ENTERPRISE PRODUCTS PARTNERS LP

Previous wording

This quarterly report on Form 10-Q for the three months ended March 31, 2024 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us. When used in this document, words such as “anticipate,” “project,” “expect,” “plan,” “seek,” “goal,” “estimate,” “forecast,” “intend,” “could,” “should,” “would,” “will,” “believe,” “may,” “scheduled,” “pending,” “potential” and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements. Although we and our general partner believe that our expectations reflected in such forward-looking statements (including any forward-looking statements/expectations of third parties referenced in this quarterly report) are reasonable, neither we nor our general partner can give any assurances that such expectations will prove to be correct.

Current wording

This quarterly report on Form 10-Q for the three and six months ended June 30, 2024 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us. When used in this document, words such as “anticipate,” “project,” “expect,” “plan,” “seek,” “goal,” “estimate,” “forecast,” “intend,” “could,” “should,” “would,” “will,” “believe,” “may,” “scheduled,” “pending,” “potential” and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements. Although we and our general partner believe that our expectations reflected in such forward-looking statements (including any forward-looking statements/expectations of third parties referenced in this quarterly report) are reasonable, neither we nor our general partner can give any assurances that such expectations will prove to be correct.

Previous wording

As used in this quarterly report, the phrase “quarter-to-quarter” means the first quarter of 2024 compared to the first quarter of 2023.

Current wording

As used in this quarterly report, the phrase “quarter-to-quarter” means the second quarter of 2024 compared to the second quarter of 2023. Likewise, the phrase “period-to-period” means the six months ended June 30, 2024 compared to the six months ended June 30, 2023.

Previous wording

As planned, SPOT would consist of proposed onshore and offshore facilities, including a fixed platform located approximately 30 nautical miles off the Texas coast in approximately 115 feet of water. SPOT is designed to load Very Large Crude Carriers (“VLCCs”) and other crude oil tankers at rates of approximately 85,000 barrels per hour. The platform would be connected to an onshore storage facility with approximately 4.8 MMBbls of capacity in Brazoria County, Texas, by two 36-inch, bi-directional pipelines. The SPOT project includes state-of-the-art pipeline control, vapor recovery and leak detection systems that are designed to minimize emissions. SPOT would provide customers with an integrated export solution that leverages our extensive supply, storage and distribution network along the Gulf Coast.

Current wording

As planned, SPOT would consist of proposed onshore and offshore facilities, including a fixed platform located approximately 30 nautical miles off the Texas coast in approximately 115 feet of water. SPOT is designed to load Very Large Crude Carriers (“VLCCs”) and other crude oil tankers at rates of approximately 85,000 barrels per hour. The platform would be connected to an onshore storage facility with approximately 4.8 MMBbls of capacity in Brazoria County, Texas, by two 36-inch, bi-directional pipelines. The SPOT project includes state-of-the-art pipeline control, vapor recovery and leak detection systems that are designed to minimize emissions. SPOT would provide customers with an efficient export solution that leverages our extensive integrated supply, storage and distribution network.

Previous wording

In March 2024, we placed into service the first phase of our Texas Western Products System (“TW Products System”) and began truck loading operations at our new Permian terminal in Gaines County, Texas. This facility features approximately 900,000 barrels of storage for gasoline and diesel, and truck loading capacity of 10 MBPD. We expect the remainder of the system, which includes our Jal and Moriarty Terminals located in New Mexico and Grand Junction Terminal located in Utah, to be placed into service in the second and third quarters of 2024.

Current wording

In March 2024, we placed into service the first phase of our Texas Western Products System (“TW Products System”) and began truck loading operations at our new Permian terminal in Gaines County, Texas. This facility features approximately 900,000 barrels of storage for gasoline and diesel, and truck loading capacity of 10 MBPD. Additionally, we placed into service and began truck loading operations at our Jal and Moriarty Terminals located in New Mexico during the second quarter of 2024. We expect the Grand Junction Terminal located in Utah to be placed into service in the third quarter of 2024.

