What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-07 · 314 added, 224 removed, 425 unchanged (56% of the section changed)

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RESULTS OF OPERATIONS.

For the Three Months Ended March 31, 2025 and 2024

For the Three and Six Months Ended June 30, 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 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.

This quarterly report on Form 10-Q for the three and six months ended June 30, 2025 (our “quarterly report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.

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

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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 March 31, 2025.

EPCO, together with its privately held affiliates, owned approximately 32.4% of the Partnership’s common units outstanding at June 30, 2025 .

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

million barrels per day

billion British thermal units

million British thermal units

billion cubic feet

million cubic feet

barrels per day

megawatts, alternating current

thousand barrels per day

megawatts, direct current

million barrels

trillion British thermal units

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

/d = per day MMBPD = million barrels per day

BBtus = billion British thermal units MMBtus = million British thermal units

Bcf = billion cubic feet MMcf = million cubic feet

BPD = barrels per day MWac = megawatts, alternating current

MBPD = thousand barrels per day MWdc = megawatts, direct current

MMBbls = million barrels TBtus = trillion British thermal units

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

Likewise, the phrase “period-to-period” means the six months ended June 30, 2025 compared to the six months ended June 30, 2024 .

Overview of Business

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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 Agrees to Acquire Oxy Affiliate, Enters into Service Agreements, and Expands Midland Basin Processing Capacity

In July 2025, an affiliate of Enterprise agreed to acquire an affiliate of Occidental Petroleum Corporation (“Oxy”), which owns approximately 200 miles of natural gas gathering pipelines in the Midland Basin, in a debt-free transaction for $580 million in cash consideration (subject to adjustment in accordance with the agreement).

In addition, an affiliate of Enterprise has agreed to provide Oxy with natural gas gathering and processing services, supported by a long-term dedication of approximately 73,000 acres across four counties in the Midland Basin.

Completion of the acquisition is subject to customary regulatory approvals and closing conditions.

The acquisition is expected to close in the third quarter of 2025.

In order to accommodate this production growth in the Midland Basin, we also announced plans to expand our natural gas gathering and processing capabilities in the Midland Basin with the construction of a ninth natural gas processing train (“Athena”) and further expansion of our Midland Basin gathering system.

This natural gas processing train, which will have the capacity to process approximately 300 MMcf/d of natural gas and extract up to 40 MBPD of NGLs, is expected to begin service in the fourth quarter of 2026.

Enterprise Begins Initial Service at Neches River Ethane / Propane Export Facility

In July 2025, we placed into service the first phase of our new ethane / propane export facility located on the Neches River in Orange County, Texas (“Neches River Ethane / Propane Export Facility”).

This phase included the completion of a loading dock and an ethane refrigeration train with a nameplate capacity of 120 MBPD.

The second phase of the project, which will add a second refrigeration train capable of loading up to 180 MBPD of ethane, 360 MBPD of propane, or a combination thereof, is expected to begin service in the first half of 2026.

Enterprise Begins Service at Mentone West 1 and Orion

In July 2025, we placed our first natural gas processing train at our Mentone West location in the Delaware Basin (“Mentone West 1”) and our eighth Midland Basin natural gas processing train (“Orion”) into commercial service.

Both Mentone West 1 and Orion are capable of processing over 300 MMcf/d of natural gas and extracting more than 40 MBPD of NGLs and are supported by long-term acreage dedication agreements and minimum volume commitments.

Issuance of $2.0 Billion of Senior Notes in June 2025

In June 2025, EPO issued $2.0 billion aggregate principal amount of senior notes comprised of (i) $500 million principal amount of senior notes due June 2028 (“Senior Notes LLL”), (ii) $750 million principal amount of senior notes due January 2031 (“Senior Notes MMM”) and (iii) $750 million principal amount of senior notes due January 2036 (“Senior Notes NNN”).

Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including amounts outstanding under our commercial paper program).

Senior Notes LLL were issued at 99.869% of their principal amount and have a fixed interest rate of 4.30% per year.

Senior Notes MMM were issued at 99.816% of their principal amount and have a fixed interest rate of 4.60% per year.

Senior Notes NNN were issued at 99.665% of their principal amount and have a fixed interest rate of 5.20% per year.

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

Selected Energy Commodity Price Data

The following table presents selected average index prices for natural gas and selected NGL and petrochemical products for the periods indicated:

Indicative Gas

$/MMBtu Ethane,

$/gallon Propane,

$/gallon Normal

$/gallon Isobutane,

$/gallon Natural

$/gallon Polymer

$/pound Refinery

$/pound Indicative Gas

(1) (2) (2) (2) (2) (2) (3) (3) (4)

2024 by quarter:

1st Quarter $2.25 $0.19 $0.84 $1.03 $1.14 $1.54 $0.55 $0.18 $0.43

2nd Quarter $1.89 $0.19 $0.75 $0.90 $1.26 $1.55 $0.47 $0.21 $0.43

3rd Quarter $2.15 $0.16 $0.73 $0.97 $1.08 $1.48 $0.53 $0.28 $0.39

4th Quarter $2.79 $0.22 $0.78 $1.13 $1.12 $1.50 $0.42 $0.24 $0.39

2024 Averages $2.27 $0.19 $0.78 $1.01 $1.15 $1.52 $0.49 $0.23 $0.41

2025 by quarter:

1st Quarter $3.65 $0.27 $0.90 $1.06 $1.07 $1.53 $0.45 $0.33 $0.37

2nd Quarter $3.44 $0.24 $0.78 $0.88 $0.93 $1.32 $0.38 $0.30 $0.30

2025 Averages

$3.55 $0.26 $0.84 $0.97 $1.00 $1.43 $0.42 $0.32 $0.34

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

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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 $ 0.67 per gallon in the first quarter of 2025 versus $0.62 per gallon in the first quarter of 2024.

