What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-07 compared with 2024-11-08 · 160 added, 326 removed, 489 unchanged (50% of the section changed)

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RESULTS OF OPERATIONS.

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

For the Three Months Ended March 31, 2025 and 2024

The following information should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and accompanying Notes included in this quarterly report on Form 10-Q and the Audited Consolidated Financial Statements and related Notes, together with our discussion and analysis of financial position and results of operations, included in our annual report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as filed on February 28, 2025 with the U.S.

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Cautionary Statement Regarding Forward-Looking Information

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.

This quarterly report on Form 10-Q for the three months ended March 31, 2025 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.

When used in this document, words such as “anticipate,” “project,” “expect,” “plan,” “seek,” “goal,” “estimate,” “forecast,” “intend,” “could,” “should,” “would,” “will,” “believe,” “may,” “scheduled,” “pending,” “potential” and similar expressions and statements regarding our plans and objectives for future operations are intended to identify forward-looking statements.

Although we and our general partner believe that our expectations reflected in such forward-looking statements (including any forward-looking statements/expectations of third parties referenced in this quarterly report) are reasonable, neither we nor our general partner can give any assurances that such expectations will prove to be correct.

Forward-looking statements are subject to a variety of risks, uncertainties and assumptions as described in more detail under Part I, Item 1A of our 2023 Form 10-K.

Forward-looking statements are subject to a variety of risks, uncertainties and assumptions as described in more detail under Part I, Item 1A of our 2024 Form 10-K and within Part II, Item 1A of this quarterly report.

If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those anticipated, estimated, projected or expected.

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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 32.4% of the Partnership’s common units outstanding at September 30, 2024.

EPCO, together with its privately held affiliates, owned approximately 32.4% of the Partnership’s common units outstanding at March 31, 2025.

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 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.

As used in this quarterly report, the phrase “quarter-to-quarter” means the first quarter of 2025 compared to the first quarter of 2024.

Overview of Business

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Our financial position, results of operations and cash flows are subject to certain risks.

For information regarding such risks, see “ Risk Factors ” included under Part I, Item 1A of the 2023 Form 10-K.

For information regarding such risks, see “ Risk Factors ” included under Part I, Item 1A of the 2024 Form 10-K and Part II, Item 1A of this quarterly report.

We provide investors access to additional information regarding the Partnership and our consolidated businesses, including information relating to governance procedures and principles, through our website, www.enterpriseproducts .

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

In August 2024, EPO issued $2.5 billion aggregate principal amount of senior notes comprised of (i) $1.1 billion principal amount of senior notes due February 2035 (“Senior Notes JJJ”) and (ii) $1.4 billion principal amount of senior notes due February 2055 (“Senior Notes KKK”).

Net proceeds from this offering will be used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all or a portion of our $1.15 billion principal amount of 3.75% Senior Notes MM at their maturity in February 2025).

Senior Notes JJJ were issued at 99.400% of their principal amount and have a fixed interest rate of 4.95% per year.

Senior Notes KKK were issued at 99.663% of their principal amount and have a fixed interest rate of 5.55% per year.

The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.

Enterprise to Expand LPG Export Capacity at EHT

In July 2024, we announced plans to move forward with the construction of a fourth refrigeration train at our Enterprise Hydrocarbon Terminal (“EHT”).

The addition of a fourth refrigeration train (“Ref 4”), which is expected to be placed into service by the end of 2026, will increase our propane and butane export capabilities by approximately 300 MBPD.

In addition to providing incremental LPG export capacity, Ref 4 will increase the instantaneous loading rates for propane and butane at EHT, while also making additional capacity available for propylene exports.

Enterprise Receives Deepwater Port License for SPOT Project

In April 2024, we received the deepwater port license for the Sea Port Oil Terminal (“SPOT”) from the U.S.

Department of Transportation’s Maritime Administration.

The receipt of the deepwater port license is a significant milestone in the development and commercialization of SPOT.

As planned, SPOT would consist of proposed onshore and offshore facilities, including a fixed platform located approximately 30 nautical miles off the Texas coast in approximately 115 feet of water.

SPOT is designed to load Very Large Crude Carriers (“VLCCs”) and other crude oil tankers at rates of approximately 85,000 barrels per hour.

