ENTERPRISE PRODUCTS PARTNERS LP

Previous 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.

Current wording

This quarterly report on Form 10-Q for the three and nine months ended September 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

We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees. EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at June 30, 2024.

Current wording

We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees. EPCO, together with its privately held affiliates, owned approximately 32.4% of the Partnership’s common units outstanding at September 30, 2024.

Previous 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.

Current wording

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

Previous wording

Enterprise Begins Initial Service on TW Products System

Current wording

Enterprise Begins Service on TW Products System

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. 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.

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. 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 and our Grand Junction Terminal located in Utah in October 2024. On a combined basis, the four terminals offer 1.5 MMBbls of refined products storage capacity and can load up to 63 MBPD.

Previous 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.

Current wording

The weighted-average indicative market price for NGLs was $0.57 per gallon in the third quarter of 2024 versus $0.61 per gallon in the third quarter of 2023. Likewise, the weighted-average indicative market price for NGLs was $0.59 per gallon during the nine months ended September 30, 2024 compared to $0.61 per gallon during the same period in 2023.

Previous 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.

Current wording

Third Quarter of 2024 Compared to Third Quarter of 2023. Total revenues for the third quarter of 2024 increased $1.8 billion when compared to the third quarter of 2023 primarily due to higher marketing revenues.

Previous 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.

Current wording

Revenues from the marketing of NGLs and petrochemicals and refined products increased a combined $2.2 billion quarter-to-quarter primarily due to higher sales volumes, which accounted for a $1.9 billion increase, and higher average sales prices, which accounted for an additional $267 million increase. Revenues from the marketing of crude oil and natural gas decreased a combined net $408 million quarter-to-quarter primarily due to lower average sales prices, which accounted for a $563 million decrease, partially offset by higher sales volumes, which accounted for a $155 million increase.

Previous wording

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023. Total revenues for the six months ended June 30, 2024 increased $5.1 billion when compared to the six months ended June 30, 2023 primarily due to a net $4.9 billion increase in marketing revenues.

Current wording

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023. Total revenues for the nine months ended September 30, 2024 increased $6.9 billion when compared to the nine months ended September 30, 2023 primarily due to higher marketing revenues.

Previous wording

Revenues from the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined $5.4 billion period-to-period primarily due to higher sales volumes, which accounted for a $4.9 billion increase, and higher average sales prices, which accounted for an additional $489 million increase. Revenues from the marketing of natural gas decreased $547 million period-to-period 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 $7.5 billion period-to-period primarily due to higher sales volumes, which accounted for a $7.0 billion increase, and higher average sales prices, which accounted for an additional $508 million increase. Revenues from the marketing of natural gas decreased $841 million period-to-period primarily due to lower average sales prices.

Previous 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.

Current wording

Revenues from midstream services for the nine months ended September 30, 2024 increased $250 million when compared to the nine months ended September 30, 2023. Revenues from our natural gas transportation assets increased $77 million period-to-period primarily due to higher transportation revenues from our Texas Intrastate System. Revenues from our natural gas processing facilities increased $72 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 $44 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. Lastly, revenues from our Midland-to-ECHO System and related business activities increased $30 million period-to-period primarily due to higher demand for transportation services.

Previous 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.

Current wording

Total operating costs and expenses for the three and nine months ended September 30, 2024 increased $1.7 billion and $6.5 billion, respectively, when compared to the same periods in 2023.

Previous wording

Second Quarter of 2024 Compared to Second Quarter of 2023. Cost of sales for the second quarter of 2024 increased $2.5 billion when compared to the second quarter of 2023. The cost of sales associated with the marketing of NGLs, 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 $2.0 billion increase, and higher average purchase prices, which accounted for an additional $497 million increase.

Current wording

Third Quarter of 2024 Compared to Third Quarter of 2023. Cost of sales for the third quarter of 2024 increased $1.6 billion when compared to the third quarter of 2023. The cost of sales associated with the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined net $1.7 billion quarter-to-quarter primarily due to higher volumes, which accounted for a $1.9 billion increase, partially offset by lower average purchase prices, which accounted for a $248 million decrease.

Previous 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.

Current wording

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023. Cost of sales for the nine months ended September 30, 2024 increased a net $6.2 billion when compared to the nine months ended September 30, 2023. The cost of sales associated with the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined net $6.3 billion period-to-period primarily due to higher volumes, which accounted for a $6.5 billion increase, partially offset by lower average purchase prices, which accounted for a $168 million decrease. The cost of sales associated with the marketing of natural gas decreased $184 million period-to-period primarily due to lower average purchase prices.

