What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-11-08 compared with 2024-08-09 · 230 added, 217 removed, 585 unchanged (43% of the section changed)

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RESULTS OF OPERATIONS.

For the Three and Six Months Ended June 30, 2024 and 2023

For the Three and Nine Months Ended September 30, 2024 and 2023

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, 2023 (the “2023 Form 10-K”), as filed on February 28, 2024 with the U.S.

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Cautionary Statement Regarding Forward-Looking Information

This quarterly report on Form 10-Q for the three and six months ended June 30, 2024 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.

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.

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We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees.

EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at June 30, 2024.

EPCO, together with its privately held affiliates, owned approximately 32.4% of the Partnership’s common units outstanding at September 30, 2024.

As generally used in the energy industry and in this quarterly report, the acronyms below have the following meanings:

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trillion British thermal units

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

Likewise, the phrase “period-to-period” means the six months ended June 30, 2024 compared to the six months ended June 30, 2023.

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.

Overview of Business

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Recent Developments

Enterprise and 1PointFive Sign Agreement to Support Development of Carbon Dioxide Transportation Network for Southeast Texas Sequestration Hub

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.

Enterprise Announces Acquisition of Pi ñ on Midstream

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.

Issuance of $2.5 Billion of Senior Notes in August 2024

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and internationally.

Enterprise Begins Initial Service on TW Products System

Enterprise Begins Service on TW Products System

In March 2024, we placed into service the first phase of our Texas Western Products System (“TW Products System”) and began truck loading operations at our new Permian terminal in Gaines County, Texas.

This facility features approximately 900,000 barrels of storage for gasoline and diesel, and truck loading capacity of 10 MBPD.

Additionally, we placed into service and began truck loading operations at our Jal and Moriarty Terminals located in New Mexico during the second quarter of 2024.

We expect the Grand Junction Terminal located in Utah to be placed into service in the third quarter of 2024.

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.

Enterprise Acquires Equity Interests from Western Midstream

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In addition, the actual gas processing spread earned at each plant is further influenced by regional pricing and extraction dynamics.

The weighted-average indicative market price for NGLs was $0.59 per gallon in the second quarter of 2024 versus $0.55 per gallon in the second quarter of 2023.

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

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.

The following table presents selected average index prices for crude oil for the periods indicated:

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Costs and expenses:

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

NGL Pipelines & Services:

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Total consolidated revenues

Second Quarter of 2024 Compared to Second Quarter of 2023.

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

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

Revenues from the marketing of natural gas decreased $204 million quarter-to-quarter primarily due to lower average sales prices.

Revenues from midstream services for the second quarter of 2024 increased $104 million when compared to the second quarter of 2023.

Revenues from our natural gas pipeline assets increased $40 million quarter-to-quarter primarily due to higher average transportation fees on our Texas Intrastate System and higher demand for transportation services on our Permian Basin Gathering Systems.

Revenues from our natural gas processing facilities increased $37 million quarter-to-quarter primarily due to an increase in equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.

Lastly, revenues from our Mont Belvieu area propylene production facilities increased $34 million quarter-to-quarter primarily due to higher propylene processing revenues as a result of contributions from our PDH 2 facility, which was placed into service in July 2023.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

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

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.

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.

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.

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.

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.

Revenues from midstream services for the six months ended June 30, 2024 increased $280 million when compared to the six months ended June 30, 2023.

Revenues from 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.

Revenues from our Midland-to-ECHO System and related business activities increased $29 million period-to-period primarily due to higher demand for transportation services.

Lastly, revenues from our ethylene pipelines increased $22 million period-to-period primarily due to higher deficiency fee revenues.

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.

Operating costs and expenses

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

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.

Cost of sales

Second Quarter of 2024 Compared to Second Quarter of 2023.

Cost of sales for the second quarter of 2024 increased $2.5 b illion when compared to the second quarter of 2023.

The cost of sales associated with the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined $2.5 billion quarter-to-quarter primarily due to higher volumes, which accounted for a $2.0 billion increase, and higher average purchase prices, which accounted for an additional $497 million increase.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Cost of sales for the six months ended June 30, 2024 increased a net $4.6 billion when compared to the six months ended June 30, 2023.

The cost of sales associated with the marketing of crude oil and petrochemicals and refined products increased a combined $4.9 billion period-to-period primarily due to higher volumes, which accounted for a $4.0 billion increase, and higher average purchase prices, which accounted for an additional $912 million increase.

The cost of sales associated with the marketing of NGLs and natural gas decreased a combined net $299 million period-to-period primarily due to lower average purchase prices, which accounted for a $1.0 billion decrease, partially offset by higher volumes, which accounted for a $740 million increase.

Third Quarter of 2024 Compared to Third Quarter of 2023.

Cost of sales for the third quarter of 2024 increased $1.6 b illion 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.

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.

Other operating costs and expenses

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

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.

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.

Depreciation, amortization and accretion expenses

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

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.

General and administrative costs

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

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.

Equity in income of unconsolidated affiliates

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

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.

Operating income

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

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.

Interest expense

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Interest charged on debt principal outstanding (1)

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Interest costs capitalized in connection with construction projects (2)

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.

The weighted-average interest rate on debt principal outstanding during the three and six months ended June 30, 2023 were 4.58% and 4.57%, respectively.

The weighted-average interest rates on debt principal outstanding during the three and nine months ended September 30, 2024 were 4.59% and 4.60%, respectively.