The weighted-average indicative market price for NGLs was $0.58 per gallon in the second quarter of 2025 versus $0.59 per gallon in the second quarter of 2024 .

Likewise, the weighted-average indicative market price for NGLs was $0.63 per gallon during the six months ended June 30, 2025 compared to $0.61 per gallon during the six months ended June 30, 2024 .

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

$/barrel Midland

$/barrel Houston

2024 by quarter:

1st Quarter $76.96 $78.55 $78.85

2nd Quarter $80.57 $81.73 $82.33

3rd Quarter $75.10 $75.96 $76.51

4th Quarter $70.27 $71.19 $71.72

2024 Averages $75.73 $76.86 $77.35

2025 by quarter:

1st Quarter $71.42 $72.52 $72.81

2nd Quarter $63.87 $64.42 $64.65

2025 Averages $67.65 $68.47 $68.73

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

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

In addition, there is uncertainty of what effect, if any, trade tariffs will have on inflation in future periods.

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

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Revenues $ 11,363 $ 13,483 $ 26,780 $ 28,243

Costs and expenses:

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Asset impairment charges 11 4 21 24

Net gains attributable to asset sales and related matters

Net losses (gains) attributable to asset sales and related matters (7) 5 (9) 5

Total operating costs and expenses 9,592 11,762 23,282 24,736

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Interest expense (332) (332) (672) (663)

Other, net 7 4 16 17

Total other expense, net (325) (328) (656) (646)

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Provision for income taxes (16) (15) (40) (36)

Net income 1,454 1,422 2,860 2,905

Net income attributable to noncontrolling interests (18) (16) (30) (42)

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

NGL Pipelines & Services:

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Midstream services 683 684 1,432 1,424

Total 3,406 4,265 8,806 9,405

Crude Oil Pipelines & Services:

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Midstream services 304 290 600 583

Total 4,783 5,888 9,904 11,303

Natural Gas Pipelines & Services:

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Midstream services 439 371 875 722

Total 1,071 612 2,292 1,466

Petrochemical & Refined Products Services:

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Midstream services 328 329 677 715

Total 2,103 2,718 5,778 6,069

Total consolidated revenues $ 11,363 $ 13,483 $ 26,780 $ 28,243

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Total revenues for the second quarter of 2025 decreased $2.1 billion when compared to the second quarter of 2024 primarily due to lower marketing revenues.

Revenues from the marketing of NGLs and crude oil decreased a combined net $ 2.0 billion quarter-to-quarter primarily due to lower average sales prices, which accounted for a $2.3 billion decrease, partially offset by higher sales volumes, which accounted for a $357 million increase.

Revenues from the marketing of petrochemicals and refined products decreased $614 million quarter-to-quarter primarily due to lower average sales prices.

Revenues from the marketing of natural gas increased $392 million quarter-to-quarter primarily due to higher average sales prices.

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 midstream services for the second quarter of 2025 increased a net $80 million when compared to the second quarter of 2024 .

Revenues from our NGL and natural gas transportation assets increased a combined $111 million quarter-to-quarter primarily due to higher demand for transportation services.

Revenues from our 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.

Revenues from our natural gas processing facilities decreased $43 million quarter-to-quarter primarily due to lower market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.

Six Months Ended June 30, 2025 Com pared to Six Months Ended June 30, 2024 .

Total revenues for the six months ended June 30, 2025 decreased $1.5 billion when compared to the six months ended June 30, 2024 primarily due to lower marketing revenues.

Revenues from the marketing of NGLs, crude oil and petrochemicals and refined products decreased a combined net $2.3 billion period-to-period primarily due to lower average sales prices, which accounted for a $3.8 billion decrease, partially offset by higher sales volumes, which accounted for a $1.5 billion increase.

Revenues from the marketing of natural gas increased $673 million period-to-period primarily due to higher average sales prices.

Revenues from midstream services for the six months ended June 30, 2025 increased a net $140 million when compared to the six months ended June 30, 2024 .

Revenues from our NGL and natural gas transportation assets increased a combined $230 million period-to-period primarily due to higher demand for transportation services.

Revenues from our natural gas processing facilities decreased $49 million period-to-period primarily due to lower market values for the equity NGL-equivalent production volumes we receive as non-cash consideration for processing services.

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

Operating costs and expenses

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

Total operating costs and expenses for the three and six months ended June 30, 2025 decreased $2.2 billion and $1.5 billion , respectively when compared to the same periods in 2024 .

Cost of sales

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Cost of sales for the second quarter of 2025 decreased a net $2.3 billion when compared to the second quarter of 2024 .

The cost of sales associated with the marketing of NGLs and crude oil decreased a combined net $1.8 billion quarter-to-quarter primarily due to lower average purchase prices, which accounted for a $2.1 billion decrease, partially offset by higher volumes, which accounted for a $315 million increase.

The cost of sales associated with the marketing of petrochemicals and refined products decreased $603 million quarter-to-quarter primarily due to lower volumes.

The cost of sales associated with the marketing of natural gas increased $82 million quarter-to-quarter primarily due to higher average purchase prices.

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

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Cost of sales for the six months ended June 30, 2025 decreased a net $1.7 billion when compared to the six months ended June 30, 2024 .

