ENTERPRISE PRODUCTS PARTNERS (EPD)·Q4 2025 Earnings Summary

Enterprise Products Posts Record Q4 as Pipeline Volumes Hit All-Time Highs

February 3, 2026 · by Fintool AI Agent

Enterprise Products Partners (NYSE: EPD) delivered a record-breaking Q4 2025, beating consensus on all major metrics as Permian Basin volumes surged. The midstream giant posted revenue of $13.8 billion (+11.6% vs. consensus), EPS of $0.75 (+7.9% vs. consensus), and Adjusted EBITDA of $2.71 billion (+5.4% vs. consensus). The stock surged 5% on earnings day to $34.71, hitting a new 52-week high of $34.89 and pushing market cap to $75 billion.

Did Enterprise Products Beat Earnings?

EPD delivered a clean beat across all key metrics:

The beat was driven by record operational volumes across nearly every business line. Co-CEO Jim Teague called it "a record fourth quarter" with "ten operational records" including pipeline volumes, processing, and fractionation.

What Records Did EPD Set?

Q4 2025 was exceptional, with the company posting all-time highs in multiple categories:

How Did Each Segment Perform?

NGL Pipelines & Services ($1.54B, flat YoY): The largest segment maintained its anchor position despite flat gross operating margin. Record NGL fractionation volumes of 1.9M BPD were offset by lower LPG export fees due to contract recontracting.

Natural Gas Pipelines & Services ($445M, +38% YoY): The standout performer, driven by Permian gathering volume increases (+641 BBtus/d), higher marketing margins, and Texas Intrastate System fee increases.

Petrochemical & Refined Products ($397M, +14% YoY): Benefited from 184 MBPD increase in refined products pipeline volumes and higher propylene production margins.

Crude Oil Pipelines & Services ($353M, -15% YoY): The only declining segment, impacted by lower average sales margins on crude marketing despite stable transportation volumes of 2.6M BPD. Texas crude oil pipelines, related terminals and marketing activities GOM decreased primarily due to lower average sales margins and lower transportation-related revenues.

Sequential Improvement (Q4 vs Q3 2025)

The NGL segment showed the strongest sequential improvement (+$238M or +18% QoQ), driven by:

• Higher NGL marketing margins and volumes (+$95M)
• Mont Belvieu fractionation volume increase of 210 MBPD from Frac 14 startup (+$36M)
• Permian/Rocky Mountain NGL pipelines from lower operating costs and 39 MBPD volume increase (+$34M)
• Morgan's Point and Neches River terminals from 66 MBPD ethane export volume increase (+$8M)

What Did Management Say About Bahia Pipeline?

The Bahia NGL Pipeline—EPD's major growth project—came online in December 2025, adding 600 MBPD of NGL takeaway capacity from the Permian to Mont Belvieu. Management provided significant updates:

"Bahia NGL Pipeline has the capacity to transport 600 MBPD of NGLs from the Permian Basin to Enterprise's 1.5 million BPD Mont Belvieu area fractionation complex. In December of 2025, we completed the previously announced sale of a 40 percent undivided joint interest in the Bahia NGL Pipeline to ExxonMobil."

Bahia is already ramping quickly. Co-CEO Jim Teague noted: "Bahia and Chinook is an integrated system, has 1.2 million barrels to capacity and are running at 80%." The partnership also announced an expansion to 1M BPD capacity with an extension to ExxonMobil's Cowboy processing complex, targeted for Q4 2027 completion.

What Is the 2026-2027 Outlook?

Management provided detailed EBITDA and capital guidance through 2027:

CFO Randy Fowler cautioned: "Fourth quarter and first quarter are seasonally stronger businesses, so don't straight line this." The 10% 2027 growth reflects full-year contribution from Bahia, Neches River, processing plants, and LPG expansion.

Key projects in development:

• Mentone West 2 (Delaware Basin): 300 MMcf/d gas processing, Q1 2026 startup
• Athena Plant (Midland Basin): 300 MMcf/d gas processing, Q4 2026
• Neches River Terminal Phase 2 ("Flex"): Ethane & propane export terminal in Orange County, TX, 1H 2026
• Bahia Expansion & Extension: +400 MBPD expansion and 92-mile extension to Eddy County, NM, Q4 2027
• EHT LPG Expansion: +300 MBPD propane & butane loading capacity, year-end 2026
• Dark Horse Treater 4 (New Mexico): Sour gas treating expansion, Q2 2026

New Commercial Agreements (announced in Q4):

• Executed long-term agreements with a large Delaware Basin producer for integrated acid gas gathering/treating, natural gas processing, and NGL transportation/fractionation
• Executed long-term agreements with Haynesville producers for gathering system extension plus downstream processing, treating, and transportation on the Acadian system
• Executed agreements with petrochemical customers supporting incremental extensions of ethane, ethylene, and propylene pipeline systems

Why Is EPD Considered Recession-Resistant?