The weighted-average interest rate on debt principal outstanding during the three and nine months ended September 30, 2023 were 4.55% and 4.56%, respectively.

We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase.

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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 to the issuance of $2.0 billion fixed-rate senior notes in January 2024, which accounted for a $ 24 million increase, partially offset by a $ 8 million decrease as a result of the retirement of $850 million of fixed-rate senior notes in February 2024 .

This increase was primarily due to the 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 .

Interest charged on debt principal outstanding increased a net $59 million period-to-period.

This increase was primarily due to the aforementioned issuance of senior notes, which accounted for a $ 45 million increase, partially offset by a $21 million decrease as a result of the retirement of $1.25 billion and $850 million of fixed-rate senior notes in March 2023 and February 2024, respectively .

This increase was primarily due to the 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.

For additional information regarding our debt obligations, see Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.

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

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.

Business Segment Highlights

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Gross operating margin by segment:

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Operating income

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Segment gross operating margin:

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Natural gas processing and related NGL marketing activities

Second Quarter of 2024 Compared to Second Quarter of 2023 .

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

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.

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 in equity 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 342 MMcf/d quarter-to-quarter primarily due to contributions from our Poseidon and Leonidas natural gas processing trains, which were placed into service in July 2023 and late March 2024, respectively.

Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $20 million quarter-to-quarter primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $15 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $13 million increase, partially offset by lower average processing fees, which accounted for a $9 million decrease.

Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 359 MMcf/d quarter-to-quarter, primarily due to processing volumes contributed by our Mentone 2 and Mentone 3 natural gas processing trains, which were placed into service in October 2023 and late March 2024, respectively.

Equity NGL-equivalent production volumes at these facilities increased 3 MBPD quarter-to-quarter.

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

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) increased a combined $6 million quarter-to-quarter primarily due to a 256 MMcf/d increase in fee-based natural gas processing volumes.

On a combined basis, equity NGL-equivalent production volumes increased 9 MBPD quarter-to-quarter.

Gross operating margin from our NGL marketing activities decreased a net $ 34 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $ 57 million decrease, partially offset by higher sales volumes, which accounted for a $21 million increase.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

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

Gross operating margin from our Midland Basin natural gas processing facilities increased $76 million period-to-period primarily due to higher average processing margins (including the impact of hedging activities), which accounted for a $35 million increase, an 18 MBPD increase in equity NGL-equivalent production volumes, which accounted for a $21 million increase, and higher fee-based natural gas processing volumes, which accounted for an additional $23 million increase.

Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 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.

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.

Gross operating margin from our NGL marketing activities increased $19 million quarter-to-quarter primarily due to higher sales volumes.

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.

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.

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.

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 in equity 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.

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

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.

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

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.

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.

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.

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

NGL pipelines, storage and terminals

Second Quarter of 2024 Compared to Second Quarter of 2023 .

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

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

Transportation volumes on these pipelines decreased a combined 48 MBPD quarter-to-quarter.

A number of our pipelines, including the Mid-America Pipeline System, Seminole NGL Pipeline, Chaparral NGL Pipeline, and Shin Oak NGL Pipeline, serve Permian Basin and/or Rocky Mountain producers.

On a combined basis, gross operating margin from these pipelines increased a net $21 million quarter-to-quarter primarily due to a 179 MBPD (net to our interest) increase in transportation volumes, which accounted for a $27 million increase, and higher average transportation fees, which accounted for an additional $8 million increase, partially offset by lower other revenues, which accounted for an $8 million decrease, and higher operating costs, which accounted for an additional $6 million decrease.

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

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

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.

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.

Gross operating margin from our Dixie Pipeline and related terminals increased $11 million quarter-to-quarter primarily due to lower operating costs, which accounted for a $6 million increase, and higher average transportation fees, which accounted for an additional $3 million increase.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

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

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

Transportation volumes on these pipelines decreased a combined 3 MBPD period-to-period.

Gross operating margin from LPG-related activities at EHT increased $40 million period-to-period primarily due to a 78 MBPD increase in LPG export volumes, which accounted for a $23 million increase, and higher average loading fees, which accounted for an additional $19 million increase.

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

A number of our pipelines, including the Mid-America Pipeline System, Seminole NGL Pipeline, Chaparral NGL Pipeline, and Shin Oak NGL Pipeline, serve Permian Basin and/or Rocky Mountain producers.

On a combined basis, gross operating margin from these pipelines increased a net $36 million period-to-period primarily due to a 112 MBPD (net to our interest) increase in transportation volumes, which accounted for a $41 million increase, and higher average transportation fees, which accounted for an additional $30 million increase, partially offset by lower other revenues, which accounted for a $23 million decrease, and higher operating costs, which accounted for an additional $12 million decrease.

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.

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.

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.

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.

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.

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.

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

Gross operating margin from our Dixie Pipeline and related terminals increased $18 million period-to-period primarily due to lower operating costs, which accounted for a $6 million increase, higher average transportation fees, which accounted for a $4 million increase, higher storage and other revenues, which accounted for a $4 million increase, and a 13 MBPD increase in transportation volumes, which accounted for an additional $4 million increase.

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.

Gross operating margin at our Morgan’s Point Ethane Export Terminal decreased a net $16 million period-to-period primarily due to lower average loading fees, which accounted for a $15 million decrease, and a higher operating costs, which accounted for an additional $6 million decrease, partially offset by a 10 MBPD increase in export volumes, which accounted for a $7 million increase.