Previous wording

The weighted-average indicative market price for NGLs was $0.62 per gallon in the first quarter of 2024 versus $0.66 per gallon in the first quarter of 2023.

Current wording

The weighted-average indicative market price for NGLs was $0.59 per gallon in the second quarter of 2024 versus $0.55 per gallon in the second quarter of 2023. Likewise, the weighted-average indicative market price for NGLs was $0.61 per gallon during each of the six months ended June 30, 2024 and 2023.

Previous wording

Total revenues for the first quarter of 2024 increased $2.3 billion when compared to the first quarter of 2023 primarily due to a $2.1 billion increase in marketing revenues.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Total revenues for the second quarter of 2024 increased $2.8 billion when compared to the second quarter of 2023 primarily due to a net $2.7 billion increase in marketing revenues.

Previous wording

Revenues from the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined net $2.5 billion quarter-to-quarter primarily due to higher sales volumes, which accounted for a $2.8 billion increase, partially offset by lower average sales prices, which accounted for a $362 million decrease. Revenues from the marketing of natural gas decreased $343 million quarter-to-quarter primarily due to lower average sales prices.

Current wording

Revenues from the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined $2.9 billion quarter-to-quarter primarily due to higher sales volumes, which accounted for a $2.1 billion increase, and higher average sales prices, which accounted for an additional $814 million increase. Revenues from the marketing of natural gas decreased $204 million quarter-to-quarter primarily due to lower average sales prices.

Previous wording

Revenues from midstream services for the first quarter of 2024 increased $176 million when compared to the first quarter of 2023. Revenues from our natural gas processing facilities increased $63 million quarter-to-quarter primarily due to higher market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services. Revenues from our Mont Belvieu propylene production facilities increased $40 million quarter-to-quarter primarily due to higher propylene processing revenues as a result of contributions from our PDH 2 facility, which was placed into service in July 2023. Revenues from our Midland-to-ECHO System and related business activities increased $39 million quarter-to-quarter primarily due to higher transportation revenues. Lastly, revenues from our ethylene pipelines increased $17 million quarter-to-quarter primarily due to higher deficiency fee revenues.

Current wording

Revenues from midstream services for the six months ended June 30, 2024 increased $280 million when compared to the six months ended June 30, 2023. Revenues from our natural gas processing facilities increased $100 million period-to-period primarily due to an increase in equity NGL-equivalent production volumes we receive as non-cash consideration for processing services. Revenues from our Mont Belvieu area propylene production facilities increased $73 million period-to-period primarily due to higher propylene processing revenues as a result of contributions from our PDH 2 facility, which was placed into service in July 2023. Revenues from our Midland-to-ECHO System and related business activities increased $29 million period-to-period primarily due to higher demand for transportation services. Lastly, revenues from our ethylene pipelines increased $22 million period-to-period primarily due to higher deficiency fee revenues.

Previous wording

Total operating costs and expenses for the first quarter of 2024 increased $2.2 billion when compared to the first quarter of 2023.

Current wording

Total operating costs and expenses for the three and six months ended June 30, 2024 increased $2.6 billion and $4.8 billion, respectively when compared to the same periods in 2023.

Previous wording

Cost of sales for the first quarter of 2024 increased a net $2.1 billion when compared to the first quarter of 2023. The cost of sales associated with the marketing of crude oil and petrochemicals and refined products increased a combined $2.5 billion quarter-to-quarter primarily due to higher volumes, which accounted for a $2.3 billion increase, and higher average purchase prices, which accounted for an additional $157 million increase. The cost of sales associated with the marketing of NGLs and natural gas decreased a combined net $358 million primarily due to lower average purchase prices, which accounted for a $761 million decrease, partially offset by higher volumes, which accounted for a $403 million increase.

