Q1 2026 Enterprise Products Partners LP Earnings Call

April 28, 2026

Speaker #1: Thank you for standing by, and welcome to ENTERPRISE PRODUCTS PARTNERS L.P.'s first quarter 2026 earnings conference call. Currently, all participants are in a listen-only mode.

Operator: Thank you for standing by, and welcome to Enterprise Products Partners L.P.'s Q1 2026 earnings conference call. Currently, 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. To remove yourself from the queue, you'll need to press star 11 again. I would now like to hand the call over to Joseph Theriac, Vice President of Finance and Investor Relations. Please go ahead.

Speaker #1: 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.

Speaker #1: To remove yourself from the queue, you'll need to press star 11 again. I would now like to hand the call over to Joe Thiriac, Vice President of Finance and Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thanks, Latif. Good morning, and welcome to the ENTERPRISE PRODUCTS PARTNERS conference call to discuss first quarter 2026 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.

Joseph Theriac: Thanks, Lateef. Good morning, and welcome to the Enterprise Products Partners conference call to discuss Q1 2026 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's general partner, A.J. Teague and W. Randall 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.

Joe Theriac: Thanks, Lateef. Good morning, and welcome to the Enterprise Products Partners conference call to discuss Q1 2026 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's general partner, A.J. Teague and W. Randall 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.

Speaker #2: During this call, we will make forward-looking statements within the meaning of Section 21(e) of the Securities and 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.

Speaker #2: Although management believes that the expectations reflected in such forward-looking statements are reasonable and 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.

Joseph Theriac: 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 A.J. Teague.

Joe Theriac: 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 A.J. Teague.

Speaker #2: And with that, I'll turn it over to Jim.

Speaker #3: Thank you, Jim. We got off to a very strong start this year, and the business is performing well across the board. In the first quarter, we generated $2.7 billion of EBITDA in a short quarter, and this was up 10% over last year.

Jim Teague: Thank you, Joe. We got off to a very strong start this year. The business is performing well across the board. In Q1, we generated $2.7 billion of EBITDA in a short quarter. This was at 10% over last year. We generated 1.8 times coverage of our distributable cash flow. By any measure, this was an exceptional quarter. The assets we brought online over the past year, including the Bahia NGL Pipeline, Frac 14, and 3 premium natural gas processing plants, continued to ramp throughout the quarter. In fact, Frac 14 was full on day one. The gas plants were essentially full by mid-Q. If you look at Bahia and Cheniere as a system, they are running at 80% of a combined 1.2 million barrels a day of capacity. Operationally, the quarter was outstanding.

Speaker #3: We generated 1.8 times coverage of our distributable cash flow. By any measure, this was an exceptional quarter. The assets we brought online over the past year—including the Bahia NGL pipeline—approximated $14.3 per million. Natural gas processing plants continued to ramp throughout the quarter.

Speaker #3: In fact, fract 14 was full on day one. The gas plants were essentially full by mid-quarter, and if you look at Bahia and Chinook as a system, they are running at 80% of a combined $1.2 million barrels a day of capacity.

Speaker #3: Operationally, the quarter was outstanding. We set multiple operating records across the system. With the addition of Midtown West 2 in the Delaware Basin during the first quarter, we set a new record for gas processing plant and inlet volumes.

Jim Teague: We set multiple operating records across the system. With the addition of Mentone West 2 in the Delaware Basin during the first quarter, we set a new record for gas processing plant in inlet volumes. We processed 8.3 billion cubic feet per day of natural gas. That was up 7% from last year. We fractionated 1.9 million barrels per day of NGLs. That was up 16%. We loaded 2.3 million barrels per day of hydrocarbons at our docks, up 15%. We transported 14.2 million barrels of oil equivalent per day, up 7%. In total, we set 12 new volumetric records for the first quarter. Those results speak to both the scale of our system and the demand we are seeing across the markets we serve.

Speaker #3: We processed 8.3 billion cubic feet per day of natural gas. That was up 7% from last year. We fractionated $1.9 million barrels per day of NGOs.

Speaker #3: That was up 16%. We loaded 2.3 million barrels per day of hydrocarbons at our docks, up 15%. We transported 14.2 million barrels of oil-equivalent per day, up 7%.

Speaker #3: In total, we set 12 new volumetric records for the first quarter. Those results speak to both the scale of our system and the demand we are seeing across the markets we serve.

Speaker #3: On the market side, commodity prices were volatile throughout most of the quarter. And we tend to embrace volatility. In January, winter storm Fern gave us a strong start to the year.

Jim Teague: On the market side, commodity prices were volatile throughout most of the quarter, and we tend to embrace volatility. In January, Winter Storm Fern gave us a strong start to the year. Elevated demand for natural gas and propane created price dislocations across our asset network as producers faced widespread supply disruptions following the short drop in temperatures. Our trucks, pipelines, and storage facilities enabled us to continue meeting customer needs despite these challenges. While our marketing teams and asset flexibility allowed us to capture incremental value, this was only the beginning of the volatility we experienced during the quarter. The ongoing conflict in the Middle East and restricted flows through the Strait have driven a substantial increase in demand for all forms of US energy, petrochemicals, and refined products.

Speaker #3: Elevated demand for natural gas and propane created price dislocations across our asset network, as producers faced widespread supply disruptions following the short drop in temperatures.

Speaker #3: Our trucks, pipelines, and storage facilities enabled us to continue meeting customer needs despite these challenges, while our marketing teams and asset flexibility allowed us to capture incremental value—and this was only the beginning of the volatility we experienced during the quarter.

Speaker #3: The ongoing conflict in the Middle East and restricted flows through the Strait have driven us substantial increase in demand for all forms of U.S.

Speaker #3: energy petrochemicals and refined products. The supply shock dramatically improved U.S. petrochemical margins, prompting our domestic petrochemical customers to run their units full out. One week before the start of the war in Iran, ethane-to-ethylene cracking margins were about 7 cents a pound.

Jim Teague: The supply shock dramatically improved US petrochemical margins, prompting our domestic petrochemical customers to run their units full out. One week before the start of the war in Iran, ethane to ethylene cracking margins were about $0.07 a pound. Today, they're at $0.23. The ethylene to polyethylene spread was $0.20 per pound. Now it's over $0.45. It's no wonder why my former employer's stock is up over 50% year-to-date. International demand for US feedstocks is as strong as we have seen in quite some time. The loss of Middle East hydrocarbon supply fractured this Asian supply chain. China's PDHs we hear are currently operating at less than 50% of capacity. As a result, Asian petrochemicals have been destocking inventories by consuming derivative inventories.

Speaker #3: Today, they're at 23. The ethylene-to-polyethylene spread was $0.20 per pound; now it's over $0.45. It's no wonder why my former employer's stock is up over 50% year to date.

Speaker #3: International demand for U.S. feedstocks is as strong as we have seen in quite some time. The loss of Middle East hydrocarbon supply fractured this Asian supply chain.

Speaker #3: China's PDHs are currently—we here are currently operating at less than 50% of capacity. As a result, Asian petrochemicals have been destocking inventories by consuming derivative inventories.

Speaker #3: The impact to hydrocarbon markets around the world has been significant, and we see this strong demand continue, through the remainder of 2026 and maybe into 2027.

Jim Teague: The impact to hydrocarbon markets around the world has been significant. We see this strong demand continue through the remainder of 2026 and maybe into 2027. The demand pool is showing up very, very clearly in our marine export business. Our crude oil terminals are benefiting from volumes being released from the U.S. Strategic Petroleum Reserve that are being directed to international markets. Our ethane and LPG customers continue to line up at our docks for US NGL feedstocks. In Q1, we averaged around 70 million barrels per month across our docks. We expect that strength to continue into Q2 as we are scheduled to load more than 88 million barrels in April. On the upstream side, we continue to build on the momentum in our system.

Speaker #3: The demand pull is showing up very clearly in our marine export business. Our crude oil terminals are benefiting from volumes being released from the U.S.

Speaker #3: Strategic Petroleum Reserve that are being directed to international markets, and our ethane and LPG customers continue to line up at our docks for U.S.

Speaker #3: NGO feedstocks. In the first quarter, we averaged around 70 million barrels per month across our docks, and we expect that strength to continue into the second quarter as we are scheduled to load more than 88 million barrels in April.

Speaker #3: On the upstream side, we continue to build on the momentum in our system. Producer activity remains constructive in the basins where we operate, and our assets are well positioned to capture volume growth.

Jim Teague: Producer activity remains constructive in the basins where we operate, and our assets are well-positioned to capture volume growth. The combination of strong supply, growing export demand, and new projects ramping into service is creating real operating leverage across the business. We also saw strong contributions from the downstream side. In addition to record product flows, strong margins across our assets, and high utilization at our PDH facilities that supported solid earnings and cash flow for the quarter. Our new assets are ramping well. Volumes are at record levels. Demand remains strong both domestically and internationally, and our system is performing the way it was built to perform. We entered 2026 expecting steady production growth and oversupplied markets, which we thought would lead to another year of relatively benign commodity prices. That has clearly not been the case.

Speaker #3: The combination of strong supply, growing export demand, and new projects ramping into service is creating real operating leverage across the business. We also saw strong contributions from the downstream side.

Speaker #3: In addition to record product flows, strong margins across our assets and high utilization at our PDH facilities—that's supported solid earnings and cash flow for the quarter.

Speaker #3: Our new assets are ramping while volumes are at record levels; demand remains strong, both domestically and internationally, and our system is performing the way it was built.

Speaker #3: To perform, we entered 2026 expecting steady production growth and oversupplied markets, which we thought would lead to another year of relatively benign commodity prices.

Speaker #3: That is clearly not been the case. Today, we believe the financial markets are underestimating the potential global supply implications from a prolonged closure of the Strait at Hormuz.

Jim Teague: Today, we believe the financial markets are underestimating the potential global supply implications from a prolonged closure of the Strait of Hormuz. Depending on the industry expert you ask, anywhere from 12 to 15 million barrels a day of crude oil, refined products, LPG, and petrochemical supplies are constrained. That is almost half a billion barrels of hydrocarbon supplies off the market every month. Shipping and geopolitical commentators estimate that the earliest the strait could reopen for normal air operations, including vessel repositioning, is July. That does not account for the time required to repair onshore production and refining facilities damaged in the war. Until global supplies and inventories return to normal, we believe there will continue to be strong international demand for US energy and products.

Speaker #3: Depending on the industry experts you ask, anywhere from 12 to 15 million barrels a day of crude oil, refined products, LPG, and petrochemical supplies are constrained.

Speaker #3: That is almost half a billion barrels of hydrocarbon supplies off the market every month. Shipping and geopolitical commentators estimate that the earliest the Strait could reopen for normal operations—including vessel repositioning—is July, and that does not account for the time required to repair onshore production and refining facilities damaged in the war.

Speaker #3: Until global supplies and inventories return to normal, we believe there will continue to be strong international demand for U.S. energy and products. We also see international consumers look to increase purchases of U.S.

Jim Teague: We are also seeing international consumers look to increase purchases of U.S. energy as an avenue to improve the U.S. trade balance and add greater resilience and security to their energy supply chains, given the current disruption of product flows in the Middle East. After Q1, we are encouraged by the momentum we are seeing across the business and increasingly confident in the outlook for the year. At the same time, we remain focused on what matters most, operating safely, serving our customers reliably, allocating capital with discipline, and creating long-term value for our investors. With that, I'll turn it over to Randy.

Speaker #3: energy as an avenue to improve their U.S. trade balance and add greater resilience and security to their energy supply chains. Given the current disruption of product flows in the Middle East, after the first quarter, we are encouraged by the momentum we are seeing across the business and increasingly confident in the outlook for the year.

Speaker #3: At the same time, we remain focused on what matters most: operating safely, serving our customers reliably, allocating capital with discipline, and creating long-term value for our investors.

Speaker #3: With that, I'll turn it over to Randy.

Speaker #4: Thank you, Jim, and good morning, everyone. Starting with the income statement items, net income attributable to common unitholders for the first quarter of 2026 was $1.5 billion.

Randy Fowler: Thank you, Jim, and good morning, everyone. Starting with the income statement items, net income attributable to common unitholders for Q1 2026 was $1.5 billion or $0.68 per common unit on a fully diluted basis, which is a 6% increase compared to Q1 2025. Adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital increased 10% to $2.3 billion for Q1 2026 compared to $2.1 billion for Q1 2025. We declared a distribution of $0.55 per common unit for Q1 2026, which is a 2.8% increase over the distribution declared for Q1 2025.

Speaker #4: Or 68 cents per common unit on a fully diluted basis, which is a 6% increase compared to the first quarter of 2025. Adjusted cash flow from operations—which is cash flow from operating activities before changes in working capital—increased 10% to 2.3 billion for the first quarter of 2026 compared to 2.1 billion for the first quarter of 2025.

Speaker #4: We declared a distribution of $0.55 per common unit for the first quarter of 2026, which is a 2.8% increase over the distribution declared for the first quarter of 2025.

Speaker #4: The distribution will be paid May 14th to common unit holders of record as of close of business on April 30th. We are on track for 28 consecutive years of distribution growth in 2026.

Randy Fowler: The distribution will be paid 14 May to common unit holders of record as of close of business on 30 April. We are on track for 28 consecutive years of distribution growth in 2026. To our knowledge, this is the longest period of distribution growth of any US midstream company and is example of Enterprise's consistency and commitment to returning capital directly to our unit holders. The partnership purchased 3.1 million common units off the open market during Q1 for approximately $116 million. In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 1 million common units on the open market for $37 million during Q1. For the 12 months ended 31 March 2026, Enterprise returned approximately $5.1 billion of capital to our equity investors.

Speaker #4: To our knowledge, this is the longest period of distribution growth of any U.S. midstream company and is an example of enterprises consistency and commitment to returning capital directly to our unit holders.

Speaker #4: The partnership purchased 3.1 million common units off the open market during the first quarter for approximately $116 million. In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 1 million common units on the open market for $37 million during the first quarter.

Speaker #4: For the 12-months-ended March 31, 2026, enterprise returned approximately 5.1 billion dollars of capital to our equity investors. 93% or approximately 4.8 billion was in the form of cash distributions to limited partners, and the remaining 77% through 356 million of buybacks.

Randy Fowler: 93% or approximately $4.8 billion was in the form of cash distributions to limited partners, and the remaining 77% through $356 million of buybacks. Our payout ratio of adjusted cash flow from operations was 57% over this period. Since our IPO in 1998, we have prioritized returning capital to our partners, returning over $63 billion through distributions and buybacks. At the same time, we have reinvested capital to build one of the largest energy infrastructure networks in North America. Total capital investments were $988 million in Q1 2026, which included $783 million of growth capital projects and $205 million of sustaining capital expenditures.

Speaker #4: Our payout ratio of adjusted cash flow from operations was 57% over this period. Since our IPO in 1998, we have prioritized returning capital to our partners, returning over $63 billion through distributions and buybacks.

Speaker #4: At the same time, we have reinvested capital to build one of the largest energy infrastructure networks in North America. Total capital investments were $988 million in the first quarter of 2026, which included $783 million of growth capital projects and $205 million of sustaining capital expenditures.

Speaker #4: In the first quarter, we also received the final payment of $596 million from ExxonMobil for the purchase of a 40% interest in the Bahia NGL pipeline.

Randy Fowler: In Q1, we also received the final payment of $596 million from ExxonMobil for the purchase of a 40% interest in the Bahia NGL Pipeline. With the completion of major projects such as the Bahia NGL Pipeline and Neches River Terminal, we believe our expected range of growth capital expenditures for 2026 will net to $2.3 to $2.6 billion after applying approximately $600 million in proceeds from asset sales already received. For 2027, we expect our growth capital expenditures to be in the area of $2 to 2.5 billion. Sustaining capital expenditures for 2026 are expected to be approximately $580 million.

Speaker #4: With the completion of major projects such as the Bahia NGL Pipeline and Natchez River Terminal, we believe our expected range of growth capital expenditures for 2026 will net to $2.3 to $2.6 billion, after applying approximately $600 million in proceeds from asset sales already received.

Speaker #4: For 2027, we expect our growth capital expenditures to be in the area of 2 to 2 and a half billion dollars. Sustaining capital expenditures for 2026 are expected to be approximately 580 million dollars.

Speaker #4: On the fourth quarter, 2025 earnings call, we stated that discretionary free cash flow for 2026 had the potential to be in the 1 billion dollar area.

Randy Fowler: On the Q4 2025 earnings call, we stated that discretionary free cash flow for 2026 had the potential to be in the $1 billion area. Even though our estimate of growth capital expenditures for 2026 has increased by $300 million as a result of investments in 2 new natural gas processing plants in the Permian, we still believe discretionary cash flow for 2026 has the potential to be in the billion-dollar area, and depending on commodity prices and spreads for the remainder of the year, could be higher. In terms of allocation of capital, as we have said many times, we see cash distributions to partners grow in commensurate with operational distributable cash flow per unit. Let me repeat that.

Speaker #4: Even though our estimate of growth capital expenditures for 2026 has increased by 300 million dollars as a result of investments in two new natural gas processing plants in the Permian, we still believe discretionary cash flow for 2026 has to be has the potential to be in the billion dollar area.

Speaker #4: And depending on commodity prices and spreads for the remainder of the year, could be higher. In terms of allocation of capital as we have said many times, we see cash distributions to partners grow in commensurate with operational distributable cash flow per unit.

Speaker #4: Let me repeat that as we have said many times. We think distributions to partners will grow commensurate with operational distributable cash flow per unit growth.

