The following is a summary of the Enterprise Products Partners L.P. Common Units (EPD) Q3 2024 Earnings Call Transcript:
Financial Performance:
Adjusted EBITDA for Q3 2024 reported at $2.4 billion, compared to $2.3 billion in Q3 2023.
Distributable cash flow generated was $2 billion with 1.7x coverage and $808 million retained.
Net income increased to $1.4 billion, or $0.65 per unit, an 8% increase over the previous year.A distribution of $0.525 per common unit for Q3 2024 was declared, marking a 5% increase year-over-year.
Business Progress:
Achieved five volumetric records, including natural gas processing and pipeline volumes.
Announced the completion of the acquisition of Piñon Midstream, enhancing the NGL value chain from wellhead to water.
Upcoming completion of structural expansions like the Bahia pipeline, frac 14, Neches River NGL export terminal, and Morgan's Point Terminal Flex Expansion in 2025.
Noted significant interest from potential new customers, particularly data centers and gas-fired power plants, under Texas Energy Fund initiatives.
Planned expenditure for growth capital in 2025 is estimated to be between $3.5 billion to $4 billion.
Opportunities:
Steady demand and new business prospects primarily from datacenters and upcoming natural gas-fired power plants.
Enhancement and expansion of processing, storage, and transport capabilities through strategic acquisitions like Piñon Midstream.
Engagement in new infrastructure projects such as a potential CO2 pipeline with Oxy aimed at serving the Houston Industrial Corridor.
Risks:
Discussed potential concerns regarding future ethane storage and recovery due to the lack of new demand until more export facilities come online.
Acknowledged issues and strategies around fluctuation in natural gas prices impacting the market, evidenced by the volatility in Waha gas prices.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