NGL fractionation

Second Quarter of 2024 Compared to Second Quarter of 2023 .

Gross operating margin from NGL fractionation during the second quarter of 2024 increased $36 million when compared to the second quarter of 2023.

Gross operating margin from our Mont Belvieu area NGL fractionation complex increased a net $25 million quarter-to-quarter primarily due to a 216 MBPD (net to our interest) increase in fractionation volumes, which accounted for a $32 million increase, and higher ancillary service revenues, which accounted for an additional $15 million increase, partially offset by higher operating costs, which accounted for a $27 million decrease.

NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased primarily due to contributions from Frac 12, which entered service in July 2023 and the acquisition of the remaining equity interest in EF78 in February 2024.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from NGL fractionation during the six months ended June 30, 2024 increased $73 million when compared to the six months ended June 30, 2023.

Gross operating margin from our Mont Belvieu area NGL fractionation complex increased a net $65 million period-to-period primarily due to a 212 MBPD (net to our interest) increase in fractionation volumes, which accounted for a $71 million increase, and higher ancillary service revenues, which accounted for an additional $29 million increase, partially offset by higher operating costs, which accounted for a $36 million decrease.

NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased primarily due to contributions from Frac 12 and the acquisition of the remaining equity interest in EF78.

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.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from NGL fractionation during the nine months ended September 30, 2024 increased $122 million when compared to the nine months ended September 30, 2023.

Gross operating margin from our Mont Belvieu area NGL fractionation complex increased a net $108 million period-to-period primarily due to higher fractionation volumes, which accounted for an $84 million increase, and higher ancillary service revenues, which accounted for an additional $43 million increase, partially offset by higher operating costs, which accounted for a $17 million decrease.

NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 67 MBPD (net to our interest) primarily due to contributions from Frac 12 and the acquisition of the remaining equity interest in EF78.

Crude Oil Pipelines & Services

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Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Segment gross operating margin:

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Crude oil marine terminal volumes (MBPD)

Second Quarter of 2024 Compared to Second Quarter of 2023 .

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

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

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.

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.

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

Crude oil terminal volumes at EHT increased 138 MBPD quarter-to-quarter.

Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $4 million quarter-to-quarter primarily due to a 153 MBPD (net to our interest) increase in transportation volumes, which accounted for a $13 million increase, lower operating costs, which accounted for an $11 million increase, higher other revenues, which accounted for a $10 million increase, and higher non-cash, mark-to-market earnings, which accounted for an additional $7 million increase, partially offset by lower margins from marketing activities, which accounted for a $37 million decrease.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from our Crude Oil Pipelines & Services segment for the six months ended June 30, 2024 increased $9 million when compared to the six months ended June 30, 2023.

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

Gross operating margin from crude oil activities at EHT increased a net $9 million period-to-period primarily due to higher loading revenues, which accounted for a $14 million increase, and lower operating costs, which accounted for an additional $3 million increase, partially offset by lower storage revenues, which accounted for an $8 million decrease.

Crude oil terminal volumes at EHT increased 205 MBPD period-to-period.

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 $32 million period-to-period primarily due to lower average sales margins, which accounted for a $41 million decrease, higher operating costs, which accounted for a $12 million decrease, and lower average transportation fees, which accounted for an additional $11 million decrease, partially offset by higher sales volumes, which accounted for a $23 million increase.

Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $7 million quarter-to-quarter primarily due to higher deficiency and other fee revenues, which accounted for an $18 million increase, and lower operating costs, which accounted for an additional $21 million increase, partially offset by lower transportation revenues, which accounted for a $20 million decrease, and lower margins from marketing activities, which accounted for an additional $13 million decrease.

Crude oil transportation volumes on these pipelines were flat (net to our interest) quarter-to-quarter.

Gross operating margin from crude oil activities at EHT increased a net $3 million quarter-to-quarter primarily due to lower operating costs, which accounted for a $3 million increase, and higher storage revenues, which accounted for an additional $2 million increase, partially offset by lower loading revenues, which accounted for a $3 million decrease.

Crude oil terminal volumes at EHT decreased 92 MBPD quarter-to-quarter.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from our Crude Oil Pipelines & Services segment for the nine months ended September 30, 2024 decreased $22 million when compared to the nine months ended September 30, 2023.

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 $60 million period-to-period primarily due to lower average sales margins, which accounted for a $103 million decrease, and higher operating costs, which accounted for an additional $34 million decrease, partially offset by higher non-cash, mark-to-market earnings, which accounted for a $48 million increase, and higher sales volumes, which accounted for an additional $34 million increase.

Crude oil transportation volumes on these pipelines increased a combined 4 MBPD (net to our interest) period-to-period.

Gross operating margin from our Midland-to-ECHO System and related business activities increased a net $26 million period-to-period primarily due to higher deficiency and other fee revenues, which accounted for a $31 million increase, lower operating costs, which accounted for a $21 million increase, and higher transportation revenues, which accounted for an additional $10 million increase, partially offset by lower margins from marketing activities, which accounted for a $32 million decrease.

Crude oil transportation volumes on these pipelines increased a combined 73 MBPD (net to our interest) period-to-period.

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.

Natural Gas Pipelines & Services

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Segment gross operating margin

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Natural gas pipeline transportation volumes (BBtus/d)

Second Quarter of 2024 Compared to Second Quarter of 2023 .

