ENTERPRISE PRODUCTS PARTNERS L.P.
For the period ended Jun 30, 2025. Filed Aug 8, 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.
Jun 30, 2025 · Filed Aug 8, 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 2025-03-31; filed 2025-05-07.
0001061219-25-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001061219-25-000025
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 174 previous paragraphs and 274 current paragraphs.
109 unchanged; 56 reworded; 100 added; 9 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 56 previous and 19 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 (100)
Current report
•natural gas gathering, treating, processing, transportation and storage;
Current report
•NGL transportation, fractionation, storage, and marine terminals (including those used to export liquefied petroleum gases (“LPG”) and ethane);
Current report
•crude oil gathering, transportation, storage, and marine terminals;
Current report
•propylene production facilities (including propane dehydrogenation (“PDH”) facilities), butane isomerization, octane enhancement, isobutane dehydrogenation (“iBDH”) and high purity isobutylene (“HPIB”) production facilities;
Current report
•petrochemical and refined products transportation, storage, and marine terminals (including those used to export ethylene and polymer grade propylene (“PGP”)); and
Current report
•a marine transportation business that operates on key U.S. inland and intracoastal waterway systems.
Current report
Recent Developments
Current report
Enterprise Agrees to Acquire Oxy Affiliate, Enters into Service Agreements, and Expands Midland Basin Processing Capacity
Current report
In July 2025, an affiliate of Enterprise agreed to acquire an affiliate of Occidental Petroleum Corporation (“Oxy”), which owns approximately 200 miles of natural gas gathering pipelines in the Midland Basin, in a debt-free transaction for $580 million in cash consideration (subject to adjustment in accordance with the agreement). In addition, an affiliate of Enterprise has agreed to provide Oxy with natural gas gathering and processing services, supported by a long-term dedication of approximately 73,000 acres across four counties in the Midland Basin. Completion of the acquisition is subject to customary regulatory approvals and closing conditions. The acquisition is expected to close in the third quarter of 2025.
Current report
In order to accommodate this production growth in the Midland Basin, we also announced plans to expand our natural gas gathering and processing capabilities in the Midland Basin with the construction of a ninth natural gas processing train (“Athena”) and further expansion of our Midland Basin gathering system. This natural gas processing train, which will have the capacity to process approximately 300 MMcf/d of natural gas and extract up to 40 MBPD of NGLs, is expected to begin service in the fourth quarter of 2026.
Current report
Enterprise Begins Initial Service at Neches River Ethane / Propane Export Facility
Current report
In July 2025, we placed into service the first phase of our new ethane / propane export facility located on the Neches River in Orange County, Texas (“Neches River Ethane / Propane Export Facility”). This phase included the completion of a loading dock and an ethane refrigeration train with a nameplate capacity of 120 MBPD. The second phase of the project, which will add a second refrigeration train capable of loading up to 180 MBPD of ethane, 360 MBPD of propane, or a combination thereof, is expected to begin service in the first half of 2026.
Current report
Enterprise Begins Service at Mentone West 1 and Orion
Current report
In July 2025, we placed our first natural gas processing train at our Mentone West location in the Delaware Basin (“Mentone West 1”) and our eighth Midland Basin natural gas processing train (“Orion”) into commercial service. Both Mentone West 1 and Orion are capable of processing over 300 MMcf/d of natural gas and extracting more than 40 MBPD of NGLs and are supported by long-term acreage dedication agreements and minimum volume commitments.
Current report
In June 2025, EPO issued $2.0 billion aggregate principal amount of senior notes comprised of (i) $500 million principal amount of senior notes due June 2028 (“Senior Notes LLL”), (ii) $750 million principal amount of senior notes due January 2031 (“Senior Notes MMM”) and (iii) $750 million principal amount of senior notes due January 2036 (“Senior Notes NNN”). Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including amounts outstanding under our commercial paper program).
Current report
Senior Notes LLL were issued at 99.869% of their principal amount and have a fixed interest rate of 4.30% per year. Senior Notes MMM were issued at 99.816% of their principal amount and have a fixed interest rate of 4.60% per year. Senior Notes NNN were issued at 99.665% of their principal amount and have a fixed interest rate of 5.20% per year. The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.