Previous 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.

Current wording

Depreciation, amortization and accretion expense for the three and nine months ended September 30, 2024 increased a combined $18 million and $99 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 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.

Current wording

General and administrative costs for the three and nine months ended September 30, 2024 increased $2 million and $12 million, respectively, when compared to the same periods in 2023 primarily due to higher employee compensation costs.

Previous wording

Equity income from our unconsolidated affiliates for the three and six months ended June 30, 2024 decreased $20 million and $22 million, respectively, when compared to the same periods in 2023 primarily due to lower earnings from investments in crude oil and NGL pipelines.

Current wording

Equity income from our unconsolidated affiliates for the three and nine months ended September 30, 2024 decreased $23 million and $45 million, respectively, when compared to the same periods in 2023 primarily due to lower earnings from investments in crude oil and NGL pipelines.

Previous 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.

Current wording

Operating income for the three and nine months ended September 30, 2024 increased $85 million and $359 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 $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.

Current wording

Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net $28 million quarter-to-quarter. This increase was primarily due tothe issuance of $2.0 billion and $2.5 billion of fixed-rate senior notes in January 2024 and August 2024, respectively, which accounted for a combined $43 million increase, partially offset by an $8 million decrease as a result of the retirement of $850 million of fixed-rate senior notes in February 2024 and an additional $7 million decrease from a reduction in outstanding commercial paper notes.

Previous wording

Interest charged on debt principal outstanding increased a net $31 million period-to-period. This increase was primarily due tothe aforementioned issuance of senior notes, which accounted for a $45 million increase, partially offset by a $21 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 increased a net $59 million period-to-period. This increase was primarily due tothe aforementioned issuance of senior notes, which accounted for an $88 million increase, partially offset by a $29 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.

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 three and six months ended June 30, 2024 increased $2 million and $13 million, respectively, when compared to the same periods in 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 nine months ended September 30, 2024 decreased $3 million and increased $10 million, respectively, when compared to the same periods in 2023.

Previous 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.

Current wording

Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from natural gas processing and related NGL marketing activities for the third quarter of 2024 increased $78 million when compared to the third quarter of 2023.

Previous 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.

Current wording

Gross operating margin from our Midland Basin natural gas processing facilities increased $60 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $36 million increase, a 19 MBPD increase inequity NGL-equivalent production volumes, which accounted for a $13 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $15 million increase. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 434 MMcf/d quarter-to-quarter primarily due to contributions from our Poseidon and Leonidas natural gas processing trains, which were placed into service in the third quarter of 2023 and late first quarter of 2024, respectively.

Previous 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.

Current wording

Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $19 million quarter-to-quarter primarily due to higher fee-based natural gas processing volumes, which accounted for a $21 million increase, and higher average processing margins (including the impact of hedging activities), which accounted for an additional $10 million increase, partially offset by lower average processing fees, which accounted for a $6 million decrease. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 547 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 the fourth quarter of 2023 and late first quarter of 2024, respectively.

Previous 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.

Current wording

Gross operating margin from our South Texas natural gas processing facilities decreased $9 million quarter-to-quarter primarily due to higher operating costs, which accounted for a $5 million decrease, and lower average processing margins (including the impact of hedging), which accounted for an additional $4 million decrease.

Previous wording

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023. Gross operating margin from natural gas processing and related NGL marketing activities for the six months ended June 30, 2024 increased $108 million when compared to the six months ended June 30, 2023.

Current wording

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023. Gross operating margin from natural gas processing and related NGL marketing activities for the nine months ended September 30, 2024 increased $186 million when compared to the nine months ended September 30, 2023.

Previous wording

Gross operating margin from our Midland Basin natural gas processing facilities increased $76 million period-to-period primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $35 million increase, an 18 MBPD increase inequity NGL-equivalent production volumes, which accounted for a $21 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $23 million increase. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 305 MMcf/d period-to-period primarily due to contributions from the aforementioned Poseidon and Leonidas natural gas processing trains.

Current wording

Gross operating margin from our Midland Basin natural gas processing facilities increased a net $138 million period-to-period primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $71 million increase, a 19 MBPD increase inequity NGL-equivalent production volumes, which accounted for a $36 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $39 million increase, partially offset by higher operating costs, which accounted for a $19 million decrease. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 348 MMcf/d period-to-period primarily due to contributions from the aforementioned Poseidon and Leonidas natural gas processing trains.