The platform would be connected to an onshore storage facility with approximately 4.8 MMBbls of capacity in Brazoria County, Texas, by two 36-inch, bi-directional pipelines.

The SPOT project includes state-of-the-art pipeline control, vapor recovery and leak detection systems that are designed to minimize emissions.

SPOT would provide customers with an efficient export solution that leverages our extensive integrated supply, storage and distribution network.

We continue our efforts to commercialize this project in order to support a final investment decision.

Enterprise to Build Mentone West 2;

Mentone 3 and Leonidas Begin Service

In April 2024, we announced plans to further expand our natural gas processing capabilities in the Delaware Basin with construction of a second natural gas processing train at our Mentone West location (“Mentone West 2”) in Loving County, Texas.

This natural gas processing train, which will have the capacity to process more than 300 MMcf/d of natural gas and extract in excess of 40 MBPD of NGLs, is expected to begin service during the first half of 2026.

Additionally, we placed into service our third natural gas processing train at Mentone in the Delaware Basin (“Mentone 3”) and our seventh Midland Basin natural gas processing train (“Leonidas”).

Both Mentone 3 and Leonidas are capable of processing over 300 MMcf/d of natural gas and extracting more than 40 MBPD of NGLs.

Supported by a combination of long-term producer dedications and minimum volume commitments, Mentone 3 and Leonidas will support Permian Basin producers as they meet growing demand in the U.S.

and internationally.

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.

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

In February 2024, we announced that we had acquired the remaining equity interests in Whitethorn Pipeline Company LLC (“Whitethorn”) and Enterprise EF78 LLC (“EF78”) from affiliates of Western Midstream Partners, LP (“Western Midstream”) for $375 million in total cash consideration.

This transaction, which closed on February 16, 2024, was funded using cash on hand and proceeds from the issuance of short-term notes under our commercial paper program.

Additionally, on March 27, 2024, we acquired an additional 15% equity interest in Panola Pipeline Company, LLC (“Panola”) from an affiliate of Western Midstream for $25 million in cash consideration.

We funded the cash consideration using cash on hand.

Issuance of $2.0 Billion of Senior Notes in January 2024

In January 2024, EPO issued $2.0 billion aggregate principal amount of senior notes comprised of (i) $1.0 billion principal amount of senior notes due January 2027 (“Senior Notes HHH”) and (ii) $1.0 billion principal amount of senior notes due January 2034 (“Senior Notes III”).

Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all of our $850 million principal amount of 3.90% Senior Notes JJ at their maturity in February 2024 and amounts outstanding under our commercial paper program).

Senior Notes HHH were issued at 99.897% of their principal amount and have a fixed interest rate of 4.60% per year.

Senior Notes III were issued at 99.705% of their principal amount and have a fixed interest rate of 4.85% per year.

The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.

Selected Energy Commodity Price Data

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2025 by quarter:

2024 Averages

Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts, which is a division of S&P Global, Inc.

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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 $0.57 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 weighted-average indicative market price for NGLs was $ 0.67 per gallon in the first quarter of 2025 versus $0.62 per gallon in the first quarter of 2024.

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

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2025 by quarter:

2024 Averages

WTI prices are based on commercial index prices at Cushing, Oklahoma as measured by the NYMEX.

Midland and Houston crude oil prices are based on commercial index prices as reported by Argus.

Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts.

Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices.

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Inflation rates in the U.S.

increased significantly in 2022 and remain elevated in 2024 compared to recent historical levels.

increased significantly in 2022 and have remained elevated compared to recent historical levels.

While pandemic-era supply chain disruptions have largely dissipated and measures taken by the U.S.

Federal Reserve Bank have helped slow the growth of inflation, the high cost environment that began in 2022 generally remains intact in 2024.

Federal Reserve Bank helped slow the growth of inflation, the high-cost environment that began in 2022 has generally remained intact in 2025.

However, to the extent that a rising cost environment impacts our results, there are typically offsetting benefits either inherent in our business or that result from other steps we take proactively to reduce the impact of inflation on our net operating results.

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Costs and expenses:

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Asset impairment charges

Net losses (gains) attributable to asset sales and related matters

Net gains attributable to asset sales and related matters

Total operating costs and expenses

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

NGL Pipelines & Services:

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Total consolidated 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 nine months ended September 30, 2024 increased $250 million when compared to the nine months ended September 30, 2023.

