Enterprise Products Partners L P - Unit

Strong Q3 2026 results; cash flow up faster than EBITDA - Adjusted EBITDA: $2.8B, +16% YoY. - Distributable cash flow from operations: $2.3B, +27% YoY, with 1.9x coverage. - Retained cash flow: $1.1B reinvested into the partnership. - Operational “throughput” highlights: record 14.8 million bpd eq moved on the integrated pipeline system; 2.5 million bpd liquid exports from marine terminals. - NGL/processing volume tailwind: natural gas processing inlet volumes 8.5 Bcf/d (record); Permian plant inlet volumes 4.6 Bcf/d (+12% YoY) with 19% three-year CAGR (supporting the whole NGL value chain).

Updated Permian forecast: gas-to-oil ratio (GOR) rising meaningfully—key driver of growth outlook - Company updated its Permian production growth forecast through 2030: - Crude oil growth: only modestly higher—up about ~100,000 bpd by 2030 vs prior forecast. - Wet natural gas & NGL growth: forecasted to increase to ~34% growth (vs 23% previously) due to higher GOR. - Why GOR rose (from Q&A): - Shallow natural gas decline curves vs crude (compounding for PDP). - Producer behavior/location shifts toward areas producing higher gas content (Delaware benches with very high GOR on IP vs Wolfcamp-type crude-dominant IP). - Technology/frac efficiency may be changing molecule mix in late-life recoveries. - Investor takeaway: downside is mainly forecast uncertainty on GOR; upside is more gas/density feeding processing + fractionation/export utilization.

Capex/project pipeline: constructive near-term build with clear Q4 2026 milestones, but execution/power dependencies - Next major projects expected in Q4 2026: - 300,000 bpd LPG export expansion at Houston Ship Channel terminal (to raise total LPG loading capacity to ~1.1 million bpd). - New 300 MMcf/d natural gas processing plant in Midland Basin (“Athena,” 20th plant, total basin capacity nearly 5 Bcf/d). - Recently sanctioned/under construction assets mentioned: Delaware processing plant (11th), Bahia NGL pipeline, Frac 14 (Mont Belvieu), Neches River NGL Export Terminal phase 2. - Longer-dated expansion note (Bahia): - Delaware extension and 400k bpd incremental capacity: start Q4 2027 and run through mid-2028; power/pump stations are the critical path (potential timing risk). - Crucial but subtle insight: step-up in volumes in a quarter can happen without new processing plants (ramp-up + production normalization + organic acreage), but sustained growth requires keeping pace with the steeper gas curve.