Enterprise Products Partners L.P. (NYSE:EPD) reported third-quarter sales growth of 14.8% year over year to $13.775 billion, missing the consensus of $13.843 billion.

Adjusted EBITDA rose to $2.44 billion from $2.327 billion a year ago, and the margin contracted by 167 bps to 17.7%.

EPS was 65 cents, up from 60 cents in the third quarter of 2023, missing the consensus of 66 cents.

Distributable Cash Flow was $2 billion for the quarter compared to $1.9 billion a year ago. Adjusted cash flow provided by operating activities was $2.108 billion compared to $2.021 billion a year ago.

Adjusted total gross operating margin contracted by 160 bps to 17.8%. The gross operating margin from the NGL Pipelines & Services segment was $1.3 billion compared to $1.2 billion a year ago.

Natural Gas Pipelines & Services’ gross operating margin was $349 million versus $239 million year over year, and Petrochemical & Refined Products Services’ gross operating margin was $363 million versus $453 million a year ago.

In the quarter, capital investments came in at $1.2 billion, including sustaining capital expenditures of $129 million.

At September-end, the total debt principal outstanding was $32.2 billion; consolidated liquidity was ~$5.6 billion, comprised of available borrowing capacity under its revolving credit facilities and unrestricted cash on hand.

The company repurchased ~$76 million of its common units for the quarter, utilizing $1.1 billion of its authorized $2 billion common unit buyback program.

The company anticipates organic growth capital investments of $3.5 billion to $3.75 billion in 2024.

For 2025, EPD has updated its organic growth capital investment outlook to a range of $3.5 billion to $4.0 billion, reflecting new growth opportunities identified primarily in the Permian Basin through the recent acquisition of Piñon Midstream.

“Enterprise reported another strong quarter as recently completed organic growth assets generated new sources of earnings and cash flow,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner.

Teague highlighted the recent acquisition of Piñon Midstream, which complements the company’s Permian processing network and strengthens its NGL value chain by adding treating services in the eastern Delaware Basin.

The company is set to complete two Permian processing plants, the Bahia pipeline, Fractionator 14, the Neches River NGL Export Terminal, and the final phase of the Morgan’s Point Terminal Flex Expansion by 2025, adding new cash flow sources and strengthening the core NGL value chain.

Price Action: EPD shares are trading lower by 0.19% at $29.09 at the last check Tuesday.

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