Current wording

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023. Cost of sales for the six months ended June 30, 2024 increased a net $4.6 billion when compared to the six months ended June 30, 2023. The cost of sales associated with the marketing of crude oil and petrochemicals and refined products increased a combined $4.9 billion period-to-period primarily due to higher volumes, which accounted for a $4.0 billion increase, and higher average purchase prices, which accounted for an additional $912 million increase. The cost of sales associated with the marketing of NGLs and natural gas decreased a combined net $299 million period-to-period primarily due to lower average purchase prices, which accounted for a $1.0 billion decrease, partially offset by higher volumes, which accounted for a $740 million increase.

Previous wording

Other operating costs and expenses for the first quarter of 2024 increased $86 million when compared to the first quarter of 2023 primarily due to higher employee compensation, chemical, rental, maintenance and other operating costs.

Current wording

Other operating costs and expenses for the three and six months ended June 30, 2024 increased $79 million and $165 million, respectively, when compared to the same periods in 2023 primarily due to higher employee compensation, rental, utility, chemical, maintenance and other operating costs.

Previous wording

Depreciation, amortization and accretion expense for the first quarter of 2024 increased a combined $48 million when compared to the first quarter of 2023 primarily due to higher depreciation expense on assets placed into full or limited service since the end of the first quarter of 2023.

Current wording

Depreciation, amortization and accretion expense for the three and six months ended June 30, 2024 increased a combined $33 million and $81 million, respectively, when compared to the same periods in 2023 primarily due to higher depreciation expense on assets placed into full or limited service since the end of the respective periods in 2023.

Previous wording

General and administrative costs for the first quarter of 2024 increased $9 million when compared to the first quarter of 2023 primarily due to higher employee compensation costs.

Current wording

General and administrative costs for the three and six months ended June 30, 2024 increased $1 million and $10 million, respectively, when compared to the same periods in 2023 primarily due to higher employee compensation costs.

Previous wording

Operating income for the first quarter of 2024 increased $88 million when compared to the first quarter of 2023 due to the previously described quarter-to-quarter changes.

Current wording

Operating income for the three and six months ended June 30, 2024 increased $186 million and $274 million, respectively, when compared to the same periods in 2023 due to the previously described quarter-to-quarter and period-to-period changes.

Previous wording

Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net $14 million quarter-to-quarter. This increase was primarily due tothe issuance of $2.0 billion fixed-rate senior notes in January 2024, which accounted for a $21 million increase, partially offset by a $13 million decrease as a result of the retirement of $1.25 billion and $850 million of fixed-rate senior notes in March 2023 and February 2024, respectively.

Current wording

Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net $17 million quarter-to-quarter. This increase was primarily due tothe issuance of $2.0 billion fixed-rate senior notes in January 2024, which accounted for a $24 million increase, partially offset by a $8 million decrease as a result of the retirement of $850 million of fixed-rate senior notes in February 2024.

Previous wording

Our income taxes are primarily comprised of our state tax obligations under the Revised Texas Franchise Tax (“Texas Margin Tax”). Our provision for income taxes for the first quarter of 2024 increased $11 million when compared to the first quarter of 2023.

Current wording

Our income taxes are primarily comprised of our state tax obligations under the Revised Texas Franchise Tax (“Texas Margin Tax”). Our provision for income taxes for the three and six months ended June 30, 2024 increased $2 million and $13 million, respectively, when compared to the same periods in 2023.

Previous wording

Gross operating margin from natural gas processing and related NGL marketing activities for the first quarter of 2024 increased $32 million when compared to the first quarter of 2023.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Gross operating margin from natural gas processing and related NGL marketing activities for the second quarter of 2024 increased $76 million when compared to the second quarter of 2023.

Previous wording

Gross operating margin from our Midland Basin natural gas processing facilities increased a net $15 million quarter-to-quarter primarily due to higher fee-based natural gas processing volumes, which accounted for a $10 million increase, and a 13 MBPD increase inequity NGL-equivalent production volumes, which accounted for an additional $9 million increase, partially offset by higher operating expenses, which accounted for a $7 million decrease. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 269 MMcf/d quarter-to-quarter primarily due to contributions from our Poseidon natural gas processing train, which was placed into service in July 2023.