Revenues from our natural gas transportation assets increased $77 million period-to-period primarily due to higher transportation revenues from our Texas Intrastate System.

Revenues from our natural gas processing facilities increased $72 million period-to-period primarily due to an increase in equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.

Revenues from our Mont Belvieu area propylene production facilities increased $44 million period-to-period primarily due to higher propylene processing revenues as a result of contributions from our PDH 2 facility, which was placed into service in July 2023.

Lastly, revenues from our Midland-to-ECHO System and related business activities increased $30 million period-to-period primarily due to higher demand for transportation services.

Total revenues for the first quarter of 2025 increased $ 657 million when compared to the first quarter of 2024 primarily due to higher marketing revenues.

Revenues from the marketing of NGLs and petrochemicals and refined products increased a combined net $ 613 million quarter-to-quarter primarily due to higher sales volumes, which accounted for a $ 1.3 billion increase, partially offset by lower average sales prices, which accounted for a $711 million decrease.

Revenues from the marketing of natural gas increased $281 million quarter-to-quarter primarily due to higher average sales prices.

Revenues from the marketing of crude oil decreased $ 297 million quarter-to-quarter primarily due to lower average sales prices.

Revenues from midstream services for the first quarter of 2025 increased a net $ 60 million when compared to the first quarter of 2024.

Revenues from our NGL and natural gas transportation assets increased a combined $118 million quarter-to-quarter primarily due to higher demand for transportation services.

Revenues from our octane enhancement and related plant operations decreased $ 34 million quarter-to-quarter primarily due to lower deficiency fee revenues.

Lastly, revenues from our ethylene exports and related activities decreased $23 million quarter-to-quarter primarily due to lower deficiency fee revenues and lower ethylene loading fee revenues.

Operating costs and expenses

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.

Total operating costs and expenses for the first quarter of 2025 increased $ 716 million when compared to the first quarter of 2024.

Cost of sales

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.

Cost of sales for the first quarter of 2025 increased a net $ 600 m illion when compared to the first quarter of 2024.

The cost of sales associated with the marketing of NGLs and petrochemicals and refined products increased a combined net $ 640 million quarter-to-quarter primarily due to higher volumes, which accounted for a $ 1.1 billion increase, partially offset by lower average purchase prices, which accounted for a $ 424 million decrease.

The cost of sales associated with the marketing of natural gas increased $161 million quarter-to-quarter primarily due to higher average purchase prices.

The cost of sales associated with the marketing of crude oil decreased $201 million quarter-to-quarter primarily due to lower average purchase prices.

Other operating costs and expenses

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.

Other operating costs and expenses for the first quarter of 2025 increased $ 105 million when compared to the first quarter in 2024 primarily due to higher maintenance, employee compensation and utility costs.

Depreciation, amortization and accretion expenses

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.

Depreciation, amortization and accretion expense for the first quarter of 2025 increased $ 23 million when compared to the first quarter of 2024 primarily due to higher depreciation expense on assets placed into full or limited service since the end of the first quarter of 2024.

General and administrative 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.

General and administrative costs for the first quarter of 2025 decreased $ 6 million when compared to the first quarter of 2024 primarily due to lower employee compensation costs.

Equity in income of unconsolidated affiliates

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.

Equity income from our unconsolidated affiliates for the first quarter of 2025 decreased $ 8 million when compared to the first quarter of 2024 primarily due to lower earnings from investments in NGL pipelines and services.

Operating income

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.

Operating income for the first quarter of 2025 decreased $ 61 million when compared to the first quarter of 2024 due to the previously described quarter-to-quarter changes.

Interest expense

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

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 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.

The weighted-average interest rates on debt principal outstanding during the first quarters of 2025 and 2024 were 4.70 % and 4.60%, 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 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 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.

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 $ 36 million increase, partially offset by the retirement of $850 million and $1.15 billion of fixed-rate senior notes in February 2024 and February 2025, respectively, which accounted for a combined $10 million decrease .

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

Our provision for income taxes for the first quarter of 2025 increased $ 3 million when compared to the first quarter of 2024.