Randy Fowler: As we have said many times, we think distributions to partners will grow commensurate with operational distributable cash flow per unit growth. In the near term, we continue to expect discretionary free cash flow to be split between buybacks and retiring debt. In 2026, we still expect this split would be approximately 50% to 60% in buybacks. As we have said before, Enterprise's buyback program has both programmatic and opportunistic elements. In periods of momentum and volatility characterized by higher equity prices, we may elect not to chase price and instead retain cash in the opportunistic bucket for buybacks in future periods when momentum has ended.

Speaker #4: In the near term, we continue to expect discretionary free cash flow to be split between buybacks and retiring debt. In 2026, we still expect this split would be approximately 50 to 60 percent in buybacks.

Speaker #4: As we have said before, enterprises' buyback program has both programmatic and opportunistic elements. In periods of momentum and volatility, characterized by higher equity prices, we may elect not to chase price and instead retain cash in the opportunistic bucket for buybacks in future periods when momentum has ended.

Speaker #4: Similarly, in periods when there are significant price dislocations in equity prices, we may elect to pull cash forward, earmark for buybacks in future periods such as bringing cash forward from 2027 to buyback the partnership units at more opportunistic prices in the near term.

Randy Fowler: Similarly, in periods when there are significant price dislocations in equity prices, we may elect to pull cash forward, earmarked for buybacks in future periods, such as bringing cash forward from 2027 to buy back the partnership units at more opportunistic prices in the near term. Our total debt principal outstanding was approximately $34.2 billion as of 31 March 2026. Assuming the final maturity date for 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 95% of our debt was fixed. At 31 March, our consolidated liquidity was approximately $3.3 billion, including availability under our credit facilities and unrestricted cash on hand. As Jim mentioned, adjusted EBITDA increased 10% to $2.7 billion for Q1 2026.

Speaker #4: Our total debt principal outstanding was approximately $34.2 billion as of March 31, 2026. Assuming the final maturity date for our hybrids, the weighted average life of our debt portfolio is approximately 17 years.

Speaker #4: Our weighted average cost of debt was 4.7% and approximately 95% of our debt was fixed. At March 31, our consolidated liquidity was approximately 3.3 billion.

Speaker #4: Including availability under our credit facilities and unrestricted cash on hand. As Jim mentioned, adjusted EBITDA increased 10% to $2.7 billion for the first quarter of 2026.

Speaker #4: As of March 31, 2026, our consolidated leverage ratio decreased to 3.2 times on a net basis after adjusting debt for the partial equity treatment of our hybrid debt and reduced by the partner's unrestricted cash on hand.

Randy Fowler: As of 31 March 2026, our consolidated leverage ratio decreased to 3.2 times on a net basis after adjusting debt for the partial equity treatment of our hybrid debt and reduced by the Partners' unrestricted cash on hand. Our current leverage ratio reflects significant investment in the large-scale projects that we recently brought into service, such as the Bahia NGL Pipeline, Neches River Terminal, and Frac 14, and the midstream asset acquisition from Occidental, where the debt is on the balance sheet, but the resulting annual adjusted EBITDA generation from these investments is yet to flow into our 12-month trailing EBITDA numbers. Our overall leverage target remains at 3 times plus or minus 0.25 times or 2.75 to 3.25. With that, Joe, I think we can open it up for questions.

Speaker #4: Our current leverage ratio reflects significant investment in the large-scale projects that we recently brought into service such as the Bahia NGL pipeline, Port Natchez Terminal, and Fract 14, and the Midstream Asset Acquisition from Occidental, where the debt is on the balance sheet but the resulting annual adjusted EBITDA generation from these investments is yet to flow into our 12-month trailing EBITDA number.

Speaker #4: Our overall leverage target remains at 3 times, plus or minus 0.25 times, or 2.75 to 3.25. With that, Joe, I think we can open it up for questions.

Speaker #1: Thanks, Randy. Latif, we are ready to open the call for questions.

Speaker #3: Thank ank you.

Speaker #4: As a reminder to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again.

Joseph Theriac: Thanks, Randy. Latif, we are ready to open the call for questions.

Joe Theriac: Thanks, Randy. Latif, we are ready to open the call for questions.

Operator: As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. Please limit yourself to one question and one follow-up or two questions to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster. Our first question comes from the line of Theresa Chen of Barclays. Your line is open, Theresa.

Speaker #4: Please limit yourself to one question and one follow-up or two questions to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster.

Speaker #4: Our first question comes from the line of Teresa Chen at Barclays. Your line is open, Teresa.

Speaker #5: Good morning. Following up on the comments about the uptick for U.S. energy demand in general and export infrastructure demand in particular, can you walk us through the contract duration profile across your export docs today?

Theresa Chen: Good morning. Following up on the comments about the uptick for US energy demand in general and export infrastructure demand in particular, can you walk us through the contract duration profile across your export docks today? Specifically, how much capacity is tied to contracts with near-term expirations that could be recontracted at higher rates? Longer-term, how much incremental brownfield expansion capability do you have across your export assets?

Speaker #5: Specifically, how much capacity is tied to contracts with near-term expirations that could be recontracted at higher rates? And longer-term, how much incremental brownfield expansion capability do you have across your export assets?

Speaker #6: Hi, Teresa. This is Tyler Cott. I'll speak to the NGL exports specifically. I think we've said before, our NGL export docs, our contracted around the range of 90%.

Tyler Cott: Hi, Theresa. This is Tyler Cott. I'll speak to the NGL export specifically. I think we've said before, our NGL export docks are contracted around the range of 90%. On LPG, those contracts go through the end of this decade. On ethane, they extend, you know, 10 to 20 years, depending on contracts, so lengthy duration. We have 10% available for spot capacity in the near term, but long term, we're significantly contracted.

Speaker #6: On LPG, those contracts go through the end of this decade. On FA, they extend 10 to 20 years depending on contracts. So lengthy duration.

Speaker #6: We have 10% available for spot capacity in the near term, but long-term, we're significantly contracted.

Speaker #5: Okay. And on the LPG side, in particular, given the recent strength in LPG export ARPs, alongside the commissioning timeline for phase two of the Natchez River expansion, can you talk about the incremental earnings uplift or cash uplift from spot cargoes in the interim?

Theresa Chen: Okay. On the LPG side, in particular, given the recent strength in LPG export ARBs, alongside the commissioning timeline for Phase two of the Neches River expansion, can you talk about the incremental earnings uplift or cash uplift from spot cargoes in the interim? Related to this, when do you expect Phase two officially enter service to support your term commitments with customers?

Speaker #5: And related to this, when do you expect Phase Two to officially enter service to support your term commitments with customers?

Speaker #6: Sure. This is Tyler Cott again. Our operations team has done a fantastic job expediting a bit the commissioning of Natchez River Terminal. We're still in the process of commissioning it.

Tyler Cott: Sure. This is Tyler Cott again. Our operations team has done a fantastic job expediting a bit the commissioning of Neches River Terminal. We are still in the process of commissioning it. We began in H2 of April, and at this point, we expect to complete commissioning for both ethane and propane sometime in May. In terms of spot utilization, and earnings uplift, we really got to get through the commissioning process here and see what we have. I think an important point to note about our export business going forward is we have a significant amount of flexibility, our spot business will be dictated across different products in terms of what the market needs at a given time.

Speaker #6: We began in the second half of April, and at this point, we expect to complete commissioning for both FA and propane sometime in May.

Speaker #6: In terms of spot utilization, and earnings uplift, we really got to get through the commissioning process here and see what we have. I think an important point to note about our export business going forward is we have a significant amount of flexibility.

Speaker #6: So our spot business will be dictated across different products in terms of what the market needs at a given time.

Speaker #7: Okay. Yeah. Hey, Teresa, this is Jay Bainey. Just on the crew front of that, we've got a pretty wide mix of contract structures. So contracts that last through '28 and '29.

Joseph Theriac: Jay?

Jim Teague: Jay?

Joseph Theriac: Yeah. Hey, Theresa, this is Jay Bany. Just on the crude front of that, we've got a pretty wide mix of contract structures, contracts that last through 2028 and 2029. Similar for 2026, we have about 10% of open capacity. Yes, I think we're having good conversations about 2027.

Jay Bany: Yeah. Hey, Theresa, this is Jay Bany. Just on the crude front of that, we've got a pretty wide mix of contract structures, contracts that last through 2028 and 2029. Similar for 2026, we have about 10% of open capacity. Yes, I think we're having good conversations about 2027.

Speaker #7: And similar for '26, we have about 10% of open capacity. And yes, I think we're having good conversations about '27.

Speaker #5: Thank you.

Speaker #4: Thank you. Our next question. Comes from the line of Spiro Dunis of Citi. Your line is open, Spiro.

Theresa Chen: Thank you.

Operator: Thank you. Our next question comes from the line of Spiro Dounis of Citi. Your line is open, Spiro.

Speaker #8: Thanks, operator. Good morning, team. I want to go back to the growth outlook really quickly. Jim, you sound incrementally more positive than when we last caught up.

Spiro Dounis: Thanks, operator. Good morning, team. Want to get back to the, to the growth outlook really quickly. Jim, you sound incrementally more positive than when we last caught up. Obviously, a lot has changed. Randy, you seem to indicate that your operating cash flow is gonna have at least a sort of mirror the increase in CapEx to keep that DCF free cash flow kind of stable. You know, curious if you just give us an update on the sort of 3% growth you guys are talking about for 2026 and the 10% growth you were talking about for 2027 on the last call. As you answer that question, just curious if these two new processing plants are additive to that 2027 outlook.

Speaker #8: Obviously, a lot has changed. And then, Randy, you seem to indicate that you're operating cash flow is going to have at least a sort of mirror the increase in CapEx to keep that DCF free cash flow kind of stable.

Speaker #8: So you're curious if you could just give us an update on the sort of 3% growth you guys are talking about for '26, and the 10% growth you were talking about for 2027 on the last call.

Speaker #8: And as you answer that question, just curious if these two new processing plants are additive to that '27 outlook.

Speaker #9: Well, this is Jim. Yeah, I think I said 'modest' in '26 and 10% in '27. I think we'll beat 'modest' here.

Jim Teague: Spiro, this is Jim. Yeah, I think I said modest in 2026 and 10% in 2027. I think we'll beat modest.

Speaker #8: I mean, as you think about. Sorry, go ahead.

Speaker #9: Yeah, yeah, Spiro, I sort of like the point you made in your note that probably 'modest' is a low bar now. And I think you're right.

Spiro Dounis: Randy, Sorry, go ahead.

Spiro Dounis: Sorry, go ahead.

Randy Fowler: Yeah, Spiro, I sort of like the point you made in your note that probably modest is a low bar now, and I think you're right. You know, again, it's sort of hard to come in and look at 2026 because again, just what's the duration of these commodity prices gonna be and the duration of spread. Really shaping up to be a much stronger year than what we expected. Again, because we're really coming in and not expecting much benefit at all from commodity or spread, and really we're relying on our fee-based businesses. Really hard to come in and give much guidance because it's sort of you don't have much visibility, especially when you come in and look at the futures market.

Speaker #9: Again, it's sort of hard to come in and look at 2026 because, again, just what's the duration of these commodity prices going to be?

Speaker #9: And the duration of spreads. So really shaping up to be a much stronger year than what we expected. And again, because we were really coming in and not expecting much benefit at all from commodity or spread and really were relying on our fee-based businesses.

Speaker #9: So really hard to come in and give much guidance because it's sort of you don't have much visibility, especially when you come in and look at the futures market because we don't think the futures market really is representative of what the physical markets could be.

Speaker #9: So but the endpoint is 2026 looks to be much more favorable year than what we first started. We commercial guys team did a great job in underwriting two more natural gas processing plants in the Permian.

Randy Fowler: We don't think the futures market really is representative of what the physical markets should be. At the endpoint is 2026 looks to be much more favorable year than when we first started. We commercial guys team did a great job in underwriting 2 more natural gas processing plants in the Permian, which really, you know, they will come on during 2027. We really did not have those baked into our 2027 numbers at the time, so that would be additive. From the same token, you know, I think we're still in good shape to come in and do meaningful buyback and meaningful debt retirement in 2026, even with CapEx ticking up a little bit for these 2 new plants.

Speaker #9: Which really, they will come on during 2027. We really did not have those baked into our 2027 numbers at the time. So that would be additive.

Speaker #9: And then from the same token, I think we're still in good shape to come in and do meaningful buyback and meaningful debt retirement in 2026.

Speaker #9: Even with CapEx ticking up a little bit for these two new plants. Yeah. And Spiro, I've been around a while. And I have never seen a supply disruption like we're experiencing today.

Jim Teague: Yeah. Swear I've been around a while, and I have never seen a supply disruption like we're experiencing today. That supply disruption creates a lot of benefits that Enterprise is able to capture.

Speaker #9: And that supply disruption creates a lot of benefits that enterprise is able to capture.

Speaker #4: Yeah, and that's actually a good segue to the second question. Jim, you also talked about embracing volatility, and I know if we go back a few years ago, you used to sort of talk about this sort of $500 million or so of outsized spread gains you guys would sort of find in any given year.

Spiro Dounis: Yeah. That's actually a good segue to the second question. Jimmy also talked about embracing volatility. I know we go back a few years ago, you used to sort of talk about this sort of $500 million or so of outsized spread gains you guys would sort of find in any given year. That's been absent for about maybe the last 2 years or so. Just curious if it sounds like that's back. You know, I don't wanna put too fine a number on it, but in the environment you're seeing now, do you think you see a return to that $500 million? You know, what parts of the market do you see that from? Obviously, export being a big one.

Speaker #4: That's been absent for about maybe the last two years or so. Just curious if it sounds like that's back. I don't want to put too fine a number on it, but in the environment you're seeing now, do you think we see a return to that $500 million?

Speaker #4: And what parts of the market do you see that from? Obviously, export being a big one.

Speaker #9: I don't know. I don't know if it's going to be 500 million, 600 million, or 700 million, frankly. But I do expect that we're going to have what you call outsized spreads frankly.

Jim Teague: I don't know if it's going to be $500 million, $600 million or $700 million, frankly. I do expect that we're going to have what you call outsized spreads, frankly. Typically, we have it every year. We just don't know which spread it will be. Last year was pretty benign and unusual for us. As to what specifically it might be, I will throw it to Tug.

Speaker #9: Typically, we have it every year. We just don't know which spread it'll be. Last year, was pretty benign and unusual for us. As to what specifically it might be, I'll throw it to Tug.

Speaker #7: Yeah. This is Tug. I'll just add. I mean, this first quarter, we had some outsized spreads on natural gas winter storm firm presented some opportunities.

Michael Hanley: This is Tug. I'll just add, I mean, this Q1, we had some outsized spreads on natural gas. Winter Storm Fern presented some opportunities. Largely the spreads that we've seen post Iranian conflict, those will come Q2.

Tug Hanley: This is Tug. I'll just add, I mean, this Q1, we had some outsized spreads on natural gas. Winter Storm Fern presented some opportunities. Largely the spreads that we've seen post Iranian conflict, those will come Q2.

Speaker #7: But largely, the spreads that we've seen post-Iranian conflict those will come second quarter.

Speaker #4: Great. A couple of color guys. I'll leave it there. Thank you.

Speaker #10: Thank you. Our next question. Comes from the line of Gene and Salisbury. A B of A. Your line is open, Gene.

Spiro Dounis: Great. Helpful. Helpful color, guys. I'll leave it there. Thank you.

Operator: Thank you. Our next question comes from the line of Jean Ann Salisbury of BofA. Your line is open, Jeanne.

Speaker #11: Hi, good morning. We talked about this a little bit at the dinner. Tug. But it seems like international crackers that are running FA and are pretty happy that they do so right now.

Jean Ann Salisbury: Hi, good morning. We've talked about this a little bit at the dinner Tug, but it seems like international crackers that are running ethane are pretty happy that they do so right now. Has there been any interest in the last couple of months in more international conversions to ethane that could drive the next leg of ethane demand?

Speaker #11: Has there been any interest in the last couple of months in more international conversions to FA that could drive the next leg of FA demand?

Speaker #7: Hi, Gene. Yeah, this is Tug. So yes, they were happy. Prior to the conflict and they're even happier now. I will say that the interest and demand we've seen on FA specifically and I'll even throw out LPG in there we had quite the appetite for demand prior to the conflict.

Michael Hanley: Hi, Jeanne. Yeah, this is Tug. Yes, they were happy prior to the conflict, and they're even happier now. I will say that the interest in demand we've seen on ethane specifically, and I'll even throw LPG in there, we had quite the appetite for demand prior to the conflict, and I would say we have this similar appetite for demand post conflict. It made sense before, and it still makes sense today.

Tug Hanley: Hi, Jeanne. Yeah, this is Tug. Yes, they were happy prior to the conflict, and they're even happier now. I will say that the interest in demand we've seen on ethane specifically, and I'll even throw LPG in there, we had quite the appetite for demand prior to the conflict, and I would say we have this similar appetite for demand post conflict. It made sense before, and it still makes sense today.

Speaker #7: And I would say we have this similar appetite for demand post-conflict. It made sense before, and it still makes sense today.

Speaker #11: That's helpful. And I guess as a follow-up to that question, what's kind of the timeline, if a cracker does decide to convert to FA or take more FA to the FA being delivered?

Jean Ann Salisbury: That's helpful. I guess as a follow-up to that question, what's kind of the timeline if a cracker does decide to convert to ethane or take more ethane, to the ethane being delivered? What should we expect, like basically a couple of years, for them and you to build that capacity?