Gross operating margin from our Natural Gas Pipelines & Services segment for the second quarter of 2024 increased $55 million when compared to the second quarter of 2023.

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

Third Quarter of 2024 Compared to Third Quarter of 2023 .

Gross operating margin from our Natural Gas Pipelines & Services segment for the third quarter of 2024 increased $110 million when compared to the third quarter of 2023.

Gross operating margin from our natural gas marketing activities increased $55 million quarter-to-quarter primarily due to higher average sales margins.

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

Gross operating margin from our Haynesville Gathering System decreased $11 million quarter-to-quarter primarily due to lower deficiency fees, which accounted for a $7 million decrease, and a 168 BBtus/d decrease in transportation volumes, which accounted for an additional $3 million decrease.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from our Natural Gas Pipelines & Services segment for the six months ended June 30, 2024 increased $53 million when compared to the six months ended June 30, 2023.

Gross operating margin from our Texas Intrastate System increased a net $50 million period-to-period primarily due to higher average transportation fees, which accounted for a $32 million increase, higher capacity reservation fees and other revenues, which accounted for an additional $24 million increase, partially offset by higher operating costs, which accounted for an $3 million decrease, and a 124 BBtus/d decrease in transportation volumes, which accounted for an additional $3 million decrease.

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.

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.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from our Natural Gas Pipelines & Services segment for the nine months ended September 30, 2024 increased $163 million when compared to the nine months ended September 30, 2023.

Gross operating margin from our natural gas marketing activities increased $97 million period-to-period primarily due to higher average sales margins.

Gross operating margin from our Delaware and Midland Basin Gathering Systems increased a combined net $10 million period-to-period primarily due to a 666 BBtus/d increase in natural gas gathering volumes, which accounted for a $35 million increase, partially offset by higher operating costs, which accounted for a $29 million decrease.

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.

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.

Gross operating margin from our Acadian Gas System increased a net $16 million period-to-period primarily due to higher average fees, which accounted for a $26 million increase, partially offset by higher operating costs, which accounted for a $10 million decrease.

Transportation volumes on our Acadian Gas System increased 99 BBtus/d period-to-period.

On a combined basis, gross operating margin from our Jonah Gathering System, Piceance Basin Gathering System, and San Juan Gathering System in the Rocky Mountains decreased $40 million period-to-period primarily due to lower average gathering fees.

The gathering fees on these systems are indexed to regional gas prices, which were lower during the six months ended June 30, 2024 compared to the six months ended June 30, 2023.

The gathering fees on these systems are indexed to regional gas prices, which were lower during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.

Gathering volumes on our Rocky Mountain gathering systems decreased a combined 111 BBtus/d period-to-period.

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Segment gross operating margin:

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Propylene production and related activities

Second Quarter of 2024 Compared to Second Quarter of 2023 .

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

On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities increased a net $10 million quarter-to-quarter primarily due to higher propylene processing revenues, which accounted for a $38 million increase, and higher average propylene sales margins, which accounted for an additional $15 million increase, partially offset by lower propylene sales volumes, which accounted for a $37 million decrease, and higher operating costs, which accounted for an additional $9 million decrease.

Propylene and associated by-product production volumes at these facilities increased a combined 12 MBPD (net to our interest) quarter-to-quarter primarily due to contributions from our PDH 2 facility, which was placed into service in July 2023, and higher production from our propylene splitters, which underwent scheduled maintenance during the second quarter of 2023.

Partially offsetting this increase was lower production from our PDH 1 facility due to scheduled maintenance that was completed during the second quarter of 2024.

Our PDH 2 facility experienced downtime beginning in June 2024 to address start up issues that once resolved will allow us to achieve nameplate production capacity.

We anticipate a resumption of operations at the PDH 2 facility during the third quarter of 2024.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from propylene production and related activities for the six months ended June 30, 2024 decreased $39 million when compared to the six months ended June 30, 2023.

On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased a net $28 million period-to-period primarily due to lower propylene sales volumes, which accounted for a $74 million decrease, and higher operating costs, which accounted for an additional $44 million decrease, partially offset by higher propylene processing revenues, which accounted for a $78 million increase, and higher storage and other revenues, which accounted for an additional $9 million increase.

Propylene and associated by-product production volumes at these facilities increased a combined 6 MBPD (net to our interest) period-to-period primarily due to contributions from our PDH 2 facility, which was placed into service in July 2023, partially offset by downtime for maintenance at our PDH 1 facility during the first half of 2024.

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.

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.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from propylene production and related activities for the nine months ended September 30, 2024 decreased $31 million when compared to the nine months ended September 30, 2023.

On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased a net $19 million period-to-period primarily due to lower propylene sales volumes, which accounted for a $72 million decrease, and higher operating costs, which accounted for an additional $36 million decrease, partially offset by higher propylene processing revenues, which accounted for a $58 million increase, higher average propylene sales margins, which accounted for a $23 million increase, and higher storage and other revenues, which accounted for an additional $7 million increase.

Propylene and associated by-product production volumes at these facilities decreased a combined 2 MBPD (net to our interest) period-to-period.

Butane isomerization and related operations

Second Quarter of 2024 Compared to Second Quarter of 2023 .

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

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from butane isomerization and related operations for the six months ended June 30, 2024 was flat when compared to the six months ended June 30, 2023 primarily due to a 9 MBPD increase in isomerization volumes, which accounted for a $4 million increase, and a 41 MBPD increase in standalone DIB processing volumes, which accounted for an additional $4 million increase, offset by lower ancillary service and other revenues, which accounted for an $8 million decrease.