Current report
(1)Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of S&P Global, Inc.
Current report
(2)NGL prices for ethane, propane, normal butane, isobutane and natural gasoline are based on Mont Belvieu, Texas Non-TET commercial index prices as reported by Oil Price Information Service, which is a division of Dow Jones.
Current report
(3)Polymer grade propylene prices represent average contract pricing for such product as reported by IHS Markit (“IHS”), which is a division of S&P Global, Inc. Refinery grade propylene (“RGP”) prices represent weighted-average spot prices for such product as reported by IHS.
Current report
(4)The “Indicative Gas Processing Gross Spread” represents our generic estimate of the gross economic benefit from extracting NGLs from natural gas production based on certain pricing assumptions. Specifically, it is the amount by which the assumed economic value of a composite gallon of NGLs in Chambers County, Texas exceeds the value of the equivalent amount of energy in natural gas at Henry Hub, Louisiana. Our estimate of the indicative spread does not consider the operating costs incurred by a natural gas processing facility to extract the NGLs nor the transportation and fractionation costs to deliver the NGLs to market. In addition, the actual gas processing spread earned at each plant is further influenced by regional pricing and extraction dynamics.
Current report
(1)WTI prices are based on commercial index prices at Cushing, Oklahoma as measured by the NYMEX.
Current report
(2)Midland and Houston crude oil prices are based on commercial index prices as reported by Argus.
Current report
Second Quarter of 2025 Compared to Second Quarter of 2024. Total revenues for thesecond quarter of 2025 decreased $2.1 billion when compared to thesecond quarter of 2024 primarily due to lower marketing revenues.
Current report
Revenues from midstream services for thesecond quarter of 2025 increased a net$80 million when compared to thesecond quarter of 2024. Revenues from our NGL and natural gas transportation assets increased a combined $111 million quarter-to-quarter primarily due to higher demand for transportation services. Revenues from our natural gas processing facilities decreased $43 million quarter-to-quarter primarilydue to lower market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Total revenues for thesix months ended June 30, 2025 decreased $1.5 billion when compared to thesix months ended June 30, 2024 primarily due to lower marketing revenues.
Current report
Revenues from the marketing of NGLs, crude oil and petrochemicals and refined products decreased a combined net $2.3 billion period-to-period primarily due to lower average sales prices, which accounted for a $3.8 billion decrease, partially offset by higher sales volumes, which accounted for a $1.5 billion increase. Revenues from the marketing of natural gas increased $673 million period-to-period primarily due to higher average sales prices.
Current report
Total operating costs and expenses for thethree and six months ended June 30, 2025 decreased $2.2 billion and$1.5 billion, respectively when compared to the same periods in 2024.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Cost of sales for thesix months ended June 30, 2025 decreased a net$1.7 billion when compared to thesix months ended June 30, 2024. The cost of sales associated with the marketing of NGLs and crude oil decreased a combined net $1.7 billion period-to-period primarily due to lower average purchase prices, which accounted for a $2.6 billion decrease, partially offset by higher volumes, which accounted for a $971 million increase. The cost of sales associated with the marketing of petrochemicals and refined products decreased $262 million period-to-period primarily due to lower volumes, which accounted for a $164 million decrease, and lower average purchase price, which accounted for an additional $98 million decrease. The cost of sales associated with the marketing of natural gas increased $243 million period-to-period primarily due to higher average purchase prices.
Current report
General and administrative costs for thethree and six months ended June 30, 2025 increased $11 million and$5 million, respectively, when compared to thesame periods in 2024 primarily due to higher employee compensation costs.
Current report
(1)The weighted-average interest rates on debt principal outstanding during the three and six months ended June 30, 2025 were 4.67% and 4.68%, respectively. The weighted-average interest rates on debt principal outstanding during the three and six months ended June 30, 2024 were 4.62% and 4.61%, respectively.
Current report
(2)We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase. Capitalized interest amounts become part of the historical cost of an asset and are charged to earnings (as a component of depreciation expense) on a straight-line basis over the estimated useful life of the asset once the asset enters its intended service. When capitalized interest is recorded, it reduces interest expense from what it would be otherwise. Capitalized interest amounts fluctuate based on the timing of when projects are placed into service, our capital investment levels and the interest rates charged on borrowings.