The cost of sales associated with the marketing of NGLs and crude oil decreased a combined net $1.7 billion period-to-period primarily due to lower average purchase prices, which accounted for a $2.6 billion decrease, partially offset by higher volumes, which accounted for a $971 million increase.

The cost of sales associated with the marketing of petrochemicals and refined products decreased $262 million period-to-period primarily due to lower volumes, which accounted for a $164 million decrease, and lower average purchase price, which accounted for an additional $98 million decrease.

The cost of sales associated with the marketing of natural gas increased $243 million period-to-period primarily due to higher average purchase prices.

Other operating costs and expenses

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.

Other operating costs and expenses for the three and six months ended June 30, 2025 increased $90 million and $195 million , respectively, when compared to the same periods in 2024 primarily due to higher employee compensation, maintenance and utility costs.

Depreciation, amortization and accretion expenses

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.

Depreciation, amortization and accretion expense for the three and six months ended June 30, 2025 increased $30 million and $53 million , respectively, when compared to the same periods in 2024 primarily due to higher depreciation expense on assets placed into full or limited service since the end of the respective periods in 2024 .

General and administrative 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.

General and administrative costs for the three and six months ended June 30, 2025 increased $11 million and $5 million , respectively, when compared to the same periods in 2024 primarily due to higher employee compensation costs.

Equity in income of unconsolidated affiliates

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.

Equity income from our unconsolidated affiliates for the three and six months ended June 30, 2025 decreased $9 million and $17 million , respectively, when compared to the same periods in 2024 primarily due to lower earnings from investments in NGL pipelines and services.

Operating income

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.

Operating income for the three and six months ended June 30, 2025 increased $30 million and decreased $31 million , respectively, when compared to the same periods in 2024 due to the previously described quarter-to-quarter and period-to-period changes.

Interest expense

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Interest charged on debt principal outstanding (1) $ 379 $ 353 $ 758 $ 704

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Interest costs capitalized in connection with construction projects (2) (53) (26) (98) (51)

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

Other 8 6 15 13

Total $ 332 $ 332 $ 672 $ 663

(1) The weighted-average interest rates on debt principal outstanding during the three and six months ended June 30, 2025 were 4.67% and 4.68%, respectively.

The weighted-average interest rates on debt principal outstanding during the three and six months ended June 30, 2024 were 4.62% and 4.61%, respectively.

(2) 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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Capitalized interest amounts fluctuate based on the timing of when projects are placed into service, our capital investment levels and the interest rates charged on borrowings.

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 $ 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 .

Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net $26 million quarter-to-quarter and a net $54 million period-to-period.

These increases were primarily due to the issuance of $2.5 billion and $2.0 billion of fixed-rate senior notes in August 2024 and June 2025, respectively, which accounted for a combined increase of $36 million quarter-to-quarter and $69 million period-to-period.

These increases were partially offset by the retirement of $1.15 billion of fixed-rate senior notes in February 2025, which accounted for a decrease of $11 million quarter-to-quarter and $16 million period-to-period.

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 first quarter of 2025 increased $ 3 million when compared to the first quarter of 2024.

Our provision for income taxes for the three and six months ended June 30, 2025 increased $1 million and $4 million, respectively, when compared to the same periods in 2024 .

Business Segment Highlights

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Gross operating margin by segment:

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Operating income $ 1,795 $ 1,765 $ 3,556 $ 3,587

Adjustments to reconcile operating income to total gross operating margin

(addition or subtraction indicated by sign):

Depreciation, amortization and accretion expense in operating costs

and expenses (1)

Adjustments to reconcile operating income to total gross operating margin (addition or subtraction indicated by sign):

Depreciation, amortization and accretion expense in operating costs and expenses (1)

610 581 1,212 1,163

Asset impairment charges in operating costs and expenses 11 4 21 24

Net gains attributable to asset sales and related matters in operating

costs and expenses

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

General and administrative costs 68 57 128 123

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The financial results of our marketing efforts fluctuate due to changes in volumes handled and overall market conditions, which are influenced by current and forward market prices for the products bought and sold.

NGL Pipelines & Service s

NGL Pipelines & Services

The following table presents segment gross operating margin and selected volumetric data for the NGL Pipelines & Services segment for the periods indicated (dollars in millions, volumes as noted):

For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Segment gross operating margin:

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NGL fractionation 224 238 438 471

Total $ 1,297 $ 1,325 $ 2,715 $ 2,665

Selected volumetric data:

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Natural gas processing and related NGL marketing activities

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from natural gas processing and related NGL marketing activities for the second quarter of 2025 decreased $45 million when compared to the second quarter of 2024 .

Gross operating margin from our NGL marketing activities decreased a net $18 million quarter-to-quarter primarily due to lower average sales margins, which accounted for a $14 million decrease, and lower mark-to-market earnings, which accounted for an additional $17 million decrease, partially offset by higher sales volumes, which accounted for a $14 million increase.

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $11 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities).

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

On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes decreased 34 MMcf/d and 4 MBPD, respectively, quarter-to-quarter.

Gross operating margin from our Midland Basin natural gas processing facilities decreased a net $9 million quarter-to-quarter primarily due to higher operating costs, which accounted for an $8 million decrease, and lower average processing margins (including the impact of hedging activities), which accounted for an additional $4 million decrease, partially offset by a 296 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $3 million increase.

Gross operating margin from our Delaware Basin natural gas processing facilities decreased a net $5 million quarter-to-quarter primarily due to lower average processing margins (including the impact of hedging activities), which accounted for an $8 million decrease, and higher operating costs, which accounted for an additional $6 million decrease, partially offset by a 257 MMcf/d increase in fee-based natural gas processing volumes, which accounted for a $9 million increase.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from natural gas processing and related NGL marketing activities for the six months ended June 30, 2025 decreased $30 million when compared to the six months ended June 30, 2024 .

