Enterprise Products Partners' Q4 2024: Key Contradictions on Permian Growth, PDH Operations, and NGL Marketing

These are the key contradictions discussed in Enterprise Products Partners' latest 2024Q4 earnings call, specifically including: Permian production growth expectations, PDH facilities' operational status, and NGL marketing outlook:



Financial Performance and Growth:
- Enterprise Products Partners reported $9.9 billion in EBITDA for 2024, with $7.8 billion of DCF and 1.7x coverage ratio.
- This growth was driven by record financial records, including 12 operational and 16 financial records, and an increase in throughput with 12.9 million barrels of oil equivalent moved daily.

Export and Infrastructure Expansion:
- The company's expansion plans for 2025 include adding 2 gas processing plants in the Permian, the first phase of NGL export on the Natus River, and expansions at the Morgan's Point terminal.
- This expansion is aimed at increasing hydrocarbon exports, with a target of exporting over 100 million barrels of hydrocarbons monthly by 2027.

Spot Permit Challenges:
- The Spot Liquefied Natural Gas (LNG) export project faced significant permitting delays, with a record of decision set at 356 days, and over 80,000 comments addressed.
- The lengthy permitting process pushed key customer contracts, including the anchor customer, to opt out, affecting the project's feasibility.

Capital Allocation and Distribution:
- Enterprise Products Partners returned approximately $4.6 billion to unitholders in cash distributions and $1.1 billion through buybacks in 2024.
- The company plans to continue buybacks and debt retirement in the future, given expected cash flow growth and leverage targets.