Current report
(1)Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within our business segment disclosures found under Note 10 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.
Current report
(1)Excludes amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets, which are components of gross operating margin.
Current report
(1)Primarily represents the NGL and condensate volumes we earn and take title to in connection with our processing activities. The total equity NGL-equivalent production volumes also include residue natural gas volumes from our natural gas processing business.
Current report
(2)Volumes reported correspond to the revenue streams earned by our natural gas processing plants.
Current report
(3)Fee-based natural gas processing volumes are measured at either the wellhead or plant inlet in MMcf/d.
Current report
Gross operating margin from our Midland Basin natural gas processing facilities decreased a net $9 million quarter-to-quarter primarily due to higher operating costs, which accounted for an $8 million decrease, and lower average processing margins (including the impact of hedging activities), which accounted for an additional $4 million decrease, partially offset by a 296 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $3 million increase.
Current report
Gross operating margin from our Delaware Basin natural gas processing facilities decreased a net $5 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities), which accounted for an $8 million decrease, and higher operating costs, which accounted for an additional $6 million decrease, partially offset by a 257 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $9 million increase.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Gross operating margin from natural gas processing and related NGL marketing activities for thesix months ended June 30, 2025 decreased $30 million when compared to thesix months ended June 30, 2024.
Current report
Gross operating margin from our NGL marketing activities decreased a net $37 million period-to-period primarily due to lower average sales margins, which accounted for a $48 million decrease, and lower mark-to-market earnings, which accounted for an additional $12 million decrease, partially offset by higher sales volumes, which accounted for a $24 million increase.
Showing the first 40 of 100 passages. Open the source sections for the rest.
Removed paragraphs (9)
Previous report
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 report
Total operating costs and expenses for the first quarter of 2025 increased $716 million when compared to the first quarter of 2024.
Previous report
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 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.
Previous report
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 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.
Previous 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:
Previous report
Comparison of First Quarter of 2025 with the First Quarter of 2024
Previous report
ITEM 3. QUANT
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
Current wording
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
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For the Three Months Ended March 31, 2025 and 2024
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For the Three and Six Months Ended June 30, 2025 and 2024
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The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and accompanying Notes included in this quarterly report on Form 10-Q and the Audited Consolidated Financial Statements and related Notes, together with our discussion and analysis of financial position and results of operations, included in our annual report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as filed on February 28, 2025 with the U.S. Securities and Exchange Commission (“SEC”). Our financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”).
Current wording
The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and accompanying Notes included in this quarterly report on Form 10-Q and the Audited Consolidated Financial Statements and related Notes, together with our discussion and analysis of financial position and results of operations, included in our annual report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as filed on February 28,2025 with the U.S. Securities and Exchange Commission (“SEC”). Our financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”).
Previous 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.
Current wording
This quarterly report on Form 10-Q for the three and six months ended June 30, 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.
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As used in this quarterly report, the phrase “quarter-to-quarter” means the first quarter of 2025 compared to the first quarter of 2024.
Current wording
As used in this quarterly report, the phrase “quarter-to-quarter” means thesecond quarter of 2025 compared to thesecond quarter of 2024. Likewise, the phrase “period-to-period” means thesix months ended June 30, 2025 compared to thesix months ended June 30, 2024.
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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.
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The weighted-average indicative market price for NGLs was$0.58 per gallon in thesecond quarter of 2025 versus$0.59 per gallon in thesecond quarter of 2024. Likewise, the weighted-average indicative market price for NGLs was$0.63 per gallon during thesix months ended June 30, 2025 compared to $0.61 per gallon during the six months ended June 30, 2024.
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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.
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. In addition, there is uncertainty of what effect, if any, trade tariffs will have on inflation in future periods. 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
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.
Current wording
Revenues from the marketing of NGLs and crude oildecreased a combined net $2.0 billion quarter-to-quarter primarily due to lower average sales prices, which accounted for a $2.3 billion decrease, partially offset by higher sales volumes, which accounted for a $357 million increase. Revenues from the marketing of petrochemicals and refined products decreased $614 million quarter-to-quarter primarily due to lower average sales prices. Revenues from the marketing of natural gas increased $392 million quarter-to-quarter primarily due to higher average sales prices.
