Enterprise Products Partners L.P.

Thank you for standing by and welcome to Enterprise Products Partners L.P.'s second quarter 2026 earnings conference call. Currently, all participants are in a listen-only mode. After the speaker's presentations, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to Joe Theriak, VP of Finance and Investor Relations. Please go ahead.

Joe Theriak Thanks Lateef. Good morning and welcome to the Enterprise Products Partners conference call to discuss second quarter 2026 earnings. Our speakers today will be Co-Chief Executive Officers of Enterprise's 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, they 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. And with that, I'll turn it over to Jim.

Thank you, Joe, and good morning, everyone. Enterprise reported strong volumes, earnings, and cash flow for the second quarter. These results were driven by strong global demand for U.S. energy, which was particularly strong during April and May. Our export facilities, pipelines, storage assets, and fractionation complexes work together to provide our customers with reliable access to both domestic and international markets. Our teams responded exceptionally well to the elevated demand levels. In the second quarter, we generated a record $2.8 billion of EBITDA, a 17% increase over the second quarter of last year. and that provided one times coverage of our distributions. We handled record pipeline and marine terminal volumes during the quarter. Total pipeline volumes were up 8% and our marine terminals were up outstanding 33% compared to the second quarter of last year. We moved 14.7 million barrels a day of oil equivalent. I remember being ecstatic when that was 10 million barrels a day. Now we're knocking on the door of 15. And we move 2.8 million barrels per day across our docks. I think it's important that we recognize our engineering and operations teams for their outstanding execution during the quarter. Their efforts enabled Enterprise to accelerate construction activities and began commissioning the expansion of our Natchez River NGL Marine Terminal ahead of schedule. The team demonstrated exceptional responsiveness and operational excellence while meeting strong customer demand, maintaining the high standards of safety and reliability that define enterprise. Natural gas processing, inlet volumes increased to 8.1 8.1 billion cubic feet a day. In the Permian, we saw a 14% increase over the second quarter of last year, bringing our total inlet volume in the basin to 4.3 billion cubic feet a day, reflecting continued growth and producer activity across both basins. To support this growth, we recently approved the construction of Plant 11, a new 300 million a day natural gas processing plant in the basin, and plant 13, a new 300 million a day plant in the Delaware. Beyond providing additional processing activity for our upstream customers, these plants will supply incremental wide-grade volumes into our basin, into our Bahia and Chenault pipeline system. Those systems are currently operating at 86% of capacity. Those volumes would then move through our NGL value chain, supporting additional throughput across our fractionation storage and export assets. We also approved the construction of Pack 15, a new 150,000 barrel per day facility located in Mount Bellevue. We expect Delaware Plant 13 will be placed into service in the third quarter of 2028, Plant 11 in the Midland Basin in the first quarter of 2029, and Plant 15 in the first quarter of 2028. These are exactly the type of projects that create value throughout our system and generate attractive long-term returns. One of the themes that continue to shape energy markets today is the growing importance of reliability and flexibility. Global energy markets remain highly dynamic, and international demand patterns continue to be volatile. Rather than attempting to predict every market move, we continue to focus on what we do best, optimizing our assets around changing conditions. Our network of assets provide connectivity from the well head to domestic and in markets. They are well positioned to capture value across multiple points along our best value chain. That flexibility continues to be one of Enterprise's greatest competitive advantages. Looking ahead, that next major project, Schedule for Completion, Schedule for Completion, is their LPG export terminal expansion on the Houston Ship Channel. That should be in service by the end of this year. We're excited about the opportunities this will create as global demand for U.S. hydrocarbons continues to grow. Our outlook remains very constructive. Demand for U.S. energy, natural gas, liquids, petrochemical feedstock, export services continues to Utilization across our system. Combined with a strong balance sheet, substantial retained cash flow, and a disciplined capital program, we're well positioned for growth. And finally, I think it's important to thank our employees for an outstanding quarter. Their commitment to safety, operational excellence, customer service, and execution continues to drive our success. And that is yours, Randy.