Current wording

Gross operating margin from our Midland Basin natural gas processing facilities increased $61 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $32 million increase, a 23 MBPD increase inequity NGL-equivalent production volumes, which accounted for a $16 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $13 million increase. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 342 MMcf/d quarter-to-quarter primarily due to contributions from our Poseidon and Leonidas natural gas processing trains, which were placed into service in July 2023 and late March 2024, respectively.

Previous wording

Gross operating margin from our Delaware Basin natural gas processing facilities increased $18 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $13 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $6 million increase. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 160 MMcf/d quarter-to-quarter, primarily due to processing volumes contributed by our Mentone 2 natural gas processing train, which was placed into service in October 2023.

Current wording

Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $20 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $15 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $13 million increase, partially offset by lower average processing fees, which accounted for a $9 million decrease. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 359 MMcf/d quarter-to-quarter, primarily due to processing volumes contributed by our Mentone 2 and Mentone 3 natural gas processing trains, which were placed into service in October 2023 and late March 2024, respectively. Equity NGL-equivalent production volumes at these facilities increased 3 MBPD quarter-to-quarter.

Previous wording

Gross operating margin from our South Texas NGL Pipeline System decreased $7 million quarter-to-quarter primarily due to lower average transportation and related fees, which accounted for an $8 million decrease, and higher maintenance and other operating costs, which accounted for an additional $3 million decrease, partially offset by a 17 MBPD increase in transportation volumes, which accounted for a $4 million increase.

Current wording

Gross operating margin from our South Texas natural gas processing facilities increased $16 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging), which accounted for an $8 million increase, a 153 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $4 million increase, and lower operating costs, which accounted for an additional $4 million increase.

Previous wording

Gross operating margin from our South Texas natural gas processing facilities increased a net $11 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $12 million increase, and lower maintenance and other operating costs, which accounted for an additional $5 million increase, partially offset by a 9 MBPD decrease in equity NGL-equivalent production volumes, which accounted for an $8 million decrease. Fee-based natural gas processing volumes increased 57 MMcf/d quarter-to quarter.

Current wording

Gross operating margin from our South Texas natural gas processing facilities increased a net $27 million period-to-period primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $19 million increase, lower operating costs, which accounted for a $9 million increase, and a 104 MMcf/d increase in fee-based natural gas processing volumes, which accounted for an additional $4 million increase, partially offset by a 5 MBPD decrease in equity NGL-equivalent production volumes, which accounted for a $7 million decrease.

Previous wording

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $35 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities). On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes increased 339 MMcf/d and 14 MBPD, respectively, quarter-to-quarter.

Current wording

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $30 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities). On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes increased 298 MMcf/d and 11 MBPD, respectively, period-to-period.

Previous wording

Gross operating margin from our NGL marketing activities increased $22 million quarter-to-quarter primarily due to higher average sales margins, which accounted for a $13 million increase, and higher non-cash, mark-to-market earnings, which accounted for an additional $8 million increase.

Current wording

Gross operating margin from our NGL marketing activities decreased a net $12 million period-to-period primarily due to lower average sales margins, which accounted for a $46 million decrease, partially offset by higher sales volumes, which accounted for a $24 million increase, and higher non-cash, mark-to-market earnings, which accounted for an additional $11 million increase.

Previous wording

Gross operating margin from our NGL pipelines, storage and terminal assets during the first quarter of 2024 increased $59 million when compared to the first quarter of 2023.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Gross operating margin from our NGL pipelines, storage and terminal assets during the second quarter of 2024 increased $103 million when compared to the second quarter of 2023.

Previous wording

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $20 million quarter-to-quarter primarily due to higher average transportation fees. Transportation volumes on these pipelines increased a combined 43 MBPD quarter-to-quarter.

Current wording

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $21 million quarter-to-quarter primarily due to higher average transportation fees. Transportation volumes on these pipelines decreased a combined 48 MBPD quarter-to-quarter.