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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.
Current wording
Revenues from midstream services for thesix months ended June 30, 2025 increased a net$140 million when compared to thesix months ended June 30, 2024. Revenues from our NGL and natural gas transportation assets increased a combined $230 million period-to-period primarily due to higher demand for transportation services. Revenues from our natural gas processing facilities decreased $49 million period-to-period primarily due to lower market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services. Lastly, revenues from our octane enhancement and related plant operations decreased $34 million period-to-period primarily due to lower deficiency fee revenues.
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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.
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Second Quarter of 2025 Compared to Second Quarter of 2024. Cost of sales for thesecond quarter of 2025 decreased a net$2.3 billion when compared to thesecond quarter of 2024. The cost of sales associated with the marketing of NGLs and crude oil decreased a combined net $1.8 billion quarter-to-quarter primarily due to lower average purchase prices, which accounted for a $2.1 billion decrease, partially offset by higher volumes, which accounted for a $315 million increase. The cost of sales associated with the marketing of petrochemicals and refined products decreased $603 million quarter-to-quarter primarily due to lower volumes. The cost of sales associated with the marketing of natural gas increased $82 million quarter-to-quarter primarily due to higher average purchase prices.
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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.
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Other operating costs and expenses for thethree and six months ended June 30, 2025 increased $90 million and$195 million, respectively, when compared to thesame periods in 2024 primarily due to higher employee compensation, maintenance and utility costs.
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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.
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Depreciation, amortization and accretion expense for thethree and six months ended June 30, 2025 increased $30 million and$53 million, respectively, when compared to thesame periods in 2024 primarily due to higher depreciation expense on assets placed into full or limited service since the end of the respective periods in 2024.
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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.
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Equity income from our unconsolidated affiliates for thethree and six months ended June 30, 2025 decreased $9 million and$17 million, respectively, when compared to thesame periods in 2024 primarily due to lower earnings from investments in NGL pipelines and services.
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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.
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Operating income for thethree and six months ended June 30, 2025 increased $30 million anddecreased $31 million, respectively, when compared to thesame periods in 2024 due to the previously described quarter-to-quarter and period-to-period changes.
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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.
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Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net$26 million quarter-to-quarter and a net$54 million period-to-period. These increases were primarily due to the issuance of $2.5 billion and $2.0 billion of fixed-rate senior notes in August 2024 and June 2025, respectively, which accounted for a combined increase of $36 million quarter-to-quarter and $69 million period-to-period. These increases were partially offset by the retirement of $1.15 billion of fixed-rate senior notes in February 2025, which accounted for a decrease of $11 million quarter-to-quarter and $16 million period-to-period.
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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.
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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 thethree and six months ended June 30, 2025 increased $1 million and$4 million, respectively, when compared to thesame periods in 2024.
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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.
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Second Quarter of 2025 Compared to Second Quarter of 2024. Gross operating margin from natural gas processing and related NGL marketing activities for thesecond quarter of 2025 decreased $45 million when compared to thesecond quarter of 2024.
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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.
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Gross operating margin from our NGL marketing activities decreased a net $18 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $14 million decrease, and lower mark-to-market earnings, which accounted for an additional $17 million decrease, partially offset by higher sales volumes, which accounted for a $14 million increase.
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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.
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Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $11 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 34 MMcf/d and 4 MBPD, respectively, quarter-to-quarter.
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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.
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Gross operating margin from our Delaware Basin natural gas processing facilities decreased a net $1 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $32 million decrease, and higher operating costs, which accounted for an additional $4 million decrease, partially offset by higher fee-based natural gas processing volumes, which accounted for a $25 million increase, and a 7 MBPD increase in equity NGL-equivalent production volumes, which accounted for an additional $10 million increase. Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 323 MMcf/d period-to-period primarily due to contributions from our Mentone 3 natural gas processing train, which was placed into service in late first quarter of 2024.
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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.
