Enterprise Products Partners L.P.

Thank you for standing by, and welcome to Enterprise Products Partners LP's fourth quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. You will need to press star 1. You may press star 1 again. I would now like to hand the call over to Libby Strait. Senior Director of Investor Relations. Please go ahead.

Good morning and welcome to the Enterprise Products Partners conference call to discuss fourth quarter 2024 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprises General Partner, Jim Teague and Randy Fowler. Other members of our senior management team are also in attendance for the call today. During this call, we will make forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, based on the beliefs of the company, as well as assumptions made by and information currently available to Enterprise's management team. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the SEC for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. With that, I'll turn it over to Jim.

Thank you, Libby. I want to just go through some bullet points to highlight some of the things we achieved in 2024 and a few of the things we expect to do this year. First of all, 2024 EBITDA of $9.9 billion. Randy, it reminds me of a line in a Frankie Valli song, so close, so close, and yet so far. We had $7.8 billion of DCF. We had 1.7 times coverage. $3.2 billion of retained DCF. Chris, I thought that was a record, but it's not, but it's close. 12 financial records, 16 operational records. During 2024, we moved 12.9 million barrels of oil equivalent a day. In the fourth quarter, we moved 13.6 million barrels of oil equivalent per day. In the fourth quarter, we loaded out for export 2.1 million barrels a day of liquid hydrocarbons against our commitments of 2.5 million barrels a day. During 24 and early 25, we completed two processing plants in the Permian. We purchased Pinion, acquired the JP interest in our Midland ECHO-1 crude oil pipeline, and the JD interest in our seventh and eighth fractionators. For 2025, we'll add two gas processing plants in the Permian. We'll add the Bahia NGL pipeline, Fract 14, the first phase of our NGL export on the Natchez River, and expansions of our ethane and ethylene terminal at Morgan's Point. That list almost needs to pause and take a breath. We get a lot of questions on spot. I want to give you a status report of where we are with spotting. I believe that spot should be the poster child for the need for permit reform. By law, the record of decisions should be issued in 356 days, and you can have clock stoppages on top of that. Frankly, I thought 356 was a typo, but it wasn't. It took over five years to get the spot license, including almost four years to get the record of decision and a year and a half to get the license to construct. Our initial application was 13,000 pages. I thought that was ridiculous, but by the time we completed the process, our final submission was over 30,000 pages. We addressed over 80,000 comments over two comment periods, predominantly from NGOs. One NGO's comment was 60 pages long. We had to answer a ton of questions. But one of my favorites was from a lady from Murad asking how we planned to mow the right-of-way. She was concerned that eel mice would be protected from hawks. The process we went through due to federal bureaucracy pushed us beyond a drop-dead date. It allowed our anchor customer to opt out of their contract, which they did. Granted, a lot has changed since we entered our spot application in January 2019. When we started that application, it was assumed that the majority of crude exports would go to Asia on VLCCs. A lot of forecasters were predicting by 2024, the US would be exporting between seven and eight million barrels a day. Instead, we're exporting around four million barrels a day. All of that with Russia invading Ukraine, which has resulted in the amount of crude oil export out of the U.S. to Europe to have doubled to over two million barrels a day, and that will grow more. That move to Europe can be done on an Afro-Max or a Suez-Max. Today, we have not gotten enough traction in commercializing spot, though we continue to promote spot as we are the only company with a license to construct. We did a lot of research around cost. And our data shows that the cost to load on our spot and project are always much lower than multi-reverse lighted VLCs and have a lower all-in cost than 50% of single reverse lighted VLCCs and are competitive with the best 50% single reverse lighted VLCCs. However, in order to build SPOT, we know what we need in volumes, fees, and terms. We're not going to establish a drop dead day, but if we can achieve these within a reasonable amount of time, we will move on. This is not a build it and leave it alone project. Regardless, Enterprise remains laser focused on growing our exports. As I said earlier, We currently have expansion projects on the Natchez River in Beaumont, at Morgan's Point on the ship channel, and at our main terminal on the ship channel. We exported over 70 million barrels of hydrocarbons in December, everything from ethylene to crude oil. And our goal is that we will export over 100 million barrels of hydrocarbons a month by 2027. We recently contracted with yet another octane customer in Asia, this one with a plant in Vietnam. And we were working with numerous other customers around the world on hydrocarbon supply agreements. The last 24 months, we visited over 25 cities to sell U.S. hydrocarbons. Some we visited multiple times. I know I've been in Mumbai. At least four times. Someone from enterprises almost always in Azure Europe. And no one even comes close to having the history and experience that we have. Think about it. We built our first LPG import terminal in 1983. And our first export terminal in 1999. We've been active in the international market for over 40 years. On a personal note, while I was at Dow, the first cargo of imported propane that I ever purchased went through the Enterprise Terminal. In total, our term commitments at our docks today exceed 2.5 million barrels a day, and that's hydrocarbons. Ethylene to crude oil. With three-fourths of the way to reaching our goal of 100 million barrels a month. And with that, I'll turn it over to Randy.