Previous wording

Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $39 million period-to-period primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $26 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $21 million increase, partially offset by lower average processing fees, which accounted for a $10 million decrease. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 260 MMcf/d period-to-period, primarily due to processing volumes contributed by the aforementioned Mentone 2 and Mentone 3 natural gas processing trains.

Current wording

Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $57 million period-to-period primarily due to higher fee-based natural gas processing volumes, which accounted for a $42 million increase, and higher average processing margins (including the impact of hedging activities), which accounted for an additional $38 million increase, partially offset by lower average processing fees, which accounted for a $17 million decrease. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 356 MMcf/d period-to-period, primarily due to processing volumes contributed by the aforementioned Mentone 2 and Mentone 3 natural gas processing trains.

Previous 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.

Current wording

Gross operating margin from our South Texas natural gas processing facilities increased $18 million period-to-period primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $14 million increase, and lower operating costs, which accounted for an additional $4 million increase.

Previous 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.

Current wording

Gross operating margin from our NGL marketing activities increased a net $7 million period-to-period primarily due to higher sales volumes, which accounted for a $42 million increase, and higher non-cash, mark-to-market earnings, which accounted for an additional $13 million increase, partially offset by lower average sales margins, which accounted for a $48 million decrease.

Previous 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.

Current wording

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $36 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 272 MMcf/d and 8 MBPD, respectively, period-to-period.

Previous 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.

Current wording

Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from our NGL pipelines, storage and terminal assets during the third quarter of 2024 increased $12 million when compared to the third quarter of 2023.

Previous wording

Gross operating margin from LPG-related activities at our Enterprise Hydrocarbons Terminal (“EHT”) increased $18 million quarter-to-quarter primarily due to a 72 MBPD increase in LPG export volumes, which accounted for a $10 million increase, and higher average loading fees, which accounted for an additional $10 million increase. Gross operating margin from our related Houston Ship Channel Pipeline System increased $9 million quarter-to-quarter primarily due to a 139 MBPD increase in transportation volumes.

Current wording

Gross operating margin from LPG-related activities at our EHT increased $15 million quarter-to-quarter primarily due to a 114 MBPD increase in LPG export volumes. Gross operating margin from our related Houston Ship Channel Pipeline System increased $5 million quarter-to-quarter primarily due to a 96 MBPD increase in transportation volumes.

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 $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.

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 $14 million quarter-to-quarter primarily due to a $19 million increase in transportation revenues as a result of higher transportation volumes, partially offset by higher operating costs, which accounted for a $4 million decrease. On a combined basis, transportation volumes on these systems increased 186 MBPD (net to our interest) quarter-to-quarter.

Previous 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.

Current wording

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, decreased a combined $10 million quarter-to-quarter primarily due to an 11 MBPD decrease in transportation volumes.

Previous wording

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023. Gross operating margin from our NGL pipelines, storage and terminal assets during the six months ended June 30, 2024 increased $162 million when compared to the six months ended June 30, 2023.

Current wording

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023. Gross operating margin from our NGL pipelines, storage and terminal assets during the nine months ended September 30, 2024 increased $174 million when compared to the nine months ended September 30, 2023.

Previous 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.

Current wording

Gross operating margin from LPG-related activities at EHT increased $56 million period-to-period primarily due to an 89 MBPD increase in LPG export volumes, which accounted for a $39 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 $24 million period-to-period primarily due to a 107 MBPD increase in transportation volumes, which accounted for a $15 million increase, and higher average transportation fees, which accounted for an additional $11 million increase.

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 $36 million period-to-period primarily due to a 112 MBPD (net to our interest) increase in transportation volumes, which accounted for a $41 million increase, and higher average transportation fees, which accounted for an additional $30 million increase, partially offset by lower other revenues, which accounted for a $23 million decrease, and higher operating costs, which accounted for an additional $12 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 $50 million period-to-period primarily due to a 138 MBPD (net to our interest) increase in transportation volumes, which accounted for a $66 million increase, and higher average transportation fees, which accounted for an additional $19 million increase, partially offset by higher operating costs, which accounted for a $30 million decrease.

Previous wording

Gross operating margin from our Mont Belvieu area storage complex increased $36 million period-to-period primarily due to higher storage revenues.

Current wording

Gross operating margin from our Mont Belvieu area storage complex increased $42 million period-to-period primarily due to higher storage revenues.

Previous wording

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $41 million period-to-period primarily due to higher average transportation fees. Transportation volumes on these pipelines decreased a combined 3 MBPD period-to-period.

Current wording

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $32 million period-to-period primarily due to higher average transportation fees. Transportation volumes on these pipelines decreased a combined 15 MBPD period-to-period.