Third Quarter of 2024 Compared to Third Quarter of 2023 .

Gross operating margin from butane isomerization and related operations for the third quarter of 2024 decreased a net $2 million when compared to the third quarter of 2023 primarily due to lower by-product sales, which accounted for a $4 million decrease, and lower isomerization and other fee revenues, which accounted for an additional $2 million decrease, partially offset by lower operating costs, which accounted for a $5 million increase.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from butane isomerization and related operations for the nine months ended September 30, 2024 decreased a net $2 million when compared to the nine months ended September 30, 2023 primarily due to lower ancillary service revenues, which accounted for a $7 million decrease, and lower by-product sales, which accounted for an additional $3 million decrease, partially offset by lower operating costs, which accounted for a $6 million increase, and a 7 MBPD increase in isomerization volumes, which accounted for an additional $3 million increase.

Octane enhancement and related plant operations

Second Quarter of 2024 Compared to Second Quarter of 2023 .

Gross operating margin from our octane enhancement and related plant operations for the second quarter of 2024 increased $14 million when compared to the second quarter of 2023 primarily due to higher average sales margins, which accounted for an $8 million increase, and higher sales volumes, which accounted for an additional $5 million increase.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from our octane enhancement and related plant operations for the six months ended June 30, 2024 increased $71 million when compared to the six months ended June 30, 2023 primarily due to higher sales volumes, which accounted for a $29 million increase, higher average sales margins, which accounted for a $19 million increase, and higher deficiency revenues, which accounted for an additional $18 million increase.

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.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from our octane enhancement and related plant operations for the nine months ended September 30, 2024 increased a net $3 million when compared to the nine months ended September 30, 2023 primarily due to higher deficiency revenues, which accounted for an $18 million increase, and lower operating costs, which accounted for an additional $6 million increase, partially offset by lower average sales margins, which accounted for a $21 million decrease.

Refined products pipelines and related activities

Second Quarter of 2024 Compared to Second Quarter of 2023 .

Gross operating margin from refined products pipelines and related activities for the second quarter of 2024 decreased $8 million when compared to the second quarter of 2023.

Gross operating margin from our refined products marketing activities decreased a net $6 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $12 million decrease, partially offset by higher sales volumes, which accounted for a $6 million increase.

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.

Gross operating margin from our refined products marketing activities decreased $24 million quarter-to-quarter primarily due to lower average sales margins.

Gross operating margin from our refined products terminal in Beaumont, Texas decreased $7 million quarter-to-quarter primarily due to lower loading and other fee revenues.

Refined product marine terminal volumes at Beaumont increased 63 MBPD quarter-to-quarter.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from refined products pipelines and related activities for the six months ended June 30, 2024 decreased $23 million when compared to the six months ended June 30, 2023.

Refined product marine terminal volumes at Beaumont decreased 32 MBPD quarter-to-quarter.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from refined products pipelines and related activities for the nine months ended September 30, 2024 decreased $49 million when compared to the nine months ended September 30, 2023.

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.

1 unchanged sentence

Refined product marine terminal volumes at Beaumont increased 18 MBPD period-to-period.

Gross operating margin from our TE Products Pipeline System increased $6 million period-to-period primarily due to lower operating costs.

Overall, transportation volumes on our TE Products Pipeline System increased 29 MBPD period-to-period.

Ethylene exports and related activities

Second Quarter of 2024 Compared to Second Quarter of 2023 .

Gross operating margin from ethylene exports and related activities for the second quarter of 2024 increased a net $1 million when compared to the second quarter of 2023 primarily due to a combined 49 MBPD (net to our interest) increase in transportation volumes, which accounted for a $4 million increase, partially offset by a 4 MBPD (net to our interest) decrease in ethylene export volumes, which accounted for a $3 million decrease.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from ethylene exports and related activities for the six months ended June 30, 2024 increased a net $20 million when compared to the six months ended June 30, 2023 primarily due to higher deficiency fee revenues from our ethylene pipelines and ethylene export terminal, which accounted for a $20 million increase, and a combined 38 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $7 million increase, partially offset by a 4 MBPD (net to our interest) decrease in ethylene export volumes, which accounted for a $7 million decrease.

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.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from ethylene exports and related activities for the nine months ended September 30, 2024 increased a net $17 million when compared to the nine months ended September 30, 2023 primarily due to higher deficiency fee revenues from our ethylene pipelines and ethylene export terminal, which accounted for a $23 million increase, a combined 31 MBPD (net to our interest) increase in transportation volumes, which accounted for a $10 million increase, and lower operating costs, which accounted for an additional $4 million increase, partially offset by a 6 MBPD (net to our interest) decrease in ethylene export volumes, which accounted for a $20 million decrease.

Marine transportation and other services

Second Quarter of 2024 Compared to Second Quarter of 2023 .

Gross operating margin from marine transportation and other services for the second quarter of 2024 increased $3 million when compared to the second quarter of 2023 primarily due to higher average fees.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023 .

Gross operating margin from marine transportation and other services for the six months ended June 30, 2024 increased a net $5 million when compared to the six months ended June 30, 2023 primarily due to higher average fees, which accounted for a $10 million increase, partially offset by higher operating costs, which accounted for a $5 million decrease.