Business Segment Highlights

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Gross operating margin by segment:

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Operating income

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Asset impairment charges in operating costs and expenses

Net losses (gains) attributable to asset sales and related matters in operating

Net gains attributable to asset sales and related matters in operating

costs and expenses

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Total gross operating margin (non-GAAP)

Excludes amortization of major maintenance costs for reaction-based plants, which are a component of gross operating margin.

Excludes amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets, which are components of gross operating margin.

Each of our business segments benefits from the supporting role of our marketing activities.

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Segment gross operating margin:

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Natural gas processing and related NGL marketing activities

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 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 $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 $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 natural gas processing and related NGL marketing activities for the first quarter of 2025 increased $ 15 million when compared to the first quarter of 2024.

Gross operating margin from our Midland Basin natural gas processing facilities increased a net $ 42 million quarter-to-quarter primarily due to a 21 MBPD increase in equity NGL-equivalent production volumes , which accounted for an $ 18 million increase, higher fee-based natural gas processing volumes, which accounted for a $ 16 million increase, and higher average processing margins (including the impact of hedging activities), which accounted for an additional $16 million increase, partially offset by lower average processing fees, which accounted for a $4 million decrease, and higher operating expenses, which accounted for an additional $ 4 million decrease.

Fee-based natural gas processing volumes at our Midland Basin natural gas processing facilities increased 479 MMcf/d quarter-to-quarter primarily due to contributions from our Leonidas natural gas processing train, which was placed into service in late first quarter of 2024.

Gross operating margin from our Delaware Basin natural gas processing facilities increased a net $4 million quarter-to-quarter primarily due to higher fee-based natural gas processing volumes, which accounted for a $14 million increase, a 15 MBPD increase in equity NGL-equivalent production volumes, which accounted for a $9 million increase, and lower operating costs, which accounted for an additional $3 million increase, partially offset by lower average processing margins (including the impact of hedging activities), which accounted for a $ 23 million decrease.

Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 388 MMcf/d quarter-to-quarter, primarily due to contributions from our Mentone 3 natural gas processing train, which was placed into service in late first quarter of 2024.

Gross operating margin from our NGL marketing activities decreased a net $ 20 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $ 62 million decrease, partially offset by higher sales volumes, which accounted for a $38 million increase, and higher mark-to-market earnings, which accounted for an additional $ 5 million increase.

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $7 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities).

On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes decreased 61 MMcf/d and increased 2 MBPD, respectively, quarter-to-quarter.

NGL pipelines, storage and terminals

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.

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

On a combined basis, gross operating margin from these pipelines increased a net $14 million quarter-to-quarter primarily due to a $19 million increase in transportation revenues as a result of higher transportation volumes, partially offset by higher operating costs, which accounted for a $4 million decrease.

On a combined basis, transportation volumes on these systems increased 186 MBPD (net to our interest) quarter-to-quarter.

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 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.

Gross operating margin from our NGL pipelines, storage and terminal assets during the first quarter of 2025 increased $ 82 million when compared to the first quarter of 2024.

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

On a combined basis, gross operating margin from these pipelines increased a net $22 million quarter-to-quarter primarily due to a 74 MBPD increase in transportation volumes, which accounted for a $22 million increase, and higher average transportation fees, which accounted for an additional $5 million increase, partially offset by higher operating costs, which accounted for a $6 million decrease.

Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $19 million quarter-to-quarter primarily due to a 68 MBPD increase in export volumes.

Gross operating margin from our Dixie Pipeline and related terminals increased $16 million quarter-to-quarter primarily due to higher loading and other fee revenues, which accounted for a $7 million increase, higher average transportation fees, which accounted for a $6 million increase, and a 27 MBPD increase in transportation volumes, which accounted for an additional $5 million increase.

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $12 million quarter-to-quarter primarily due to higher average transportation fees.

Transportation volumes on these pipelines decreased a combined 25 MBPD quarter-to-quarter.

Gross operating margin from our South Texas NGL Pipeline System increased $9 million quarter-to-quarter primarily due to higher capacity reservation revenues, which accounted for a $5 million increase, and lower operating costs, which accounted for an additional $2 million increase.

Transportation volumes on this system increased 12 MBPD quarter-to-quarter.

NGL fractionation

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.

Gross operating margin from NGL fractionation during the first quarter of 2025 decreased $ 19 million when compared to the first quarter of 2024.

