for that. Had a, a quick follow-up on the NGL marketing so very strong quarter in Q4 it. You know you almost matched a year ago when you had those very wide export arbs. What types of activities are driving strong in jail Marketing in Q4 and and what are your expectations for 26? Do you see that as as an area of upside?
[Analyst] (Wolfe Research): That's helpful color. Thanks for that. Had a quick follow-up on the NGL marketing. So very strong quarter in Q4. You almost matched a year ago when you had those very wide export ARBs. What types of activities are driving strong NGL marketing in Q4, and what are your expectations for 2026? Do you see that as an area of upside?
Julien Dumoulin-Smith: That's helpful color. Thanks for that. Had a quick follow-up on the NGL marketing. So very strong quarter in Q4. You almost matched a year ago when you had those very wide export ARBs. What types of activities are driving strong NGL marketing in Q4, and what are your expectations for 2026? Do you see that as an area of upside?
We had a, we had a, this is Tug, we had a lot of storage opportunities. Um, we had high utilization on our, uh, FN export, um, assets, um, you know, just it would be just a mixed bag of standard opportunities that they present themselves. We always capture
Okay, thank you.
In 2027, uh, with the oxy Rock acquisition, uh, that we made, you'll see, uh, more benefit from it in 2027. Um, and then, um, really then all the if you think about, then all the downstream that comes with that and I and I and I'll go back trigger 4, you would get a full benefit full year benefit of trigger, 4, trigger 5 you will come in and get benefits from there as well as the uh the incremental expansion on the acid gas. And then just think about all of that flowing Downstream through the heel pipeline into the fractionators and then into the uh, distribution system and across the Marine terms
Todd Hanley: We had a lot. This is Todd. We had a lot of storage opportunities. We had high utilization on our FAN export assets. It would be just a mixed bag of standard opportunities that they present themselves. We always capture.
Tug Hanley: We had a lot. This is Todd. We had a lot of storage opportunities. We had high utilization on our FAN export assets. It would be just a mixed bag of standard opportunities that they present themselves. We always capture.
Yeah, this is that as well.
Thank you. 1 moment for our next question.
We have a lot of
Taking on our decian, panjul system as well.
Our next question comes from the line of Brandon Bingham from Scotia Bank.
[Analyst] (Wolfe Research): Okay. Thank you.
Julien Dumoulin-Smith: Okay. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Brandon Bingham from Scotiabank.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Brandon Bingham from Scotiabank.
That's that's helpful color. Thanks for uh thanks for that. Had a, a quick follow-up on the NGL marketing so very strong quarter in Q4 at you know you almost matched a year ago when you had those very wide export arbs. What types of activities are driving strong NGL marketing, and Q4. And and what are your expectations for 26? Do you see that as as an area of upside?
[Analyst] (Scotiabank): Hi. Good morning. Just one quick one here, and it might be a little early, but I'll take a shot either way. Just thinking back to that Oxy gathering deal, do you see any potential for more of the same types of deals on the horizon given this recent M&A news in the upstream side, or do you kind of see inorganic spend as maybe lower priority now given the expected macro outlook this year?
Brandon Bingham: Hi. Good morning. Just one quick one here, and it might be a little early, but I'll take a shot either way. Just thinking back to that Oxy gathering deal, do you see any potential for more of the same types of deals on the horizon given this recent M&A news in the upstream side, or do you kind of see inorganic spend as maybe lower priority now given the expected macro outlook this year?
Hi, good morning uh just 1 quick 1 here, and it might be a little early, but I'll take a shot either way, just thinking back to that oxygen deal. Do you see any potential for more of the same types of deals on the horizon? Given this recent m&a news in the Upstream side? Or do you kind of see an organic spend as maybe lower priority? Now given the expected macro Outlook this year?
I don't see as many girls on the Dance Floor.
Okay.
We had a, we had a, this is Tug, we had a lot of storage opportunities. Um, we had high utilization on our, uh, FN export, um, assets, um, you know, just it would be as soon as that they present themselves, we always capture
Okay, thank you.
A.J. Teague: This is Jim. I don't see as many girls on the dance floors as there used to be.
Jim Teague: This is Jim. I don't see as many girls on the dance floors as there used to be.
Thank you at this time. I would now like to turn the conference back over to Libby Strait for closing remarks.
You 1 moment for our next question.
Thank you to our participants for joining us today that concludes our remarks have a good day.
Our next question comes from the line of Brandon Bingham from Scotia Bank.
[Analyst] (Scotiabank): Okay.
Brandon Bingham: Okay.
This concludes today's conference call, thank you for participating. You may now disconnect
Operator: Thank you. At this time, I would now like to turn the conference back over to Libby Strait for closing remarks.
Operator: Thank you. At this time, I would now like to turn the conference back over to Libby Strait for closing remarks.
Libby Strait: Thank you to our participants for joining us today. That concludes our remarks. Have a good day.
Libby Strait: Thank you to our participants for joining us today. That concludes our remarks. Have a good day.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Hi, good morning uh just 1 quick 1 here, and it might be a little early, but I'll take a shot either way, just thinking back to that oxygen deal. Do you see any potential for more of the same types of deals on the horizon? Given this recent m&a news in the Upstream side? Or do you kind of see an organic spend as maybe lower priority? Now given the expected macro Outlook this year?
Okay.
Thank you at this time. I would now like to turn the conference back over to Libby Strait for closing remarks.