Third Quarter of 2024 Compared to Third Quarter of 2023 .

Gross operating margin from marine transportation and other services for the third quarter of 2024 increased $1 million when compared to the third quarter of 2023 primarily due to higher average fees.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023 .

Gross operating margin from marine transportation and other services for the nine months ended September 30, 2024 increased a net $6 million when compared to the nine months ended September 30, 2023 primarily due to higher average fees, which accounted for a $13 million increase, partially offset by higher operating costs, which accounted for a $6 million decrease.

Liquidity and Capital Resources

Based on current market conditions (as of the filing date of this quarterly report), we believe that the Partnership and its consolidated businesses will have sufficient liquidity, cash flow from operations and access to capital markets to fund their capital investments and working capital needs for the reasonably foreseeable future.

At June 30, 2024, we had $3.4 billion of consolidated liquidity.

This amount was comprised of $3.3 billion of available borrowing capacity under EPO’s revolving credit facilities, which is the net of $4.2 billion of total borrowing capacity under EPO’s revolving credit facilities and $900 million outstanding under EPO’s commercial paper program, and $138 million of unrestricted cash on hand.

At September 30, 2024, we had $5.6 billion of consolidated liquidity.

This amount was comprised of $4.2 billion of available borrowing capacity under EPO’s revolving credit facilities and $1.4 billion of unrestricted cash on hand.

We may issue debt and equity securities to assist us in meeting our future funding and liquidity requirements, including those related to capital investments.

We have a universal shelf registration statement on file with the SEC which allows the Partnership and EPO to issue an unlimited amount of equity and debt securities, respectively.

We have a universal shelf registration statement (the “2021 Shelf”) on file with the SEC which allows the Partnership and EPO to issue an unlimited amount of equity and debt securities, respectively.

The 2021 Shelf will expire in November 2024, at which time we expect to file a replacement universal shelf registration statement.

In addition, we have a registration statement on file with the SEC covering the issuance of up to $2.5 billion of the Partnership’s common units in amounts, at prices and on terms based on market conditions and other factors at the time of such offerings (referred to as the Partnership’s at-the-market (“ATM”) program).

Enterprise Declares Cash Distribution for Second Quarter of 2024

On July 10, 2024, we announced that the Board declared a quarterly cash distribution of $0.525 per common unit, or $2.10 per unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the second quarter of 2024.

The quarterly distribution is payable on August 14, 2024 to unitholders of record as of the close of business on July 31, 2024.

Enterprise Declares Cash Distribution for Third Quarter of 2024

On October 2 , 2024, we announced that the Board declared a quarterly cash distribution of $0.525 per common unit, or $2.10 per unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the third quarter of 2024.

The quarterly distribution is payable on November 14 , 2024 to unitholders of record as of the close of business on October 31, 2024.

The total amount to be paid is $1.15 billion, which includes $11 million for distribution equivalent rights on phantom unit awards.

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Consolidated Debt

At June 30, 2024, the average maturity of EPO’s consolidated debt obligations was approximately 18.1 years.

The following table presents the scheduled maturities of principal amounts of EPO’s consolidated debt obligations at June 30, 2024 for the years indicated (dollars in millions):

At September 30, 2024, the average maturity of EPO’s consolidated debt obligations was approximately 18.5 years.

The following table presents the scheduled maturities of principal amounts of EPO’s consolidated debt obligations at September 30, 2024 for the years indicated (dollars in millions):

Scheduled Maturities of Debt

Commercial Paper Notes

Junior Subordinated Notes

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EPO’s borrowing capacity was unchanged from the prior 364-day revolving credit agreement.

As of June 30, 2024, there are no principal amounts outstanding under this new revolving credit agreement.

As of September 30, 2024, there are no principal amounts outstanding under this new revolving credit agreement.

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”).

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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).

For additional information regarding our consolidated debt obligations, see Notes 7 and 18 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.

For additional information regarding our consolidated debt obligations, see Note 7 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.

Credit Ratings

As of August 9 , 2024, the investment-grade credit ratings of EPO’s long-term senior unsecured debt securities were A- from Standard and Poor’s, A3 from Moody’s and A- from Fitch Ratings.

As of November 8 , 2024, the investment-grade credit ratings of EPO’s long-term senior unsecured debt securities were A- from Standard and Poor’s, A3 from Moody’s and A- from Fitch Ratings.

In addition, the credit ratings of EPO’s short-term senior unsecured debt securities were A-2 from Standard and Poor’s, P-2 from Moody’s and F-2 from Fitch Ratings.

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In January 2019, we announced that the Board had approved a $2.0 billion multi-year unit buyback program (the “2019 Buyback Program”), which provides the Partnership with an additional method to return capital to investors.

The Partnership repurchased 1,419,581 and 2,806,416 common units through open market purchases during the three and six months ended June 30, 2024, respectively.

The Partnership repurchased 2,646,351 and 5,452,767 common units through open market purchases during the three and nine months ended September 30, 2024, respectively.

The total cost of these repurchases, including commissions and fees, was $76 million and $156 million, respectively.

As of June 30, 2024, the remaining available capacity under the 2019 Buyback Program was $1.0 billion.

As of September 30, 2024, the remaining available capacity under the 2019 Buyback Program was $926 million.

Cash Flow Statement Highlights

The following table summarizes our consolidated cash flows from operating, investing and financing activities for the periods indicated (dollars in millions).

