Oct 29, 2026 earnings call — Permian production growth and project updates
Enterprise generated $2.8 billion of adjusted EBITDA, a 16% increase over the third quarter last year.
Revenue $17.9B (est $15.0B) · EPS $0.75 (est $0.75)
Key quotes
"These results were primarily driven by increased natural gas and NGL production growth in the Permian that was reflected across our entire natural gas and NGL value chain businesses."
"Assets that began operations during the past 12 months include our 11th natural gas processing plant in the Delaware Basin, the Bahia NGL pipeline, Frac 14 in Mont Belvieu, and the second phase of our Neches River NGL Export Terminal."
"Enterprise's total capital return was $5.3 billion, resulting in a payout ratio of adjusted cash flow from operations of 54%."
Analyst Q&A 9
Why gas-to-oil ratio rose
Q (Jean Ann Salisbury · BofA): What caused your higher gas-to-oil ratio forecast — shallower decline curves in existing wells or a shift to drier locations like the Delaware? Also, are current high ethane and propane prices likely to persist and why?
A: Management said it was both: shallower decline curves that bring more gas online and producers moving into drier locations and new benches with higher GOR, plus technology and completion changes that favor lighter molecules. On NGL prices, they said recent front-end strength reflects timing of demand and supply, new ethane cracker startup, and export capacity, while U.S. remains competitive; ethane production is growing and expected to be long in the U.S.
"When we think about the decline curves, we have been seeing the curve shallow on natural gas." — Corey Johnson
GOR conservatism and ATEX contracts
Q (Theresa Chen · Barclays): How much conservatism is built into your GOR assumptions and could GORs surprise higher? Also, does Northeast upstream consolidation change the commercial dynamics for ATEX recontracting?
A: Corey said there are some conservative variables and because some formations are new they will see how they shake out, so there could be more gas. Randy noted ATEX is less than 3% of EBITDA, and Carrie said the recent consolidation doesn't materially change how they view ATEX; next contracts should reflect today's market, conversations remain dynamic, and ATEX is strategic given Gulf Coast ethane demand.
"We don't view the recent announcements as materially changing how we look at ATEX." — Carrie Weaver
2027 outlook and leverage plans
Q (Spiro Dounis · Citi): Given 2026 outperformance, do you still expect the previously stated 2027 EBITDA endpoint and how should we think about leverage if you fall below your range?
A: Randy said 2027 may be more modest compared with what they will report for 2026, noting uncertainty from geopolitical events. On leverage he said debt/EBITDA is about 2.9x, the balance sheet gives room for M&A, but management prefers deliberate M&A and organic growth and doesn't see a need to push debt much lower.
"2027 may be more modest compared to what we're going to wind up reporting for 2026" — Randy Fowler (CEO)
Bahia expansion timing
Q (Manav Gupta · UBS): Please give an update on the Bahia expansion timing (about one year out). Also, with a strong balance sheet, where might you look for bolt-on M&A if opportunities arise?
A: [Kerry Rossi] said the extension into the Delaware will be in service in fourth quarter 2027 and the 400,000 barrels per day expansion to 1 million barrels per day will start in fourth quarter 2027 and continue through mid-2028, with permanent power being the critical path. Randy said potential bolt-on opportunities could be across the entire value chain and system.
"The expansion of 400,000 barrels a day, stepping us up to 1 million barrels a day, will start in the fourth quarter of 2027 as well and continue through mid-2028." — Speaker 12
Plants per year and LPG contracting
Q (John Mackay · Goldman Sachs): With higher Permian gas growth, will you change your plant build plans? Also, what is the tone on LPG contracting off the Gulf Coast recently?
A: Justin said they historically targeted one to two plants per year and with the higher growth curve they feel more confident being closer to two plants per year; processing capacity growth has tracked production historically one-for-one. Tyler said LPG is highly contracted—about 90% through the end of the decade—and customers cite energy security, U.S. production confidence, and EPD's scale and flexibility as drivers of interest.
"Certainly with the higher growth curve, we feel more confident that we're going to be closer to the two per year." — Justin Kleiderer
Frac plants and market share
Q (Julien Dumoulin-Smith · Jefferies): Will you change your fractionalization (frac) plant plan and what lead times apply? Also, do you plan to expand market share materially in the Permian?
A: Zach said they will probably build more fracs, cited Frac 15 coming in 2028, and noted lead times have extended by about six months but they have flexibility across downstream storage and fracs. Justin said they have grown at a 19% CAGR and expect that trend to continue going forward.
"Lead times have been a bit more extended, probably six more months, but we've got a lot of flexibility in our downstream value chain, storage, fracs across South Texas, Louisiana." — Zach Strait
Buybacks and LPG export ramp
Q (Keith Stanley · Wolfe): Will you keep the 55%-60% of cash flow framework for distributions and buybacks next year? And how quickly will the 300,000 barrels per day LPG export expansion ramp and fill?
A: Randy said the target range remains about 55%-60% of adjusted cash flow from operations for distributions and buybacks, and recent returns have been skewed toward distributions. Tyler said the 300,000 barrels per day expansion is fully contracted, they are in early commissioning, expect to commission before year-end, and will flex capacity across three terminals to meet market needs.
"Specifically, 55%-60% of adjusted cash flow from operations for distributions and buybacks." — Randy Fowler (CEO)
Crude trends and petchem outlook
Q (Brandon Bingham · Scotiabank): Why was crude growth modest in your update and is there upside? Also, how sustainable was the petchem segment's improvement this quarter?
A: Jay said crude growth moved up in their dedicated acreage, mainly in the Midland Basin, and trunk line connections with third-party gatherers added about 50,000 barrels per day, so they are seeing growth in both basins. Corey said the forecast change reflected what they see coming out of the rock rather than completion cadence, with more gas at similar crude; Chris said petchem had mixed moves across products but concluded the strength is sustainable.
"It was a change in what we're seeing coming out of the rock." — Corey Johnson
Permian gas step-up and long-term forecast
Q (Jason Gabelman · TD Cowen): What drove the quarter step-up in inlet volumes without new plants—ramp, others offloading, or something else? And did the new pipeline build-out factor into your long-term dry gas forecast?
A: Justin said quarter-over-quarter they were up about 13% in the Delaware and just over 10% in the Midland, driven by a combination of production returning after economic shut-ins (~200 a day) and organic acreage completions. Corey said their long-term outlook is bottom-up from the rock and customer conversations, that producers now see more takeaway capacity which will factor into recalibrating the 2027 forecast, and they plan to update that in the March/April timeframe.
"I think quarter-over-quarter, we're up 13% in the Delaware and just over 10 in the Midland." — Justin Kleiderer