Thank you to our participants for joining us today. That concludes our remarks. Have a good day.
This concludes today's conference call.
Mhm.
Good day and thank you for standing by. Welcome to the fourth quarter, 2025 Enterprise Products Partners LP earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 1 again.
Please be advised that today's conference is being recorded, I would now like to hand the conference over to your speaker today Libby Strait vice president of investor relations. Please go ahead.
Good morning, and welcome to the Enterprise Products Partners conference call to discuss fourth quarter 2025 earnings.
Our speakers today will be Co-Chief Executive Officers of Enterprises General Partner, Jim Teague and Randy Fowler.
Other members of our senior management team are also in attendance for the call today.
During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, based on the beliefs of the company as well as assumptions made by, and information currently available to, Enterprise’s management team.
Other management beliefs that the expectations reflected in such forward-looking statements are reasonable. It can give no assurance that such expectations will prove to be correct.
Please refer to our latest filing to the FCC for a list of factors that may cause actual results to differ materially from those. In the forward-looking statements made during this call with that. I'll turn it over to Jim. Thank you. Thank you. Lady lady.
The headline for the fourth quarter.
For the record 2.7 billion of a dollar.
testing the previous record of 2.67, the fourth quarter of 2024
We brought on a number of Assets in 2025.
Track 14 in mid October.
went down West in, Orion near
Several gathering and treating projects in the Permian.
At nitrous River terminal, ethane export train mid year.
Mid-year startup of dealing with exports to Canada.
And finally, we're here at NGO pipeline in December.
all these assets are performed, well,
but they can also fill those holes created by decline in our commodity sensitive businesses and marketing spreads
Market reality, check the year.
Good oil prices average about 12 dollars a barrel lower than in 2024.
That reduced many of the price and spreads we've been updated limited from over the prior three years.
Product name Market. Margins. Were weaker in 2025?
a large 10-year LPG export contract, originally signed at double digits,
Which we contracted at market rates.
Rgp, pgp spreads, were 14 cents a pound. And the fourth quarter of 2024, but only 3 cents a pound and the fourth quarter of 2025 which is an extension
Of a reflection of the weakness in the housing market.
During 24 and 25.
We renegotiated our rgp purchaser purchase agreements to a fixed fee structure.
Which makes our split splitter, business largely spread agnostic.
Splitters are now essentially at a note.
We're fully contracted on our ethene export terminals, and all 20 processing trains that we have, we will have online and that permanent by year-end.
Granting exports.
Typically ships must be built in receiving terminals constructed to ultimately ramp to full utilization.
And our dogs, with that being said, however, the ship seemed to be coming earlier than the receiving.
Processing, while production growth goes over time. The two trains we brought on
Midpoint mid year 2025 are virtually full today.
CX LPG exports are highly contracted through the end of this decade, and we continue to see strong interest for additional long-term commitments.
We expect modest growth in 2026 as these assets and the assets we're bringing on in 2026 continue to ramp.
Nice layer is doubted by him in the beginning.
but that is to be expected when you first
Begin shoe is an integrated system, has 1.2 million barrels to capacity and are running at 80%.
Having Exxon as a UJI partner and agreed to expand by here to 1 million barrels per day.
As a win for both Enterprise and exile.
Associated with the uji or a dozen Downstream agreements.
On the export front, Enterprise continues to expand its MGL export franchise.
In 2025, we loaded between 350 and 360 million barrels across 744 ships, and that will only grow as we complete Phase 2 of the Nature's River terminal.
LPG expansion of the Houston Ship Channel.
By next year, we expect the exporting near 1 and a half million barrels day of NGL.
Or 550 million.
No basis.
Little history lesson.
We've been doing international business, since 1983.
And we built our LPG, import terminal.
1999, we expanded the facility.
Filling it to include export capabilities.
Many of our customers have been with us for more than 20 years.
I know us.
They know how we know that they behave.
They like how we operate, they'll more than just customers relationships. Like that tend to be very sticky.
We look, we spend a lot of time with our customers around the world and domestically, for example, over the holidays, I was in Thailand meeting with 3, large, petrochemical companies.
Christina was in Europe in the fourth quarter and we could be back in March.
On the crew. Team Carrie, Weaver was in Asia in October, J, bainy will be in Europe later this month.
She yells, God bless Tyler, caught and his travels. Tyler was in Asia in November, with stops in Korea and India, and will be in Europe this month and now, and back to Asia in March.
Finally talking, I'll be in Japan next month to visit several export customers.
We're equally focused on our domestic customers but our producers at the chemicals with honors Traders or wholesale, we deliver roughly 25 million barrels a month.
I think the us crackers. That's silly.
It's around 300 million barrels a year.
In total, we move over 14 million barrels per day of oil-equivalent through our 50,000-mile pipeline network. Additionally, the Partnership looks at its storage hubs as a critical part of its infrastructure to support its customers.
Pushing Midland, Houston and Mont belby.
These are all open access systems where our customers can trade freely without any concern of being held hostage.
If we are proud of our record 2.7 billion of them in the fourth quarter but as investors look to them to the future I would encourage you to look beyond the numbers.
Long term success is driven by our culture, our teamwork our creativity and a laser focus on customer relationships. Those intangibles are what give rise to the numbers. You see each quarter
Thank you, Jim. Uh, good morning, everyone.
Starting with the income segments items, net income attributable to common unitholders was $1.6 billion, or $0.75 per common unit.