Current wording
Gross operating margin from our Midland Basin natural gas processing facilities increased a net $32 million period-to-period primarily due to an 11 MBPD increase in equity NGL-equivalent production volumes, which accounted for a $17 million increase, higher fee-based natural gas processing volumes, which accounted for a $15 million increase, and higher average processing margins (including the impact of hedging activities), which accounted for an additional $13 million increase, partially offset by higher operating costs, which accounted for a $13 million decrease. Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 388 MMcf/d period-to-period 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 NGL pipelines, storage and terminal assets during the first quarter of 2025 increased $82 million when compared to the first quarter of 2024.
Current wording
Second Quarter of 2025 Compared to Second Quarter of 2024. Gross operating margin from our NGL pipelines, storage and terminal assets during thesecond quarter of 2025 increased $31 million when compared to thesecond quarter of 2024.
Previous 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.
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 $23 million quarter-to-quarter primarily due to higher other revenues, which accounted for a $12 million increase, a 40 MBPD increase in transportation volumes, which accounted for a $9 million increase, and higher average transportation fees, which accounted for an additional $6 million increase, partially offset by higher operating costs, which accounted for a $4 million decrease.
Previous 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.
Current wording
Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $14 million quarter-to-quarter primarily due to a 100 MBPD increase in transportation volumes, which accounted for a $9 million increase, and higher average transportation fees, which accounted for an additional $9 million increase.
Previous 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.
Current wording
Gross operating margin from our South Texas NGL Pipeline System increased $5 million quarter-to-quarter primarily due to higher capacity reservation revenues, which accounted for a $3 million increase, and lower operating costs, which accounted for an additional $2 million increase. Transportation volumes on this system increased 9 MBPD quarter-to-quarter.
Previous 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.
Current wording
Gross operating margin from LPG-related activities at our Enterprise Hydrocarbons Terminal (“EHT”) decreased $37 million quarter-to-quarter primarily due to lower average loading fees. LPG export volumes at EHT increased 55 MBPD quarter-to-quarter. Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $4 million quarter-to-quarter primarily due to an 11 MBPD increase in export volumes. Gross operating margin from our related Houston Ship Channel Pipeline System increased $5 million quarter-to-quarter primarily due to a 67 MBPD increase in transportation volumes.
Previous 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.
Current wording
Gross operating margin from our Mont Belvieu area NGL fractionation complex decreased $19 million period-to-period primarily due to higher operating costs, which accounted for a $9 million decrease, and lower ancillary service revenues, which accounted for an additional $9 million decrease. NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 7 MBPD period-to-period.
Previous 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.
Current wording
Second Quarter of 2025 Compared to Second Quarter of 2024. Gross operating margin from our Crude Oil Pipelines & Services segment for thesecond quarter of 2025 decreased $14 million when compared to thesecond quarter of 2024.
Previous 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.
Current wording
Gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) decreased a combined net $31 million quarter-to-quarter primarily due to lower sales volumes from marketing activities, which accounted for a $27 million decrease, higher operating costs, which accounted for a $7 million decrease, and lower other revenues, which accounted for an additional $6 million decrease, partially offset by higher average sales margins from marketing activities, which accounted for an $11 million increase. Crude oil transportation volumes on these pipelines increased a combined 79 MBPD (net to our interest) quarter-to-quarter.
Previous 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.
Current wording
Gross operating margin from crude oil activities at EHT increased$18 million quarter-to-quarter primarily due to lower operating costs, which accounted for a $10 million increase, higher loading revenues, which accounted for a $4 million increase, and higher storage and other revenues, which accounted for an additional $4 million increase. Crude oil marine terminal volumes at EHT decreased 165 MBPD quarter-to-quarter.
Previous wording
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 wording
Gross operating margin from our natural gas marketing activities increased $75 million quarter-to-quarter primarily due to higher mark-to-market earnings, which accounted for a $55 million increase, and higher average sales margins, which accounted for an additional $20 million increase.
Previous 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.
Current wording
Gross operating margin from our Texas Intrastate System increased a net $21 million quarter-to-quarter primarily due to higher capacity reservation fees and other revenues, which accounted for a $22 million increase, and a 426 BBtus/d increase in transportation volumes, which accounted for an additional $5 million increase, partially offset by lower average transportation fees, which accounted for a $6 million decrease.