Previous wording

A number of our pipelines, including the Mid-America Pipeline System, Seminole NGL Pipeline, Chaparral NGL Pipeline, and Shin Oak NGL Pipeline, serve Permian Basin and/or Rocky Mountain producers. On a combined basis, gross operating margin from these pipelines increased a net $15 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $20 million increase, and a 45 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $15 million increase, partially offset by lower other revenues, which accounted for a $13 million decrease and higher operating costs, which accounted for an additional $7 million decrease.

Current wording

A number of our pipelines, including the Mid-America Pipeline System, Seminole NGL Pipeline, Chaparral NGL Pipeline, and Shin Oak NGL Pipeline, serve Permian Basin and/or Rocky Mountain producers. On a combined basis, gross operating margin from these pipelines increased a net $21 million quarter-to-quarter primarily due to a 179 MBPD (net to our interest) increase in transportation volumes, which accounted for a $27 million increase, and higher average transportation fees, which accounted for an additional $8 million increase, partially offset by lower other revenues, which accounted for an $8 million decrease, and higher operating costs, which accounted for an additional $6 million decrease.

Previous wording

Gross operating margin from our Mont Belvieu storage complex increased $18 million quarter-to-quarter primarily due to higher storage revenues.

Current wording

Gross operating margin from our Mont Belvieu area storage complex increased $18 million quarter-to-quarter primarily due to higher storage revenues.

Previous wording

Gross operating margin from LPG-related activities at our Enterprise Hydrocarbons Terminal (“EHT”) increased $22 million quarter-to-quarter primarily due to an 83 MBPD increase in LPG export volumes, which accounted for a $13 million increase, and higher average loading fees, which accounted for an additional $9 million increase. Gross operating margin at our Morgan’s Point Ethane Export Terminal decreased $8 million quarter-to-quarter primarily due to lower average loading fees, which accounted for a $6 million decrease, and a 12 MBPD decrease in export volumes, which accounted for an additional $2 million decrease. Gross operating margin from our related Houston Ship Channel Pipeline System increased $11 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $5 million increase, and an 86 MBPD increase in transportation volumes, which accounted for an additional $4 million increase.

Current wording

Gross operating margin from LPG-related activities at EHT increased $40 million period-to-period primarily due to a 78 MBPD increase in LPG export volumes, which accounted for a $23 million increase, and higher average loading fees, which accounted for an additional $19 million increase. Gross operating margin from our related Houston Ship Channel Pipeline System increased $20 million period-to-period primarily due to a 112 MBPD increase in transportation volumes, which accounted for an $11 million increase, and higher average transportation fees, which accounted for an additional $9 million increase.

Previous wording

Gross operating margin from NGL fractionation during the first quarter of 2024 increased $37 million when compared to the first quarter of 2023. Gross operating margin from our Mont Belvieu NGL fractionation complex increased $39 million quarter-to-quarter primarily due to a 209 MBPD (net to our interest) increase in fractionation volumes, which accounted for a $39 million increase, and higher ancillary service revenues, which accounted for an additional $13 million increase, partially offset by higher storage and other operating costs, which accounted for a $9 million decrease. NGL fractionation volumes at our Mont Belvieu NGL fractionation complex increased primarily due to contributions from Frac 12, which entered service in July 2023 and the acquisition of the remaining equity interest in EF78 in February 2024.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Gross operating margin from NGL fractionation during the second quarter of 2024 increased $36 million when compared to the second quarter of 2023. Gross operating margin from our Mont Belvieu area NGL fractionation complex increased a net $25 million quarter-to-quarter primarily due to a 216 MBPD (net to our interest) increase in fractionation volumes, which accounted for a $32 million increase, and higher ancillary service revenues, which accounted for an additional $15 million increase, partially offset by higher operating costs, which accounted for a $27 million decrease. NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased primarily due to contributions from Frac 12, which entered service in July 2023 and the acquisition of the remaining equity interest in EF78 in February 2024.

