• EBITDA: $9.9 billion for 2024.
• Distributable Cash Flow (DCF): $7.8 billion for 2024.
• Net Income: $1.6 billion for Q4 2024, $0.74 per common unit.
• Adjusted Cash Flow from Operations: $2.3 billion for Q4 2024.
• Distribution per Common Unit: $0.535 for Q4 2024, a 4% increase from Q4 2023.
• Common Unit Repurchases: $219 million for 2024, approximately 7.6 million units.
• Total Capital Investments: $2 billion for Q4 2024, $5.5 billion for 2024.
• Debt Principal Outstanding: $32.2 billion as of December 31, 2024.
• Consolidated Liquidity: $4.8 billion at the end of 2024.
• Adjusted EBITDA: $2.6 billion for Q4 2024.
• Leverage Ratio: 3.1 times on a net basis at the end of 2024.

• Warning! GuruFocus has detected 9 Warning Signs with EPD.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enterprise Products Partners LP (NYSE:EPD) achieved a 2024 EBITDA of $9.9 billion, indicating strong financial performance.
• The company set 12 financial records and 16 operational records in 2024, showcasing operational efficiency and growth.
• EPD moved 12.9 million barrels of oil equivalent per day in 2024, with an increase to 13.6 million barrels per day in the fourth quarter.
• The company completed significant infrastructure projects, including two processing plants in the Permian and expansions of their ethane and ethylene terminal.
• EPD declared a 4% increase in distribution per common unit for the fourth quarter of 2024, reflecting a commitment to returning value to shareholders.

Negative Points

• The SPOT project faced significant delays due to federal bureaucracy, resulting in the loss of an anchor customer contract.
• EPD has not yet gained enough traction in commercializing the SPOT project, despite being the only company with a license to construct.
• The petrochemical segment is facing challenges with oversupply in the global market, impacting potential growth.
• The company is experiencing mechanical issues with PDH-1 and design issues with PDH-2, affecting operational efficiency.
• There is uncertainty in the M&A landscape, with public company acquisitions being more challenging due to valuation concerns.

Q & A Highlights

Q: Can you provide an outlook for 2025, considering the strong close to 2024? A: W. Fowler, Co-CEO, mentioned that they anticipate mid-single-digit cash flow growth over the near to intermediate term. Several projects are expected to come online later in the year, setting up 2025 as a strong year, especially given favorable industry fundamentals.

Q: What is the status of the SPOT project, and is a 2025 FID likely? A: A. James Teague, Co-CEO, stated that while they have renewed some permits, they are not concerned about renewing others if needed. He did not confirm whether a 2025 FID is likely, indicating that they are still promoting SPOT despite challenges in commercializing it.

Q: How do you view the potential change in LPG export economics with new projects in the region? A: Brent Secrest, EVP and Chief Commercial Officer, noted that while new capacity could erode current healthy DAC FOB values, Enterprise's capital for expansion is significantly lower than greenfield projects, making their expansions more competitive.

Q: Can you discuss the prospects for sour gas handling in the Permian? A: Natalie K. Gayden, SVP of Natural Gas Assets, explained that while growth may not be rapid, they are expanding their capabilities with additional AGI wells and trains, which will allow them to offer a broader customer base and expand their integrated value chain.

Q: What are your thoughts on the M&A landscape for 2025? A: W. Fowler, Co-CEO, indicated that while 2024 was active, they expect to see more asset packages later in the year. They find asset purchases more valuable than public company M&A, which can be problematic in driving cash flow per share growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.