Enterprise Products Partners L.P.

Thank you for standing by and welcome to Enterprise Products Partners LP's second 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.

Libby Strait Good morning and welcome to the Enterprise Products Partners conference call to discuss second quarter 2025 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's General Partner, Jim Teague and Randy Sattler. 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 enterprises management teams. 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 filing for the SEC for a list of factors that may cause actual results to differ materially from those in the four looking statements made during this call. With that, I'll turn it over to Jim.

Thank you, Libby. Despite facing considerable headwinds, we delivered another good performance this quarter. Seasonally, the second quarter is always tough, but this time, we also faced macroeconomic and geopolitical challenges. Today, we reported adjusted EBITDA at $2.4 billion, $1.9 billion of distributable cash flow, providing 1.6 times coverage, and we retained $740 million of DCF. We set five volumetric records for the quarter, processed 7.8 billion cubic feet of natural gas per day, moved 20 billion cubic feet per day through our natural gas pipeline network. We transported over 1 million barrels per day of refined products and petrochemicals. And we have even more plant, pipe, rack, and duct capacity coming online over the next 18 months. We've got nearly 6 billion worth of organic growth projects entering service. That includes two gas processing plants in the Permian that are ramping as we speak, and a third plant that is expected to start up in the first part of next year. Altogether, these three plants will bring our total Permian processing capacity to almost 5 BCF a day, producing 650,000 barrels a day of liquids. In the fourth quarter, we expect to start up the 600,000 barrel per day Bahia Y-grade pipeline and our Prattport team. These investments bring more volumes into our MGL value chain. We started operations at our Natchez River terminal. Initially, the facility will have the capacity to load ethane at 120,000 barrels a day. In the first half of 2026, the facility will be fully operational with the commissioning of a second train that is a flex train. This expansion will increase its capacity by an additional 180,000 barrels a day of ethane or 360,000 barrels a day of propane. This past quarter was dominated by headlines about tariffs and trade, many of this being close to home, especially regarding ethane and LPG. We managed to navigate these disruptions. That said, we've been clear about the risk of weaponizing U.S. energy exports. These kind of actions rarely hurt the intended target, and often backfire, hurting our own industry more. We're fortunate this administration understands the importance of energy and global trade, even if the Commerce Department may need a little reminder. Unfortunately, we could face similar challenges in the future. There are growing rumors of midstream companies planning to enter the LPG export market. However, this space has become increasingly competitive, and the impact is already evident. Just a year ago, spot terminal fees ranged from 10 to 15 cents per gallon. That is no longer the case. In the second quarter, our LPG export volumes rose by 5 million barrels quarter to quarter, yet our gross operating margin declined by 37 million. This was driven by the recontracting of a legacy 10-year double-digit term agreement, the current market pricing, and by a 60% drop in spot rates. Although increased throughput across our Houston Ship Channel pipeline system helped mitigate the decline, it doesn't change the fact that this market is fundamentally shifting. Despite the challenges, however, we remain well-positioned to succeed. Our competitive advantage from our existing export infrastructure enables us to meet customer needs through brownfield expansions where new-build economics simply don't work, and we will aggressively defend our position. The appetite for U.S. ethane and ethylene remains strong in both Asia and Europe. As to octane enhancement, we've seen margins normalize after a few years of outsized earnings, but the business remains healthy. Lower margins are a product of new supply in the market, not waning demand. Hydrocarbons is a supply-driven business, and our network of assets reflect that. The majority of our capital projects currently under construction directly support our supply strategy. But supply isn't the whole story. What sets us apart is our extensive connectivity to end users. We are directly or indirectly linked to 100% of the ethylene plants in the U.S. and 90% of the refineries east of the Rockies. Our export business continues to be a key part of our strategy. With the addition of the Vinacious River Terminal, expanded LPG loading at EHT, and increased ethylene export capability at Morgan's Point, we've taken the deliberate steps to enhance and expand our downstream footprint, strengthening our access to global markets. And with that, Randy, I'll turn it over to you.