Gross operating margin from our NGL marketing activities decreased a net $37 million period-to-period primarily due to lower average sales margins, which accounted for a $48 million decrease, and lower mark-to-market earnings, which accounted for an additional $12 million decrease, partially offset by higher sales volumes, which accounted for a $24 million increase.

Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $18 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities).

On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes decreased 49 MMcf/d and 1 MBPD, respectively, period-to-period.

Gross operating margin from our Delaware Basin natural gas processing facilities decreased a net $1 million period-to-period primarily due to lower average processing margins (including the impact of hedging activities), which accounted for a $32 million decrease, and higher operating costs, which accounted for an additional $4 million decrease, partially offset by higher fee-based natural gas processing volumes, which accounted for a $25 million increase, and a 7 MBPD increase in equity NGL-equivalent production volumes, which accounted for an additional $10 million increase.

Fee-based natural gas processing volumes at our Delaware Basin natural gas processing facilities increased 323 MMcf/d period-to-period primarily due to contributions from our Mentone 3 natural gas processing train, which was placed into service in late first quarter of 2024.

Gross operating margin from our Midland Basin natural gas processing facilities increased a net $32 million period-to-period primarily due to an 11 MBPD increase in equity NGL-equivalent production volumes, which accounted for a $17 million increase, higher fee-based natural gas processing volumes, which accounted for a $15 million increase, and higher average processing margins (including the impact of hedging activities), which accounted for an additional $13 million increase, partially offset by higher operating costs, which accounted for a $13 million decrease.

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

NGL pipelines, storage and terminals

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from our NGL pipelines, storage and terminal assets during the second quarter of 2025 increased $31 million when compared to the second 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.

On a combined basis, gross operating margin from these pipelines increased a net $23 million quarter-to-quarter primarily due to higher other revenues, which accounted for a $12 million increase, a 40 MBPD increase in transportation volumes, which accounted for a $9 million increase, and higher average transportation fees, which accounted for an additional $6 million increase, partially offset by higher operating costs, which accounted for a $4 million decrease.

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $14 million quarter-to-quarter primarily due to a 100 MBPD increase in transportation volumes, which accounted for a $9 million increase, and higher average transportation fees, which accounted for an additional $9 million increase.

Gross operating margin from our Tri-States NGL Pipeline increased $10 million quarter-to-quarter primarily due to a 9 MBPD increase in transportation volumes, which accounted for a $3 million increase, and higher average transportation fees, which accounted for an additional $3 million increase.

Gross operating margin from our South Texas NGL Pipeline System increased $5 million quarter-to-quarter primarily due to higher capacity reservation revenues, which accounted for a $3 million increase, and lower operating costs, which accounted for an additional $2 million increase.

Transportation volumes on this system increased 9 MBPD quarter-to-quarter.

Gross operating margin from LPG-related activities at our Enterprise Hydrocarbons Terminal (“EHT”) decreased $37 million quarter-to-quarter primarily due to lower average loading fees.

LPG export volumes at EHT increased 55 MBPD quarter-to-quarter.

Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $4 million quarter-to-quarter primarily due to an 11 MBPD increase in export volumes.

Gross operating margin from our related Houston Ship Channel Pipeline System increased $5 million quarter-to-quarter primarily due to a 67 MBPD increase in transportation volumes.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from our NGL pipelines, storage and terminal assets during the six months ended June 30, 2025 increased $113 million when compared to the six months ended June 30, 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 $45 million period-to-period primarily due to a 56 MBPD increase in transportation volumes, which accounted for a $30 million increase, and higher average transportation fees, which accounted for an additional $11 million increase.

Gross operating margin for our Eastern ethane pipelines, which include our ATEX and Aegis pipelines, increased a combined $26 million period-to-period primarily due to higher average transportation fees, which accounted for a $17 million increase, and a 37 MBPD increase in transportation volumes, which accounted for an additional $10 million increase.

Gross operating margin from our Dixie Pipeline and related terminals increased $18 million period-to-period primarily due to higher average transportation fees, which accounted for a $10 million increase, and higher loading and other fee revenues, which accounted for an additional $9 million increase.

Transportation volumes on our Dixie Pipeline increased 7 MBPD period-to-period.

Gross operating margin from our South Texas NGL Pipeline System increased $15 million period-to-period primarily due to higher capacity reservation revenues, which accounted for an $8 million increase, and lower operating costs, which accounted for an additional $5 million increase.

Transportation volumes on this system increased 10 MBPD period-to-period.

Gross operating margin from our Tri-States NGL Pipeline increased $13 million period-to-period primarily due to an 8 MBPD increase in transportation volumes, which accounted for a $5 million increase, and higher average transportation fees, which accounted for an additional $4 million increase.

Gross operating margin from LPG-related activities at EHT decreased a net $40 million period-to-period primarily due to lower average loading fees, which accounted for a $38 million decrease, and higher operating costs, which accounted for an additional $10 million decrease, partially offset by a 43 MBPD increase in LPG export volumes, which accounted for a $9 million increase.

Gross operating margin at our Morgan’s Point Ethane Export Terminal increased $23 million period-to-period primarily due to a 39 MBPD increase in export volumes.

Gross operating margin from our related Houston Ship Channel Pipeline System increased $10 million period-to-period primarily due to a 90 MBPD increase in transportation volumes.

