Is the distribution covered by cash flow?

Yes. Operational DCF of $2.1 billion covered distributions declared for 1Q 2026 by 1.8x, and the partnership retained about $1.5 billion of total DCF after distributions and buybacks. The 12-month payout ratio, including common unit buybacks, was 57% of Adjusted CFFO.

How much of the quarter's cash flow was one-time?

Total DCF of $2.7 billion includes about $596 million of proceeds from asset sales, mainly the final payment for the 40% Bahia NGL pipeline stake sold to ExxonMobil. Operational DCF of $2.1 billion excludes these proceeds and reflects core operations. Investors should note that the $596 million is not recurring.

What drove the earnings improvement, and were there any headwinds?

Gross operating margin rose to $2.6 billion from $2.4 billion. Gains came from natural gas marketing (up $111 million), Permian gas processing (up $47 million), NGL fractionation (up $42 million), and propylene (up $67 million). Headwinds included lower EHT LPG loading fees (down $42 million), crude oil margins (down $45 million net), and a planned turnaround at the Octane Enhancement facility (down $46 million). Mark-to-market losses of $98 million also reduced gross operating margin.

What growth projects support future cash flow?

Enterprise has about $5.3 billion of major growth projects under construction. It will build two additional 300 MMcf/d Permian natural gas processing plants, expected online in 2027, which would add roughly 12% to its processing capacity. The Neches River NGL marine terminal's second phase has begun LPG commissioning, with ethane commissioning slated for later in May.

How is the balance sheet and capital allocation positioned?

Total debt principal was $34.2 billion, up from $31.9 billion a year earlier, and liquidity was $3.3 billion at March 31, 2026. Enterprise repurchased $116 million of common units in the quarter, with 31% of its $5.0 billion buyback authorization used cumulatively. For 2026, growth capex is guided to $2.3 to $2.6 billion net of asset sale proceeds, and sustaining capex to $580 million.

EPD/EPDU 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Enterprise Products Partners L.P.

(EPD) reported a strong first quarter 2026, with operating income of $1.9 billion^a (up 8%), net income attributable to common unitholders of $1.5 billion ($0.68 per diluted unit, up 6%), and Adjusted EBITDA of $2.7 billion (up 10%). Total gross operating margin rose to $2.6 billion from $2.4 billion, led by natural gas processing and marketing, NGL fractionation, and new Permian assets. The partnership set 12 operational records during the quarter, including natural gas processing inlet volumes of 8.3 Bcf/d and NGL fractionation volumes of 1.9 MMBPD.

Growth was partly offset by lower EHT LPG loading fees, lower crude oil margins, and a planned turnaround at the Octane Enhancement facility. Cash flow metrics were also solid. Operational DCF was $2.1 billion^b, providing 1.8x coverage of distributions declared, and total DCF was $2.7 billion, which includes about $596 million of proceeds from the final payment on the 40% Bahia NGL pipeline sale to ExxonMobil.

The partnership retained $1.5 billion^c of DCF and repurchased $116 million of common units, with 31% of the $5.0 billion buyback program used cumulatively. The distribution was raised 2.8% to $0.55 per common unit ($2.20 annualized). Total debt principal was $34.2 billion, and consolidated liquidity was $3.3 billion as of March 31, 2026.

Management highlighted visibility for further growth, including two new 300 MMcf/d Permian natural gas processing plants expected online in 2027 and approximately $5.3 billion^d of major growth projects under construction. Management also cited stronger U.S. energy export demand following disruptions to Middle East exports, and the Neches River terminal is beginning commissioning.

For 2026, growth capital spending net of asset sale proceeds is guided to $2.3 to $2.6 billion, and sustaining capital expenditures to $580 million. This filing is an Item 2.02 earnings release furnished under Exhibit 99.1; it contains no new financial statements beyond those in the press release.

02—Key points

Key Highlights

Operating income rose 8% to $1.9 billion and Adjusted EBITDA rose 10% to $2.7 billion in 1Q 2026 versus 1Q 2025.
Operational DCF of $2.1 billion provided 1.8x coverage of the $0.55 per unit distribution declared for 1Q 2026; $1.5 billion of DCF was retained.
Distribution declared increased 2.8% to $0.55 per common unit ($2.20 annualized); the 12-month payout ratio including buybacks was 57% of Adjusted CFFO.
Twelve operational records were set, including natural gas processing inlet volumes of 8.3 Bcf/d (up 7%), NGL fractionation of 1.9 MMBPD (up 16%), and marine terminal volumes of 2.3 MMBPD (up 15%).
Total DCF of $2.7 billion includes roughly $596 million of one-time proceeds from the final payment on the 40% Bahia NGL pipeline sale to ExxonMobil; Operational DCF excludes these proceeds.
Total debt principal was $34.2 billion and liquidity was $3.3 billion at March 31, 2026; $116 million of common units were repurchased, 31% of the $5.0 billion program.
2026 growth capex guidance is $2.3 to $2.6 billion net of asset sale proceeds, plus $580 million of sustaining capex; two new 300 MMcf/d Permian gas plants are slated for 2027.

03—Questions

Frequently Asked Questions

Is the distribution covered by cash flow?
Yes. Operational DCF of $2.1 billion covered distributions declared for 1Q 2026 by 1.8x, and the partnership retained about $1.5 billion of total DCF after distributions and buybacks. The 12-month payout ratio, including common unit buybacks, was 57% of Adjusted CFFO.
How much of the quarter's cash flow was one-time?
Total DCF of $2.7 billion includes about $596 million of proceeds from asset sales, mainly the final payment for the 40% Bahia NGL pipeline stake sold to ExxonMobil. Operational DCF of $2.1 billion excludes these proceeds and reflects core operations. Investors should note that the $596 million is not recurring.
What drove the earnings improvement, and were there any headwinds?
Gross operating margin rose to $2.6 billion from $2.4 billion. Gains came from natural gas marketing (up $111 million), Permian gas processing (up $47 million), NGL fractionation (up $42 million), and propylene (up $67 million). Headwinds included lower EHT LPG loading fees (down $42 million), crude oil margins (down $45 million net), and a planned turnaround at the Octane Enhancement facility (down $46 million). Mark-to-market losses of $98 million also reduced gross operating margin.
What growth projects support future cash flow?
Enterprise has about $5.3 billion of major growth projects under construction. It will build two additional 300 MMcf/d Permian natural gas processing plants, expected online in 2027, which would add roughly 12% to its processing capacity. The Neches River NGL marine terminal's second phase has begun LPG commissioning, with ethane commissioning slated for later in May.
How is the balance sheet and capital allocation positioned?
Total debt principal was $34.2 billion, up from $31.9 billion a year earlier, and liquidity was $3.3 billion at March 31, 2026. Enterprise repurchased $116 million of common units in the quarter, with 31% of its $5.0 billion buyback authorization used cumulatively. For 2026, growth capex is guided to $2.3 to $2.6 billion net of asset sale proceeds, and sustaining capex to $580 million.

04—Continue

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