Gross operating margin from our Mont Belvieu area NGL fractionation complex decreased $15 million quarter-to-quarter primarily due to higher operating costs, which accounted for a $9 million decrease, and lower ancillary service revenues, which accounted for an additional $5 million decrease.

NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 10 MBPD.

Crude Oil Pipelines & Services

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Segment gross operating margin

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Crude oil marine terminal volumes (MBPD)

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.

Gross operating margin from our Crude Oil Pipelines & Services segment for the first quarter of 2025 decreased $37 million when compared to the first quarter of 2024.

Gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) decreased a combined $39 million quarter-to-quarter primarily due to lower sales volumes, which accounted for a $23 million decrease, and lower average sales margins, which accounted for an additional $14 million decrease.

Crude oil transportation volumes on these pipelines increased a combined 38 MBPD (net to our interest) quarter-to-quarter.

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.

Gross operating margin from crude oil activities at EHT increased $9 million quarter-to-quarter primarily due to higher storage and other revenues, which accounted for a $6 million increase, and lower operating costs, which accounted for an additional $3 million increase.

Crude oil terminal volumes at EHT decreased 309 MBPD quarter-to-quarter.

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 September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Segment gross operating margin

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Natural gas pipeline transportation volumes (BBtus/d)

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 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 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 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.

Gross operating margin from our Haynesville Gathering System decreased $15 million period-to-period primarily due to lower deficiency fees, which accounted for a $7 million decrease, and a 122 BBtus/d decrease in gathering volumes, which accounted for an additional $5 million decrease.

Gross operating margin from our Natural Gas Pipelines & Services segment for the first quarter of 2025 increased $45 million when compared to the first quarter of 2024.

Gross operating margin from our Delaware Basin Gathering System, which includes the natural gas gathering system acquired in October 2024 through our acquisition of Pinon Midstream, increased a net $27 million quarter-to-quarter primarily due to higher treating and other revenues, which accounted for a $20 million increase, a 700 BBtus/d increase in natural gas gathering volumes, which accounted for a $14 million increase, and higher average gathering fees, which accounted for an additional $8 million increase, partially offset by higher operating costs, which accounted for a $15 million decrease.

Gross operating margin from our Texas Intrastate System increased $27 million quarter-to-quarter primarily due to higher capacity reservation fees and other revenues, which accounted for a $14 million increase, and higher average transportation fees, which accounted for an additional $13 million increase.

Transportation volumes increased 129 BBtus/d on this system quarter-to-quarter.

Gross operating margin from our Midland Basin Gathering System increased a net $10 million quarter-to-quarter primarily due to a 589 BBtus/d increase in natural gas gathering volumes, which accounted for a $19 million increase, partially offset by higher operating costs, which accounted for a $9 million decrease.

Gross operating margin from our natural gas marketing activities decreased a net $15 million quarter-to-quarter primarily due to lower mark-to-market earnings, which accounted for a $31 million decrease, partially offset by higher average sales margins, which accounted for a $16 million increase.

Petrochemical & Refined Products Services

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

Segment gross operating margin:

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Propylene production and related activities

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.

Gross operating margin from propylene production and related activities for the first quarter of 2025 decreased $ 52 million when compared to the first quarter of 2024.

On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased $ 47 million quarter-to-quarter primarily due to lower average propylene sales margins.

Propylene and associated by-product production volumes at these facilities increased a combined 8 MBPD quarter-to-quarter primarily due to higher production from one of our propylene splitters, which had experienced downtime during the first quarter of 2024.

Butane isomerization and related operations

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.

Gross operating margin from butane isomerization and related operations for the first quarter of 2025 decreased $ 6 million when compared to the first quarter of 2024 primarily due to higher operating costs.

Octane enhancement and related plant operations

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.

Gross operating margin from our octane enhancement and related plant operations for the first quarter of 2025 decreased $ 83 million when compared to the first quarter of 2024 primarily due to lower average sales margins, which accounted for a $ 51 million decrease, and lower deficiency revenues, which accounted for an additional $ 32 million decrease.

Refined products pipelines and related activities

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 refined products pipelines and related activities for the first quarter of 2025 increased $ 33 million when compared to the first quarter of 2024.