NGL fractionation

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from NGL fractionation during the second quarter of 2025 decreased $14 million when compared to the second quarter of 2024 .

Gross operating margin from our Mont Belvieu area NGL fractionation complex decreased a net $4 million quarter-to-quarter primarily due to lower ancillary service revenues, which accounted for a $6 million decrease, partially offset by higher average fractionation fees, which accounted for a $3 million increase.

NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 6 MBPD quarter-to-quarter.

On a combined basis, gross operating margin from NGL fractionators other than our Mont Belvieu area complex decreased $11 million quarter-to-quarter primarily due to lower ancillary service revenues, which accounted for a $6 million decrease, and higher operating costs, which accounted for an additional $4 million decrease.

NGL fractionation volumes from these NGL fractionators decreased a combined 18 MBPD (net to our interest) quarter-to-quarter.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from NGL fractionation during the six months ended June 30, 2025 decreased $33 million when compared to the six months ended June 30, 2024 .

Gross operating margin from our Mont Belvieu area NGL fractionation complex decreased $19 million period-to-period primarily due to higher operating costs, which accounted for a $9 million decrease, and lower ancillary service revenues, which accounted for an additional $9 million decrease.

NGL fractionation volumes at our Mont Belvieu area NGL fractionation complex increased 7 MBPD period-to-period.

On a combined basis, gross operating margin from NGL fractionators other than our Mont Belvieu area complex decreased $15 million period-to-period primarily due to lower ancillary service revenues, which accounted for a $12 million decrease, and higher operating costs, which accounted for an additional $5 million decrease.

NGL fractionation volumes from these NGL fractionators decreased a combined 10 MBPD (net to our interest) period-to-period.

Crude Oil Pipelines & Services

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Segment gross operating margin $ 403 $ 417 $ 777 $ 828

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Crude oil marine terminal volumes (MBPD) 811 977 774 1,035

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from our Crude Oil Pipelines & Services segment for the second quarter of 2025 decreased $14 million when compared to the second quarter of 2024 .

Gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) decreased a combined net $ 31 million quarter-to-quarter primarily due to lower sales volumes from marketing activities, which accounted for a $27 million decrease, higher operating costs, which accounted for a $7 million decrease, and lower other revenues, which accounted for an additional $6 million decrease, partially offset by higher average sales margins from marketing activities, which accounted for an $11 million increase.

Crude oil transportation volumes on these pipelines increased a combined 79 MBPD (net to our interest) quarter-to-quarter.

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.

Gross operating margin from crude oil activities at EHT increased $18 million quarter-to-quarter primarily due to lower operating costs, which accounted for a $10 million increase, higher loading revenues, which accounted for a $4 million increase, and higher storage and other revenues, which accounted for an additional $4 million increase.

Crude oil marine terminal volumes at EHT decreased 165 MBPD quarter-to-quarter.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from our Crude Oil Pipelines & Services segment for the six months ended June 30, 2025 decreased $51 million when compared to the six months ended June 30, 2024 .

Gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) decreased a combined $ 72 million period-to-period primarily due to lower sales volumes from marketing activities, which accounted for a $52 million decrease, lower mark-to-market earnings, which accounted for a $9 million decrease, and higher operating costs, which accounted for an additional $7 million decrease.

Crude oil transportation volumes on these pipelines increased a combined 60 MBPD (net to our interest) period-to-period.

Gross operating margin from crude oil activities at EHT increased $27 million period-to-period primarily due to lower operating costs, which accounted for a $12 million increase, higher storage and other revenues, which accounted for a $10 million increase, and higher loading revenues, which accounted for an additional $5 million increase.

Crude oil marine terminal volumes at EHT decreased 237 MBPD period-to-period.

Natural Gas Pipelines & Services

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Segment gross operating margin $ 417 $ 293 $ 774 $ 605

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Natural gas pipeline transportation volumes (BBtus/d) 20,405 18,714 20,358 18,824

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from our Natural Gas Pipelines & Services segment for the second quarter of 2025 increased $124 million when compared to the second quarter of 2024 .

Gross operating margin from our natural gas marketing activities increased $75 million quarter-to-quarter primarily due to higher mark-to-market earnings, which accounted for a $55 million increase, and higher average sales margins, which accounted for an additional $20 million increase.

Gross operating margin from our Texas Intrastate System increased a net $21 million quarter-to-quarter primarily due to higher capacity reservation fees and other revenues, which accounted for a $22 million increase, and a 426 BBtus/d increase in transportation volumes, which accounted for an additional $5 million increase, partially offset by lower average transportation fees, which accounted for a $6 million decrease.

Gross operating margin from our Delaware Basin Gathering System, which includes the natural gas gathering system acquired in October 2024 through our acquisition of Pinon Midstream, increased a net $19 million quarter-to-quarter primarily due to higher treating and other revenues, which accounted for a $16 million increase, a 584 BBtus/d increase in natural gas gathering volumes, which accounted for an additional $12 million increase, partially offset by higher operating costs, which accounted for an $11 million decrease.

Gross operating margin from our Midland Basin Gathering System increased a net $5 million quarter-to-quarter primarily due to a 418 BBtus/d increase in natural gas gathering volumes, which accounted for a $14 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.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from our Natural Gas Pipelines & Services segment for the six months ended June 30, 2025 increased $169 million when compared to the six months ended June 30, 2024 .

Gross operating margin from our natural gas marketing activities increased $60 million period-to-period primarily due to higher average sales margins, which accounted for a $36 million increase, and higher mark-to-market earnings, which accounted for an additional $24 million increase.

