Enterprise Products Partners L.P.

Thank you for standing by, and welcome to Enterprise Products Partners LP's first quarter 2025 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. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to Libby Strait, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to the Enterprise Products Partners conference call to discuss first quarter 2025 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 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, they can give no assurance that such expectations will prove to be correct. Please refer to our latest filing to 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. And with that, I will turn it over to Jim.

Thank you, Libby. We've got a special guest with us today. Sam Hawley, our vice president of wholesale propane, is with us. And we wanted to publicly acknowledge his contributions to the company. Sam's been in the industry over 30 years with Enterprise over 20 years, and I can say I've never known anyone with more passion for our company, for his business, and for his people. You will be missed, my friend. With that, I want to cover a few highlights in the first quarter and summarize the things we look forward to. We had adjusted EBITDA of $2.4 billion, $2 billion D.C., $2 billion. DCF, 1.7 times coverage, $842 million of retained DCF, two financial records, and five operational records. In total, we moved 13.2 million barrels of oil equivalent a day and 2 million barrels a day of liquid hydrocarbon exports. Relative to our PDH Our PDH-1 facility was down for 63 days during the first quarter of 2025 for unplanned maintenance. As of last week, both our PDH plants are online and no major downtime is planned at either plant for the remainder of the year. If both PDH plants had been up and running during the first quarter, we would have easily exceeded $2.5 billion. We continue to benefit from growing production in the Permian and consistent domestic and international energy demand pool across our systems. For the remainder of 2025, we look forward to bringing on two gas processing plants in the third quarter in the Permian, one each in the Delaware and Midland Basin, the Bahia-NGL pipeline in the fourth quarter, Fract 14 at our Mount Bellevue complex in the third quarter, the first phase of NGL exports on the Natchez River in the fourth quarter, and enhancements of our ethane and ethylene terminal at Morgan's Point, also in the fourth quarter. I'm sure Tony or Natalie would discuss our Permian Outlook in more detail during Career 2NA. But there's a large backlog of whales expected to be connected to our gathering and processing systems between now and the end of the year that will feed our downstream NGO value chain. On the other side of the equation, exports, I've never seen U.S. hydrocarbons get this much attention worldwide. For now, it appears China is going to exclude ethylene and ethylene from their tariffs to protect their petrochemical business. Currently, LPG has not been excluded from the Chinese tariffs, but admittedly, the situation is fluid. Regardless, the market has already gone to work rerouting barrels between the world's biggest LPG suppliers, the U.S. and the Middle East, and the biggest importing countries being China and India. It's important to note that even before the tariff pause, nominations at our docks from May indicated that our customers' behavior was virtually unchanged from prior months. The bottom line is the world needs U.S. oil, natural gas, and natural gas liquids to provide for their people and to grow their economies. Relative to all the chaos, the beauty of free markets is price always works. Price creates supply. Price creates demand in the right places and, for the most part, in a timely manner. I can't help myself, but to end today with comments on Washington. Stating the obvious, a lot is going on that is causing nothing short of chaos around the world. Energy is not excluded. No one can tell how all the pieces land, so I think we must fall back on what we think we know. President Trump was extremely pro-oil and gas in his first term and ran and won his second term on a pro-oil and gas platform. stressing that we must unleash and expand our domestic energy production and exports. There is also no doubt that the Trump administration understands the importance of U.S. hydrocarbons to our economy, global markets, and our balance of trade. Amid all this uncertainty, I have the core belief that when the dust settles, the endgame of this administration's policies, laws, and regulations is intended to promote U.S. energy, and not just for the next four years, but for decades. Enterprise is one of the largest exporters of hydrocarbons and is significantly increasing our capacity to gather, process, transport, upgrade, distribute, and export hydrocarbons. We feel great about our assets and the investments we're making and what they mean to our future without turning to landings.