Speaker #11: What should we expect basically a couple of years for them and you to build that capacity?

Speaker #7: That's probably it's not overnight, Gene. And I think your couple of years is probably in the ballpark.

Speaker #11: All right. Thank you. I'll leave it there.

Jim Teague: That's probably, it's not overnight, Jeanne-Ann.

Michael Hanley: Yeah.

Tug Hanley: Yeah.

Jim Teague: I think your couple of years is probably in the ballpark.

Speaker #10: Thank you. Our next question. Comes from the line of Michael Bloom. Of Wells Fargo. Your line is open, Michael.

Jean Ann Salisbury: All right. Thank you. I'll leave it there.

Operator: Thank you. Our next question comes from the line of Michael Blum of Wells Fargo. Your line is open, Michael.

Speaker #12: Thanks, good morning, everyone. At dinner, a few weeks ago, you didn't really think you'd see any permanent shifts in where global buyers are going to source their hydrocarbons.

Michael Blum: Thanks. Good morning, everyone. You know, at the, at dinner, a few weeks ago, you didn't, you didn't really think you'd see any permanent shifts in where global buyers are gonna source their hydrocarbons. I thought maybe they'd shift more to the US, but you seem to think that that wouldn't happen. Curious just if you've had any change in your, in your thinking there. On a similar vein, I think at the time you didn't really think we'd see any reaction or from US producers, and I'm curious if you still think that's the case.

Speaker #12: I thought maybe they'd shift more to the US, but you seem to think that that wouldn't happen. Curious just if you've had any change in your thinking there.

Speaker #12: And in a similar vein, I think at the time you didn't really think we'd see any reaction from the U.S. producers. And I'm curious if you still think that's the case.

Speaker #7: Think the second one first, Jay. And Natalie, what reaction by US producers?

Speaker #13: This is Natalie Gayden. I'd say—and Jay can chime in here—I don't know that US producers have done much different. It seems to be that they're staying pretty disciplined.

Jim Teague: Take the second one first, Jay. Natalie, what reaction by US producers?

Natalie Gayden: This is Natalie Gayden. I'd say, and Jay Bany can chime in here, I don't know that US producers have done much different. It seems to me that they're staying pretty disciplined. Sure, we see some movement and rig activity to different maybe producing zones or maybe different areas of their acreage if they have discretionary acreage. Other than that, I'd say they're keeping discipline.

Speaker #13: Sure, we see some movement in rig activity. To different maybe producing zones or maybe different areas of their acreage if they have discretionary acreage.

Speaker #13: But other than that, I'd say they're keeping discipline.

Speaker #7: Yeah. I'd agree with Natalie. We do hear some conversations from the independents about cadence, maybe moving up where they think they can. On our gathering systems, we've seen incremental growth, call it over the last three months.

Jay Bany: Yeah. I'd agree with Natalie. We do hear some conversations from the independents about cadence maybe moving up where they think they can. On our gathering systems, we've seen incremental growth, call it over the last three months, but that could just be anecdotal.

Speaker #7: But that could just be anecdotal.

Speaker #9: As to the first question, Gene Ann, a supply disruption like we have changes a lot of things. And we're seeing interest from countries, tug-like India.

Jim Teague: As to the first question, Jean Ann Salisbury, you know, a supply disruption like we have changes a lot of things. We're seeing interest from countries, Tug, like India. You know, it's a funny thing. We're geographically challenged when it comes to LPG in India. The question will be, when this is all over, everything returns to normal, do they still wanna lift US LPG when the AG is so close to them? Right now, they're showing a lot of interest.

Speaker #9: But it's a funny thing that we're geographically challenged when it comes to LPG and India. And the question will be, when this is all over and everything returns to normal, do they still want to lift US LPG when the AG is so close to them?

Speaker #9: Right now, they're showing a lot of interest.

Speaker #10: Okay. Thanks for that. The second question was just on capital allocation. Randy, appreciate your comments on the $1 billion of discretionary cash. The question is, assuming you're able to realize stronger results this year, as a result of the conflict, would you maintain that 50 to 60 percent allocation to buybacks versus debt pay down?

Michael Blum: Okay, thanks for that. The second question is just on capital allocation. Randy, appreciate your comments on the $1 billion of discretionary cash. The question is, assuming you are able to realize stronger results this year as a result of the conflict, would you maintain that 50% to 60% allocation to buybacks versus debt pay down? If that $1 billion turns into $1.5 billion, for example, would the incremental above plan just go to buyback since your leverage is already within the target? Thanks.

Speaker #10: Or if that billion dollars turned into 1.5 billion, for example, would the incremental above plan just go to buybacks since your leverage is already within the target?

Speaker #10: Thanks.

Speaker #7: Yeah. Michael, I like the way you're thinking this morning. Yeah. Michael, I think we would still in the near term when we think about 2026, we'd probably still maintain that 50 to 60 percent split.

Randy Fowler: Yeah, Michael, I like the way you're thinking this morning. Yeah, Michael, I think we would still, in the near term, when we think about 2026, we'd probably still maintain that 50% to 60% split. You know, 2027 could be a different story, I think 2026, still probably maintain that split.

Speaker #7: 2027 could be a different story. But I think 2026 still probably maintain that split.

Speaker #10: Thank you. Thank you. Our next question comes from the line of Brandon Bingham of Scotiabank. Please go ahead, Brandon.

Michael Blum: Thank you.

Operator: Thank you. Our next question comes from the line of Brandon Bingham of Scotiabank. Please go ahead, Brandon.

Speaker #14: Hey, good morning. Thanks for taking the questions. Just thinking about the two new plant announcements in the Permian. And I know it's barely hasn't even really been a month since the macro update.

Brandon Bingham: Hey, good morning. Thanks for taking the questions. Just thinking about the two new plant announcements in the Permian, and I know it hasn't even really been a month since the macro update. Just curious what you think the go-forward cadence should be for Permian processing capacity. I believe previously you guys were around one or two a year with the thought process. Do you think we're moving more to a 2-plus environment or just, you know, how should we think about that moving forward?

Speaker #14: But just curious what you think the go-forward cadence should be for Permian processing capacity. I believe previously, you guys were around one or two a year with a thought process.

Speaker #14: Do you think we're moving more to a two-plus environment, or just—how should we think about that moving forward?

Speaker #13: This is Natalie Gayden. I think we're probably trending closer to two. And obviously, that depends on how GORs shape up. But Corey's shown you that GORs are increasing.

Natalie Gayden: This is Natalie Gayden. I think we're probably trending closer to 2. Obviously that depends on how GORs shape up. Corey's showing me that GORs are increasing. That is definitely true. I'd say we're trending more to 2 per year.

Speaker #13: That is definitely true. So I'd say we're trending more to two per year.

Speaker #10: Okay. Great. Thank you. And then maybe just shifting over to the global supply-demand dynamics. Especially on the demand side. Just curious what you guys are seeing for refined products and crude.

Brandon Bingham: Okay, great. Thank you. Then maybe just shifting over to the global supply-demand dynamics, especially on the demand side. Just curious what you guys are seeing for refined products and crude, and what that might mean for your export business moving forward?

Speaker #10: And what that might mean for your export business moving forward.

Speaker #7: Yeah, Brandon. This is Jay again. Yeah. We've seen volumes leave our dock. I mean, you go back to first quarter last year. I think we for fourth quarter, we were up 70,000 barrels a day on exports.

Jay Bany: Yeah, Brandon, this is Jay again. Yeah, we've seen volumes leave our dock. I mean, you go back to Q1 last year, I think for Q4, we were up 70,000 barrels a day on exports. Add that to Q1, that's another 70. With the SPR barrels now looking for Q2, I mean, we could be well over 1 million barrels a day.

Speaker #7: And then add that to the first quarter, that's another 70. With the SPR barrels now looking for second quarter, I mean, we could be well over a million barrels a day.

Speaker #10: Okay. Great. Thanks. Thank you. Our next question. It comes from the line of Manav Gupta. Of UBS. Please go ahead, Manav.

Brandon Bingham: Okay, great. Thanks.

Operator: Thank you. Our next question comes from the line of Manav Gupta of UBS. Please go ahead, Manav.

Speaker #15: Good morning. Congrats on the good results. I just wanted to quickly focus on slide 17. It looks like PDH units are operating much better based on that slide.

Manav Gupta: Good morning. Congrats on the good results. I just wanted to quickly focus on slide 17. It looks like PDH units are operating much better based on that slide, and I think you did do some kind of turnaround on the PDH 2, and it's been operating better after that. Can you speak to those dynamics, please?

Speaker #15: And I think you did do some kind of turnaround on the PDH unit too. And it's been operating better after that. Can you speak to those dynamics, please?

Speaker #7: Yes. This is Graham. PDH2 has been running much better and much consistently since the turnaround that we had last year. The teams have put a lot of work in, worked very closely with our licensing partner.

Graham Bacon: Yes, this is Graham. PDH 2 has been running much better and much consistently since the turnaround that we had last year. The teams have put a lot of work in, worked very closely with our licensing partner and have resolved a number of the issues that we had, and I'm looking forward to sustained operation of that unit.

Speaker #7: And have resolved a number of the issues that we had. And I'm looking forward to sustained operation of that unit. PDH1 as well. We've invested a lot over the years.

Manav Gupta: What about PDH 1?

Speaker #7: And improving the reliability. And we still have some projects that we're working. But I think what you're seeing in PDH1, much improved reliability in that unit as well due to the investments that we've made over the last few years in reliability as well.

Graham Bacon: PDH 1, as well. You know, we've invested a lot over the years in improving the reliability, and we still have some projects that we're working, but I think what you're seeing in PDH 1, much improved reliability in that unit as well due to the investments that we've made over the last few years and reliability as well. The teams, we've got good teams working out there, and they're just knocking down the barriers that we've had out there over previous years and good work by those folks out at our Mont Belvieu PDH team.

Speaker #7: And the teams—we've got good teams working out there. And we're just knocking down the barriers that we've had out there over the previous years.

Speaker #7: And good work by those folks out at our Montbellview PDH team.

Speaker #15: Perfect. My quick follow-up is the macro comments you made at the beginning of the call, which were actually very informative. And you talked about 15 million barrels of total disruptions.

Manav Gupta: Perfect. My quick follow-up is the macro comments you made at the beginning of the call, which were actually very informative. You know, you talked about 15 million barrels of total disruptions and then Strait probably normally operating maybe only in July. I'm just trying to understand what does this do to, you know, various storage levels of crude, refined products, LPG? Do you think like, because based on this depletion, like storage levels could probably take 1 year or so to get fully replenished here? If you could talk about some of those dynamics, please.

Speaker #15: And then straight probably normally operating maybe only in July. I'm just trying to understand what does this do to various storage levels of crude, refined products, LPG?

Speaker #15: Do you think, because based on this depletion, storage levels could probably take a year or so to get fully replenished here? If you could talk about some of those dynamics, please.

Speaker #7: So if we look at the numbers and I think Jim was pretty spot on with saying around 500 million barrels a month of lost supply depending on who you ask.

Joseph Theriac: If we look at the numbers, I think Jim was pretty spot on with saying, around 500 million barrels a month of lost supply, depending on who you ask. As he pointed out, it's somewhere between 10 and 15 million barrels a day of lost supply through the Strait of Hormuz. That's crude oil products and NGLs. Just take 12 million barrels, for example, multiply that times 60 days, you've lost 720 million barrels through the Strait for global supply. Imagine if we can get back to normal, and let's say we're down a handful of barrels, you're only gonna get maybe 1 million or 2 million barrels above that. It could take years to get back to where we were before the war.

Joe Theriac: If we look at the numbers, I think Jim was pretty spot on with saying, around 500 million barrels a month of lost supply, depending on who you ask. As he pointed out, it's somewhere between 10 and 15 million barrels a day of lost supply through the Strait of Hormuz. That's crude oil products and NGLs. Just take 12 million barrels, for example, multiply that times 60 days, you've lost 720 million barrels through the Strait for global supply. Imagine if we can get back to normal, and let's say we're down a handful of barrels, you're only gonna get maybe 1 million or 2 million barrels above that. It could take years to get back to where we were before the war.

Speaker #7: As he pointed out, it's somewhere between 10 and 15 million barrels a day of lost supply through the Strait of Hormuz. That's crude oil products and NGOs.

Speaker #7: So just take 12 million barrels, for example, multiply that times 60 days. You've lost 720 million barrels through the Strait. For global supply. So imagine if we can get back to normal, and let's say we're down a handful of barrels, you're only going to get maybe a million or two million barrels above that.

Speaker #7: So, it could take years to get back to where we were before the war.

Speaker #16: What we don't know is what's been destroyed or damaged by the war. And what it takes to repair that. I mean, we've heard about the train that Qatar has.

Jim Teague: You know, what we don't know is what's been destroyed or damaged by the war and what it, what it takes to repair that. I mean, we've heard about the train that Qatar has, there's still not a hell of a lot of information as to what other assets have been damaged.

Speaker #16: But there's still not a hell of a lot of information as to what other assets have been damaged.

Speaker #15: Thank you so much.

Speaker #10: Thank you. Our next question. Comes from the line of John McKay. Of Goldman Sachs. Your line is open, John.

Manav Gupta: Thank you so much.

Operator: Thank you. Our next question comes from the line of John Mackay of Goldman Sachs. Your line is open, John.

Speaker #17: Hey, good morning, everyone. Thank you for the time. I just want to go back to the 2027 kind of soft guide from the last call.

Speaker #17: You talked about it a little bit earlier in this one. But I just want to put a little finer point on it. When you shared that update, were you thinking of 2027 being a kind of what had at the time thought to be a kind of softer 2026 macro environment or 2025 macro environment where we weren't going to have a lot of spreads?

John Mackay: Hey, good morning, everyone. Thank you for the time. I just wanna go back to the 2027 kinda soft guide from the last call. You talked about it a little bit earlier in this one, but I just wanna put a little finer point on it. When you shared that update, were you thinking of 27 being a kind of what had at the time thought to be a kinda softer 2026 macro environment or a 2025 macro environment where we weren't gonna have a lot of spreads? Or was 2027 meant to be a more kinda normalized environment, maybe closer to what you outlaid, you know, outlined in the fundamentals update a couple weeks ago? Maybe just kinda walk us through the kind of macro behind the 27 piece.

Speaker #17: Or was 2027 meant to be a more kind of normalized environment, maybe closer to what you outlined in the fundamentals update a couple of weeks ago?

Speaker #17: Maybe just kind of walk us through the kind of macro behind the 2027 piece.

Speaker #7: Yeah. John, this is Randy. I appreciate the question. Yeah. Really, what we were looking at when we saw the potential for 2027 was really just fee-based EBITDA growth.

Randy Fowler: John, this is Randy. I appreciate the question. Really what we were looking at when we saw the potential for 2027 was really just fee-based EBITDA growth. It was, you know, we were in a situation in 2025 and coming into 2026. Jim mentioned earlier that it was really a benign environment for commodity prices and spreads. Really the driver was really fee-based cash flows off new assets going into service and also around the acquisition that we did from Occidental Petroleum that you'd start seeing those volumes show up on our system at the beginning of 2027. Those were really the drivers.

Speaker #7: It was we were in a situation in 2025 and coming into 2026. Jim mentioned earlier that it was really a benign environment for commodity prices and spreads.

Speaker #7: So really, the driver was really fee-based cash flows off new assets going into service. And also around the acquisition that we did from Occidental Petroleum that you'd start seeing those volumes show up on our system.

Speaker #7: And at the beginning of 2027, those were really the drivers.

Speaker #17: I appreciate that. That's clear. Thank you. And then maybe just switching to kind of the broader macro that Tom did a couple of times in this call about the disconnect between the, let's say, paper market and the physical market.

John Mackay: I appreciate that. That's clear. Thank you. Maybe just switching to kind of the broader macro, you guys have commented a couple times on this call about the disconnect between the, let's say, paper market and the physical market. Can you talk a little bit more about that and maybe what you think is driving the divergence or what could drive a convergence in that?

Speaker #17: Can you talk a little bit more about that? And maybe what you think is driving the divergence or what could drive a convergence in that?

Speaker #7: Yeah. This is Tug. You're seeing strong physical premiums for example, on dated Brent. But I really think what we're alluding to is the Ford market may not be accurately reflecting what we're seeing in the physical market.

Michael Hanley: Yeah, this is Tug. I mean, you're seeing strong physical premiums, for example, in Dated Brent. I really think what we're alluding to, the forward market may not be accurately reflecting what we're seeing, in the physical market. It's probably not high enough.

Tug Hanley: Yeah, this is Tug. I mean, you're seeing strong physical premiums, for example, in Dated Brent. I really think what we're alluding to, the forward market may not be accurately reflecting what we're seeing, in the physical market. It's probably not high enough.

Speaker #7: It's probably not high enough.

Speaker #17: It may sound like you'd expect the kind of futures market to drift up over time even if we get closer to, let's say, some clearer resolution in the Strait?

John Mackay: Makes it sound like you'd expect the kind of futures market to drift up over time, even if we get closer to, let's say, some clearer resolution in the straight.

Speaker #7: So it sure looks like.

Speaker #17: It looks like it. All right. I appreciate the time. Thank you.

Speaker #10: Thank you. Our next question comes from the line of Gabe Dowd of Truist. Your line is open, Gabe.

Michael Hanley: That's what it sure looks like.

Tug Hanley: That's what it sure looks like.

