ENTERPRISE PRODUCTS PARTNERS L.P.
For the period ended Mar 31, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
EPD$37.03+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001061219-24-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001061219-25-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 239 previous paragraphs and 174 current paragraphs.
103 unchanged; 60 reworded; 11 added; 70 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 56 previous and 56 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
For the Three Months Ended March 31, 2025 and 2024
Current report
Total operating costs and expenses for the first quarter of 2025 increased $716 million when compared to the first quarter of 2024.
Current report
Gross operating margin from our Dixie Pipeline and related terminals increased $16 million quarter-to-quarter primarily due to higher loading and other fee revenues, which accounted for a $7 million increase, higher average transportation fees, which accounted for a $6 million increase, and a 27 MBPD increase in transportation volumes, which accounted for an additional $5 million increase.
Current report
Gross operating margin from our Natural Gas Pipelines & Services segment for the first quarter of 2025 increased $45 million when compared to the first quarter of 2024.
Current report
Gross operating margin from our natural gas marketing activities decreased a net $15 million quarter-to-quarter primarily due to lower mark-to-market earnings, which accounted for a $31 million decrease, partially offset by higher average sales margins, which accounted for a $16 million increase.
Current report
Gross operating margin from butane isomerization and related operations for the first quarter of 2025 decreased $6 million when compared to the first quarter of 2024 primarily due to higher operating costs.
Current report
Gross operating margin from our TE Products Pipeline System increased a net $27 million quarter-to-quarter primarily due to a 34 MBPD increase in transportation volumes, which accounted for a $22 million increase, and higher average transportation fees, which accounted for an additional $9 million increase, partially offset by higher operating costs, which accounted for a $7 million decrease.
Current report
Gross operating margin from our TW Products System increased $13 million quarter-to-quarter primarily due to the full start-up of the system, which was placed into service in stages during 2024 and was fully operational in October 2024.
Current report
Also in March 2025, EPO amended its Multi-Year Revolving Credit Agreement (the “March 2023 $2.7 Billion Multi-Year Revolving Credit Agreement”) to extend its maturity date from March 2028 to March 2030. The remaining material terms of the March 2023 $2.7 Billion Multi-Year Revolving Credit Agreement, as amended, are consistent with those reported in our 2024 Form 10-K. As of March 31, 2025, there are no principal amounts outstanding under this revolving credit agreement.
Current report
Net cash flow provided by operating activities for thefirst quarter of 2025 increased a net $203 million when compared to the first quarter of 2024 primarily due to:
Current report
Comparison of First Quarter of 2025 with the First Quarter of 2024
Removed paragraphs (70)
Previous report
For the Three and Nine Months Ended September 30, 2024 and 2023
Previous report
Recent Developments
Previous report
Enterprise and 1PointFive Sign Agreement to Support Development of Carbon Dioxide Transportation Network for Southeast Texas Sequestration Hub
Previous report
In October 2024, Enterprise and 1PointFive, a subsidiary of Occidental Petroleum Corporation, announced an agreement to develop a carbon dioxide (“CO 2”) transportation network to support the Bluebonnet Sequestration Hub that 1PointFive is developing in southeast Texas. Under the transportation services agreement, once 1PointFive provides notice, Enterprise will develop the new pipeline network and provide fee-based transportation service to 1PointFive to transport CO2 emissions captured by third parties at facilities in the vicinity of the Houston Ship Channel to 1PointFive’s Bluebonnet Sequestration Hub.
Previous report
Enterprise Announces Acquisition of Piñon Midstream
Previous report
In August 2024, we announced that an affiliate of Enterprise entered into a definitive agreement to acquire Piñon Midstream, LLC (“Piñon Midstream”) in a debt-free transaction for $950 million in cash consideration (subject to adjustment in accordance with the agreement). Piñon Midstream’s assets include approximately 50 miles of natural gas gathering and redelivery pipelines, five 3-stage compressor stations, 270 MMcf/d of hydrogen sulfide and carbon dioxide treating facilities and two high capacity acid gas injection wells. This transaction, which closed October 28, 2024, was funded using cash on hand.