Previous wording

Gross operating margin from our Crude Oil Pipelines & Services segment for the first quarter of 2024 increased $14 million when compared to the first quarter of 2023.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Gross operating margin from our Crude Oil Pipelines & Services segment for the second quarter of 2024 decreased $5 million when compared to the second quarter of 2023.

Previous wording

Gross operating margin from our Texas in-basin crude oil pipelines, terminals and other marketing activities (excluding our Midland-to-ECHO System and Seaway Pipeline) decreased a combined net $10 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $21 million decrease, higher operating costs, which accounted for a $7 million decrease, and lower average transportation fees, which accounted for an additional $5 million decrease, partially offset by higher sales volumes, which accounted for a $12 million increase, and higher other revenues which accounted for an additional $13 million increase. Crude oil transportation volumes on these pipelines decreased a combined 2 MBPD (net to our interest) quarter-to-quarter.

Current wording

Gross operating margin from our Texas in-basin crude oil pipelines, terminals and other marketing activities (excluding our Midland-to-ECHO System and Seaway Pipeline) decreased a combined net $23 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $24 million decrease, lower average transportation fees, which accounted for a $6 million decrease, and higher operating costs, which accounted for an additional $6 million decrease, partially offset by higher sales volumes, which accounted for a $12 million increase. Crude oil transportation volumes on these pipelines increased a combined 14 MBPD (net to our interest) quarter-to-quarter.

Previous wording

Gross operating margin from crude oil activities at EHT increased a net $1 million quarter-to-quarter primarily due to higher loading revenues, which accounted for a $7 million increase, partially offset by lower storage and other revenues, which accounted for a $5 million decrease. Crude oil terminal volumes at EHT increased 273 MBPD quarter-to-quarter.

Current wording

Gross operating margin from crude oil activities at EHT increased a net $8 million quarter-to-quarter primarily due to higher loading revenues, which accounted for a $7 million increase, and lower operating costs, which accounted for an additional $4 million increase, partially offset by lower storage revenues, which accounted for a $3 million decrease. Crude oil terminal volumes at EHT increased 138 MBPD quarter-to-quarter.

Previous wording

Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $21 million quarter-to-quarter primarily due to higher average transportation fees and related margins from marketing activities, which accounted for a $25 million increase, and a 65 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $9 million increase, partially offset by higher operating costs, which accounted for a $10 million decrease.

Current wording

Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $25 million period-to-period primarily due to a 110 MBPD (net to our interest) increase in transportation volumes, which accounted for an $18 million increase, higher other revenues, which accounted for a $13 million increase, and higher average transportation fees, which accounted for an additional $11 million increase, partially offset by lower margins from marketing activities, which accounted for a $19 million decrease.

Previous wording

Gross operating margin from our Texas Intrastate System increased $14 million quarter-to-quarter primarily due to higher capacity reservation fees and other revenues, which accounted for an $8 million increase, and lower operating costs, which accounted for an additional $4 million increase. Transportation volumes on our Texas Intrastate System increased 46 BBtus/d quarter-to-quarter.

Current wording

Gross operating margin from our Texas Intrastate System increased a net $36 million quarter-to-quarter primarily due to higher average transportation fees, which accounted for a $32 million increase, higher capacity reservation fees and other revenues, which accounted for an additional $16 million increase, partially offset by higher operating costs, which accounted for an $8 million decrease, and a 294 BBtus/d decrease in transportation volumes, which accounted for an additional $4 million decrease.

Previous wording

Gross operating margin from our natural gas marketing activities increased $17 million quarter-to-quarter primarily due to higher sales volumes and higher average sales margins.

Current wording

Gross operating margin from our natural gas marketing activities increased $24 million quarter-to-quarter primarily due to higher average sales margins.