Gross operating margin from our TE Products Pipeline System increased a net $27 million quarter-to-quarter primarily due to a 34 MBPD increase in transportation volumes, which accounted for a $22 million increase, and higher average transportation fees, which accounted for an additional $9 million increase, partially offset by higher operating costs, which accounted for a $7 million decrease.

Gross operating margin from our TW Products System increased $13 million quarter-to-quarter primarily due to the full start-up of the system, which was placed into service in stages during 2024 and was fully operational in October 2024.

Gross operating margin from our refined products marketing activities decreased $ 5 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 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.

Gross operating margin from our refined products terminal in Beaumont, Texas decreased $14 million period-to-period primarily due to lower loading and other fee revenues.

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

Ethylene exports and related activities

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.

Gross operating margin from ethylene exports and related activities for the first quarter of 2025 decreased $ 28 million when compared to the first quarter of 2024 primarily due to lower deficiency fee revenues from our ethylene pipelines , which accounted for a $ 17 million decrease, and a 25 MBPD decrease in ethylene export volumes, which accounted for an additional $ 13 million decrease.

Ethylene transportation volumes decreased 13 MBPD quarter-to-quarter.

Marine transportation and other services

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.

Gross operating margin from marine transportation and other services for the first quarter of 2025 increased $ 7 million when compared to the first quarter of 2024 primarily due to higher average fees.

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 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.

At March 31, 2025, we had $ 3.6 billion of consolidated liquidity.

This amount was comprised of $ 3.4 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 $830 million outstanding under EPO’s commercial paper program, and $ 220 million 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 (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.

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

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 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.

Enterprise Declares Cash Distribution for First Quarter of 2025

On April 7 , 2025, we announced that the Board declared a quarterly cash distribution of $ 0.535 per common unit, or $ 2.14 per unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the first quarter of 2025.

The quarterly distribution is payable on May 14 , 2025 to unitholders of record as of the close of business on April 30 , 2025.

The total amount to be paid is $ 1.17 billion, which includes $ 11 million for distribution equivalent rights on phantom unit awards.

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Consolidated Debt

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):

At March 31, 2025, the average maturity of EPO’s consolidated debt obligations was approximately 18.3 years.

The following table presents the scheduled maturities of principal amounts of EPO’s consolidated debt obligations at March 31, 2025 for the years indicated (dollars in millions):

Scheduled Maturities of Debt

Commercial Paper

Junior Subordinated Notes

Senior Notes HHH were issued at 99.897% of their principal amount and have a fixed interest rate of 4.60% per year.

Senior Notes III were issued at 99.705% of their principal amount and have a fixed interest rate of 4.85% per year.

In March 2025, EPO entered into a new 364-Day Revolving Credit Agreement (the “March 2025 $1.5 Billion 364-Day Revolving Credit Agreement”) that replaced its prior 364-day revolving credit agreement.

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

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

Senior Notes JJJ were issued at 99.400% of their principal amount and have a fixed interest rate of 4.95% per year.

Senior Notes KKK were issued at 99.663% of their principal amount and have a fixed interest rate of 5.55% per year.

As of March 31, 2025, there are no principal amounts outstanding under this new revolving credit agreement.

Also in March 2025, EPO amended its Multi-Year Revolving Credit Agreement (the “March 2023 $2.7 Billion Multi-Year Revolving Credit Agreement”) to extend its maturity date from March 2028 to March 2030.

The remaining material terms of the March 2023 $2.7 Billion Multi-Year Revolving Credit Agreement, as amended, are consistent with those reported in our 2024 Form 10-K.

As of March 31, 2025, there are no principal amounts outstanding under this revolving credit agreement.

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 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.

As of May 7, 2025, 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 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 September 30, 2024, the remaining available capacity under the 2019 Buyback Program was $926 million.

The Partnership repurchased 1,803,215 common units through open market purchases during the three months ended March 31, 2025.

The total cost of these repurchases, including commissions and fees was $ 60 million.

As of March 31, 2025, the remaining available capacity under the 2019 Buyback Program was $ 803 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 Nine Months

Ended September 30,

For the Three Months

Ended March 31,

Net cash flow provided by operating activities

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We may also incur credit and price risk to the extent customers do not fulfill their contractual obligations to us in connection with our marketing activities and long-term take-or-pay and dedication agreements.

For a more complete discussion of these and other risk factors pertinent to our business, see “ Risk Factors ” included under Part I, Item 1A of the 2023 Form 10-K.

For a more complete discussion of these and other risk factors pertinent to our business, see “ Risk Factors ” included under Part I, Item 1A of the 2024 Form 10-K and Part II, Item 1A of this quarterly report.

For additional information regarding our cash flow amounts, please refer to the Unaudited Condensed Statements of Consolidated Cash Flows included under Part I, Item 1 of this quarterly report.

The following information highlights significant period-to-period fluctuations in our consolidated cash flow amounts:

The following information highlights significant quarter-to-quarter fluctuations in our consolidated cash flow amounts:

Operating activities

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);

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.

Net cash flow provided by operating activities for the first quarter of 2025 increased a net $ 203 million when compared to the first quarter of 2024 primarily due to:

a $ 239 mill ion quarter-to-quarter 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;

partially offset by

a $ 27 million quarter-to-quarter decrease resulting from lower partnership earnings (determined by adjusting our $ 77 million quarter-to-quarter decrease in net income for changes in the non-cash items identified on our Unaudited Condensed Statements of Consolidated Cash Flows).

For information regarding significant quarter-to-quarter 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 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).

Net cash flow used in investing activities during the first quarter of 2025 increased $ 9 million when compared to the first quarter of 2024 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 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;

Net cash flow used in financing activities during the first quarter of 2025 increased a net $ 642 million when compared to the first quarter of 2024 primarily due to:

a net cash outflow of $ 332 million related to debt transactions that occurred during the first quarter of 2025 compared to a net cash inflow of $ 649 million related to debt transactions that occurred during the first quarter of 2024.

During the first quarter of 2025, we repaid $1.15 billion principal amount of senior notes, partially offset by net issuances of $830 million under EPO’s commercial paper program.

During the first quarter of 2024, we issued $2.0 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;

a $ 42 million quarter-to-quarter increase in cash distributions paid to common unitholders primarily attributable to increases in the quarterly cash distribution rate per unit;

partially offset by

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.

In March 2024, we acquired an additional 15% equity interest in Panola from an affiliate of Western Midstream for $25 million in cash consideration;

a $159 million period-to-period increase in cash distributions paid to common unitholders primarily attributable to increases in the quarterly cash distribution rate per unit.

a $400 million cash outflow during the first quarter of 2024 in connection with the acquisition of noncontrolling interests from affiliates of Western Midstream Partners, LP.

Non-GAAP Cash Flow Measures

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The retention of cash allows us to reinvest in our growth and reduce our future reliance on the equity and debt capital markets.

We measure available cash by reference to distributable cash flow (“DCF”), which is a non-GAAP liquidity measure.

We measure available cash by reference to distributable cash flow (“DCF”), which is a non-GAAP cash flow measure.

DCF is an important financial measure for our common unitholders since it serves as an indicator of our success in providing a cash return on investment.

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

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

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Sustaining capital expenditures include cash payments and accruals applicable to the period.

See Note 8 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report for information regarding our cash distributions declared with respect to the periods indicated.

See Note 8 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report for information regarding our quarterly cash distributions declared with respect to the periods indicated.

Cash retained by the Partnership may be used for capital investments, debt service, working capital, operating expenses, common unit repurchases, commitments and contingencies and other amounts.

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For the Three Months

Ended September 30,

For the Nine Months

Ended September 30,

Ended March 31,

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 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 (third quarter of 2025);

We have approximately $7.6 billion of growth capital projects scheduled to be completed by the end of 2026, including the following projects (including their respective scheduled completion dates):

natural gas gathering, compression and treating expansion projects in the Delaware and Midland Basins (2025 and 2026);

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

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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);

the Bahia NGL Pipeline (fourth quarter of 2025);

the second phase of enhancements at our Morgan’s Point terminal (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);

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Based on information currently available, we expect our total capital investments for 2025, net of contributions from noncontrolling interests, to approximate $4.5 billion to $5.0 billion, which reflects growth capital investments of $4.0 billion to $4.5 billion and sustaining capital expenditures of $525 million.

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.

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

We may revise our forecast of capital investments due to factors beyond our control, such as adverse economic conditions, weather-related issues and changes in supplier prices resulting from raw material or labor shortages, supply chain disruptions or inflation.

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

For the Nine Months

Ended September 30,

For the Three Months

Ended March 31,

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 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;

higher investments in our Bahia NGL Pipeline, which accounted for a $349 million increase;

higher investments in the construction of natural gas processing trains and related gathering system expansions in the Delaware and Midland Basins, which accounted for an additional $192 million increase.

Investments attributable to sustaining capital projects increased $226 million period-to-period primarily due to higher major maintenance activities performed at certain of our reaction-based plants (e.g., our PDH and iBDH facilities) and fluctuations in timing and costs of pipeline integrity and similar projects.

Comparison of First Quarter of 2025 with the First Quarter of 2024

In total, investments in growth capital projects increased a net $ 50 million quarter-to-quarter primarily due to the following:

higher investments in the construction of natural gas processing trains and related gathering system expansions in the Delaware and Midland Basins, which accounted for a $ 92 million increase;

higher investments in ethane and LPG export expansion and enhancement projects at our Gulf Coast terminals, which accounted for an additional $ 33 million increase;

partially offset by

lower investments in our TW Products System (placed into service during 2024), which accounted for a $ 74 million decrease.

Investments attributable to sustaining capital projects decreased $ 35 million quarter-to-quarter primarily due to lower major maintenance activities performed at certain of our reaction-based plants (e.g., our PDH 1 and iBDH facilities) and fluctuations in timing and costs of pipeline integrity and similar projects.

Critical Accounting Policies and Estimates

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Parent-Subsidiary Guarantor Relationship

The Partnership (the “Parent Guarantor”) has guaranteed the payment of principal and interest on the consolidated debt obligations of EPO (the “Subsidiary Issuer”), with the exception of the remaining debt obligations of TEPPCO Partners, L.P.

(collectively, the “Guaranteed Debt”).

The Partnership (the “Parent Guarantor”) has guaranteed the payment of principal and interest on the consolidated debt obligations of EPO (the “Subsidiary Issuer”) (collectively, the “Guaranteed Debt”).

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 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.

At March 31, 2025, the total amount of Guaranteed Debt was $ 32.1 billion, which was comprised of $28.8 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes, $830 million of commercial paper, and $ 261 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 $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.

The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $ 51.9 billion at March 31, 2025.

The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the first quarter of 2025 was $ 1.6 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 $48.0 billion at September 30, 2024 and $46.8 billion at December 31, 2023

of $ 51.9 billion at March 31, 2025 and $50.8 billion at December 31, 2024

Selected liability information:

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

Current portion of Guaranteed Debt, including interest of $ 261 million at March 31, 2025 and

$536 million at December 31, 2024

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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 Three

For the Twelve

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

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

$ 1.6 billion for the three months ended March 31, 2025 and

$6.8 billion for the twelve months ended December 31, 2024

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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 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.

At March 31, 2025, 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 14 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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Asset (Liability)

NGL and refined products marketing, natural gas processing and octane enhancement portfolio

NGL, petrochemical and refined products marketing, natural gas processing and octane enhancement portfolio

Portfolio Fair Value at

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

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This strategy may be used in controlling our overall cost of capital associated with such borrowings.

As of the filing date of this quarterly report, we do not have any interest rate hedging instruments outstanding.

At March 31, 2025, our interest rate hedging portfolio consisted of treasury locks.

A treasury lock is an agreement that fixes the price (or yield) of a specified U.S.

treasury security for an established period of time.

We use treasury lock agreements to hedge our exposure to interest rate changes and to reduce the volatility of financing costs on an expected future debt issuance.

For a summary of our treasury lock portfolio, see Note 14 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.

Sensitivity Analysis

The following table shows the effect of hypothetical price movements on the estimated fair value of our treasury lock portfolio at the dates indicated (dollars in millions).

Portfolio Fair Value at

Classification

Fair value assuming no change in underlying interest rates

Asset (Liability)

Fair value assuming 10% increase in underlying interest rates

Asset (Liability)

Fair value assuming 10% decrease in underlying interest rates

Asset (Liability)

We did not have any treasury locks outstanding as of December 31, 2024.

Includes treasury lock transactions entered into in April 2025.

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