John Mackay: It looks like it. All right. I appreciate the time. Thank you.

Operator: Thank you. Our next question comes from the line of Gabe Dowd of Truist. Your line is open, Gabe.

Speaker #18: Thanks, operator. Morning, everyone. Thanks for the time. Was hoping maybe to just touch on the gas side just for a second. Maybe Haynes will gather as we're in the shoulder season now and front month at 250.

Gabe Dowd: Thanks, operator. Morning, everyone. Thanks for the time. Was hoping maybe to just touch on the gas side just for a second. Maybe Haynesville gathering as we're in the shoulder season now in front month at $2.50. We'll see what happens in the summer. Curious if you're seeing any change in behavior. It does seem like privates build productive capacity to turn on at the appropriate price signal. Curious if you're seeing any change in behavior.

[Analyst] (Truist): Thanks, operator. Morning, everyone. Thanks for the time. Was hoping maybe to just touch on the gas side just for a second. Maybe Haynesville gathering as we're in the shoulder season now in front month at $2.50. We'll see what happens in the summer. Curious if you're seeing any change in behavior. It does seem like privates build productive capacity to turn on at the appropriate price signal. Curious if you're seeing any change in behavior.

Speaker #18: We'll see what happens in the summer. But curious if you're seeing any change in behavior. It does seem like privates build productive capacity to turn on at the appropriate price signal.

Speaker #18: But curious if you're seeing any change in behavior.

Speaker #19: This is Natalie Gayden. You're right. The privates—you see some rigs, or quite a few rigs, actually—running, and so I think we expect a little bit of pop on our system in the Haynesville at the end of the year.

Natalie Gayden: This is Natalie Gayden. You know, you're right. The privates, you see some rigs, or quite a few rigs actually running. I think we expect a little bit of pop on our system in the Haynesville at the end of the year. Otherwise, it looks pretty steady for the most part. Maybe a BA growth. I don't know what Corey's got in the forecast, but something like that.

Speaker #19: But otherwise, it looks pretty steady for the most part. Maybe it'd be a growth. I don't know what Corey's got in the forecast. But something like that.

Speaker #17: All right, Natalie.

Speaker #10: Got it. Thanks, Natalie. And just a quick follow-up, maybe. Shifting back to the Permian, is the commercial team tending to win some new business?

Gabe Dowd: All right, Natalie. Got it. Thanks, Natalie. Just a quick follow-up, maybe shifting back to the Permian as the commercial team tends to win some new business, obviously competitive basin. Just curious, what's most important to producers today? Is it, you know, reliability just given where pricing is, fees, maybe, you know, differentiation given your sour gas capabilities? Just trying to frame the competitive dynamics today. Thanks, guys.

[Analyst] (Truist): All right, Natalie. Got it. Thanks, Natalie. Just a quick follow-up, maybe shifting back to the Permian as the commercial team tends to win some new business, obviously competitive basin. Just curious, what's most important to producers today? Is it, you know, reliability just given where pricing is, fees, maybe, you know, differentiation given your sour gas capabilities? Just trying to frame the competitive dynamics today. Thanks, guys.

Speaker #10: Obviously, competitive basing. But just curious, what's most important to producers today? Is it reliability, just given where pricing is, fees, maybe differentiation given your sour gas capabilities?

Speaker #10: Just trying to frame the competitive dynamics today. Thanks, guys.

Speaker #19: Well, we always use our integrated value chain to compete there's no doubt about that. And then cost of capital and what it takes to build out whatever a producer needs.

Natalie Gayden: Well, we always use our integrated value chain to compete. There's no doubt about that. Cost of capital and what it takes to build out whatever a producer needs. I will say an established footprint that far reaches into areas of the basin that people are producing in is a competitive advantage because you're already there. When producers wanna bring on gas and, you know, the next 12 months, you already have a foot in the door per se. I would say a mix of all of the things, integrated value chain and just geographical position in the basin.

Speaker #19: I will say an established footprint that far reaches into areas of the basin that people are producing in as a competitive advantage because you're already there.

Speaker #19: And when producers want to bring on gas and the next 12 months, you kind of have you already have a foot in the door per se.

Speaker #19: So I would say a mix of all of the things: integrated value chain and just geographical position in the basin.

Speaker #7: I'll just this is Tug. I'll just add that Natalie operates a super system out there, which provides our customers a lot of reliability.

Speaker #10: Yep. Understood. That makes sense. Thanks, everyone. Thank you. Our next question comes from the line of Julian Domolen Smith of Jefferies. Your line is open, Julian.

Michael Hanley: This is Tug. I'll just add that Natalie operates a super system out there which provides our customers a lot of reliability.

Tug Hanley: This is Tug. I'll just add that Natalie operates a super system out there which provides our customers a lot of reliability.

Gabe Dowd: Yep, understood. That makes sense. Thanks, everyone.

[Analyst] (Truist): Yep, understood. That makes sense. Thanks, everyone.

Operator: Thank you. Our next question comes from the line of Julien Dumoulin-Smith of Jefferies. Your line is open, Julien.

Speaker #20: Hi. Good morning, everyone. This is Rob Moska on for Julian. On the CapEx revision and the planned FITs, would imagine you'd line aside to these projects when you issued guidance last quarter?

Rob Mosca: Hi, good morning, everyone. This is Rob Mosca on for Julien. On the CapEx revision and the planned FIDs, would imagine you'd line us aside to these projects when you issued guidance, last quarter. Should we interpret this to mean that incremental FIDs, like a new Frac 26 CapEx higher? Is, you know, what you have now actually a pretty firm number? Also, you know, maybe if you could provide an update on those commercial agreements you spoke to, with Exxon last quarter. Thanks.

Speaker #20: Should we interpret this to mean that incremental FITs, like a new FRAC, could bias 2026 CapEx higher? And what you have now actually a pretty firm number.

Speaker #20: And also, maybe if you could provide an update on those commercial agreements you spoke to with Exxon last quarter. Thanks.

Speaker #7: Yeah. The first part of your question: no, our CapEx guide does include anticipated projects that are under development. I won't talk up to, specifically, any unannounced projects.

Randy Fowler: Yeah. The first part of your question, no, our CapEx guide does include anticipated projects that are under development. I won't talk to specifically any unannounced projects, but we do have some projects that are under development that are in that guide. Previously, where we were, we had on the two processing plants that we just announced with the earnings release this morning. We actually had the long lead items associated with that plant in our guide. We just did not know as far as when we were gonna come in and actually FID those. The FID, again, just with the volume growth we've seen in the Permian, the FID came earlier.

Speaker #7: But we do have some projects that are under development that are in that guide. Previously, where we were, we had on the two processing plants that we just announced with the earnings release this morning, we actually had the long lead items associated with that plant in our guide.

Speaker #7: We just did not know as far as when we were going to come in and actually FID those and the FID, again, just with the volume growth we've seen in the Permian, the FID came earlier.

Speaker #7: So that was, if you would, the reason for the increase in the CapEx guide for this year because we'll see some of that CapEx happening late this year.

Randy Fowler: That was, if you would, the reason for the increase in the CapEx guide for this year, 'cause we'll see some of that CapEx happening late this year.

Speaker #20: This is Zach Straight on the NGL side on the fractionation side. Natalie mentioned she's up on probably up on the upper end of her guidance.

Zachary Strait: This is Zachary Strait. On the NGL side, on the fractionation side, you know, Natalie mentioned she's probably up on the upper end of her guidance. We're always looking at building fractionators. We'd like to bring on fractionators full, helps the economics. We've got a lot of levers within the system. Honestly, we were probably a little late on Frac 14, but we got a lot of levers. We'll see if we need another fractionator, and if we do, we'll build one. Not sure what your question is on the Exxon side.

Zach Strait: This is Zachary Strait. On the NGL side, on the fractionation side, you know, Natalie mentioned she's probably up on the upper end of her guidance. We're always looking at building fractionators. We'd like to bring on fractionators full, helps the economics. We've got a lot of levers within the system. Honestly, we were probably a little late on Frac 14, but we got a lot of levers. We'll see if we need another fractionator, and if we do, we'll build one. Not sure what your question is on the Exxon side.

Speaker #20: So we're always looking at building fractionaries. We like to bring on fractionaries full. It helps the economics. We've got a lot of levers within the system.

Speaker #20: Honestly, we were probably a little late on 14, but we got a lot of levers. So we'll see if we need another fractionator, and if we do, we'll build one.

Speaker #20: Not sure what your question is on the Exxon side. But on the downstream agreements, I would say that we talked about I would say a lot of those agreements were just extensions of deals that we already had.

Speaker #20: And it was just a natural fit why we're in the conversations about Bahia to go ahead and extend those contracts.

Zachary Strait: On the downstream agreements, I would say a lot of those agreements were just extensions of deals that we already had, and it was just a natural fit while we're in the conversations about Bahia to go ahead and extend those contracts.

Zach Strait: On the downstream agreements, I would say a lot of those agreements were just extensions of deals that we already had, and it was just a natural fit while we're in the conversations about Bahia to go ahead and extend those contracts.

Speaker #10: Got it. No, that addressed it. Thanks for that. And for my follow-up, just wondering how we should think about the quantum of LPG that could be shipped out of NRT2 phase two once it's online relative to the 360,000 barrels per day refrigeration capacity.

Rob Mosca: Got it. No, that addressed it. Thanks for that. For my follow-up, just wondering how we should think about the quantum of LPG that could be shipped out of NRT 2, once phase two, once it's online relative to the 360,000 barrels per day refrigeration capacity. It seems like you guys might have just one dock there. Wondering how contracted that capacity is until the EHT expansion comes online, on the LPG side at the end of this year. Thanks.

Speaker #10: It seems like you guys might have just one dock there. And wondering how contracted that capacity is until that EHT expansion comes online on the LPG side at the end of this year.

Speaker #10: Thanks.

Speaker #7: Yeah. This is Tyler Kott. I'll just reiterate again that over the longer term, we're contracted around the range of 90%. We have propane contracts that will start to ramp pretty quickly at NRT.

Tyler Cott: Yeah, this is Tyler Cott. I'll just reiterate again that over the longer term, you know, we're contracting around the range of 90%. We have propane contracts that will start to ramp pretty quickly at NRT. I think as we've said before, we expect NRT to do a good amount of propane in the balance of this year, and that will transition to ethane as our EHT capacity comes online late this year.

Speaker #7: And I think as we've said before, we expect NRT to do a good amount of propane in the balance of this year. And that will transition to ethane as our EHT capacity comes online late this year.

Speaker #10: All right. Appreciate the time, everyone. Thank you. Our next question comes from the line of AJ O'Donnell of TPH. Please go ahead, AJ. Good morning, all.

Rob Mosca: All right. Appreciate the time, everyone.

Operator: Thank you. Our next question comes from the line of AJ O'Donnell of TPH&Co. Please go ahead, AJ.

Speaker #10: Wondering if I could just go back to some of the comments on damaged infrastructure in the Middle East. I think we saw from Saudi Aramco this morning there are going to be halting LPG shipments through May.

AJ O'Donnell: Morning, all. Wondering if I could just go back to some of the comments on damaged infrastructure in the Middle East. I think we saw from Saudi Aramco this morning, they're gonna be halting LPG shipments through May. There's been some published price indexes from third-party sources, showing that spot loading rates in the US Gulf Coast has been as high as $0.55. Just wondering, given that, you know, phase two of Neches River will be up soon, curious how you would characterize that rate and what maybe you're seeing in terms of spot opportunities, and how that could affect, you know, the return profile of your two new export projects.

Speaker #10: There's been some published price indexes from third-party sources showing that spot loading rates in the US Gulf Coast have been as high as 55 cents.

Speaker #10: And just wondering, given that Phase Two of Nature's River will be up soon, curious how you would characterize that rate and what maybe you're seeing in terms of spot opportunities and how that could affect the return profile of your two new export projects.

Speaker #7: Yeah, we've seen elevated spot rates. They've been volatile. They've been as high as what you mentioned, and they're off from those highs now.

Speaker #7: I think going back to what I said earlier, our system now has a significant amount more flexibility than it did previously. And so we'll respond to what products the markets need and have the highest value with the spot capacity that we have available.

Tyler Cott: Yeah, we've seen elevated spot rates. They've been volatile. You know, they've been as high as kinda what you mentioned, and they're off from those highs now. I think going back to what I said earlier, our system now has a significant amount more flexibility than it did previously. We'll respond to what products the markets need and have the highest value with the spot capacity that we have available. Those products being ethylene, propylene, LPG, and ethane.

Speaker #7: If those products being ethylene, propylene, LPG, and ethane.

Speaker #10: Okay. Great. Then I just had one more. On the crude business, looking at the Q1 results, could you provide a little bit more detail on kind of the specific drivers behind the lower sales margin and lower transport revenues?

AJ O'Donnell: Okay, great. I just had one more on the crude business. Looking at the Q1 results, could you provide a little bit more detail on kind of the specific drivers behind the lower sales margin and lower transport revenues? Curious, you know, with the higher commodity strip and overall volatile basis spreads that you guys have been citing, is this something that we could see kinda, you know, reverting in Q2 and the rest of the year? Thanks.

Speaker #10: Curious with the higher commodity strip and overall volatile basis spreads that you guys have been citing, is this something that we could see kind of reverting in Q2 and the rest of the year?

Speaker #10: Thanks.

Speaker #7: Yeah, AJ, this is Jay again. It's Q1 results. We had a headwind with the Eagle Ford JV renegotiation on some fees there, and then some mark-to-market noise.

Jay Bany: Yeah. AJ, this is Jay again. You know, Q1 results, we had a headwind with the Eagle Ford JV, renegotiation on some fees there, and then some mark-to-market noise, lower spreads. You brought up looking forward, the spreads increasing. That really didn't take place until, call it, April business. Your point's valid. We see it definitely, at least as April looks now, that turning around.

Speaker #7: Lower spreads. But you brought up looking forward, the spreads increasing. That really didn't take place until call it April business. But your points valid.

Speaker #7: We see definitely at least as April looks now, that turning around.

Speaker #10: Okay. Thank you very much.

Speaker #1: Thank you. Our next question comes from the line of Jeremy Tonette of JPMorgan Securities. Your line is open, Jeremy.

AJ O'Donnell: Okay. Thank you very much.

Operator: Thank you. Our next question comes from the line of Jeremy Tonet of J.P. Morgan Securities. Your line is open, Jeremy.

Speaker #5: Hi. Good morning. Just wanted to come back to some of the commentary that you provided on the macro level. And just wanted to see, I guess, the industry, as you said, I don't think is really responded with a lot of new rig activity.

Jeremy Tonet: Hi, good morning.

Randy Fowler: Good morning.

Jeremy Tonet: Just wanted to come back to some of the commentary that you provided on the macro level. Just wanted to see, I guess, you know, the industry, as you said, I don't think has really responded with a lot of new rig activity. Wondering what you think the industry would need to see in the market to, you know, pick up activity, and do you expect us to get there?

Speaker #5: And wondering what you think the industry would need to see in the market to pick up activity? And do you expect us to get there?

Speaker #7: I think we hear from producers as they're going to stay disciplined. Go ahead, Natalie.

Speaker #2: I think that's true. I mean, we'll stay disciplined. We'll have a few companies that may break out from the pack, but they're private in nature and don't add a whole lot to the bottom line.

Randy Fowler: I think we hear from producers is they're gonna stay disciplined. Go ahead, Natalie.

Natalie Gayden: I think that's true. I mean, we'll stay disciplined. We have a few

Natalie Gayden: I think that's true. I mean, we'll stay disciplined. We have a few A few companies that may break out from the pack, but they're private in nature and, you know, don't add a whole lot to the bottom line. That's what we're seeing.

Speaker #2: So that's what we're seeing.

Natalie Gayden: A few companies that may break out from the pack, but they're private in nature and, you know, don't add a whole lot to the bottom line. That's what we're seeing.

Speaker #7: Do you see any certain price levels out there in the 27 curve that might start to warrant more activity or just can't tell that?

Speaker #11: Nope. This is Tyler. I don't think it's necessarily a specific price level. It's probably more focused on the back of the curve being lifted up, and not just next year—needs to get lifted up for many years beyond that.

Jeremy Tonet: Do you see any certain price levels out there in the, in, you know, the 2027 curve that might, you know, start to warrant more activity or just can't tell that?

[Company Representative] (Enterprise Products Partners): Nope. This is Todd. I don't think it's necessarily a specific price level. It's probably more focused on the back of the curve being lifted up, and not just next year, needs to get lifted up for many years beyond that.

Speaker #5: Got it. Thanks. And then just wondering for the CapEx backlog as a whole, if you might be able to share I guess how much of that could be allocated to kind of projects that have not taken FID yet, just trying to get a sense for how that might look.

Jeremy Tonet: Got it. Thanks. Then just wondering for the CapEx backlog as a whole, if you might be able to share, I guess how much of that could be allocated to kind of, you know, projects that have not taken FID yet? Just trying to get a sense for how that might look.

Speaker #11: Oh, for 2026? Jeremy, that's getting pretty granular. They're probably.

Speaker #5: Oh, 27 is. 27 works as well. Thank you.

Jim Teague: Oh, for 2026? Jeremy, that's getting pretty granular.

Speaker #11: Oh, 2020. Probably for 2027. Chris, I mean, I would say probably half of 2027 is not spoken for.

Jeremy Tonet: For 27. 27 works as well. Thank you.

Jim Teague: Oh, probably for 2027, Chris, I mean, I would say probably half of 2027 is not spoken for.

Jim Teague: Oh, probably for 2027, Chris, I mean, I would say probably half of 2027 is not spoken for. Yeah.

Speaker #7: Yeah.

Speaker #5: That's very helpful.

Speaker #7: Yeah.

Speaker #5: Thank you.

Speaker #7: Somewhere between 50 and 65 percent.

Speaker #5: Thank you.

Jeremy Tonet: Yeah.

Jim Teague: Yeah.

Jim Teague: That's very helpful.

Jeremy Tonet: That's very helpful.

Speaker #1: Thank you. Our next question. Comes from the line of Keith Stanley. Of Wolf Research. Please go ahead, Keith.

Jeremy Tonet: Yeah.

Jeremy Tonet: Thank you.

Jim Teague: Somewhere between 50% and 65%.

Jeremy Tonet: Thank you.

Operator: Thank you. Our next question comes from the line of Keith Stanley of Wolfe Research. Please go ahead, Keith.

Speaker #12: Hi. Good morning. I wanted to clarify on Nature's River phase two. Would you have contracted any of the LPG shipments on that since it's only an interim service until you switched to ethane?

Keith Stanley: Hi, good morning. I wanted to clarify on Neches River Terminal Phase 2. Would you have contracted any of the LPG shipments on that since it's only an interim service until you switch to ethane, or is that all spot? just want to confirm the timeline you would switch to ethane. You're required to do that at year-end.

Speaker #12: Or is that all spot? And then just want to confirm the timeline. You would switch to ethane. You're required to do that at year-end.

Speaker #7: We do have propane contracts that will be ramping up here at NRT on the flex train. And then as EHT comes online, we'll satisfy that contract demand long term at EHT.

Tyler Cott: We do have propane contracts that we'll be ramping up here at NRT on the flex train, and then as EHC comes online, we'll satisfy that contract demand long term at EHC. Our ethane commitments are generally driven by when the VLECs arrive, and largely that's later this year and into next year.

Speaker #7: Our ethane commitments are generally driven by when the VLECs arrive and largely that's later this year and into next year.

Speaker #12: Got it. Bigger picture question as a follow-up. What would you say is the biggest opportunity for enterprise with the situation in the Middle East and some of the commodity dynamics?

Keith Stanley: Got it. Bigger picture question as a follow-up. What would you say is the biggest opportunity for Enterprise with the situation in the Middle East and some of the commodity dynamics? Is there any particular business or commodity that you see as most exciting that you'd call out or things we might not be thinking about?

Speaker #12: Is there any particular business or commodity that you see as most exciting that you'd call out or things we might not be thinking about?

Speaker #7: Frankly, I think ethane has surprised me. The appetite for it. I could see that growing. And another one is we're going to ship out what Chris, 3 million barrels of ethylene this month.

Jim Teague: Frankly, I think ethane has surprised me, the appetite for it. I can see that growing. Another one is we're gonna ship out, what, Chris, 3 million barrels of ethylene this month?

Speaker #7: That's right, Jim. Yeah. Our ethylene exports over the last couple of months have been really high. What excites me is how we have broadened the offering across our docks.

Speaker #7: We're not just an LPG dock. We're not just a crude oil dock. We're a hydrocarbon dock. And I think I'd like to see that grow.

F. Christopher D'Anna: That's right, Jim. Yeah, our ethylene exports over the last couple months have been really high.

Chris D’Anna: That's right, Jim. Yeah, our ethylene exports over the last couple months have been really high.

Jim Teague: What excites me is how we have broadened the offering across our docks. We're not just an LPG dock, we're not just a crude oil dock, we're a hydrocarbon dock. I think I'd like to see that grow. We've got our own target support where we'd like to be that I'm not gonna share, but I like the broadening of the offerings rather than a specific project.

Speaker #7: We've got our own target support where we'd like to be. And I'm not going to share, but I like to broadening of the offerings rather than a specific project.

Speaker #12: Got it. Thank you.

Speaker #7: And probably the only thing I'd add to that, just really what this just the improvement in fundamentals for our petrochemical customers has really been a big change, which is good to see for them and we'll get the benefit from just volumes going through the system.

Keith Stanley: Got it. Thank you.

Randy Fowler: Yeah. Probably the only thing I'd add to that, just really put this just the improvement in fundamentals for our petrochemical customers has really been a big change, which is good to see for them, and we'll get the benefit from just volumes going through the system. That's much improved.

Speaker #7: But that's much improved.

Speaker #12: Yeah, a healthy petrochemical business is good for Enterprise. And they were running pretty strong before this. What's changed? Some are going to have to cough up a lot of money.

Jim Teague: Yeah, healthy petrochemical business is good for Enterprise. They were running pretty strong before this. What's changed? They're making a heck of a lot of money.

Speaker #12: Thank you.

Speaker #1: Thank you. Our next question comes from the line of Jason Gableman of TD Cowen. Please go ahead, Jason.

Keith Stanley: Thank you.

Operator: Thank you. Our next question comes from the line of Jason Gabelman of TD Cowen. Please go ahead, Jason.

Speaker #13: Yeah. Hey, most of my questions have been answered. I wanted to ask about another commodity exposure you guys have—around octane enhancement. I think in 2022, that business did, in '23, north of $400 million of gross margin.

Jason Gabelman: Yeah. Hey. Most of my questions have been answered. I wanted to ask about another commodity exposure you guys have around octane enhancement. You know, I think in 2022, that business did in 2023, north of $400 million of gross margin. How are those spreads looking right now? Do you see that repeating this year?

Speaker #13: How are those spreads looking right now? Do you see that repeating this year?

Speaker #7: Yeah. We're just now coming out of a turnaround on our Olaflex unit, and so we're not able to get to full capacity. But we're coming out of that, and we think it's going to be strong through the quarter.

Jim Teague: Yeah, we just now are coming out of a turnaround on our Oleflex unit, and so we're not able to get full capacity. We're coming out of that, and we think it's gonna be strong through the quarter.

Speaker #5: Got it. That was it for me. Thanks for the question.

Speaker #1: Thank you. I would now like to turn the conference back to Joe Thiriac for closing remarks. Sir?

Jason Gabelman: Got it. That was it for me. Thanks for the question.

Speaker #14: Thanks, Latif. And thank you, participants, for joining us today. That concludes our remarks. Have a good day.

Operator: Thank you. I would now like to turn the conference back to Joseph Theriac for closing remarks. Sir.

Joseph Theriac: Thanks, Lateef, and thank you to our participants for joining us today. That concludes our remarks. Have a good day.

Joe Theriac: Thanks, Lateef, and thank you to our participants for joining us today. That concludes our remarks. Have a good day.

Speaker #1: disconnect. Thank you for standing by and welcome to ENTERPRISE PRODUCTS PARTNERS L.P.'s first quarter 2026 earnings conference call. Currently, all participants are in a listen-only mode.

Speaker #1: After the speakers' 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.

Operator: Thank you for standing by, and welcome to Enterprise Products Partners L.P.'s Q1 2026 earnings conference call. Currently, 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. To remove yourself from the queue, you'll need to press star 11 again. I would now like to hand the call over to Joseph Theriac, Vice President of Finance and Investor Relations. Please go ahead.

Speaker #1: To remove yourself from the queue, you'll need to press star 11 again. I would now like to hand the call over to Joe Thiriac, Vice President of Finance and Investor Relations.

Speaker #1: Please go ahead. Thanks, Latif. Good morning and welcome to the ENTERPRISE PRODUCTS PARTNERS conference call to discuss first quarter 2026 earnings. Our speakers today will be Co-Chief Executive Officers of ENTERPRISE's general partner, Jim Teague, and Randy Fowler.

Joseph Theriac: Thanks, Lateef. Good morning, and welcome to the Enterprise Products Partners conference call to discuss Q1 2026 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's General Partner, A.J. Teague and W. Randall 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.

Speaker #1: 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 21(e) of the Securities and 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.

Speaker #1: Although management believes that the expectations reflected in such forward-looking statements are reasonable and 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.

Speaker #1: And with that, I'll turn it over to Jim. Thank you, Joe. We got off to a very strong start this year in the business.

Speaker #1: It's performing well across the board. In the first quarter, we generated $2.7 billion of EBITDA in a short quarter, and this was up 10% over last year.

Jim Teague: Thank you, Joe. We got off to a very strong start this year. The business is performing well across the board. In Q1, we generated $2.7 billion of EBITDA in a short quarter, and this was up 10% over last year. We generated 1.8x coverage of our distributable cash flow. By any measure, this was an exceptional quarter. The assets we brought online over the past year, including the Bahia NGL pipeline, Fractionator 14, and 3 Permian natural gas processing plants, continued to ramp throughout the quarter. In fact, Frac 14 was full on day one. The gas plants were essentially full by mid-quarter. If you look at Bahia and Shin Oak as a system, they are running at 80% of a combined 1.2 million barrels a day of capacity. Operationally, the quarter was outstanding.

Speaker #1: We generated 1.8 times coverage of our distributable cash flow. By any measure, this was an exceptional quarter. The assets we brought online over the past year, including the Bahia NGL pipeline and approximately 14.3 Permian natural gas processing plants, continued to ramp throughout the quarter.

Speaker #1: In fact, fract 14 was full on day one. The gas plants were essentially full by mid-quarter, and if you look at Bahia and Chinook as a system, they are running at 80% of a combined $1.2 million barrels a day of capacity.

Speaker #1: Operationally, the quarter was outstanding. We set multiple operating records across the system. With the addition of Midtown West 2 in the Delaware Basin during the first quarter, we set a new record for gas processing plant and inlet volumes.

Jim Teague: We set multiple operating records across the system. With the addition of Mentone West 2 in the Delaware Basin during Q1, we set a new record for gas processing plant inlet volumes. We processed 8.3 billion cubic feet per day of natural gas. That was up 7% from last year. We fractionated 1.9 million barrels per day of NGLs. That was up 16%. We loaded 2.3 million barrels per day of hydrocarbons at our docks, up 15%. We transported 14.2 million barrels of oil equivalent per day, up 7%. In total, we set 12 new volumetric records for Q1. Those results speak to both the scale of our system and the demand we are seeing across the markets we serve.

Speaker #1: We processed 8.3 billion cubic feet per day of natural gas. That was up 7% from last year. We fractionated $1.9 million barrels per day of NGOs.

Speaker #1: That was up 16%. We loaded 2.3 million barrels per day of hydrocarbons at our docks up 15%. We transported 14.2 million barrels of oil equivalent per day up 7%.

Speaker #1: In total, we set 12 new volumetric records for the first quarter. Those results the demand we are seeing across the markets we serve. On the market side, commodity prices were volatile throughout most of the quarter.

Speaker #1: And we tend to embrace volatility. In January, Winter Storm Fern gave us a strong start to the year. Elevated demand for natural gas and propane created price dislocations across our asset network as producers faced widespread supply disruptions following the short drop in temperatures.

Jim Teague: On the market side, commodity prices were volatile throughout most of the quarter, and we tend to embrace volatility. In January, Winter Storm Fern gave us a strong start to the year. Elevated demand for natural gas and propane created price dislocations across our asset network as producers faced widespread supply disruptions following the sharp drop in temperatures. Our trucks, pipelines, and storage facilities enabled us to continue meeting customer needs despite these challenges, while our marketing teams and asset flexibility allowed us to capture incremental value. This was only the beginning of the volatility we experienced during the quarter. The ongoing conflict in the Middle East and restricted flows through the Strait have driven a substantial increase in demand for all forms of US energy, petrochemicals, and refined products.

Speaker #1: Our trucks, pipelines, and storage facilities enabled us to continue meeting customer needs despite these challenges while our marketing teams and asset flexibility allowed us to capture incremental value and this was only the beginning of the volatility.

Speaker #1: We experienced during the quarter. The ongoing conflict in the Middle East and restricted flows through the Strait have driven us substantial increase in demand for all forms of US energy petrochemicals and refined products.

Speaker #1: The supply shock dramatically improved US petrochemical margins. Prompting our domestic petrochemical customers to run their units full out. One week before the start in a start of the war in Iran, ethane to ethylene cracking margins were about 7 cents a pound.

Jim Teague: The supply shock dramatically improved US petrochemical margins, prompting our domestic petrochemical customers to run their units full out. One week before the start of the war in Iran, ethane to ethylene cracking margins were about $0.07 a pound. Today, they're at $0.23. The ethylene to polyethylene spread was $0.20 per pound. Now it's over $0.45. It's no wonder why my former employer's stock is up over 50% year to date. International demand for US feedstocks is as strong as we have seen in quite some time. The loss of Middle East hydrocarbon supply fractured this Asian supply chain. China's PDHs we hear are currently operating at less than 50% of capacity. As a result, Asian petrochemicals have been destocking inventories by consuming derivative inventories.

Speaker #1: Today, they're at 23. The ethylene to polyethylene spread was 20 cents per pound now. It's over 45. It's no wonder why my former employer's stock is up over 50% here today.

Speaker #1: International demand for US feedstocks is as strong as we have seen in quite some time. The loss of Middle East hydrocarbon supply fractured this Asian supply chain.

Speaker #1: China's PDHs are currently we here are currently operating at less than 50% of capacity. As a result, Asian petrochemicals have been destocking inventories by consuming derivative inventories.

Speaker #1: The impact to hydrocarbon markets around the world has been significant. And we see this strong demand continue to through the remainder of 2026 and maybe into 2027.

Speaker #1: The demand pull is showing up barely very clearly in our marine export business. Our crude oil terminals are benefiting from volumes being released from the US strategic petroleum reserve that are being directed to international markets.

Speaker #1: And our ethane and LPG customers continue to line up at our docks for US NGO feedstocks. In the first quarter, we averaged around 70 million barrels per month across our docks and we expect that strength to continue into the second quarter as we are scheduled to load more than 88 million barrels in April.

Speaker #1: On the upstream side, we continue to build on the momentum in our system. Producer activity remains constructive in the basins where we operate. And our assets are well positioned to capture volume growth.

Speaker #1: The combination of strong supply, growing export demand, and new projects ramping into service is creating real operating leverage across the business. We're also saw strong contributions from the downstream side.

Jim Teague: Producer activity remains constructive in the basins where we operate, and our assets are well-positioned to capture volume growth. The combination of strong supply, growing export demand, and new projects ramping into service is creating real operating leverage across the business. We also saw strong contributions from the downstream side. In addition to record product flows, strong margins across our assets and high utilization at our PDH facilities that supported solid earnings and cash flow for the quarter. Our new assets are ramping well. Volumes are at record levels. Demand remains strong both domestically and internationally, and our system is performing the way it was built to perform. We entered 2026 expecting steady production growth and oversupplied markets, which we thought would lead to another year of relatively benign commodity prices. That has clearly not been the case.

Speaker #1: In addition to record product flows, strong margins across our assets and high utilization at our PDH facilities. That supported solid earnings and cash flow for the quarter.

Speaker #1: Our new assets are ramping while volumes are at record levels demand remains strong. Both domestically and internationally. And our system is performing the way it was built.

Speaker #1: To perform. We entered 2026 expecting steady production growth and oversupplied markets, which we thought would lead to another year of relatively benign commodity prices.

Speaker #1: That is clearly not been the case. Today, we believe the financial markets are underestimating the potential global supply implications from a prolonged closure of the Strait of Hormuz.

Speaker #1: Depending on the industry expert you ask, anywhere from 12 to 15 million barrels a day of crude oil, refined products, LPG, and petrochemical supplies are constrained.

Jim Teague: Today, we believe the financial markets are underestimating the potential global supply implications from a prolonged closure of the Strait of Hormuz. Depending on the industry expert you ask, anywhere from 12 to 15 million barrels a day of crude oil, refined products, LPG, and petrochemical supplies are constrained. That is almost half a billion barrels of hydrocarbon supplies off the market every month. Shipping and geopolitical commentators estimate that the earliest the strait could reopen for normal air operations, including vessel repositioning, is July, and that does not account for the time required to repair onshore production and refining facilities damaged in the war. Until global supplies and inventories return to normal, we believe there will continue to be strong international demand for US energy and products.

Speaker #1: That is almost half a billion barrels of hydrocarbon supplies off the market every month. Shipping and geopolitical commentators estimate that the earliest the Strait could reopen for normal air operations including vessel repositioning is July.

Speaker #1: And that does not account for the time required to repair onshore production and refining facilities damaged in the war. Until global supplies and inventories return to normal, we believe there will continue to be strong international demand for US energy and products.

Speaker #1: We also see international consumers looking to increase purchases of U.S. energy as an avenue to improve their U.S. trade balance and add greater resilience and security to their energy supply chains.

Jim Teague: We are also seeing international consumers look to increase purchases of US energy as an avenue to improve the US trade balance and add greater resilience and security to their energy supply chains, given the current disruption of product flows in the Middle East. After Q1, we are encouraged by the momentum we are seeing across the business and increasingly confident in the outlook for the year. At the same time, we remain focused on what matters most: operating safely, serving our customers reliably, allocating capital with discipline, and creating long-term value for our investors. With that, I'll turn it over to Randy.

Speaker #1: Given the current disruption of product flows in the Middle East. After the first quarter, we are encouraged by the momentum we are seeing across the business and increasingly confident in the outlook for the year.

Speaker #1: At the same time, we remain focused on what matters most. Operating safely, serving our customers reliably, allocating capital with discipline, and creating long-term value for our investors.

Speaker #1: With that, I'll turn it over to Randy. Thank you, Jim, and good morning, everyone. Starting with the income statement items, net income attributable to common unitholders for the first quarter of 2026 was $1.5 billion.

Speaker #1: Or 68 cents per common unit on a fully diluted basis, which is a 6% increase compared to the first quarter of 2025. Adjusted cash flow from operations which is cash flow from operating activities before changes in working capital increased 10% to 2.3 billion for the first quarter of 2026 compared to 2.1 billion for the first quarter of 2025.

Randy Fowler: Thank you, Jim, and good morning, everyone. Starting with the income statement items. Net income attributable to common unit holders for Q1 2026 was $1.5 billion or $0.68 per common unit on a fully diluted basis, which is a 6% increase compared to Q1 2025. Adjusted cash flow from operations, which is cash flow from operating activities before changes in working capital, increased 10% to $2.3 billion for Q1 2026, compared to $2.1 billion for Q1 2025. We declared a distribution of $0.55 per common unit for Q1 2026, which is a 2.8% increase over the distribution declared for Q1 2025.

Speaker #1: We declared a distribution of 55 cents per common unit for the first quarter of 2026, which is a 2.8% increase over the distribution declared for the first quarter of 2025.

Speaker #1: The distribution will be paid May 14th to common unit holders of record as of close of business on April 30th. We are on track for 28 consecutive years of distribution growth in 2026.

Speaker #1: To our knowledge, this is the longest period of distribution growth of any US midstream company and is an example of Enterprise's consistency and commitment to returning capital directly to our unitholders.

Speaker #1: The partnership purchased 3.1 million common units off the open market during the first quarter for approximately $116 million. In addition to buybacks, our distribution reinvestment plan and employee unit purchase plan purchased a combined 1 million common units on the open market for $37 million during the first quarter.

Speaker #1: For the 12 months ended March 31, 2026, Enterprise returned approximately $5.1 billion of capital to our equity investors. 93%, or approximately $4.8 billion, was in the form of cash distributions to limited partners, and the remaining 7% through $356 million of buybacks.

Speaker #1: Our payout ratio of adjusted cash flow from operations was 57% over this period. Since our IPO in 1998, we have prioritized returning capital to our partners returning over 63 billion through distributions and buybacks.

Speaker #1: At the same time, we have reinvested capital to build one of the largest energy infrastructure networks in North America. Total capital investments were 988 million dollars in the first quarter of 2026, which included 783 million of growth capital projects and 205 million of sustaining capital expenditures.

Speaker #1: In the first quarter, we also received the final payment of 596 million from ExxonMobil for the purchase of a 40% interest in the Bahia NGL pipeline.

Speaker #1: With the completion of major projects such as the Bahia NGL Pipeline and Natchez River Terminal, we believe our expected range of growth capital expenditures for 2026 will net to $2.3 to $2.6 billion after applying approximately $600 million in proceeds from asset sales already received.

Speaker #1: For 2027, we expect our growth capital expenditures to be in the area of 2 to 2 and a half billion dollars. Sustaining capital expenditures for 2026 are expected to be approximately 580 million dollars.

Speaker #1: On the fourth quarter, 2025 earnings call, we stated that discretionary free cash flow for 2026 had the potential to be in the 1 billion dollar area.

Speaker #1: Even though our estimate of growth capital expenditures for 2026 has increased by 300 million dollars as a result of investments in two new natural gas processing plants in the Permian, we still believe discretionary cash flow for 2026 has to be has the potential to be in the billion dollar area.

Speaker #1: And depending on commodity prices and spreads for the remainder of the year, could be higher. In terms of allocation of capital, as we have said many times, we see cash distributions to partners grow in commensurate with operational distributable cash flow per unit.

Speaker #1: Let me repeat that as we have said many times. We think distributions to partners will grow commensurate with operational distributable cash flow per unit growth.

Speaker #1: In the near term, we continue to expect discretionary free cash flow to be split between buybacks and retiring debt. In 2026, we still expect this split would be approximately 50 to 60 percent in buybacks.

Speaker #1: As we have said before, enterprises buyback program has both programmatic and opportunistic elements. In periods of momentum and volatility, characterized by higher equity prices, we may elect not to chase price and instead retain cash in the opportunistic bucket for buybacks in future periods when momentum has ended.

Speaker #1: Similarly, in periods when there are significant price dislocations in equity prices, we may elect to pull cash forward for buybacks in future periods such as bringing cash forward from 2027 to buyback the partnership units at more opportunistic prices in the near term.

Speaker #1: Our total debt principal outstanding was approximately 34.2 billion as of March 31, 2026. Assuming the final maturity date for our hybrids, the weighted average life of our debt portfolio is approximately 17 years.

Speaker #1: Our weighted average cost of debt was 4.7% and approximately 95% of our debt was fixed. At March 31st, our consolidated liquidity was approximately 3.3 billion including availability of our credit facilities and unrestricted cash on hand.

Speaker #1: As Jim mentioned, adjusted EBITDA increased 10% to 2.7 billion dollars for the first quarter of 2026. As of March 31, 2026, our consolidated leverage ratio decreased to 3.2 times on a net basis after adjusting debt for the partial equity treatment of our hybrid debt and reduced by the partners' unrestricted cash on hand.

Randy Fowler: As of 31 March 2026, our consolidated leverage ratio decreased to 3.2x on a net basis after adjusting debt for the partial equity treatment of our hybrid debt and reduced by the partner's unrestricted cash on hand. Our current leverage ratio reflects significant investment in the large-scale projects that we recently brought into service, such as the Bahia NGL Pipeline, Neches River Terminal, and Frac 14, and the midstream asset acquisition from Occidental, where the debt is on the balance sheet, but the resulting annual adjusted EBITDA generation from these investments has yet to flow into our 12-month trailing EBITDA numbers. Our overall leverage target remains at 3x plus or minus 0.25x or 2.75x to 3.25x. With that, Joe, I think we can open it up for questions.

Speaker #1: Our current leverage ratio reflects significant investment in the large-scale projects that we recently brought into service, such as the Bahia NGL Pipeline, Port Natchez Terminal, and Frac 14, and the Midstream Asset Acquisition from Occidental, where the debt is on the balance sheet but the resulting annual adjusted EBITDA generation from these investments is yet to flow into our 12-month trailing EBITDA numbers.

Speaker #1: Our overall leverage target remains at three times plus or minus 0.25 times or 2.75 to 3.25. With that, Joe, I think we can open it up for questions.

Speaker #2: Thanks, Randy. Latif, we are ready to open the call for questions.

Speaker #3: Thank you.

Speaker #4: As a reminder, to ask a question, you will need to press *11 on your telephone. To remove yourself from the queue, you may press *11 again.

Speaker #4: Please limit yourself to one question and one follow-up, or two questions, to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster.

Joseph Theriac: Thanks, Randy. Latif, we are ready to open the call for questions.

Speaker #4: Our first question comes from the line of Teresa Chen of Barclays. Your line is open, Teresa.

Theresa Chen: Good morning. Following up on the comments about the uptick for US energy demand in general and export infrastructure demand in particular, can you walk us through the contract duration profile across your export docks today? Specifically, how much capacity is tied to contracts with near-term expirations that could be recontracted at higher rates? Longer term, how much incremental brownfield expansion capability do you have across your export assets?

Speaker #2: Hi, Teresa. This is Tyler Cott. I'll speak to the NGL exports specifically. I think we've said before, our NGL export docs, our contracted around the range of 90%.

Speaker #2: On LPG, those contracts go through the end of this decade. On FN, they extend 10 to 20 years depending on contracts. So lengthy duration.

Tyler Cott: Hi, Theresa, this is Tyler Cott. I'll speak to the NGL export specifically. I think we've said before, our NGL export docks are contracted around the range of 90%. On LPG, those contracts go through the end of this decade. On ethane, they extend, you know, 10 to 20 years depending on contracts, so lengthy duration. We have 10% available for spot capacity in the near term, but long term, we're significantly contracted.

Speaker #2: We have 10% available for spot capacity in the near term, but long-term, we're significantly contracted.

Theresa Chen: Okay. On the LPG side in particular, given the recent strength in LPG export ARBs, alongside the commissioning timeline for Neches River Terminal Phase 2 of the Neches River Terminal expansion, can you talk about the incremental earnings uplift or cash uplift from spot cargoes in the interim? Related to this, when do you expect Neches River Terminal Phase 2 officially enter service to support your term commitments with customers?

Speaker #5: And related to this, when do you expect phase two officially enter service to support your term commitments with customers?

Speaker #2: Sure. This is Tyler Cott again. Our operations team has done a fantastic job expediting a bit the commissioning of Natchez River Terminal. We're still in the process of commissioning it.

Speaker #2: We began in the second half of April, and at this point, we expect to complete commissioning for both FN and propane sometime in May.

Tyler Cott: Sure. This is Tyler Cott again. Our operations team has done a fantastic job expediting a bit the commissioning of Neches River Terminal. We're still in the process of commissioning it. We began in the second half of April, at this point, we expect to complete commissioning for both ethane and propane sometime in May. In terms of spot utilization, earnings uplift, we really got to get through the commissioning process here and see what we have. I think an important point to note about our export business going forward is we have a significant amount of flexibility, so our spot business will be dictated across different products in terms of what the market needs at a given time.

Speaker #2: In terms of spot utilization, and earnings uplift, we really got to get through the commissioning process here and see what we have. I think an important point to note about our export business going forward is we have a significant amount of flexibility.

Speaker #2: So, our spot business will be dictated across different products in terms of what the market needs at a given time.

Speaker #6: Okay. Yeah. Hey, Teresa, this is Jay Bainey. Just on the crude front of that, we've got a pretty wide mix of contracts structures. So contracts that last through 28 and 29.

Speaker #6: And similar for '26, we have about 10% of open capacity. And yes, I think we're having good conversations about '27.

Randy Fowler: Jay.

Randy Fowler: Yeah. Hey, Theresa, this is Jay Bany. Just on the crude front of that, we've got a pretty wide mix of contract structures. Contracts that last through 2028 and 2029. Similar for 2026, we have about 10% of open capacity. Yes, I think we're having good conversations about 2027.

Speaker #5: Thank you.

Speaker #4: Thank you. Our next question. Comes from the line of Spiro Dunis of Citi. Your line is open, Spiro.

Theresa Chen: Thank you.

Speaker #2: Thanks, operator. Good morning, team. I want to go back to the growth outlook really quickly. Jim, you sound incrementally more positive than when we last caught up.

Operator: Thank you. Our next question comes from the line of Spiro Dounis of Citi. Your line is open, Spiro.

Speaker #2: Obviously, a lot has changed. And then, Randy, you seem to indicate that your operating cash flow is going to have at least a sort of mirror the increase in CapEx to keep that DCF free cash flow kind of stable.

Spiro Dounis: Thanks, operator. Good morning, team. Wanted to get back to the growth outlook really quickly. Jim, you sound incrementally more positive than when we last caught up. Obviously, a lot has changed. Randy, you seem to indicate that your operating cash flow is going to have at least sort of mirror the increase in CapEx to keep that DCF free cash flow kind of stable. You know, curious if you just give us an update on the sort of 3% growth you guys were talking about for 2026 and the 10% growth you were talking about for 2027 on the last call. As you answer that question, just curious if these two new processing plants are additive to that 2027 outlook.

Speaker #2: So curious if you could give us an update on the sort of 3% growth you guys are talking about for 26 and the 10% growth you were talking about for 2027 on the last call.

Speaker #2: And as you answer that question, just curious if these two new processing plants are additive to that 27 outlook.

Speaker #7: Well, this is Jim. Yeah, I think I said 'modest' in '26 and 10% in '27. I think we'll beat 'modest.' Go ahead, Randy.

Speaker #2: And as you think about 2020—sorry, go ahead.

Speaker #7: Yeah. Yeah, Spiro, I sort of like the point you made in your note that probably modest is a low bar now. And I think you're right.

Jim Teague: Spiro, this is Jim. Yeah, I think I said modest in 2026 and 10% in 2027. I think we'll beat modest.

Speaker #7: Again, it's sort of hard to come in and look at 2026 because, again, just what's the duration of these commodity prices going to be?

Jay Bany: Go ahead, Randy.

Jay Bany: Randy, Sorry, go ahead.

Randy Fowler: Yeah, Spiro, I sort of like the point you made in your note that probably modest is a low bar now, and I think you're right. You know, again, it's sort of hard to come in and look at 2026 because again, just what's the duration of these commodity prices gonna be and the duration of spread. Really shaping up to be a much stronger year than what we expected. Again, because we were really coming in and not expecting much benefit at all from commodity or spread and really were relying on our fee-based businesses. Really hard to come in and give much guidance because it's sort of.

Speaker #7: And the duration of spreads. So really shaping up to be a much stronger year than what we expected. And again, because we were really coming in and not expecting much benefit at all from commodity or spread and really were relying on our fee-based businesses.

Speaker #7: So, it's really hard to come in and give much guidance because you don't have much visibility, especially when you come in and look at the futures market, because we don't think the futures market really is representative of what the physical markets could be.

Speaker #7: So, but the endpoint is 2026, which looks to be a much more favorable year than when we first started. Our commercial guys' team did a great job in underwriting two more natural gas processing plants in the Permian.

Randy Fowler: You don't have much visibility, especially when you come in and look at the futures market, because we don't think the futures market really is representative of what the physical markets should be. At the endpoint is 2026 looks to be a much more favorable year than when we first started. We commercial guys team did a great job in underwriting two more natural gas processing plants in the Permian, which really, you know, they will come on during 2027. We really did not have those baked into our 2027 numbers at the time, so that would be additive.

Speaker #7: Which really, they will come on during 2027. We really did not have those baked into our 2027 numbers at the time, so that would be additive.

Speaker #7: And then from the same token, I think we're still in good shape to come in and do meaningful buyback and meaningful debt retirement in 2026.

Speaker #7: Even with CapEx ticking up a little bit for these two new plants. Yeah. And Spiro, I've been around a while, and I have never seen a supply disruption like we're experiencing today.

Randy Fowler: Then from the same token, you know, I think we're still in good shape to come in and do meaningful buyback and meaningful debt retirement in 2026, even with CapEx ticking up a little bit for these two new plants.

Speaker #7: And that supply disruption creates a lot of benefits that Enterprise is able to capture.

Jim Teague: Yeah. Spiro, I've been around a while, and I have never seen a supply disruption like we're experiencing today. That supply disruption creates a lot of benefits that Enterprise is able to capture.

Speaker #4: That's been absent for about maybe the last two years or so. Just curious, it sounds like that's back. I don't want to put too fine a number on it, but in the environment you're seeing now, do you think we see a return to that $500 million?

Spiro Dounis: Yeah. That's actually a good segue to the second question. Jim, you also talked about embracing volatility. I know we go back a few years ago, you used to sort of talk about this sort of $500 million or so of outsized spread gains you guys would sort of find in any given year. That's been absent for about maybe the last 2 years or so. Just curious, it sounds like that's back. You know, I don't wanna put too fine a number on it, but in the environment you're seeing now, do you think you see a return to that $500 million? You know, what parts of the market do you see that from? Obviously, export being a big one.

Speaker #4: And what parts of the market do you see that from? Obviously, export being a big one.

Speaker #7: I don't know what I don't know—if it's going to be $500 million, $600 million, or $700 million, frankly. But I do expect that we're going to have what you call outsized spreads, frankly.

Speaker #7: Typically, we have it every year. We just don't know which spread it'll be. Last year was pretty benign and unusual. As to what specifically it might be, I'll throw it to Tug.

Jim Teague: I don't know if it's gonna be $500 million, $600 million, or $700 million, frankly. I do expect that we're gonna have what you call outsized spreads, frankly. Typically, we have it every year. We just don't know which spread it'll be. Last year was pretty benign and unusual for us. As to what specifically it might be, I'll throw it to Tug.

Speaker #6: Yeah. This is Tug. I'll just add. I mean, this first quarter, we had some outsized spreads on natural gas winter storm fern presented some opportunities.

Speaker #6: But largely, the spreads that we've seen post-Iranian conflict, those will come second quarter.

Jay Bany: Yeah. This is Tug. I'll just add, I mean, this Q1.

Speaker #4: Great. Helpful call, guys. I'll leave it there. Thank you.

Michael Hanley: Some outsized spreads on natural gas, Winter Storm Fern presented some opportunities. Largely the spreads that we've seen post Iranian conflict, those will come Q2.

Speaker #8: Thank you. Our next question comes from the line of Gene in Salisbury at B of A. Your line is open, Gene.

Speaker #5: Hi, good morning. We talked about this a little bit at the dinner, Tug. But it seems like international crackers that are running FA and are pretty happy that they do so right now.

Spiro Dounis: Great. Couple color guys. I'll leave it there. Thank you.

Operator: Thank you. Our next question comes from the line of Jean Ann Salisbury of BofA. Your line is open, Jean.

Speaker #5: Has there been any interest in the last couple of months in more international conversions to FA that could drive the next leg of FA demand?

Jean Ann Salisbury: Hi, good morning. We talked about this a little bit at the dinner Tug. It seems like international crackers that are running ethane are pretty happy that they do so right now. Has there been any interest in the last couple of months in more international conversions to ethane that could drive the next leg of ethane demand?

Speaker #6: Hi, Gene. Yeah, this is Tug. So yes, they were happy. Prior to the conflict and their even happier now, I will say that the interest and demand we've seen on FA specifically and I'll even throw out LPG in there we had quite the appetite for demand prior to the conflict.

