How much of the previously curtailed natural gas and NGLs due to Waha prices have returned to the market, and what is the outlook for 2027?

Management stated that their forecast hasn't changed much, and while Waha prices have been strong due to pipelines coming online faster than expected, these prices will likely be filled by gas coming online. They expect some of the previously curtailed volumes to return. “As time goes on, I think we're going to end up filling those prices with gas that comes online as we did some of that to back at that I had spoken about earlier in the year to show up and then also some of these gas benches over time, we'll start to fill pipeline capacity.”

How much of the $3 billion CapEx for 2027 is sanctioned, and should $3 billion be considered a new baseline for growth CapEx, or will it return to the $2 billion-$2.5 billion range?

Randy Fowler indicated that $3 billion might be the new near-term level for CapEx, driven by Permian growth and infrastructure needs. Approximately 80% of the 2027 CapEx is already committed to sanctioned projects. “I think in the near term, the $3 billion might be the new level, and some of it is just the pace of growth that we continue to see in the Permian and what we need there. ... As far as when we look out into 2027 of that $3 billion, probably 80% plus is probably already spoken for, just with the projects that we've sanctioned and have announced.”

What drove the stronger crude segment performance, and how are recontracting conversations progressing for spare capacity on the Midland to ECHO 1 pipeline?

The crude segment benefited from higher Midland to Houston pipeline spreads and higher margins from strong cash premiums at the dock. The company's Midland ecosystem remains highly contracted, and additional contracts are being secured. “But if you look at the crude numbers at a high level, we benefited from higher Midland to Houston's pipeline spreads, and we also benefited from higher margins we're able to charge across the dock to that strong cash premiums. And then on the contracting side, Jay and his team has done an amazing job continuing to remain highly contracted on our Midland ecosystem and continuing to get additional contracts.”

EPD

Enterprise Products Partners (EPD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Jul 30, 2026

Source: earnings call transcript

Executive summary

Enterprise Products Partners L.P. Q2 FY26 — Record EBITDA and Strong Volume Growth

Enterprise Products Partners delivered a strong second quarter, driven by robust global demand for U.S. energy and exceptional operational execution. The company achieved record EBITDA and cash flow, supported by significant volume growth across its integrated system. Management highlighted the flexibility and reliability of its assets as key competitive advantages, while also sanctioning new growth projects to support continued Permian Basin expansion. The company maintains a disciplined capital program and strong balance sheet, positioning it for future growth despite market volatility.

Highlights

Generated a record $2.8 billion of EBITDA, a 17% increase over Q2 FY25.
Adjusted cash flow from operations increased 19% to a record $2.5 billion.
Total pipeline volumes were up 8% and marine terminal volumes were up 33% compared to Q2 FY25.
Permian natural gas processing inlet volumes increased 14% over Q2 FY25, reaching 4.3 Bcf/d.
Consolidated leverage ratio decreased to 3.0x, meeting the target.

Concerns

LPG export listing rates have fallen due to increased capacity, potentially leading to lower terminal fees and rates.
PDH2 experienced an issue in July, causing downtime, though it is now back online.

Guidance & targets

Category	Target	Timeline	Confidence
Growth Capital Expenditures	$2.9 billion to $3.4 billion high materiality	FY26	High
Growth Capital Expenditures	in the $3 billion area high materiality	FY27	High
Sustaining Capital Expenditures	approximately $600 million medium materiality	FY26	High
Discretionary Free Cash Flow	potential to approach the $1 billion area high materiality	FY26	Medium
EBITDA Growth	10% area growth high materiality	FY27	Medium
Permian Plant Cadence	closer to 2 per year medium materiality	Longer term	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Total Company Strong overall volumes driven by global demand for U.S. energy. Record pipeline and marine terminal volumes. Total oil equivalent moved: 14.7 MMBbl/dTotal barrels moved across docks: 2.8 MMBbl/dNatural gas processing inlet volumes: 8.1 Bcf/d	—	—	—	—
Permian Basin Significant growth in producer activity, driving increased inlet volumes. New processing plants (Plant 11, Plant 13) and NGL frac (Plant 15) approved to support continued expansion. Natural gas processing inlet volumes: 4.3 Bcf/d	—	14%	—	—
NGL Pipeline Systems Operating at high utilization, indicating strong demand for NGL transportation. Capacity utilization: 86%	—	—	—	—
LPG Export Despite increased market capacity and potential for lower rates, Enterprise's capacity is largely contracted, limiting exposure. Neches River NGL marine terminal expansion expected in service by year-end. Contracted capacity: 90%	—	—	—	—
Sour Gas Demand remains strong, system was full prior to new capacity. Evaluating Train 6 due to continued producer activity and interest. Treating capacity: 750 MMcf/d	—	—	—	—
Haynesville Production growth slowly creeping up. Louisiana intrastate system for Haynesville extension and lateral to LNG markets are sold out, indicating strong demand pull. Production: close to 16 Bcf	—	—	—	—

