01—Abstract
Summary
Summary of the 10-K filed February 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Enterprise Products Partners L.P.
(NYSE: EPD) reported 2024 revenues of $56.2 billiona, up from $49.7 billion in 2023, driven mainly by higher marketing volumes across NGLs, crude oil and petrochemicals. Operating income rose 6% to $7.3 billion, and net income attributable to common unitholders reached $5.9 billion, or $2.69 per unit versus $2.52 in 2023. Total non-GAAP gross operating margin grew to $9.98 billion from $9.40 billion, with the NGL Pipelines & Services and Natural Gas Pipelines & Services segments leading the gains, while Crude Oil and Petrochemical & Refined Products margins declined.
Cash flow strengthened, with operating cash flow of $8.1 billionb and distributable cash flow of $7.8 billion. Distributions to common unitholders were $2.10 per unit for 2024 (up from $2.005), giving a distribution coverage ratio of 1.70x. Capital investments reached $5.5 billion in 2024, including $4.5 billion of capex and $949 million for the Pinon Midstream acquisition.
Management guides to $4.5c-5.0 billion of 2025 capital investment, with roughly $7.6 billion of growth projects scheduled through 2026, including Frac 14, Orion, Bahia NGL Pipeline and EHT Ref 4. Leverage and liquidity remain solid. Total debt principal was $32.2 billion, about 98% fixed-rate at a weighted-average cost of 4.7%, and EPO's credit ratings are A- (S&P), A3 (Moody's) and A- (Fitch).
Liquidity was $4.8 billiond at year-end. Key risks include commodity price volatility, rising capital costs, FERC index-rate changes for regulated pipelines, cybersecurity exposure without dedicated cyber insurance, and the ongoing refinement of the SPOT crude export terminal, which remains subject to a final investment decision.
02—Key points
Key Highlights
- Revenue rose 13% to $56.2 billion in 2024, largely from higher marketing volumes; operating income increased 6% to $7.3 billion.
- Total gross operating margin (non-GAAP) increased to $9.98 billion from $9.40 billion, led by NGL Pipelines & Services (+$650 million segment margin to $5.5 billion) and Natural Gas Pipelines & Services (+$200 million).
- Net income attributable to common unitholders was $5.9 billion ($2.69 per unit), up from $5.5 billion ($2.52 per unit).
- Operational DCF of $7.86 billion and DCF of $7.84 billion supported a distribution coverage ratio of 1.70x against a declared 2024 distribution of $2.10 per unit.
- 2025 capital investment guidance of $4.5-5.0 billion, with approximately $7.6 billion of growth projects scheduled through 2026.
- Debt principal of $32.2 billion is 98% fixed-rate at a 4.7% weighted-average cost, with investment-grade ratings of A-/A3/A- and $4.8 billion of consolidated liquidity.
- Crude Oil and Petrochemical & Refined Products margins declined year over year, reflecting lower average sales margins and lower propylene and refined products volumes.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Enterprise Products Partners L.P. kept $0.10.
- Revenue$56.22B100.0%
- Cost of revenue−$42.58B75.7%
- Gross profit$13.64B24.3%
- Operating costs−$6.30B11.2%
- Operating income$7.34B13.1%
- Interest, other & tax−$1.44B2.6%
- Net income$5.90B10.5%
Where FY2024 revenue went
$56.22B- Cost of revenue: $42.58B, 76% of revenue
- Net income: $5.90B, 10% of revenue
- Operating costs: $6.30B, 11% of revenue
- Interest, other & tax: $1.44B, 2.6% of revenue
Kept 10% as net incomeNet income $5.90B · 10%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 28, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $56.22B$49.72B | +13.1% |
| Cost of Revenue | $42.58B$37.02B | +15.0% |
| Gross Profit | $13.64B$12.69B | +7.5% |
| Operating Expenses | $49.29B$43.25B | +14.0% |
| Operating Income | $7.34B$6.93B | +5.9% |
| Net Income | $5.90B$5.53B | +6.7% |
| Shares Outstanding (Diluted) | 2.19B2.19B | −0.1% |
05—Questions
Frequently Asked Questions
How did Enterprise Products Partners perform financially in 2024?
Revenue increased to $56.2 billion from $49.7 billion, mainly due to higher marketing sales volumes. Operating income rose to $7.3 billion from $6.9 billion, and net income attributable to common unitholders increased to $5.9 billion ($2.69 per unit) from $5.5 billion ($2.52 per unit). Gross operating margin, a non-GAAP measure, grew to $9.98 billion.
Is the distribution to unitholders covered by cash flow?
Yes. Distributable cash flow was $7.84 billion in 2024 against cash distributions paid to common unitholders of $4.6 billion, producing a distribution coverage ratio of 1.70x. The Partnership retained about $3.2 billion of DCF after distributions. The Q4 2024 distribution was $0.535 per unit, or $2.14 annualized, and was paid in February 2025.
What are the main capital spending plans for 2025 and beyond?
Management expects 2025 capital investments of $4.5 to $5.0 billion, net of joint venture contributions, including $4.0 to $4.5 billion of growth capex and $525 million of sustaining capex. Major projects include Frac 14, the Orion and Mentone West processing trains, the Bahia NGL Pipeline, the Neches River export facility and EHT Ref 4. The proposed SPOT crude terminal is excluded and still awaits a final investment decision.
How strong is the balance sheet and what are the key debt risks?
Consolidated debt principal totaled $32.2 billion at year-end 2024, with an average maturity of about 18 years and nearly all fixed-rate. Liquidity was $4.8 billion, including $4.2 billion of undrawn revolver capacity. Ratings are A- (S&P), A3 (Moody's) and A- (Fitch). Key risks are refinancing costs if rates rise, potential rating pressure on the energy sector, and covenants that limit distributions if an event of default occurs.
What are the principal risks investors should monitor?
Key risks include commodity price and volume volatility, the ability to pass through rising construction and labor costs, FERC index-rate changes that could reduce regulated tariffs, growing environmental and greenhouse gas regulation, and cybersecurity threats without dedicated cyber insurance. The partnership structure also limits unitholder voting rights and gives the general partner conflict-of-interest latitude, and EPCO-affiliated holders own about 32.4% of the common units.
06—Continue