For the Six Months

Ended June 30,

For the Nine Months

Ended September 30,

Net cash flow provided by operating activities

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Operating activities

Net cash flow provided by operating activities for the six months ended June 30, 2024 increased a net $200 million when compared to the six months ended June 30, 2023 primarily due to:

Net cash flow provided by operating activities for the nine months ended September 30, 2024 increased $554 million when compared to the nine months ended September 30, 2023 primarily due to:

a $438 million period-to-period increase resulting from higher partnership earnings (determined by adjusting our $282 million period-to-period increase in net income for changes in the non-cash items identified on our Unaudited Condensed Statements of Consolidated Cash Flows);

partially offset by

a $124 mill ion period-to-period decrease from changes in operating accounts primarily due to the use of working capital employed in our marketing activities, which includes the impact of (i) fluctuations in commodity prices, (ii) timing of our inventory purchase and sale strategies, and (iii) changes in margin deposit requirements associated with our commodity derivative instruments.

a $143 mill ion period-to-period increase from changes in operating accounts primarily due to the use of working capital employed in our marketing activities, which includes the impact of (i) fluctuations in commodity prices, (ii) timing of our inventory purchase and sale strategies, and (iii) changes in margin deposit requirements associated with our commodity derivative instruments.

For information regarding significant period-to-period changes in our consolidated net income and underlying segment results, see “ Income Statement Highlights ” and “ Business Segment Highlights ” within this Part I, Item 2.

Investing activities

Net cash flow used in investing activities during the six months ended June 30, 2024 increased $879 million when compared to the six months ended June 30, 2023 primarily due to an increase in investments for property, plant and equipment (see “ Capital Investments ” within this Part I, Item 2 for additional information).

Net cash flow used in investing activities during the nine months ended September 30, 2024 increased $1.2 billion when compared to the nine months ended September 30, 2023 primarily due to an increase in investments for property, plant and equipment (see “ Capital Investments ” within this Part I, Item 2 for additional information).

Financing activities

Net cash flow used in financing activities during the six months ended June 30, 2024 decreased a net $722 million when compared to the six months ended June 30, 2023 primarily due to:

a net cash inflow of $1.5 billion related to debt transactions that occurred during the six months ended June 30, 2024 compared to a net cash inflow of $361 million related to debt transactions that occurred during the six months ended June 30, 2023.

During the six months ended June 30, 2024, we issued $2.0 billion aggregate principal amount of senior notes and issued a net $450 million under EPO’s commercial paper program, partially offset by the repayment of $850 million principal amount of senior notes.

During the six months ended June 30, 2023, we issued $ 1.75 billion aggregate principal amount of senior notes, partially offset by the repayment of $1.25 billion principal amount of senior notes and net repayments of $140 million under EPO’s commercial paper program;

Net cash flow used in financing activities during the nine months ended September 30, 2024 decreased a net $1.9 billion when compared to the nine months ended September 30, 2023 primarily due to:

a net cash inflow of $3.1 billion related to debt transactions that occurred during the nine months ended September 30, 2024 compared to a net cash inflow of $627 million related to debt transactions that occurred during the nine months ended September 30, 2023.

During the nine months ended September 30, 2024, we issued $4.5 billion aggregate principal amount of senior notes, partially offset by the repayment of $850 million principal amount of senior notes and net repayments of $450 million under EPO’s commercial paper program.

During the nine months ended September 30, 2023, we issued $ 1.75 billion aggregate principal amount of senior notes and issued a net $126 million under EPO’s commercial paper program, partially offset by the repayment of $1.25 billion principal amount of senior notes;

partially offset by

a $400 million cash outflow during the six months ended June 30, 2024 in connection with the acquisition of noncontrolling interests.

a $400 million cash outflow during the nine months ended September 30, 2024 in connection with the acquisition of noncontrolling interests.

In February 2024, we acquired the remaining 20% equity interest in Whitethorn and remaining 25% equity interest in EF78 from affiliates of Western Midstream for total cash consideration of $375 million.

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Net income attributable to common unitholders (GAAP) (1)

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Change in fair market value of derivative instruments

Deferred income tax expense (benefit)

Deferred income tax expense

Sustaining capital expenditures (3)

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For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

Ended September 30,

For the Nine Months

Ended September 30,

Net cash flow provided by operating activities (GAAP)

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Capital Investments

Since the beginning of 2024, we placed into service two natural gas processing trains in the Permian Basin and the first and part of the second phase of our TW Products System.

Since the beginning of 2024, we placed into service two natural gas processing trains in the Permian Basin and our TW Products System.

We have approximately $6.9 billion of growth capital projects scheduled to be completed by the end of 2026, including the following major projects (including their respective scheduled completion dates):

natural gas gathering expansion projects in the Delaware and Midland Basins (2024 and 2025);

the Bahia NGL Pipeline (first half of 2025);

an NGL fractionator (“Frac 14”) and an associated DIB unit at our Mont Belvieu area NGL fractionation complex (second half of 2025);

our first natural gas processing train at our Mentone West location in the Delaware Basin (second half of 2025);

an eighth natural gas processing train (“Orion”) in the Midland Basin (second half of 2025);

an expansion of our Morgan’s Point terminal to increase ethylene export capacity (second half of 2024 and second half of 2025);

our Neches River Ethane / Propane Export Facility located in Orange County, Texas (second half of 2025 and first half of 2026);

the Bahia NGL Pipeline (third quarter of 2025);

an NGL fractionator (“Frac 14”) and an associated DIB unit at our Mont Belvieu area NGL fractionation complex (third quarter of 2025);

our first natural gas processing train at our Mentone West location in the Delaware Basin (third quarter of 2025);

an eighth natural gas processing train (“Orion”) in the Midland Basin (third quarter of 2025);

an expansion of our Morgan’s Point terminal to increase ethylene export capacity and enhance our ethane loading capabilities (fourth quarter of 2024 and fourth quarter of 2025);

our Neches River Ethane / Propane Export Facility located in Orange County, Texas (third quarter of 2025 and first half of 2026);

our second natural gas processing train at our Mentone West location in the Delaware Basin (first half of 2026);