Management highlighted EPD's defensive characteristics, emphasizing the high percentage of fee-based revenues and conservative balance sheet:

The company's track record through cycles is notable: Adjusted CFFO per unit grew from $1.05 in 2006 to $3.98 in 2025—nearly quadrupling over 20 years while maintaining distribution growth through the 2008 financial crisis, 2015-16 energy downturn, and 2020 pandemic.

What About Distribution and Capital Returns?

EPD raised its distribution 2.8% YoY to $0.55/unit ($2.20 annualized), marking its 27th consecutive year of distribution growth.

The payout ratio (distributions + buybacks as % of Adjusted CFFO) was 58% for 2025, leaving substantial capacity for debt reduction and reinvestment.

How Did the Stock React?

EPD surged 5% on earnings day, hitting new 52-week highs and a market cap of $75B.

The stock traded as high as $34.89 intraday, breaking through the prior 52-week high of $34.53. Volume was elevated at 4.2 million shares.

What Changed From Last Quarter?

Comparing Q4 2025 to Q3 2025:

*Values retrieved from S&P Global

The sequential improvement reflects typical Q4 seasonality plus the startup of Bahia NGL Pipeline and ongoing volume growth across Permian assets.

What Is the Volume Growth Trajectory?

EPD's strategic investments have driven consistent volume growth across all major business lines:

This volume growth has translated into capital returned to unitholders growing from $3.6B in 2017 to $5.0B in 2025, while growth capex has scaled from $2.9B to $4.4B over the same period.

Q&A Highlights: What Did Analysts Ask?

On NGL Exports: EPD loaded 350-360 million barrels across 744 ships in 2025. By next year, the company expects to export nearly 1.5 million barrels per day of NGLs (550 million barrels annually). Tyler Kott noted ethane export capacity should reach near full utilization by Q2 2026, with the second Neches River train ramping mostly propane first before shifting to mostly ethane by year-end.

On LPG Expansion: The Houston Ship Channel LPG expansion is 85-90% contracted, even for capacity coming online in Q4 2026.

On Producer Activity: Midland well connects hit a record 590 in 2025, with volumes tracking last year's growth. Delaware Basin growth is "steepening" with an estimated 500 wells turning to production this year and more next year.

On Propane Demand: All propane pipelines saw strong demand into year-end, with January 2026 as strong or stronger than January 2025.

On M&A Appetite: When asked about potential acquisitions similar to the Oxy Gathering deal, Jim Teague responded colorfully: "I don't see as many girls on the dance floor as there used to be."

On Culture: Teague emphasized the intangibles: "Enterprise long-term success is driven by our culture, our teamwork, our creativity, and our laser focus on customer relationships. Those intangibles are what give rise to the numbers you see each quarter."

What Is the Long-Term Thesis?

Management highlighted several growth catalysts:

1. Permian Production Growth: Despite moderating oil production, gas-to-oil ratios continue to rise, driving NGL and natural gas volumes.

2. AI/Data Center Demand: "We are also seeing opportunities to use operational leverage and modest investments in our natural gas pipeline systems in Texas and Louisiana to serve growing demand to support the development of AI/data centers, industrial reshoring and a general increase in electrification."

3. Export Growth: U.S. NGL exports remain critical as domestic supply exceeds demand. EPD's Neches River Terminal and Houston Ship Channel expansions position it as a leader in ethane and LPG exports.

Key Takeaways

• Triple beat: Revenue (+11.6%), EPS (+7.9%), EBITDA (+5.4%) all exceeded consensus
• Record volumes: 14.1M BPD-equivalent pipeline, 8.1 Bcf/d gas processing, 1.9M BPD fractionation
• Natural gas standout: +38% YoY gross operating margin growth in Natural Gas segment
• Bahia ramping fast: Already at 80% utilization, with expansion to 1M BPD planned by Q4 2027
• NGL export machine: 350-360M barrels exported across 744 ships in 2025; targeting 1.5M BPD by next year
• 27 years of distribution growth: $0.55/unit quarterly (+2.8% YoY), 1.8x coverage
• Strong capital returns: $300M buybacks in 2025; 55-60% of ~$1B 2026 FCF earmarked for buybacks
• 2027 outlook: ~10% EBITDA growth expected as projects reach full utilization
• Producer activity strong: Record 590 well connects in Midland, 500+ wells turning to production in Delaware
• Recession-resistant model: 82% fee-based GOM, A- credit rating, 3.3x leverage, $5.2B liquidity
• Stock surged 5%: Hit new 52-week high of $34.89, market cap now $75B

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Enterprise Products Partners hosted its Q4 2025 earnings conference call on February 3, 2026. This article incorporates key takeaways from the Q&A session. For the full transcript, visit Fintool.