Gross operating margin from our Texas Intrastate System increased $48 million period-to-period primarily due to higher capacity reservation fees and other revenues, which accounted for a $35 million increase, higher average transportation fees, which accounted for a $7 million increase, and a 278 BBtus/d increase in transportation volumes, which accounted for an additional $6 million increase.

Gross operating margin from our Delaware Basin Gathering System, increased a net $46 million period-to-period primarily due to higher treating and other revenues, which accounted for a $37 million increase, a 643 BBtus/d increase in natural gas gathering volumes, which accounted for a $26 million increase, and higher average gathering fees, which accounted for an additional $9 million increase, partially offset by higher operating costs, which accounted for a $27 million decrease.

Gross operating margin from our Midland Basin Gathering System increased a net $16 million period-to-period primarily due to a 504 BBtus/d increase in natural gas gathering volumes, which accounted for a $33 million increase, partially offset by higher operating costs, which accounted for a $17 million decrease.

Petrochemical & Refined Products Services

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Segment gross operating margin:

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Marine transportation and other services 21 20 40 32

Total $ 354 $ 392 $ 669 $ 836

Selected volumetric data:

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Propylene production and related activities

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from propylene production and related activities for the second quarter of 2025 increased $4 million when compared to the second quarter of 2024 .

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 propylene sales volumes, which accounted for a $38 million increase, and higher propylene processing and other revenues, which accounted for an additional $5 million increase, partially offset by higher operating costs, which accounted for a $34 million decrease.

Propylene and associated by-product production volumes at these facilities increased a combined 11 MBPD quarter-to-quarter .

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from propylene production and related activities for the six months ended June 30, 2025 decreased $48 million when compared to the six months ended June 30, 2024 .

On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased $39 million period-to-period primarily due to lower average propylene sales margins.

Propylene and associated by-product production volumes at these facilities increased a combined 9 MBPD .

Butane isomerization and related operations

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from butane isomerization and related operations for the second quarter of 2025 increased a net $2 million when compared to the second quarter of 2024 primarily due higher ancillary service revenues, which accounted for a $5 million increase, partially offset by higher operating costs, which accounted for a $3 million decrease.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from butane isomerization and related operations for the six months ended June 30, 2025 decreased a net $4 million when compared to the six months ended June 30, 2024 primarily due to higher operating costs, which accounted for a $9 million decrease, partially offset by higher ancillary service revenues, which accounted for a $7 million increase.

Octane enhancement and related plant operations

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from our octane enhancement and related plant operations for the second quarter of 2025 decreased $49 million when compared to the second quarter of 2024 primarily due to lower average sales margins.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from our octane enhancement and related plant operations for the six months ended June 30, 2025 decreased $132 million when compared to the six months ended June 30, 2024 primarily due to lower average sales margins, which accounted for a $96 million decrease, and lower deficiency revenues, which accounted for an additional $32 million decrease.

Refined products pipelines and related activities

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from refined products pipelines and related activities for the second quarter of 2025 increased $3 million when compared to the second quarter of 2024 .

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 TE Products Pipeline System increased $2 million quarter-to-quarter primarily due to a 5 MBPD increase in transportation volumes.

Gross operating margin from our refined products marketing activities decreased $13 million quarter-to-quarter primarily due to lower average sales margins.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from refined products pipelines and related activities for the six months ended June 30, 2025 increased $36 million when compared to the six months ended June 30, 2024 .

Gross operating margin from our TE Products Pipeline System increased a net $29 million period-to-period primarily due to a 20 MBPD increase in transportation volumes, which accounted for a $25 million increase, and higher average transportation fees, which accounted for an additional $10 million increase, partially offset by higher operating costs, which accounted for a $13 million decrease.

Gross operating margin from our TW Products System increased $26 million period-to-period primarily due to the full start-up of the system, which was placed into service in stages during 2024 and was fully operational in October 2024.

Gross operating margin from our refined products marketing activities decreased $19 million period-to-period primarily due to lower average sales margins.

Ethylene exports and related activities

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from ethylene exports and related activities for the second quarter of 2025 increased $1 million when compared to the second quarter of 2024 primarily due to a 7 MBPD increase in ethylene export volumes.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from ethylene exports and related activities for the six months ended June 30, 2025 decreased $27 million when compared to the six months ended June 30, 2024 primarily due to lower deficiency fee revenues from our ethylene pipelines, which accounted for an $18 million decrease, and a 9 MBPD decrease in ethylene export volumes, which accounted for an additional $9 million decrease.

Ethylene transportation volumes decreased 7 MBPD period-to-period.

Marine transportation and other services

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.

Second Quarter of 2025 Compared to Second Quarter of 2024 .

Gross operating margin from marine transportation and other services for the second quarter of 2025 increased $1 million when compared to the second quarter of 2024 primarily due to higher average fees.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 .

Gross operating margin from marine transportation and other services for the six months ended June 30, 2025 increased $8 million when compared to the six months ended June 30, 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 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.

At June 30, 2025 , we had $5.1 billion of consolidated liquidity.

This amount was comprised of $4.2 billion of available borrowing capacity under EPO’s revolving credit facilities and $870 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.

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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 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.

Enterprise Declares Cash Distribution for Second Quarter of 2025

On July 8, 2025, we announced that the Board declared a quarterly cash distribution of $0.545 per common unit, or $2.18 per common unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the second quarter of 2025 .

The quarterly distribution is payable on August 14, 2025 to unitholders of record as of the close of business on July 31, 2025.

The total amount to be paid is $1.19 billion , which includes $11 million for distribution equivalent rights on phantom unit awards.

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Consolidated Debt

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):

At June 30, 2025 , the average maturity of EPO’s consolidated debt obligations was approximately 17.7 years.

The following table presents the scheduled maturities of principal amounts of EPO’s consolidated debt obligations at June 30, 2025 for the years indicated (dollars in millions):

Scheduled Maturities of Debt

Commercial Paper

Total Remainder

of 2025 2026 2027 2028 2029 Thereafter

Senior Notes $ 30,775 $ – $ 1,625 $ 1,575 $ 1,500 $ 1,250 $ 24,825

Junior Subordinated Notes 2,282 – – – – – 2,282

Total $ 33,057 $ – $ 1,625 $ 1,575 $ 1,500 $ 1,250 $ 27,107

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

As of June 30, 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.

As of June 30, 2025 , there are no principal amounts outstanding under this revolving credit agreement.

Senior Notes LLL were issued at 99.869% of their principal amount and have a fixed interest rate of 4.30% per year.

Senior Notes MMM were issued at 99.816% of their principal amount and have a fixed interest rate of 4.60% per year.

Senior Notes NNN were issued at 99.665% of their principal amount and have a fixed interest rate of 5.20% per year.

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 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.

As of August 8, 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 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.

The Partnership repurchased 3,566,979 and 5,370,194 common units through open market purchases during the three and six months ended June 30, 2025, respectively .

The total cost of these repurchases, including commissions and fees was $110 million and $170 million, respectively .

As of June 30, 2025 , the remaining available capacity under the 2019 Buyback Program was $692 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 Three Months

Ended March 31,

For the Six Months

Ended June 30,

Net cash flow provided by operating activities $ 4,375 $ 3,685

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Operating activities

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.

Net cash flow provided by operating activities for the six months ended June 30, 2025 increased $690 million when compared to the six months ended June 30, 2024 primarily due to changes in operating accounts primarily due to the use of working capital employed in our marketing activities, which includes the impact of (i) fluctuations in commodity prices, (ii) timing of our inventory purchase and sale strategies, and (iii) changes in margin deposit requirements associated with our commodity derivative instruments.

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

Investing activities

Net cash flow used in investing activities during the 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).

Net cash flow used in investing activities during the six months ended June 30, 2025 increased $40 million when compared to the six months ended June 30, 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 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;

Net cash flow used in financing activities during the six months ended June 30, 2025 increased a net $506 million when compared to the six months ended June 30, 2024 primarily due to:

• a net cash inflow of $834 million related to debt transactions that occurred during the six months ended June 30, 2025 compared to a net cash inflow of $1.5 billion related to debt transactions that occurred during the six months ended June 30, 2024 .

During the six months ended June 30, 2025 , we issued $2.0 billion aggregate principal amount of senior notes, partially offset by the repayment of $1.15 billion principal amount of senior notes.

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

• a $90 million period-to-period increase in the repurchase of common units under the 2019 Buyback Program;

• an $84 million period-to-period increase in cash distributions paid to common unitholders primarily attributable to increases in the quarterly cash distribution rate per unit;

partially offset by

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Net income attributable to common unitholders (GAAP) (1) $ 1,435 $ 1,405 $ 2,828 $ 2,861

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Sustaining capital expenditures (3) (117) (245) (219) (425)

Other, net (40) 10 (30) 17

Operational DCF (non-GAAP) $ 1,914 $ 1,808 $ 3,923 $ 3,750

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Total DCF retained by the Partnership with respect to period (5) $ 748 $ 662 $ 1,590 $ 1,448

Distribution coverage ratio (6)

Distribution coverage ratio (6) 1.6 x 1.6 x 1.7 x 1.6 x

(1) For a discussion of the primary drivers of changes in our comparative income statement amounts, see “ Income Statement Highlights ” within this Part I, Item 2.

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For the Three Months

Ended March 31,

Ended June 30, For the Six Months

Ended June 30,

2025 2024 2025 2024

Net cash flow provided by operating activities (GAAP) $ 2,061 $ 1,574 $ 4,375 $ 3,685

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Net income attributable to noncontrolling interests (18) (16) (30) (42)

Other, net (82) (20) (85) (34)

Operational DCF (non-GAAP) $ 1,914 $ 1,808 $ 3,923 $ 3,750

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Capital Investments

Since the beginning of 2025, we have placed into service two natural gas processing trains in the Permian Basin and the first phase of our Neches River Ethane / Propane Export Facility.

We have approximately $6.0 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);

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

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

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

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

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

• the expansion of our LPG and PGP export capacity at EHT, including Ref 4 (fourth quarter of 2026);

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.

• a ninth natural gas processing train (“Athena”) in the Midland Basin (fourth quarter of 2026).

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

In July 2025, an affiliate of Enterprise agreed to acquire an affiliate of Oxy, which owns approximately 200 miles of natural gas gathering pipelines in the Midland Basin, in a debt-free transaction for $580 million in cash consideration (subject to adjustment in accordance with the agreement).

Completion of the acquisition is subject to customary regulatory approvals and closing conditions.

The acquisition is expected to close in the third quarter of 2025.

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.

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

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

Capital investments for property, plant and equipment:

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Sustaining capital projects (3) 223 374

Total $ 2,361 $ 2,311

(1) Growth and sustaining capital amounts presented in the table above are presented on a cash basis.

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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 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:

Comparison of Six Months Ended June 30, 2025 with Six Months Ended June 30, 2024

In total, investments in growth capital projects increased a net $201 million period-to-period 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 $221 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;

• higher investments in ethane and LPG export expansion and enhancement projects at our Gulf Coast marine terminals, which accounted for an additional $82 million increase;

partially offset by

• lower investments in our TW Products System (placed into service during 2024), which accounted for a $114 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.

Investments attributable to sustaining capital projects decreased $151 million period-to-period 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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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 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.

At June 30, 2025 , the total amount of Guaranteed Debt was $33.6 billion , which was comprised of $30.8 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes and $520 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 $ 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.

The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $50.5 billion at June 30, 2025 .

The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the six months ended June 30, 2025 was $3.3 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.

4 unchanged sentences

Selected asset information:

2025 December 31,

Current receivables from Non-Obligor Subsidiaries $ 3,208 $ 1,569

1 unchanged sentence

Long-term receivables from Non-Obligor Subsidiaries 187 187

Other noncurrent assets, excluding investments in Non-Obligor Subsidiaries

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

Other noncurrent assets, excluding investments in Non-Obligor Subsidiaries of $50.5 billion at June 30, 2025 and $50.8 billion at December 31, 2024

Selected liability information:

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

$536 million at December 31, 2024

Current portion of Guaranteed Debt, including interest of $520 million at June 30, 2025 and $536 million at December 31, 2024

$ 2,143 $ 1,686

Current payables to Non-Obligor Subsidiaries 1,549 1,438

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

For the Three

For the Twelve

For the Six Months Ended June 30,

2025 For the Twelve Months Ended December 31, 2024

Revenues from Non-Obligor Subsidiaries $ 11,513 $ 22,286

1 unchanged sentence

Operating income of Obligor Group 180 443

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

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

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

Net loss of Obligor Group excluding equity in earnings of Non-Obligor Subsidiaries of $3.3 billion for the six months ended June 30, 2025 and $6.8 billion for the twelve months ended December 31, 2024

Related Party Transactions

For information regarding our related party transactions, see Note 15 of the Notes to Unaudited Condensed Consolidated Financial Statements included under Part I, Item 1 of this quarterly report.

QUANT ITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK.

In the normal course of our business operations, we are exposed to certain risks, including changes in interest rates and commodity prices.

In order to manage risks associated with assets, liabilities and certain anticipated future transactions, we use derivative instruments such as futures, forward contracts, swaps and other instruments with similar characteristics.

Substantially all of our derivatives are used for non-trading activities.

We assess the risk associated with each of our derivative instrument portfolios using a sensitivity analysis model.

This approach measures the change in fair value of the derivative instrument portfolio based on a hypothetical 10% change in the underlying interest rates or quoted market prices on a particular day.

In addition to these variables, the fair value of each portfolio is influenced by changes in the notional amounts of the instruments outstanding.

The sensitivity analysis approach does not reflect the impact that the same hypothetical price movement would have on the hedged exposures to which they relate.

Therefore, the impact on the fair value of a derivative instrument resulting from a change in interest rates or quoted market prices (as applicable) would normally be offset by a corresponding gain or loss on the hedged debt instrument, inventory value or forecasted transaction assuming:

the derivative instrument functions effectively as a hedge of the underlying risk;

the derivative instrument is not closed out in advance of its expected term;

the hedged forecasted transaction occurs within the expected time period.

We routinely review the effectiveness of our derivative instrument portfolios in light of current market conditions.

Accordingly, the nature and volume of our derivative instruments may change depending on the specific exposure being managed.

Commodity Hedging Activities

The price of energy commodities such as natural gas, NGLs, crude oil, petrochemicals and refined products and power are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control.

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 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.

Sensitivity Analysis

The following tables show the effect of hypothetical price movements on the estimated fair values of our principal commodity derivative instrument portfolios at the dates indicated (dollars in millions).

The fair value information presented in the sensitivity analysis tables excludes the impact of applying Chicago Mercantile Exchange (“CME”) Rule 814, which deems that financial instruments cleared by the CME are settled daily in connection with variation margin payments.

As a result of this exchange rule, CME-related derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes;

however, the derivatives remain outstanding and subject to future commodity price fluctuations until they are settled in accordance with their contractual terms.

Derivative transactions cleared on exchanges other than the CME (e.g., the Intercontinental Exchange or ICE) continue to be reported on a gross basis.

Natural gas marketing portfolio

Portfolio Fair Value at

Classification

Fair value assuming no change in underlying commodity prices

Asset (Liability)

Fair value assuming 10% increase in underlying commodity prices

Asset (Liability)

Fair value assuming 10% decrease in underlying commodity prices

Asset (Liability)

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

Portfolio Fair Value at

Classification

Fair value assuming no change in underlying commodity prices

Asset (Liability)

Fair value assuming 10% increase in underlying commodity prices

Asset (Liability)

Fair value assuming 10% decrease in underlying commodity prices

Asset (Liability)

Crude oil marketing portfolio

Portfolio Fair Value at

Classification

Fair value assuming no change in underlying commodity prices

Asset (Liability)

Fair value assuming 10% increase in underlying commodity prices

Asset (Liability)

Fair value assuming 10% decrease in underlying commodity prices

Asset (Liability)

Commercial energy derivative portfolio

Portfolio Fair Value at

Classification

Fair value assuming no change in underlying commodity prices

Asset (Liability)

Fair value assuming 10% increase in underlying commodity prices

Asset (Liability)

Fair value assuming 10% decrease in underlying commodity prices

Asset (Liability)

Interest Rate Hedging Activities

We may utilize interest rate swaps, forward-starting swaps, options to enter into forward-starting swaps (“swaptions”), treasury locks and similar derivative instruments to manage our exposure to changes in interest rates charged on borrowings under certain consolidated debt agreements.

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

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