Michael Hanley: Hi, Jeanne. Yeah, this is Tug. Yes, they were happy prior to the conflict, and they're even happier now. I will say that the interest and demand we've seen on ethane specifically, and I'll even throw L-LPG in there, we had quite the appetite for demand prior to the conflict, and I would say we have the similar appetite for demand post conflict. It made sense before, and it still makes sense today.

Speaker #6: And I would say we have this similar appetite for demand post-conflict. It made sense before, and it still makes sense today.

Speaker #5: That's helpful. And I guess as a follow-up to that question, what's kind of the timeline, if a cracker does decide to convert to FA and or take more FA to the FA being delivered?

Speaker #5: Should we expect, basically, a couple of years for them and you to build that capacity?

Jean Ann Salisbury: That's helpful. I guess as a follow-up to that question, what's kind of the timeline if a cracker does decide to convert to ethane or take more ethane to the ethane being delivered? Should we expect basically 2 years for them and you to build that capacity?

Speaker #6: That's probably—it's not overnight, Gene. And I think your couple of years is probably in the ballpark.

Speaker #5: All right. Thank you. I'll leave it there.

Speaker #8: Thank you. Our next question. Comes from the line of Michael Bloom of Wells Fargo. Your line is open, Michael.

Jim Teague: That's.

Jim Teague: It's not overnight, Jean Ann.

Michael Hanley: Yeah.

Michael Hanley: I think your couple of years is probably in the ballpark.

Speaker #9: Thanks. Good morning, everyone. At dinner a few weeks ago, you didn't really think you'd see any permanent shifts in where global buyers are going to source their hydrocarbons.

Brandon Bingham: All right. Thank you. I'll leave it there.

Operator: Thank you. Our next question comes from the line of Michael Blum of Wells Fargo. Your line is open, Michael.

Speaker #9: I thought maybe they'd shift more to the US, but you seem to think that wouldn't happen. Curious just if you've had any change in your thinking there.

Michael Blum: Thanks, good morning, everyone. You know, at the, at dinner, a few weeks ago, you didn't really think you'd see any permanent shifts in where global buyers are gonna source their hydrocarbons. I thought maybe they'd shift more to the US, but you seem to think that that wouldn't happen. Curious just if you've had any change in your thinking there. On a similar vein, I think at the time you didn't really think we'd see any reaction or from the US producers, and I'm curious if you still think that's the case.

Speaker #9: And in a similar vein, I think at the time, you didn't really think we'd see any reaction from the US producers. And I'm curious if you still think that's the case.

Speaker #6: Take the second one first, Jay, and Natalie, what reaction by US producers?

Speaker #5: This is Natalie Gayden. I'd say, and Jake and chime in here, I don't know that US producers have done much different. It seems to be that they're staying pretty disciplined.

Jim Teague: Take the second one first, Jay and Natalie, what reaction by US producers?

Speaker #5: Sure, we see some movement in rig activity. To different maybe producing zones or maybe different areas of their acreage if they have discretionary acreage.

Natalie Gayden: This is Natalie Gayden. I'd say, and Jay can chime in here. I don't know that US producers have done much different. It seems to me that they're staying pretty disciplined. Sure, we see some movement and rig activity to different maybe producing zones or maybe different areas of their acreage if they have discretionary acreage. Other than that, I'd say they're keeping discipline.

Speaker #5: But other than that, I'd say they're keeping discipline.

Speaker #9: Yeah. I'd agree with Natalie. We do hear some conversations from the independents about cadence, maybe moving up where they think they can. On our gathering systems, we've seen incremental growth, call it, over the last three months.

Speaker #9: But that could just be anecdotal.

Speaker #6: This is the first question, Gene. And a supply disruption like we have changes a lot of things. And we're seeing interest from countries tug like India.

Jay Bany: I'd agree with Natalie. We do hear some conversations from the independents about cadence maybe moving up where they think they can. On our gathering systems, we've seen incremental growth, call it over the last three months, that could just be anecdotal.

Jim Teague: As to the first question, Jean Ann, you know, a supply disruption like we have changes a lot of things. We're seeing interest from countries Tug like India. But you know, it's a funny thing. We're geographically challenged when it comes to LPG and India. The question will be, when this is all over and everything returns to normal, do they still wanna lift US LPG when the AG is so close to them? Right now, they're showing a lot of interest.

Speaker #6: But it's a funny thing that we're geographically challenged when it comes to LPG and India. And the question will be, when this is all over and everything returns to normal, do they still want to lift US LPG when the AG is so close to them?

Speaker #6: Right now, they're showing a lot of interest.

Speaker #8: Okay. Thanks for that. The second question was just on capital allocation. Randy, appreciate your comments on the $1 billion of discretionary cash. The question is, assuming you're able to realize stronger results this year, as a result of the conflict, and would you maintain that 50 to 60 percent allocation to buybacks versus debt pay down?

Michael Blum: Okay, thanks for that. The second question was just on capital allocation. Randy, appreciate your comments on the $1 billion of discretionary cash. The question is, assuming you're able to realize stronger results this year as a result of the conflict, would you maintain that 50% to 60% allocation to buybacks versus debt pay down? Or if that $1 billion turns into $1.5 billion, for example, would the incremental above plan just go to buyback since your leverage is already within the target? Thanks.

Speaker #8: Or if that billion dollars turned into 1.5 billion, for example, would the incremental above-plan just go to buybacks since your leverage is already within the target?

Speaker #8: Thanks.

Speaker #6: Yeah, Michael, I like the way you're thinking this morning. Yeah, Michael, I think we would still in the near term, when we think about 2026, we'd probably still maintain that 50 to 60 percent split.

Speaker #6: 2027 could be a different story, but I think 2026 will still probably maintain that split.

Speaker #8: Thank you. Thank you. Our next question. Comes from the line of Brandon Bingham of Scotiabank. Please go ahead, Brandon.

Michael Blum: Thank you.

Speaker #10: Hey, good morning. Thanks for taking the questions. Just thinking about the two new plant announcements in the Permian and I know it's barely hasn't even really been a month since the macro update, but just curious what you think the go-forward cadence should be for Permian processing capacity.

Operator: Thank you. Our next question comes from the line of Brandon Bingham of Scotiabank. Please go ahead, Brandon.

Speaker #10: I believe previously, you guys were around one or two a year with a thought process. Do you think we're moving more to a two-plus environment or just how should we think about that moving forward?

Jean Ann Salisbury: Hey, good morning. Thanks for taking the questions. Just thinking about the two new plant announcements in the Permian. I know it's barely hasn't even really been a month since the macro update. Just curious what you think the go-forward cadence should be for Permian processing capacity? I believe previously you guys were around one or two a year with the thought process. Do you think we're moving more to a two-plus environment or just, you know, how should we think about that moving forward?

Speaker #5: This is Natalie Gayden. I think we're probably trending closer to two. And obviously, that depends on how GORs shape up. But Corey's showing you that GORs are increasing.

Speaker #5: That is definitely true. So I'd say we're trending more to two per year.

Natalie Gayden: This is Natalie Gayden. I think we're probably trending closer to 2, and obviously that depends on how GORs shape up. Corey's showing me that GORs are increasing. That is definitely true. I'd say we're trending more to 2 per year.

Speaker #8: Okay. Great. Thank you. And then maybe just shifting over to the global supply-demand dynamics especially on the demand side, just curious what you guys are seeing for refined products and crude.

Speaker #8: And what that might mean for your export business moving forward.

Brandon Bingham: Okay, great. Thank you. Maybe just shifting over to the global supply-demand dynamics, especially on the demand side. Just curious what you guys are seeing for refined products and crude, and what that might mean for your export business moving forward.

Speaker #6: Yeah, Brandon. This is Jay again. Yeah, we've seen volumes leave our dock. I mean, you go back to first quarter last year, I think we for fourth quarter, we were up 70,000 barrels a day on exports.

Speaker #6: And then add that to the first quarter, that's another 70. With the SPR barrels now looking for second quarter, I mean, we could be well over a million barrels a day.

Speaker #8: Okay, great. Thanks. Thank you. Our next question comes from the line of Manav Gupta of UBS. Please go ahead, Manav.

Speaker #11: Good morning. Congrats on the good results. I just wanted to quickly focus on slide 17. It looks like PDH units are operating much better based on that slide.

Brandon Bingham: Okay, great. Thanks.

Operator: Thank you. Our next question comes from the line of Manav Gupta of UBS. Please go ahead, Manav.

Speaker #11: And I think you did do some kind of turnaround on the PDH unit too. And it's been operating better after that. Can you speak to those dynamics, please?

Speaker #6: Yes. This is Graham. PDH2 has been running much better and much consistently since the turnaround that we had last year. The teams have put a lot of work in and worked very closely with our licensing partner and have resolved a number of the issues that we had.

Graham Bacon: Yes, this is Graham. PDH 2 has been running much better and much consistently since the turnaround that we had last year. The teams have put a lot of work in, worked very closely with our licensing partner and have resolved a number of the issues that we had and are looking forward to sustained operation of that unit.

Speaker #6: And I'm looking forward to sustained operation of that unit—PDH1 as well. And we've invested a lot over the years in improving the reliability.

Speaker #6: And we still have some projects that we're working. But I think what you're seeing in PDH1, much improved reliability in that unit as well due to the investments that we've made over the last few years in reliability as well.

Jim Teague: What about PDH 1?

Graham Bacon: PDH 1 as well. You know, we've invested a lot over the years in improving the reliability, and we still have some projects that we're working, but I think what you're seeing in PDH 1, much improved reliability in that unit as well due to the investments that we've made over the last few years and reliability as well. The teams, we've got good teams working out there, and they're just knocking down the barriers that we've had out there over previous years and good work by those folks out at our Mont Belvieu PDH team.

Speaker #6: And the teams, we've got good teams working out there. And we're just knocking down the barriers that we've had out there over the previous years and good work by those folks out at our Montbellview PDH team.

Speaker #11: Perfect. My quick follow-up is the macro comments you made at the beginning of the call, which were actually very informative. And you talked about 15 million barrels of total disruptions and then straight probably normally operating maybe only in July.

Speaker #11: I'm just trying to understand what does this do to various storage levels of crude, refined products, LPG? Do you think because based on this depletion, storage levels could probably take an year or so to get fully replenished here?

Manav Gupta: Perfect. My quick follow-up is the macro comments you made at the beginning of the call, which were actually very informative. You know, you talked about 15 million barrels of total disruptions and then Strait probably normally operating maybe only in July. I am just trying to understand what does this do to, you know, various storage levels of crude, refined products, LPG? Do you think like because based on this depletion, like storage levels could probably take 1 year or so to get fully replenished here? If you could talk about some of those dynamics, please.

Speaker #11: If you could talk about some of those dynamics, please.

Speaker #6: So if we look at the numbers and I think Jim was pretty spot on with saying around 500 million barrels a month of lost supply depending on who you ask, as he pointed out, and somewhere between 10 and 15 million barrels a day of lost supply through the Strait of Hormuz.

Speaker #6: That's crude oil, products, and NGOs. So just take 12 million barrels, for example, multiply that times 60 days. You've lost 720 million barrels through the Strait.

Speaker #6: For global supply. So imagine if we can get back to normal and let's say we're down a handful of barrels, you're only going to get maybe a million or two million barrels above that.

Speaker #6: So it could take years to get back to where we were before the war.

Speaker #10: What we don't know is what's been destroyed or damaged by the war and what it takes to repair that. I mean, we've heard about the train that Qatar has but they're still not a hell of a lot of information as to what other assets have been damaged.

Jim Teague: You know, what we don't know is what's been destroyed or damaged by the war and what it takes to repair that. I mean, we've heard about the train that Qatar has, but there's still not a hell of a lot of information as to what other assets have been damaged.

Speaker #11: Thank you so much.

Speaker #8: Thank you. Our next question. Comes from the line of John McKay. Of Goldman Sachs, your line is open, John.

Speaker #12: Hey, good morning, everyone. Thank you for the time. I just want to go back to the 2027 kind of soft guide from the last call.

Manav Gupta: Thank you so much.

Operator: Thank you. Our next question comes from the line of John Mackay of Goldman Sachs. Your line is open, John.

Speaker #12: You talked about it a little bit earlier in this one, but I just want to put a little finer point on it. When you shared that update, were you thinking of 2027 being kind of what had at the time thought to be a kind of softer 2026 macro environment or 2025 macro environment, where we weren't going to have a lot of spreads?

Speaker #12: Or was 2027 meant to be a more kind of normalized environment, maybe closer to what you outlaid outlined in the fundamentals update a couple of weeks ago?

Speaker #12: Maybe just kind of walk us through the kind of macro behind the 2027 piece.

Speaker #6: Yeah. John, this is Randy. I appreciate the question. Yeah, really what we were looking at when we saw the potential for 2027 was really just fee-based EBITDA growth.

Randy Fowler: Yeah. John, this is Randy. I appreciate the question. Really what we were looking at when we saw the potential for 2027 was really just fee-based, fee-based EBITDA growth. You know, we were in a situation in 2025 and coming into 2026, Jim mentioned earlier that it was really a benign environment for commodity prices and spreads. Really the driver was really fee-based cash flows off new assets going into service and also around the acquisition that we did from Occidental Petroleum that you'd start seeing those volumes show up on our system at the beginning of 2027. Those were really the drivers.

Speaker #6: It was we were in a situation in 2025 and coming into 2026. Jim mentioned earlier that it was really a benign environment for commodity prices and spreads.

Speaker #6: So really, the driver was fee-based cash flows off new assets going into service, and also around the acquisition that we did from Occidental Petroleum, that you'd start seeing those volumes show up on our system.

Speaker #6: And at the beginning of 2027, those were really the drivers.

Speaker #12: I appreciate that. That's clear, thank you. And then maybe just switching to kind of the broader macro—as Tom said a couple of times in this call—about the disconnect between the, let's say, paper market and the physical market.

Speaker #12: Can you talk a little bit more about that? And maybe what you think is driving the divergence, or what could drive a convergence in that?

John Mackay: I appreciate that. That is clear. Thank you. Then maybe just switching to the broader macro, you guys have commented a couple of times on this call about the disconnect between the, let's say, paper market and the physical market. Can you talk a little bit more about that and maybe what you think is driving the divergence or what could drive a convergence in that?

Speaker #10: Yeah, this is Tug. You're seeing strong physical premiums, for example, on dated Brent. But I really think what we're alluding to is the forward market may not be accurately reflecting what we're seeing in the physical market.

Speaker #10: It's probably not high enough.

Michael Hanley: Yeah, this is Tug. You know, you're seeing strong physical premiums, for example, in Dated Brent. I really think what we're alluding to is the forward market may not be accurately reflecting what we're seeing, in the physical market. It's probably not high enough.

Speaker #12: It may sound like you'd expect the kind of futures market to drift up over time even if we get closer to, let's say, some clearer resolution in the Strait?

Speaker #10: So it sure looks like.

Speaker #12: It looks like it. All right. I appreciate the time. Thank you.

John Mackay: Makes it sound like you'd expect the kind of futures market to drift up over time, even if we get closer to, let's say, some clearer resolution in the rate.

Speaker #8: Thank you. Our next question comes from the line of Gabe Dowd of Truist. Your line is open, Gabe.

Michael Hanley: That's what it sure looks like.

John Mackay: It looks like it. All right. I appreciate the time. Thank you.

Speaker #13: Thanks, operator. Morning, everyone. Thanks for the time. Was hoping maybe to just touch on the gas side just for a second. Maybe Haynes will gather as we're in the shoulder season now and front month at 250.

Operator: Thank you. Our next question comes from the line of Gabe Dowd of Truist. Your line is open, Gabe.

Speaker #13: We'll see what happens in the summer. But curious if you're seeing any change in behavior. It does seem like privates build productive capacity to turn on at the appropriate price signal.

Speaker #13: But curious if you're seeing any change in behavior.

Speaker #14: This is Natalie Gaiden. You're right. The privates—you see some rigs, or quite a few rigs, actually running, and so I think we expect a little bit of pop on our system in the Haynesville at the end of the year.

Natalie Gayden: This is Natalie Gayden. You know, you're right. The privates, you see some rigs, or quite a few rigs actually running. I think we expect a little bit of pop on our system in the Haynesville at the end of the year. Otherwise, it looks pretty steady for the most part. Maybe 1 billion of growth. I don't know what Corey's got in the forecast, but something like that.

Speaker #14: But otherwise, it looks pretty steady for the most part. Maybe it'd be a growth. I don't know what Corey's got in the forecast, but something like that.

Speaker #15: All right, Natalie.

Speaker #8: Got it. Thanks, Natalie. And just a quick follow-up, maybe. Shifting back to the Permian, is the commercial team tends to win some new business?

Speaker #8: Obviously, competitive basin, but just curious—what's most important to producers today? Is it reliability, just given where pricing is, fees, maybe differentiation given your sour gas capabilities?

Gabe Dowd: All right, Natalie. Got it. Thanks, Natalie. Just a quick follow-up, maybe. Shifting back to the Permian, as the commercial team tends to win some new business, obviously competitive basin. Just curious, what's most important to producers today? Is it, you know, reliability, just given where pricing is, fees, maybe, you know, differentiation given your sour gas capabilities? Just trying to frame the competitive dynamics today. Thanks, guys.

Speaker #8: Just trying to frame the competitive dynamics today. Thanks, guys.

Speaker #14: Well, we always use our integrated value chain to compete. There's no doubt about that. And then cost of capital and what it takes to build out whatever a producer needs.

Speaker #14: I will say an established footprint that far reaches into areas of the basin that people are producing in as a competitive advantage because you're already there.

Natalie Gayden: Well, we always use our integrated value chain to compete. There's no doubt about that. Cost of capital and what it takes to build out whatever a producer needs. I will say an established footprint that far reaches into areas of the basin that people are producing in is a competitive advantage because you're already there. When producers want to bring on gas and, you know, the next 12 months, you already have a foot in the door per se. I would say a mix of all of the things, integrated value chain and just geographical position in the basin.

Speaker #14: And when producers want to bring on gas in the next 12 months, you kind of have—you already have a foot in the door, per se.

Speaker #14: So I would say a mix of all of the things: integrated value chain and just geographical position in the basin.

Speaker #6: I'll just this is Tug. I'll just add that Natalie operates a super system out there, which provides our customers a lot of reliability.

Speaker #8: Yep. Understood. That makes sense. Thanks, everyone. Thank you. Our next question. Comes from the line of Julian. Smith. Of Jeffreys, your line is open, Julian.

Michael Hanley: This is Tug. I'll just add that Natalie operates a super system out there which provides our customers a lot of reliability.

Gabe Dowd: Yep, understood. That makes sense. Thanks, everyone.

Speaker #16: Hi. Good morning, everyone. This is Rob Moska on for Julian. On the CapEx revision and the planned FITs, would imagine you'd lined aside to these projects when you issued guidance last quarter.

Operator: Thank you. Our next question comes from the line of Julien Dumoulin-Smith of Jefferies. Your line is open, Julien.

Speaker #16: Should we interpret this to mean that incremental FIDs, like a new frac could bias 26 CapEx higher? And what you have now actually a pretty firm number.

Rob Mosca: Hi, good morning, everyone. This is Rob Mosca on for Julien. On the CapEx revision and the planned FIDs, would imagine you'd line aside to these projects when you issued guidance last quarter. Should we interpret this to mean that incremental FIDs, like a new frac Bahia, 2026 CapEx higher? Is, you know, what you have now actually a pretty firm number? Also, you know, maybe if you could provide an update on those commercial agreements you spoke to with Exxon last quarter. Thanks.

Speaker #16: And also, maybe if you could provide an update on those commercial agreements you spoke to with Exxon last quarter. Thanks.

Speaker #6: Yeah. The first part of your question—no, our CapEx guide does include anticipated projects that are under development. I won't talk to specifically any unannounced projects, but we do have some projects that are under development that are in that guide.

Randy Fowler: Yeah. The first part of your question, no, our CapEx guide does include anticipated projects that are under development. I won't, I won't talk to specifically any unannounced projects, but we do have some projects that are under development that are in that guide. Previously, where we were, we had on the 2 processing plants that we just announced with the earnings release this morning. We actually had the long lead items associated with that plant in our guide. We just did not know as far as when we were gonna come in and actually FID those. The FID, again, just with the volume growth we've seen in the Permian, the FID came earlier.

Speaker #6: Previously, where we were, we had, on the two processing plants that we just announced with the earnings release this morning, we actually had the long-lead items associated with that plant in our guide.

Speaker #6: We just did not know as far as when we were going to come in and actually FID those, and the FID, again, just with the volume growth we've seen in the Permian, the FID came earlier.

Speaker #6: So that was, if you would, the reason for the increase in the CapEx guide for this year, because we'll see some of that CapEx happening late this year.

Speaker #15: And this is Zach Straight on the NGL side on the fractionation side. Natalie mentioned she's up on probably up on the upper end of her guidance.

Randy Fowler: That was, if you would, the reason for the increase in the CapEx guide for this year, because we'll see some of that CapEx happening late this year.

Speaker #15: So, we're always looking at building fractionators. We'd like to bring on fractionators full—it helps the economics. We've got a lot of levers within the system.

Tyler Cott: This is Zachary Strait. On the NGL side, on the fractionation side, you know, Natalie mentioned she's probably up on the upper end of her guidance. We're always looking at building fractionators. We like to bring on fractionators full, helps the economics. We've got a lot of levers within the system. Honestly, we were probably a little late on Frac 14, but we got a lot of levers. We'll see if we need another fractionator, and if we do, we'll build one.

Speaker #15: Honestly, we were probably a little late, on 14, but we got a lot of levers. So we'll see if we need another fractionator. And if we do, we'll build one.

Speaker #15: Not sure what your question is on the Exxon side. But on the downstream agreements, I would say that we talked about, I would say a lot of those agreements were just extensions of deals that we already had.

Speaker #15: And it was just a natural fit, why we're in the conversations about Bahia, to go ahead and extend those contracts.

Tyler Cott: Not sure what your question is on the ExxonMobil side, but, on the downstream agreements, I would say that we talked about, I would say a lot of those agreements were just extensions of deals that we already had, and it was just a natural fit while we're in the conversations about Bahia to go ahead and extend those contracts.

Speaker #16: Got it. No, that addressed it. Thanks for that. And for my follow-up, just wondering how we should think about the quantum of LPG that could be shipped out of NRT2 phase two once it's online relative to the 360,000 barrels per day refrigeration capacity?

Rob Mosca: Got it. No, that addressed it. Thanks for that. For my follow-up, just wondering how we should think about the quantum of LPG that could be shipped out of NRT 2 once Phase 2 once it's online relative to the 360,000 barrels per day refrigeration capacity. It seems like you guys might have just one dock there. Wondering how contracted that capacity is until the EHT expansion comes online on the LPG side at the end of this year. Thanks.

Speaker #16: It seems like you guys might have just one dock there, and I'm wondering how contracted that capacity is until that EHT expansion comes online on the LPG side at the end of this year.

Speaker #16: Thanks.

Speaker #6: Yeah. This is Tyler Cott. I'll just reiterate again that over the longer term, we're contracted around the range of 90%. We have propane contracts that will start to ramp pretty quickly at NRT.

Speaker #6: And I think, as we've said before, we expect NRT to do a good amount of propane in the balance of this year, and that will transition to ethane as our EHT capacity comes online late this year.

Speaker #16: All right. Appreciate the time, everyone.

Speaker #8: Thank you. Our next question. Comes from the line. Of AJ O'Donnell. Of TPH. Please go ahead, AJ.

Speaker #17: Good morning, all. Wondering if I could just go back to some of the comments on damaged infrastructure in the Middle East. I think we saw from Saudi Aramco this morning they're going to be halting LPG shipments through May.

Rob Mosca: All right. Appreciate the time, everyone.

Operator: Thank you. Our next question comes from the line of AJ O'Donnell of TPH. Please go ahead, AJ.

Speaker #17: There have been some published price indexes from third-party sources showing that spot loading rates in the US Gulf Coast have been as high as $0.55.

AJ O'Donnell: Morning, all. Wondering if I could go back to some of the comments on damaged infrastructure in the Middle East. I think we saw from Saudi Aramco this morning, they're gonna be halting LPG shipments through May. There's been some published price indexes from third-party sources, showing that spot loading rates in the US Gulf Coast has been as high as $0.55. Wondering, given that, you know, Phase 2 of Neches River will be up soon, curious how you would characterize that rate and what maybe you're seeing in terms of spot opportunities and how that could affect, you know, the return profile of your two new export projects.

Speaker #17: And just wondering, given that phase two of Nature's River will be up soon, curious how you would characterize that rate and what maybe you're seeing in terms of spot opportunities and how that could affect the return profile of your two new export projects.

Speaker #6: Yeah, we've seen elevated spot rates. They've been volatile. They've been as high as what you mentioned, and they're off from those highs now.

Speaker #6: I think, going back to what I said earlier, our system now has a significant amount more flexibility than it did previously. And so, we'll respond to what products the markets need and have the highest value with the spot capacity that we have available.

Speaker #18: Those products being ethylene, E, propylene, LPG, and ethane.

Speaker #17: Okay. Great. Then I just had one more. On the crude business, looking at the Q1 results, could you provide a little bit more detail on kind of the specific drivers behind the lower sales margin and lower transport revenues?

Speaker #17: Curious with the higher commodity strip and overall volatile basis spreads that you guys have been citing, is this something that we could see kind of reverting in Q2 and the rest of the year?

Speaker #17: Thanks.

Speaker #18: Yeah. AJ, this is Jay again. It's Q1 results. We had a headwind with the Eagle Ford JV renegotiation on some fees there. And then some mark-to-market noise.

Speaker #18: Lower spreads. But you brought up looking forward, the spreads increasing. That really didn't take place until call it April business. But your points are valid.

Jay Bany: Yeah, AJ, this is Jay again. Yeah, those Q1 results, you know, we had a headwind with the Eagle Ford JV renegotiation on some fees there, and then some mark-to-market noise, lower spreads. You brought up looking forward, the spreads increasing. That really didn't take place until, call it, April business, your point's valid. We see it definitely at least as April looks now, that turning around.

Speaker #18: We see definitely at least as April looks now, that turning around.

Speaker #17: Okay. Thank you very much.

Speaker #8: Thank you. Our next question comes from the line. Of Jeremy Tonette. Of JPMorgan Securities. Your line is open, Jeremy.

AJ O'Donnell: Okay. Thank you very much.

Speaker #19: Hi. Good morning.

Speaker #18: Good morning.

Speaker #19: Just wanted to come back to some of the commentary that you provided on the macro level. And just wanted to see, I guess, the industry, as you said, I don't think has really responded with a lot of new rig activity.

Operator: Thank you. Our next question comes from the line of Jeremy Tonet of J.P. Morgan Securities. Your line is open, Jeremy.

Jeremy Tonet: Hi, good morning.

Speaker #19: And wondering what you think the industry would need to see in the market to pick up activity? And do you expect us to get there?

Randy Fowler: Good morning.

Speaker #6: I think we hear from producers as they're going to stay disciplined. Go ahead, Natalie.

Speaker #20: I think that's true. I mean, we'll stay disciplined. We'll have a few companies that may break out from the pack, but they're private in nature and don't add a whole lot to the bottom line.

Randy Fowler: I think we hear from producers is they're gonna stay disciplined. Go ahead, Natalie.

Speaker #20: So that's what we're seeing.

Natalie Gayden: I think that's true. I mean, we'll stay disciplined. We'll have a few companies that may break out from the pack, but they're private in nature and, you know, don't add a whole lot to the bottom line. That's what we're seeing.

Speaker #19: Do you see any certain price levels out there in the 27 curve that might start to warrant more activity or just can't tell that?

Speaker #21: No, this is Tyler. I don't think it's necessarily a specific price level. It's probably more focused on the back of the curve being lifted up, and not just next year.

Jeremy Tonet: Do you see any certain price levels out there in the, in, you know, the 2027 curve that might, you know, start to warrant more activity, or just can't tell that?

Speaker #21: It needs to get lifted up for many years beyond that.

Speaker #19: Got it, thanks. And then just wondering, for the CapEx backlog as a whole, if you might be able to share, I guess, how much of that could be allocated to projects that have not taken FID yet?

Tyler Cott: Nope. This is Tyler. I don't think it's necessarily a specific price level. It's probably more focused on the back of the curve being lifted up, and not just next year, needs to get lifted up for many years beyond that.

Speaker #19: Just trying to get a sense for how that might look.

Jeremy Tonet: Got it. Thanks. Just wondering for the CapEx backlog as a whole, if you might be able to share, I guess how much of that could be allocated to kind of, you know, projects that have not taken FID yet. Just trying to get a sense for how that might look.

Speaker #21: Oh, for 2026? Jeremy, that's getting pretty granular. They're probably.

Speaker #19: 2027 is. 2027 works as well. Thank you.

Speaker #21: Oh, 2020. Probably for 2027—Chris, I mean, I would say probably half of 2027 is not spoken for.

Jim Teague: Oh, for 2026? Jeremy, that's getting pretty granular.

Jeremy Tonet: 27. 27 works as well. Thank you.

Speaker #22: Yeah.

Speaker #19: That's very helpful. Thank you.

Jim Teague: Probably for 2027, Chris, I mean, I would say probably half of 2027 is not spoken for.

Speaker #21: Somewhere between 50 and 65 percent.

Speaker #19: Thank you.

Speaker #8: Thank you. Our next question comes from the line of Keith Stanley of Wolfe Research. Please go ahead, Keith.

F. Christopher D'Anna: Yeah.

Jeremy Tonet: That's very helpful.

Jim Teague: Yeah.

Jim Teague: Thank you.

Jim Teague: Somewhere between 50% and 65%.

Speaker #22: Hi. Good morning. I wanted to clarify on Nature's River phase two. Would you have contracted any of the LPG shipments on that, since it's only an interim service until you switched to ethane?

Jeremy Tonet: Thank you.

Operator: Thank you. Our next question comes from the line of Keith Stanley of Wolfe Research. Please go ahead, Keith.

Speaker #22: Or is that all spot? And then just want to confirm the timeline. You would switch to ethane. You're required to do that at year-end.

Keith Stanley: Hi. Good morning. Wanted to clarify on Neches River Phase 2. Would you have contracted any of the LPG shipments on that, since it's only an interim service until you switch to ethane? Is that all spot? Just want to confirm the timeline. You would switch to ethane, you're required to do that at year-end.

Speaker #6: We do have propane contracts that will be ramping up here at NRT on the flex train. And then as EHT comes online, we'll satisfy that contract demand long-term at EHT.

Speaker #6: Our ethane commitments are generally driven by when the VLECs arrive and largely that's later this year and into next year.

Tyler Cott: We do have propane contracts that we'll be ramping up here at NRT on the flex train, and then as EHT comes online, we'll satisfy that contract demand long term at EHT. Our ethane commitments are generally driven by when the VLECs arrive, and largely that's later this year and into next year.

Speaker #22: Got it. Bigger picture question as a follow-up. What would you say is the biggest opportunity for enterprise with the situation in the Middle East and some of the commodity dynamics?

Speaker #22: Is there any particular business or commodity that you see as most exciting that you'd call out or things we might not be thinking about?

Speaker #23: Frankly, I think ethane has surprised me. The appetite for it—I could see that growing. And another one is we're going to ship out, what, Chris, 3 million barrels of ethylene this month.

Jim Teague: Frankly, I think ethane has surprised me, the appetite for it. I can see that growing. another one is we're gonna ship out, what Chris, 3 million barrels of ethylene this month?

Speaker #6: That's right, Jim. Yeah. Our ethylene exports over the last couple of months have been really high.

Speaker #23: What excites me is how we have broadened the offering across our docks. We're not just an LPG dock. We're not just a crude oil dock.

Speaker #23: We're a hydrocarbon dock, and I think I'd like to see that grow. We've got our own target support—where we'd like to be. And I'm not going to share, but I'd like to broaden the offerings rather than focus on a specific project.

Tyler Cott: That's right, Jim. Yeah, our ethylene exports over the last couple months have been really high.

Jim Teague: What excites me is how we have broadened the offering across our docks. We're not just an LPG dock. We're not just a crude oil dock. We're a hydrocarbon dock. I think I'd like to see that grow. We've got our own target support where we'd like to be that I'm not gonna share, I like the broadening of the offerings rather than a specific project.

Speaker #22: Got it. Thank you.

Speaker #23: And probably the only thing I'd add to that, just really what this—just the improvement in fundamentals for our petrochemical customers has really been a big change, which is good to see for them, and we'll get the benefit from just volumes going through the system.

Keith Stanley: Got it. Thank you.

Randy Fowler: Probably the only thing I'd add to that, just the improvement in fundamentals for our petrochemical customers has really been a big change, which is good to see for them, and we'll get the benefit from just volumes going through the system. That's much improved.

Speaker #23: But that's much improved. Yeah. A healthy petrochemical business is good for Enterprise. And they were running pretty strong before this. What's changed? Some are going to heck up a lot of money.

Speaker #22: Thank you.

Jim Teague: Yeah, a healthy petrochemical business is good for Enterprise. They were running pretty strong before this. What's changed? They're making a heck of a lot of money.

Speaker #8: Thank you. Our next question. Comes from the line of Jason Gableman. Of TD Cohen. Please go ahead, Jason.

Speaker #24: Yeah. Hey, most of my questions have been answered. I wanted to ask about another commodity exposure you guys have, around octane enhancement. I think in 2022, that business did, in ’23, north of $400 million of gross margin.

Keith Stanley: Thank you.

Operator: Thank you. Our next question comes from the line of Jason Gabelman of TD Cowen. Please go ahead, Jason.

Jason Gabelman: Hey, most of my questions have been answered. I wanted to ask about another commodity exposure you guys have around octane enhancement. You know, I think in 2022, that business did in 2023, north of $400 million of gross margin. How are those spreads looking right now? Do you see that repeating this year?

Speaker #24: How are those spreads looking right now? Do you see that repeating this year?

Speaker #23: Yeah, we're just now coming out of a turnaround on our Olaflex unit, so we're not able to get full capacity. But as we're coming out of that, we think it's going to be strong through the quarter.

Jim Teague: We just now are coming out of a turnaround on our Oleflex unit. We're not able to get full capacity. We're coming out of that. We think it's gonna be strong through the quarter.

Speaker #19: Got it. That was it for me. Thanks for the question.

Speaker #8: Thank you. I would now like to turn the conference back to Joe Thiriac for closing remarks. Sir?

Speaker #25: Thank you, Latif. And thank you, participants, for joining us today. That concludes our remarks. Have a good day.

Jason Gabelman: Got it. That was it for me. Thanks for the question.

Operator: Thank you. I would now like to turn the conference back to Joseph Theriac for closing remarks. Sir.

Joseph Theriac: Thanks, Latif. 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.

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