Previous report
Issuance of $2.5 Billion of Senior Notes in August 2024
Previous report
In August 2024, EPO issued $2.5 billion aggregate principal amount of senior notes comprised of (i) $1.1 billion principal amount of senior notes due February 2035 (“Senior Notes JJJ”) and (ii) $1.4 billion principal amount of senior notes due February 2055 (“Senior Notes KKK”). Net proceeds from this offering will be used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all or a portion of our $1.15 billion principal amount of 3.75% Senior Notes MM at their maturity in February 2025).
Previous report
Senior Notes JJJ were issued at 99.400% of their principal amount and have a fixed interest rate of 4.95% per year. Senior Notes KKK were issued at 99.663% of their principal amount and have a fixed interest rate of 5.55% per year. The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.
Previous report
Enterprise to Expand LPG Export Capacity at EHT
Previous report
In July 2024, we announced plans to move forward with the construction of a fourth refrigeration train at our Enterprise Hydrocarbon Terminal (“EHT”). The addition of a fourth refrigeration train (“Ref 4”), which is expected to be placed into service by the end of 2026, will increase our propane and butane export capabilities by approximately 300 MBPD. In addition to providing incremental LPG export capacity, Ref 4 will increase the instantaneous loading rates for propane and butane at EHT, while also making additional capacity available for propylene exports.
Previous report
Enterprise Receives Deepwater Port License for SPOT Project
Previous report
In April 2024, we received the deepwater port license for the Sea Port Oil Terminal (“SPOT”) from the U.S. Department of Transportation’s Maritime Administration. The receipt of the deepwater port license is a significant milestone in the development and commercialization of SPOT.
Previous report
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 report
We continue our efforts to commercialize this project in order to support a final investment decision.
Previous report
Enterprise to Build Mentone West 2; Mentone 3 and Leonidas Begin Service
Previous report
In April 2024, we announced plans to further expand our natural gas processing capabilities in the Delaware Basin with construction of a second natural gas processing train at our Mentone West location (“Mentone West 2”) in Loving County, Texas. This natural gas processing train, which will have the capacity to process more than 300 MMcf/d of natural gas and extract in excess of 40 MBPD of NGLs, is expected to begin service during the first half of 2026.
Previous report
Additionally, we placed into service our third natural gas processing train at Mentone in the Delaware Basin (“Mentone 3”) and our seventh Midland Basin natural gas processing train (“Leonidas”). Both Mentone 3 and Leonidas are capable of processing over 300 MMcf/d of natural gas and extracting more than 40 MBPD of NGLs. Supported by a combination of long-term producer dedications and minimum volume commitments, Mentone 3 and Leonidas will support Permian Basin producers as they meet growing demand in the U.S. and internationally.
Previous report
Enterprise Begins Service on TW Products System
Previous report
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 report
Enterprise Acquires Equity Interests from Western Midstream
Previous report
In February 2024, we announced that we had acquired the remaining equity interests in Whitethorn Pipeline Company LLC (“Whitethorn”) and Enterprise EF78 LLC (“EF78”) from affiliates of Western Midstream Partners, LP (“Western Midstream”) for $375 million in total cash consideration. This transaction, which closed on February 16, 2024, was funded using cash on hand and proceeds from the issuance of short-term notes under our commercial paper program.
Previous report
Additionally, on March 27, 2024, we acquired an additional 15% equity interest in Panola Pipeline Company, LLC (“Panola”) from an affiliate of Western Midstream for $25 million in cash consideration. Wefunded the cash consideration using cash on hand.
Previous report
In January 2024, EPO issued $2.0 billion aggregate principal amount of senior notes comprised of (i) $1.0 billion principal amount of senior notes due January 2027 (“Senior Notes HHH”) and (ii) $1.0 billion principal amount of senior notes due January 2034 (“Senior Notes III”). Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all of our $850 million principal amount of 3.90% Senior Notes JJ at their maturity in February 2024 and amounts outstanding under our commercial paper program).
Previous report
Senior Notes HHH were issued at 99.897% of their principal amount and have a fixed interest rate of 4.60% per year. Senior Notes III were issued at 99.705% of their principal amount and have a fixed interest rate of 4.85% per year. The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.