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These amounts do not include capital investments associated with our proposed deep-water offshore crude oil terminal (SPOT), which remains subject to a final investment decision.

In August 2024, we announced that an affiliate of Enterprise entered into a definitive agreement to acquire Piñon Midstream for $950 million.

This transaction, which closed October 28, 2024, was funded using cash on hand.

Our forecast of capital investments is dependent upon our ability to generate the required funds from either operating cash flow or other means, including borrowings under debt agreements, the issuance of additional equity and debt securities, and potential divestitures.

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The following table summarizes our capital investments for the periods indicated (dollars in millions):

For the Six Months

Ended June 30,

For the Nine Months

Ended September 30,

Capital investments for property, plant and equipment:

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Sustaining capital expenditures include the costs of major maintenance activities at our reaction-based plants, which are accounted for using the deferral method.

Comparison of Six Months Ended June 30, 2024 with Six Months Ended June 30, 2023

In total, investments in growth capital projects increased $710 million period-to-period primarily due to the following:

Comparison of Nine Months Ended September 30, 2024 with Nine Months Ended September 30, 2023

In total, investments in growth capital projects increased $1.0 billion period-to-period primarily due to the following:

higher investments in ethane, ethylene, and LPG export expansion projects at our Gulf Coast terminals, which accounted for a $417 million increase;

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If EPO were to default on any of its Guaranteed Debt, the Partnership would be responsible for full and unconditional repayment of such obligations.

At June 30, 2024, the total amount of Guaranteed Debt was $31.1 billion, which was comprised of $27.4 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes, $900 million of short-term commercial paper notes, and $487 million of related accrued interest.

At September 30, 2024, the total amount of Guaranteed Debt was $32.5 billion, which was comprised of $29.9 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes, and $270 million of related accrued interest.

The Partnership’s guarantees of EPO’s senior note obligations, commercial paper notes and borrowings under bank credit facilities represent unsecured and unsubordinated obligations of the Partnership that rank equal in right of payment to all other existing or future unsecured and unsubordinated indebtedness of the Partnership.

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In accordance with Rule 13.01 of Regulation S-X, the summarized financial information of the Obligor Group excludes the Obligor Group’s equity in income and investments in the consolidated subsidiaries of EPO that are not party to the guarantee obligations (the “Non-Obligor Subsidiaries”).

The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $49.7 billion at June 30, 2024.

The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the six months ended June 30, 2024 was $3.2 billion.

The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $48.0 billion at September 30, 2024.

The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the nine months ended September 30, 2024 was $5.0 billion.

Although the net assets and earnings of the Non-Obligor Subsidiaries are not directly available to the holders of the Guaranteed Debt to satisfy the repayment of such obligations, there are no significant restrictions on the ability of the Non-Obligor Subsidiaries to pay distributions or make loans to EPO or the Partnership.

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Selected asset information:

September 30,

Current receivables from Non-Obligor Subsidiaries

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Other noncurrent assets, excluding investments in Non-Obligor Subsidiaries

of $49.7 billion at June 30, 2024 and $46.8 billion at December 31, 2023

of $48.0 billion at September 30, 2024 and $46.8 billion at December 31, 2023

Selected liability information:

Current portion of Guaranteed Debt, including interest of $487 million at June 30, 2024 and

Current portion of Guaranteed Debt, including interest of $270 million at September 30, 2024 and

$455 million at December 31, 2023

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The following table presents summarized income statement information for the combined Obligor Group for the periods indicated (dollars in millions):

September 30,

For the Twelve

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Net loss of Obligor Group excluding equity in earnings of Non-Obligor Subsidiaries of

$3.2 billion for the six months ended June 30, 2024 and

$5.0 billion for the nine months ended September 30, 2024 and

$6.0 billion for the twelve months ended December 31, 2023

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In order to manage such price risks, we enter into commodity derivative instruments such as physical forward contracts, futures contracts, fixed-for-float swaps and basis swaps.

At June 30, 2024, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging natural gas processing margins, (iii) hedging the fair value of commodity products held in inventory and (iv) hedging anticipated future purchases of power for certain operations in Southeast Texas.

At September 30, 2024, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging natural gas processing margins, (iii) hedging the fair value of commodity products held in inventory and (iv) hedging anticipated future purchases of power for certain operations in Southeast Texas.

For a summary of our portfolio of commodity derivative instruments outstanding, see Note 13 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.

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Classification

September 30,

Fair value assuming no change in underlying commodity prices

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Classification

September 30,

Fair value assuming no change in underlying commodity prices

7 unchanged sentences

Classification

September 30,

Fair value assuming no change in underlying commodity prices

7 unchanged sentences

Classification

September 30,

Fair value assuming no change in underlying commodity prices

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis