01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Enterprise Products Partners L.P.
(NYSE: EPD) reported full-year 2025 results that held steady at the operating line despite lower commodity prices. Revenues fell to $52.6 billiona from $56.2 billion, driven by lower marketing prices, while operating income was essentially flat at $7.27 billion versus $7.34 billion. Total gross operating margin (non-GAAP) rose slightly to $10.03 billion, with growth in Natural Gas Pipelines & Services (+$281 million) and NGL Pipelines (+$181 million to pipelines/storage) offsetting weaker Octane Enhancement and Crude Oil marketing.
Net income attributable to common unitholders was $5.81 billionb, or $2.66 per unit, versus $2.69 in 2024. Distributable cash flow reached $8.0 billion, covering common distributions 1.7x, and the quarterly distribution was raised to $0.55 per unit. The balance sheet remains strong, with investment-grade ratings of A-/A3/A- on EPO's senior notes and $5.2 billion of consolidated liquidity.
Total debt principal is $34.7 billionc, about 98% fixed-rate at a 4.7% weighted-average cost. Capital spending rose to $5.6 billion, including $632 million for the Oxy gathering acquisition, and management guides 2026 organic capital investment of $3.1 to $3.5 billion. About $600 million of 2026 asset-sale proceeds is expected, mainly the second installment from the 40% Bahia NGL Pipeline sale to ExxonMobil.
The company also has $3.6 billiond of remaining capacity under its expanded $5 billion buyback program. Key watch items for investors include a softer 2026 price outlook (EIA projects WTI averaging about $53), reduced Octane Enhancement margins, and continued exposure to FERC index-rate and environmental regulation. Growth is supported by roughly $4.8 billion of projects scheduled through 2027, including the Athena processing train, Ref 4 at the Houston export terminal, and the Bahia expansion.
02—Key points
Key Highlights
- Revenue declined about 6.5% to $52.6 billion, mainly from lower marketing sales prices, while operating income held near $7.3 billion (down $72 million).
- Total gross operating margin (non-GAAP) rose to $10.03 billion from $9.98 billion, led by Natural Gas Pipelines & Services (+$281 million) and NGL pipelines, storage and terminals (+$181 million).
- Distributable cash flow was $8.0 billion, covering common distributions 1.7x; the Q4 2025 distribution was $0.55 per unit ($2.20 annualized), up from $0.535 a year earlier.
- Operating cash flow increased to $8.6 billion, and net income attributable to common unitholders was $5.8 billion ($2.66 per unit).
- Liquidity was $5.2 billion ($4.2 billion revolver capacity plus $969 million cash); EPO carries A-/A3/A- ratings and debt is 98.3% fixed-rate at a 4.7% average cost.
- Growth capital of $4.4 billion plus $632 million of acquisitions in 2025 included the Oxy Midland gathering system and the Bahia NGL Pipeline, which was sold 40% to ExxonMobil for about $655 million.
- 2026 organic capital guidance is $3.1 to $3.5 billion, with about $600 million of expected asset-sale proceeds and $3.6 billion of remaining buyback capacity under the $5 billion program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Enterprise Products Partners L.P. kept $0.11.
- Revenue$52.60B100.0%
- Cost of revenue−$38.57B73.3%
- Gross profit$14.03B26.7%
- Operating costs−$6.76B12.9%
- Operating income$7.27B13.8%
- Interest, other & tax−$1.46B2.8%
- Net income$5.81B11.0%
Where FY2025 revenue went
$52.60B- Cost of revenue: $38.57B, 73% of revenue
- Operating costs: $6.76B, 13% of revenue
- Net income: $5.81B, 11% of revenue
- Interest, other & tax: $1.46B, 2.8% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $52.60B$56.22B | −6.4% |
| Cost of Revenue | $38.57B$42.58B | −9.4% |
| Gross Profit | $14.03B$13.64B | +2.9% |
| Operating Expenses | $45.69B$49.29B | −7.3% |
| Operating Income | $7.27B$7.34B | −1.0% |
| Net Income | $5.81B$5.90B | −1.5% |
| Shares Outstanding (Diluted) | 2.19B2.19B | −0.2% |
05—Questions
Frequently Asked Questions
Is Enterprise Products' distribution safe, and how well is it covered by cash flow?
Yes, based on the filing. Distributable cash flow was $8.0 billion in 2025 against common distributions of about $4.75 billion, a 1.7x coverage ratio that was unchanged from 2024. The company retained roughly $3.2 billion of DCF after distributions, which funds growth and buybacks. The quarterly rate rose to $0.55 per unit, and management says future increases will be evaluated each quarter.
Why did revenue fall while operating income stayed flat?
Revenue dropped about $3.6 billion, mostly because lower average sales prices for NGLs, crude oil and petrochemicals reduced marketing revenue by $7.9 billion, partly offset by $3.1 billion of higher marketing volumes. Those commodity pass-throughs carry little margin, so the decline mainly reflects pricing. Gross operating margin, the segment-level profit measure, edged up because fee-based midstream services and pipeline volumes grew.
What are the biggest risks to 2026 earnings?
The main risks are softer hydrocarbon prices, since the EIA expects WTI to average about $53 in 2026 and Henry Hub about $4.31; weaker Octane Enhancement results, which fell $142 million in 2025 on lower sales margins; and possible constraints in the Texas Express and Seaway pipeline economics. The company also faces regulatory exposure, including FERC index-rate changes and climate and pipeline-safety rules, plus construction and cost-overrun risk on the roughly $4.8 billion growth program.
How is management funding the growth program and buybacks?
Growth is funded mainly by operating cash flow, which reached $8.6 billion, with supplemental support from debt, the $2.5 billion ATM equity program, and asset sales. The company issued $3.65 billion of senior notes in 2025 and expects about $600 million of asset-sale proceeds in 2026, including the Bahia installment. Leverage is targeted at 2.75x to 3.25x debt to normalized adjusted EBITDA, and the buyback program has $3.6 billion of remaining authorization.
Who controls Enterprise Products, and does that affect minority unitholders?
Affiliates of the Duncan family, through EPCO and Dan Duncan LLC, own about 32.5% of common units. The general partner, Enterprise GP, has a non-economic interest and is controlled by the same family trusts. Unitholders have limited voting rights, cannot easily remove the general partner, and the partnership agreement limits voting by holders of 20% or more of units. Related-party dealings with EPCO, about $1.6 billion in 2025, go through an Audit and Conflicts Committee review process.
06—Continue