Previous report
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 report
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 report
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 report
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 report
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 report
Other operating costs and expenses for the nine months ended September 30, 2024 increased $197 million when compared to the same period in 2023 primarily due to higher maintenance, employee compensation, rental, chemical, and other operating costs, which accounted for a $224 million increase, partially offset by lower utility costs, which accounted for a $27 million decrease.
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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.
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Reworded paragraphs (60)
Previous 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.
Current wording
This quarterly report on Form 10-Q for the three months ended March 31, 2025 (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
Forward-looking statements are subject to a variety of risks, uncertainties and assumptions as described in more detail under Part I, Item 1A of our 2023 Form 10-K. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected. You should not put undue reliance on any forward-looking statements. The forward-looking statements in this quarterly report speak only as of the date hereof. Except as required by federal and state securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or any other reason.
Current wording
Forward-looking statements are subject to a variety of risks, uncertainties and assumptions as described in more detail under Part I, Item 1A of our 2024 Form 10-K and within Part II, Item 1A of this quarterly report. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected. You should not put undue reliance on any forward-looking statements. The forward-looking statements in this quarterly report speak only as of the date hereof. Except as required by federal and state securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or any other reason.
Previous 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.
Current wording
As used in this quarterly report, the phrase “quarter-to-quarter” means the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
Our financial position, results of operations and cash flows are subject to certain risks. For information regarding such risks, see “Risk Factors” included under Part I, Item 1A of the 2023 Form 10-K.
Current wording
Our financial position, results of operations and cash flows are subject to certain risks. For information regarding such risks, see “Risk Factors” included under Part I, Item 1A of the 2024 Form 10-K and Part II, Item 1A of this quarterly report.
Previous 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.
Current wording
The weighted-average indicative market price for NGLs was $0.67 per gallon in the first quarter of 2025 versus $0.62 per gallon in the first quarter of 2024.
Previous wording
Inflation rates in the U.S. increased significantly in 2022 and remain elevated in 2024 compared to recent historical levels. While pandemic-era supply chain disruptions have largely dissipated and measures taken by the U.S. Federal Reserve Bank have helped slow the growth of inflation, the high cost environment that began in 2022 generally remains intact in 2024. However, to the extent that a rising cost environment impacts our results, there are typically offsetting benefits either inherent in our business or that result from other steps we take proactively to reduce the impact of inflation on our net operating results. These benefits include: (1) provisions included in our long-term fee-based revenue contracts that offset cost increases in the form of rate escalations based on positive changes in the U.S. Consumer Price Index, Producer Price Index for Finished Goods or other factors; (2) provisions in other revenue contracts that enable us to pass through higher energy costs to customers in the form of gas, electricity and fuel rebills or surcharges; and (3) higher commodity prices, which generally enhance our results in the form of increased volumetric throughput and demand for our services. Additionally, we take measures to mitigate the impact of cost increases in certain commodities, including a portion of our electricity needs, using fixed-price, term purchase agreements or financial derivatives. For these reasons, the increased cost environment, caused in part by inflation, has not had a material impact on our historical results of operations for the periods presented in this report. However, a significant or prolonged period of high inflation could adversely impact our results if costs were to increase at a rate greater than the increase in the revenues we receive.
Current wording
Inflation rates in the U.S. increased significantly in 2022 and have remained elevated compared to recent historical levels. While pandemic-era supply chain disruptions have largely dissipated and measures taken by the U.S. Federal Reserve Bank helped slow the growth of inflation, the high-cost environment that began in 2022 has generally remained intact in 2025. However, to the extent that a rising cost environment impacts our results, there are typically offsetting benefits either inherent in our business or that result from other steps we take proactively to reduce the impact of inflation on our net operating results. These benefits include: (1) provisions included in our long-term fee-based revenue contracts that offset cost increases in the form of rate escalations based on positive changes in the U.S. Consumer Price Index, Producer Price Index for Finished Goods or other factors; (2) provisions in other revenue contracts that enable us to pass through higher energy costs to customers in the form of gas, electricity and fuel rebills or surcharges; and (3) higher commodity prices, which generally enhance our results in the form of increased volumetric throughput and demand for our services. Additionally, we take measures to mitigate the impact of cost increases in certain commodities, including a portion of our electricity needs, using fixed-price, term purchase agreements, or financial derivatives. For these reasons, the increased cost environment, caused in part by inflation, has not had a material impact on our historical results of operations for the periods presented in this report. However, a significant or prolonged period of high inflation could adversely impact our results if costs were to increase at a rate greater than the increase in the revenues we receive.