Previous wording

Gross operating margin from our Delaware and Midland Basin Gathering Systems increased a combined $4 million quarter-to-quarter primarily due to a 503 BBtus/d increase in natural gas gathering volumes, which accounted for a $16 million increase, partially offset by higher rental, maintenance and other operating costs, which accounted for a $12 million decrease.

Current wording

Gross operating margin from our Delaware and Midland Basin Gathering Systems increased a combined net $5 million quarter-to-quarter primarily due to an 831 BBtus/d increase in natural gas gathering volumes, which accounted for a $24 million increase, partially offset by higher operating costs, which accounted for a $19 million decrease.

Previous wording

On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System, and San Juan Gathering System in the Rocky Mountains decreased $37 million quarter-to-quarter primarily due to lower average gathering fees. The gathering fees on these systems are indexed to regional gas prices, which were lower during the first quarter of 2024 compared to the first quarter of 2023. Gathering volumes on our Rocky Mountain gathering systems decreased a combined 16 BBtus/d quarter-to-quarter.

Current wording

On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System, and San Juan Gathering System in the Rocky Mountains decreased $36 million period-to-period primarily due to lower average gathering fees. The gathering fees on these systems are indexed to regional gas prices, which were lower during the six months ended June 30, 2024 compared to the six months ended June 30, 2023. Gathering volumes on our Rocky Mountain gathering systems decreased a combined 69 BBtus/d period-to-period.

Previous wording

Gross operating margin from propylene production and related activities for the first quarter of 2024 decreased $45 million when compared to the first quarter of 2023.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Gross operating margin from propylene production and related activities for the second quarter of 2024 increased $6 million when compared to the second quarter of 2023.

Previous wording

On a combined basis, gross operating margin from our Mont Belvieu propylene production facilities decreased a net $38 million quarter-to-quarter primarily due to lower propylene sales volumes, which accounted for a $38 million decrease, higher operating costs, which accounted for a $34 million decrease, and lower average propylene sales margins, which accounted for an additional $13 million decrease, partially offset by higher propylene processing revenues, which accounted for a $39 million increase. Propylene and associated by-product production volumes at these facilities were flat quarter-to-quarter (net to our interest) primarily due to contributions from our PDH 2 facility, which was placed into service in July 2023, offset by downtime for maintenance at our PDH 1 facility and several of our propylene splitters during the first quarter of 2024. Maintenance activities on our propylene splitters were completed in early April 2024 and maintenance activities on our PDH 1 facility are expected to be completed during the second quarter of 2024. Our PDH 2 facility is expected to experience downtime beginning in June 2024 to address start up issues that once resolved will allow us to achieve nameplate production capacity. We anticipate a resumption of operations at the PDH 2 facility during the third quarter of 2024.

Current wording

On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities increased a net $10 million quarter-to-quarter primarily due to higher propylene processing revenues, which accounted for a $38 million increase, and higher average propylene sales margins, which accounted for an additional $15 million increase, partially offset by lower propylene sales volumes, which accounted for a $37 million decrease, and higher operating costs, which accounted for an additional $9 million decrease. Propylene and associated by-product production volumes at these facilities increased a combined 12 MBPD (net to our interest) quarter-to-quarter primarily due to contributions from our PDH 2 facility, which was placed into service in July 2023, and higher production from our propylene splitters, which underwent scheduled maintenance during the second quarter of 2023. Partially offsetting this increase was lower production from our PDH 1 facility due to scheduled maintenance that was completed during the second quarter of 2024. Our PDH 2 facility experienced downtime beginning in June 2024 to address start up issues that once resolved will allow us to achieve nameplate production capacity. We anticipate a resumption of operations at the PDH 2 facility during the third quarter of 2024.

Previous wording

Gross operating margin from butane isomerization and related operations for the first quarter of 2024 increased $7 million when compared to the first quarter of 2023 primarily due to a 19 MBPD increase in isomerization volumes.

Current wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Gross operating margin from butane isomerization and related operations for the second quarter of 2024 decreased $7 million when compared to the second quarter of 2023 primarily due to lower ancillary service revenues.