EPD operating KPIs by quarter

EPD operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Liquid hydrocarbons export volume	2.1M bbl/d In the fourth quarter, we loaded out on -- for export, 2.1 million barrels a day of liquid hydrocarbons against our term commitments of 2.5 million barrels a day. Source: earnings call transcript	2M bbl/d In total, we moved 13.2 million barrels of oil equivalent a day and 2 million barrels a day of liquid hydrocarbon exports. Source: earnings call transcript	—	—	—	—	—	-4.8%
Capital expenditures Growth capital projects	$946M Total capital investments in the fourth quarter of 2024 were $2 billion, which includes $946 million for growth capital projects, $949 million for the acquisition of Piñon Midstream and $113 million of sustaining capital expenditures. Source: earnings call transcript	$964M Total capital investments in the first quarter of 2025 were $1.1 billion, which included $964 million of growth capital -- of growth capital projects and $102 million of sustaining capital expenditures. Source: earnings call transcript	$1.2B Total capital investments in the second quarter of 2025 were $1.3 billion, which included $1.2 billion for growth capital projects and $117 million of sustaining capital expenditures. Source: earnings call transcript	$1.2B Total capital investments were $2 billion in the third quarter of 2025, which included $1.2 billion for growth capital projects, $583 million for the acquisition of natural gas gathering systems from Occidental in the Midland Basin, and $198 million of sustaining capital expenditures. Source: earnings call transcript	$1B Total capital investments were $1.3 billion in the fourth quarter of 2025, which included $1 billion for growth capital projects and $203 million of sustaining capital expenditures. Source: earnings call transcript	$783M Total capital investments were $988 million in the first quarter of 2026, which included $783 million of growth capital projects and $205 million of sustaining capital expenditures. Source: earnings call transcript	$1B Total capital investments were $1.2 billion in the second quarter of '26, which included $1 billion of growth capital projects and $140 million of sustaining capital expenditures. Source: earnings call transcript	+27.7%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Capital programs

Neches River NGL Marine Terminal Expansion nearing completion

Scheduled for completion by the end of 2026, expected to create opportunities as global demand for U.S. hydrocarbons grows.

Plant 11 (Midland Basin Natural Gas Processing) underway

Benefit:300 MMcf/d

Approved for construction to support continued growth in producer activity in the Permian. Initial spending on long lead items contributed to increased 2026 CapEx.

Plant 13 (Delaware Basin Natural Gas Processing) underway

Benefit:300 MMcf/d

Approved for construction to support continued growth in producer activity in the Permian. Initial spending on long lead items contributed to increased 2026 CapEx.

Plant 15 (Mont Belvieu NGL Frac) underway

Benefit:150,000 bbl/d

Approved for construction to support increased NGL volumes. Initial spending on long lead items contributed to increased 2026 CapEx.

Natural Gas Gathering, Compression and Power Generation Facilities (Permian Basin) underway

Capital allocated to support growth in the Permian Basin, especially in the Delaware where self-generated power is often required.

Risks & headwinds

LPG export capacity overbuild next 12 to 18 months

May see a period of time where we have less volatility in terminal fees and just overall lower rates than we've seen in the last couple of years

Mitigation:Enterprise's LPG export capacity is approximately 90% contracted, limiting exposure to market fluctuations.

PDH2 operational issue July

PDH2 was down

Mitigation:PDH2 is back up and running.

What to watch in Q3 FY26

Neches River NGL Marine Terminal Expansion In-Service

Q4 FY26

Current Ahead of schedule, commissioning underway

Target In service by end of year

Why it matters

Successful commissioning and in-service of this expansion will unlock additional LPG export capacity and support growing global demand for U.S. hydrocarbons.

With that next major project scheduled for completion -- scheduled for completion is our LPG export terminal expansion on the Neches River channel. That should be in service by the end of this year.

Find out whether EPD delivers this. Inve re-checks your case every morning.

Q&A highlights

Has LPG export capacity become overbuilt, leading to falling listing rates, and will the upcoming 300 kt expansion be more fully utilized due to take-or-pay contracts?

Management acknowledged that new capacity has led to lower terminal fees and rates, but stated that Enterprise's LPG export capacity is about 90% contracted, limiting exposure to market volatility. The Neches River Terminal (NRT) expansion will also benefit from additional ethane volumes.

“From our standpoint, we've been very intentional about contracting our capacity. So our EHT expansion and really all of our system-wide capacity around LPG export, as we've said, we're about 90% contracted. So we have relatively limited exposure to that scenario.”

asked by Jean Ann Salisbury (Analysts) · answered by Tyler Cott (Executives)

2 min read 6 chapters

Detailed narrative

Strong Operational Performance and Volume Growth

Enterprise Products Partners reported robust operational performance in Q2 FY26, driven by strong global demand for U.S. energy. The company's export facilities, pipelines, storage assets, and fractionation complexes demonstrated high utilization. Total pipeline volumes increased by 8% year-over-year, and marine terminal volumes saw an outstanding 33% increase.

The company moved 14.7 million barrels a day of oil equivalent and 2.8 million barrels per day across its docks, reflecting significant demand pull.

Permian Basin Expansion and Infrastructure Investments

The Permian Basin continues to be a key growth driver, with natural gas processing inlet volumes increasing 14% year-over-year to 4.3 Bcf/d. To support this growth, Enterprise approved the construction of two new 300 MMcf/d natural gas processing plants (Plant 11 in Midland, Plant 13 in Delaware) and a new 150,000 bbl/d NGL frac (Plant 15 in Mont Belvieu).

These projects are expected to come online between Q3 2028 and Q1 2029, providing additional processing capacity and NGL volumes for the company's integrated value chain.

Capital Discipline and Shareholder Returns

The partnership maintained its commitment to capital discipline and shareholder returns. It repurchased $159 million of common units in Q2 FY26, bringing year-to-date repurchases to $275 million and cumulative utilization of its $5 billion buyback program to 34%. The declared distribution increased by 2.8% to $0.56 per common unit.

Total shareholder returns (distributions + buybacks) for the last 12 months amounted to $5.2 billion, representing a 56% payout ratio of adjusted cash flow from operations.

Liquidity and Leverage Management

Enterprise ended the quarter with strong consolidated liquidity of approximately $4 billion, which was further boosted to $5 billion by an incremental $1 billion short-term credit facility. This move was made to manage potential working capital needs due to commodity price volatility.

The company successfully reduced its consolidated leverage ratio to 3.0x on a net basis, aligning with its target of 3x plus or minus 0.25, demonstrating balance sheet resilience.

Market Dynamics and Commodity Spreads

The second quarter benefited from an acute global demand for U.S. energy, particularly in April and May, which resulted in approximately $200 million in higher margins across crude, NGL, and petrochemicals. While these strong cash differentials have largely normalized, management noted their ability to execute on volatility.

The company also discussed the Waha gas market, indicating that while prices have tightened, a healthy Waha price is preferred to support producer economics and long-term infrastructure development.

Leadership Transition and Future Outlook

Co-CEO Jim Teague announced his retirement, marking the end of a 28-year tenure at Enterprise. The company expressed confidence in its leadership succession and the talent within the organization. The outlook remains constructive, with continued demand for U.S. energy supporting system utilization. The company anticipates volume-driven EBITDA growth, with potential for 10% growth into FY27, excluding commodity price benefits.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.