Previous 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.
Current wording
Total revenues for the first quarter of 2025 increased $657 million when compared to the first quarter of 2024 primarily due to higher marketing revenues.
Previous 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.
Current wording
Revenues from the marketing of NGLs and petrochemicals and refined products increased a combined net $613 million quarter-to-quarter primarily due to higher sales volumes, which accounted for a $1.3 billion increase, partially offset by lower average sales prices, which accounted for a $711 million decrease. Revenues from the marketing of natural gas increased $281 million quarter-to-quarter primarily due to higher average sales prices. Revenues from the marketing of crude oil decreased $297 million quarter-to-quarter primarily due to lower average sales prices.
Previous wording
Revenues from midstream services for the third quarter of 2024 decreased a net $30 million when compared to the third quarter of 2023. Revenues from our Mont Belvieu area propylene production facilities decreased $29 million quarter-to-quarter primarily due to lower propylene processing revenues as a result of downtime at our PDH 2 facility during the third quarter of 2024. Revenues from our refined products pipelines decreased $21 million quarter-to-quarter primarily due to lower transportation revenues. Revenues from our Morgan’s Point export terminals decreased a combined $10 million quarter-to-quarter primarily due to lower loading fee revenues. Lastly, revenues from our natural gas transportation assets increased $36 million quarter-to-quarter primarily due to higher transportation revenues from our Texas Intrastate System.
Current wording
Revenues from midstream services for the first quarter of 2025 increased a net $60 million when compared to the first quarter of 2024. Revenues from our NGL and natural gas transportation assets increased a combined $118 million quarter-to-quarter primarily due to higher demand for transportation services. Revenues from our octane enhancement and related plant operations decreased $34 million quarter-to-quarter primarily due to lower deficiency fee revenues. Lastly, revenues from our ethylene exports and related activities decreased $23 million quarter-to-quarter primarily due to lower deficiency fee revenues and lower ethylene loading fee revenues.
Previous 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.
Current wording
Cost of sales for the first quarter of 2025 increased a net $600 million when compared to the first quarter of 2024. The cost of sales associated with the marketing of NGLs and petrochemicals and refined products increased a combined net $640 million quarter-to-quarter primarily due to higher volumes, which accounted for a $1.1 billion increase, partially offset by lower average purchase prices, which accounted for a $424 million decrease. The cost of sales associated with the marketing of natural gas increased $161 million quarter-to-quarter primarily due to higher average purchase prices. The cost of sales associated with the marketing of crude oil decreased $201 million quarter-to-quarter primarily due to lower average purchase prices.
Previous wording
Other operating costs and expenses for the third quarter of 2024 increased $32 million when compared to the third quarter in 2023 primarily due to higher maintenance, employee compensation, rental, and other operating costs, which accounted for a $79 million increase, partially offset by lower utility costs, which accounted for a $47 million decrease.
Current wording
Other operating costs and expenses for the first quarter of 2025 increased $105 million when compared to the first quarter in 2024 primarily due to higher maintenance, employee compensation and utility costs.
Previous 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.
Current wording
Depreciation, amortization and accretion expense for the first quarter of 2025 increased $23 million when compared to the first quarter of 2024 primarily due to higher depreciation expense on assets placed into full or limited service since the end of the first quarter of 2024.
Previous 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.
Current wording
General and administrative costs for the first quarter of 2025 decreased $6 million when compared to the first quarter of 2024 primarily due to lower employee compensation costs.
Previous 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.
Current wording
Equity income from our unconsolidated affiliates for the first quarter of 2025 decreased $8 million when compared to the first quarter of 2024 primarily due to lower earnings from investments in NGL pipelines and services.
Previous 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.
Current wording
Operating income for the first quarter of 2025 decreased $61 million when compared to the first quarter of 2024 due to the previously described quarter-to-quarter changes.
Previous 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.
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$36 million increase, partially offset by the retirement of $850 million and $1.15 billion of fixed-rate senior notes in February 2024 and February 2025, respectively, which accounted for a combined $10 million decrease.
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 nine months ended September 30, 2024 decreased $3 million and increased $10 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 first quarter of 2025 increased $3 million when compared to the first quarter of 2024.
Previous 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.
Current wording
Gross operating margin from natural gas processing and related NGL marketing activities for the first quarter of 2025 increased$15 million when compared to the first quarter of 2024.
Previous 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.
Current wording
Gross operating margin from our Midland Basin natural gas processing facilities increased a net $42 million quarter-to-quarter primarily due to a 21 MBPD increase inequity NGL-equivalent production volumes, which accounted for an $18 million increase, higher fee-based natural gas processing volumes, which accounted for a $16 million increase, and higher average processing margins (including the impact of hedging activities), which accounted for an additional $16 million increase, partially offset by lower average processing fees, which accounted for a $4 million decrease, and higher operating expenses, which accounted for an additional $4 million decrease. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 479 MMcf/d quarter-to-quarter primarily due to contributions from our Leonidas natural gas processing train, which was placed into service in late first quarter of 2024.
Previous 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.
Current wording
Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $4 million quarter-to-quarter primarily due to higher fee-based natural gas processing volumes, which accounted for a $14 million increase, a 15 MBPD increase inequity NGL-equivalent production volumes, which accounted for a $9 million increase, and lower operating costs, which accounted for an additional $3 million increase, partially offset by lower average processing margins (including the impact of hedging activities), which accounted for a $23 million decrease. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 388 MMcf/d quarter-to-quarter, primarily due to contributions from our Mentone 3 natural gas processing train, which was placed into service in late first quarter of 2024.
Previous wording
Gross operating margin from our refined products marketing activities decreased a net $47 million period-to-period primarily due to lower average sales margins, which accounted for a $56 million decrease, partially offset by higher sales volumes, which accounted for an $12 million increase.
Current wording
Gross operating margin from our NGL marketing activities decreased a net$20 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a$62 million decrease, partially offset by higher sales volumes, which accounted for a $38 million increase, and higher mark-to-market earnings, which accounted for an additional$5 million increase.
Previous 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.
Current wording
Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $7 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 decreased 61 MMcf/d and increased 2 MBPD, respectively, quarter-to-quarter.
Previous 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.
Current wording
Gross operating margin from our NGL pipelines, storage and terminal assets during the first quarter of 2025 increased $82 million when compared to the first quarter of 2024.
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 $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.
Current wording
A number of our pipelines, including the Mid-America Pipeline System, Seminole NGL Pipeline, Chaparral 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 $22 million quarter-to-quarter primarily due to a 74 MBPD increase in transportation volumes, which accounted for a $22 million increase, and higher average transportation fees, which accounted for an additional $5 million increase, partially offset by higher operating costs, which accounted for a $6 million decrease.
Previous wording
Gross operating margin from our NGL marketing activities increased $19 million quarter-to-quarter primarily due to higher sales volumes.
Current wording
Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $19 million quarter-to-quarter primarily due to a 68 MBPD increase in export volumes.
Previous 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.
Current wording
Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $12 million quarter-to-quarter primarily due to higher average transportation fees. Transportation volumes on these pipelines decreased a combined 25 MBPD quarter-to-quarter.
Previous 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.
Current wording
Gross operating margin from our South Texas NGL Pipeline System increased $9 million quarter-to-quarter primarily due to higher capacity reservation revenues, which accounted for a $5 million increase, and lower operating costs, which accounted for an additional $2 million increase. Transportation volumes on this system increased 12 MBPD quarter-to-quarter.
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from NGL fractionation during the third quarter of 2024 increased $49 million when compared to the third quarter of 2023. Gross operating margin from our Mont Belvieu area NGL fractionation complex increased $44 million quarter-to-quarter primarily due to lower operating costs, which accounted for a $20 million increase, higher ancillary service revenues, which accounted for a $15 million increase, and higher fractionation volumes, which accounted for an additional $10 million increase. NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 97 MBPD (net to our interest) primarily due to contributions from Frac 12, which entered service during the third quarter of 2023, and the acquisition of the remaining equity interest in EF78 in February 2024.
Current wording
Gross operating margin from NGL fractionation during the first quarter of 2025 decreased $19 million when compared to the first quarter of 2024. Gross operating margin from our Mont Belvieu area NGL fractionation complex decreased $15 million quarter-to-quarter primarily due to higher operating costs, which accounted for a $9 million decrease, and lower ancillary service revenues, which accounted for an additional $5 million decrease. NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 10 MBPD.
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from our Crude Oil Pipelines & Services segment for the third quarter of 2024 decreased $31 million when compared to the third quarter of 2023.
Current wording
Gross operating margin from our Crude Oil Pipelines & Services segment for the first quarter of 2025 decreased $37 million when compared to the first quarter of 2024.
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 $35 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $23 million decrease, higher operating costs, which accounted for a $21 million decrease, lower other revenues, which accounted for an $18 million decrease, and lower sales volumes, which accounted for an additional $13 million decrease, partially offset by higher non-cash, mark-to-market earnings, which accounted for a $37 million increase. Crude oil transportation volumes on these pipelines increased a combined 2 MBPD (net to our interest) quarter-to-quarter.
Current wording
Gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) decreased a combined $39 million quarter-to-quarter primarily due to lower sales volumes, which accounted for a $23 million decrease, and lower average sales margins, which accounted for an additional $14 million decrease. Crude oil transportation volumes on these pipelines increased a combined 38 MBPD (net to our interest) quarter-to-quarter.
Previous wording
Gross operating margin from crude oil activities at EHT increased $11 million period-to-period primarily due to lower operating costs, which accounted for a $6 million increase, and higher storage revenues, which accounted for an additional $5 million increase. Crude oil terminal volumes at EHT increased 106 MBPD period-to-period.
Current wording
Gross operating margin from crude oil activities at EHT increased $9 million quarter-to-quarter primarily due to higher storage and other revenues, which accounted for a $6 million increase, and lower operating costs, which accounted for an additional $3 million increase. Crude oil terminal volumes at EHT decreased 309 MBPD quarter-to-quarter.
Previous wording
Gross operating margin from our Delaware and Midland Basin Gathering Systems increased a combined net $23 million period-to-period primarily due to an 816 BBtus/d increase in natural gas gathering volumes, which accounted for a $64 million increase, partially offset by higher operating costs, which accounted for a $46 million decrease.
Current wording
Gross operating margin from our Delaware Basin Gathering System, which includes the natural gas gathering system acquired in October 2024 through our acquisition of Pinon Midstream, increased a net $27 million quarter-to-quarter primarily due to higher treating and other revenues, which accounted for a $20 million increase, a 700 BBtus/d increase in natural gas gathering volumes, which accounted for a $14 million increase, and higher average gathering fees, which accounted for an additional $8 million increase, partially offset by higher operating costs, which accounted for a $15 million decrease.
Previous wording
Gross operating margin from our Texas Intrastate System increased a net $90 million period-to-period primarily due to higher average transportation fees, which accounted for a $71 million increase, higher capacity reservation fees and other revenues, which accounted for an additional $29 million increase, partially offset by higher operating costs, which accounted for a $7 million decrease. Transportation volumes decreased 103 BBtus/d on this system period-to-period.
Current wording
Gross operating margin from our Texas Intrastate System increased $27 million quarter-to-quarter primarily due to higher capacity reservation fees and other revenues, which accounted for a $14 million increase, and higher average transportation fees, which accounted for an additional $13 million increase. Transportation volumes increased 129 BBtus/d on this system quarter-to-quarter.
Previous wording
Gross operating margin from our Delaware and Midland Basin Gathering Systems increased a combined net $13 million quarter-to-quarter primarily due to a 1,111 BBtus/d increase in natural gas gathering volumes, which accounted for a $28 million increase, partially offset by higher operating costs, which accounted for a $15 million decrease.