Previous 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.
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 $19 million quarter-to-quarter primarily due to higher treating and other revenues, which accounted for a $16 million increase, a 584 BBtus/d increase in natural gas gathering volumes, which accounted for an additional $12 million increase, partially offset by higher operating costs, which accounted for an $11 million decrease.
Previous wording
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 wording
Gross operating margin from our Texas Intrastate System increased $48 million period-to-period primarily due to higher capacity reservation fees and other revenues, which accounted for a $35 million increase, higher average transportation fees, which accounted for a $7 million increase, and a 278 BBtus/d increase in transportation volumes, which accounted for an additional $6 million increase.
Previous 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.
Current wording
Second Quarter of 2025 Compared to Second Quarter of 2024. Gross operating margin from propylene production and related activities for thesecond quarter of 2025 increased $4 million when compared to thesecond quarter of 2024.
Previous 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.
Current wording
On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased $39 million period-to-period primarily due to lower average propylene sales margins. Propylene and associated by-product production volumes at these facilities increased a combined 9 MBPD.
Previous 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.
Current wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024. Gross operating margin from our octane enhancement and related plant operations for thesix months ended June 30, 2025 decreased $132 million when compared to thesix months ended June 30, 2024 primarily due to lower average sales margins, which accounted for a $96 million decrease, and lower deficiency revenues, which accounted for an additional $32 million decrease.
Previous 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.
Current wording
Second Quarter of 2025 Compared to Second Quarter of 2024. Gross operating margin from refined products pipelines and related activities for thesecond quarter of 2025 increased $3 million when compared to thesecond quarter of 2024.
Previous wording
Gross operating margin from our refined products marketing activities decreased $5 million quarter-to-quarter primarily due to lower average sales margins.
Current wording
Gross operating margin from our refined products marketing activities decreased $13 million quarter-to-quarter primarily due to lower average sales margins.
Previous wording
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 wording
Gross operating margin from our TE Products Pipeline System increased a net $29 million period-to-period primarily due to a 20 MBPD increase in transportation volumes, which accounted for a $25 million increase, and higher average transportation fees, which accounted for an additional $10 million increase, partially offset by higher operating costs, which accounted for a $13 million decrease.
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Current report — wording carried from elsewhere
Issuance of $2.0 Billion of Senior Notes in June 2025
Current report — wording carried from elsewhere
Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $18 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 decreased 49 MMcf/d and 1 MBPD, respectively, period-to-period.
Current report — wording carried from elsewhere
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 $45 million period-to-period primarily due to a 56 MBPD increase in transportation volumes, which accounted for a $30 million increase, and higher average transportation fees, which accounted for an additional $11 million increase.
Current report — wording carried from elsewhere
Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $26 million period-to-period primarily due to higher average transportation fees, which accounted for a $17 million increase, and a 37 MBPD increase in transportation volumes, which accounted for an additional $10 million increase.
Current report — wording carried from elsewhere
Gross operating margin from our South Texas NGL Pipeline System increased $15 million period-to-period primarily due to higher capacity reservation revenues, which accounted for an $8 million increase, and lower operating costs, which accounted for an additional $5 million increase. Transportation volumes on this system increased 10 MBPD period-to-period.
Current report — wording carried from elsewhere
Gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) decreased a combined $72 million period-to-period primarily due to lower sales volumes from marketing activities, which accounted for a $52 million decrease, lower mark-to-market earnings, which accounted for a $9 million decrease, and higher operating costs, which accounted for an additional $7 million decrease. Crude oil transportation volumes on these pipelines increased a combined 60 MBPD (net to our interest) period-to-period.
Current report — wording carried from elsewhere
Gross operating margin from our TE Products Pipeline System increased $2 million quarter-to-quarter primarily due to a 5 MBPD increase in transportation volumes.
Current report — wording carried from elsewhere
Gross operating margin from our TW Products System increased $26 million period-to-period 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 — wording carried from elsewhere
(5)Cash retained by the Partnership may be used for capital investments, debt service, working capital, operating expenses, common unit repurchases, commitments and contingencies and other amounts. The retention of cash reduces our reliance on the capital markets.