Current wording
Gross operating margin from our Midland Basin Gathering System increased a net $10 million quarter-to-quarter primarily due to a 589 BBtus/d increase in natural gas gathering volumes, which accounted for a $19 million increase, partially offset by higher operating costs, which accounted for a $9 million decrease.
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from propylene production and related activities for the third quarter of 2024 increased $8 million when compared to the third quarter of 2023.
Current wording
Gross operating margin from propylene production and related activities for the first quarter of 2025 decreased $52 million when compared to the first quarter of 2024.
Previous wording
On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities increased a net $9 million quarter-to-quarter primarily due to higher average propylene sales margins, which accounted for a $23 million increase, and lower operating costs, which accounted for an additional $8 million increase, partially offset by lower propylene processing revenues, which accounted for a $20 million decrease. Propylene and associated by-product production volumes at these facilities increased a combined 11 MBPD (net to our interest) quarter-to-quarter primarily due to downtime at our PDH 1 facility for unplanned maintenance during the third quarter of 2023. Partially offsetting this increase was lower production from our PDH 2 facility due to scheduled maintenance that was completed during the third quarter of 2024.
Current wording
On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased $47 million quarter-to-quarter primarily due to lower average propylene sales margins. Propylene and associated by-product production volumes at these facilities increased a combined 8 MBPD quarter-to-quarter primarily due to higher production from one of our propylene splitters, which had experienced downtime during the first quarter of 2024.
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from our octane enhancement and related plant operations for the third quarter of 2024 decreased $68 million when compared to the third quarter of 2023 primarily due to lower average sales margins, which accounted for a $35 million decrease, and lower sales volumes, which accounted for an additional $34 million decrease.
Current wording
Gross operating margin from our octane enhancement and related plant operations for the first quarter of 2025 decreased $83 million when compared to the first quarter of 2024 primarily due to lower average sales margins, which accounted for a $51 million decrease, and lower deficiency revenues, which accounted for an additional $32 million decrease.
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from refined products pipelines and related activities for the third quarter of 2024 decreased $26 million when compared to the third quarter of 2023.
Current wording
Gross operating margin from refined products pipelines and related activities for the first quarter of 2025 increased $33 million when compared to the first quarter of 2024.
Previous wording
Gross operating margin from our refined products marketing activities decreased $24 million quarter-to-quarter primarily due to lower average sales margins.
Current wording
Gross operating margin from our refined products marketing activities decreased $5 million quarter-to-quarter primarily due to lower average sales margins.
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023. Gross operating margin from ethylene exports and related activities for the third quarter of 2024 decreased a net $3 million when compared to the third quarter of 2023 primarily due to a 12 MBPD (net to our interest) decrease in ethylene export volumes, which accounted for a $13 million decrease, partially offset by lower operating costs, which accounted for a $5 million increase, higher deficiency fee revenues from our ethylene export terminal, which accounted for a $3 million increase, and a combined 22 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $2 million increase.
Current wording
Gross operating margin from ethylene exports and related activities for the first quarter of 2025 decreased $28 million when compared to the first quarter of 2024 primarily due to lower deficiency fee revenues fromour ethylene pipelines, which accounted for a $17 million decrease, and a 25 MBPD decrease in ethylene export volumes, which accounted for an additional $13 million decrease. Ethylene transportation volumes decreased 13 MBPD quarter-to-quarter.
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Previous report — wording carried elsewhere
Issuance of $2.0 Billion of Senior Notes in January 2024
Previous report — wording carried elsewhere
Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined net $7 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $13 million decrease, partially offset by a 219 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $3 million increase.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Gross operating margin at our Morgan’s Point Ethane Export Terminal decreased $12 million quarter-to-quarter primarily due to lower average loading fees, which accounted for a $5 million decrease, and higher operating costs, which accounted for an additional $5 million decrease.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Gross operating margin from our Texas Intrastate System increased $39 million quarter-to-quarter primarily due to higher average transportation fees. Transportation volumes decreased 61 BBtus/d on this system quarter-to-quarter.