Enterprise Products Partners L.P. reported third-quarter 2026 gross operating margin of $2.735 billion, up $350 million from a year earlier, as stronger natural gas liquids operations accounted for most of the increase. The result was below the second quarter’s $2.991 billion, primarily reflecting weaker contributions from crude oil and natural gas activities, including changes in mark-to-market results.
Gross operating margin, or GOM, is a non-GAAP measure. The presentation did not provide quarterly net income, revenue or distributable cash flow.
NGL operations lead year-over-year growth
The NGL segment generated GOM of $1.535 billion, up $232 million from the third quarter of 2025. NGL marketing benefited from higher average sales margins associated with Enterprise’s export and natural gas processing assets, while fractionation results increased on higher volumes from Fractionator 14, which entered service in the fourth quarter of 2025.
Delaware Basin processing also contributed to the gain, supported by a 359 MMcf/d increase in fee-based processing volumes and a 6 MBPD rise in equity NGL-equivalent production. Export-related GOM increased following completion of the second phase of the Neches River Terminal in May 2026, although higher operating costs partly offset the benefit.
Natural gas segment GOM rose $72 million year over year to $411 million. Higher marketing margins and increased activity on the Delaware Basin Gathering System supported the improvement. Delaware gathering volumes increased by 423 BBtus/d, alongside higher average gathering fees and treating and other revenue.
Petrochemical and refined-products GOM increased $60 million to $430 million. Enterprise attributed the improvement partly to higher octane-additive sales volumes driven by international demand and to increased refined-products marketing volumes.
Crude oil segment GOM was nearly unchanged at $367 million, compared with $371 million a year earlier. Higher loading and other revenue at the Enterprise Hydrocarbons Terminal was offset by higher operating costs across Texas crude oil pipelines, related terminals and marketing activities.
Quarterly comparison reflects weaker crude oil and gas results
Compared with the second quarter of 2026, total GOM declined by $256 million. Natural gas segment GOM fell $145 million, including a shift to a $26 million mark-to-market loss from an $89 million gain in the prior quarter. Natural gas marketing margins also decreased, while lower average transportation fees weighed on the Texas Intrastate System despite a 537 BBtus/d increase in volumes.
Crude oil GOM declined by $118 million sequentially. Texas pipeline, terminal and marketing results were affected by lower average sales margins and higher operating costs. Seaway Pipeline GOM also decreased as net transportation volumes fell by 116 MBPD and loading and other fee revenue declined.
NGL segment GOM was down $10 million from the second quarter, as weaker Midland Basin processing margins and higher costs at the Mont Belvieu fractionation complex offset volume gains elsewhere. Petrochemical and refined-products GOM increased $12 million sequentially, supported by octane enhancement, refined-products marketing and the TE Products Pipeline System. Lower propylene processing revenue and reduced ethylene export volumes partly offset those gains.
Capital returns and project spending
Enterprise declared a third-quarter distribution of $0.56 per unit, 2.8% above the year-earlier period, and repurchased $112 million of common units during the quarter. Buybacks totaled $437 million for the trailing 12 months, while distributions and repurchases together returned $5.3 billion to unitholders over that period. The trailing-12-month adjusted cash flow from operations payout ratio was 54%.
The partnership reported a leverage ratio of 2.9 times as of September 30, within its target range of 3.0 times, plus or minus 0.25 times. Available credit capacity and unrestricted cash provided $4.8 billion of liquidity.
Enterprise expects 2026 organic growth capital spending, net of approximately $600 million of asset-sale proceeds, to range from $2.9 billion to $3.4 billion. Sustaining capital expenditures are expected to be about $650 million. The partnership indicated that 2027 growth spending would be around $3 billion.
Major projects under construction had a combined value of $6.3 billion. The Athena gas processing plant and a 300 MBPD expansion of LPG loading capacity at the Enterprise Hydrocarbons Terminal are scheduled to enter service in the fourth quarter of 2026. Other projects include additional Permian processing plants, the Bahia Pipeline expansion and extension, and Fractionator 15.
Enterprise’s October 2026 forecast projects Permian production growth through 2030, with total natural gas rising to 38.6 Bcf/d from 28.7 Bcf/d in 2025 and NGL production reaching 5.2 MMBPD from 3.8 MMBPD. The company expects crude oil production to reach 7.6 MMBPD in 2030 from 6.5 MMBPD in 2025, with increasing gas-to-oil ratios leaving its crude outlook relatively unchanged from the April forecast.
The partnership cautioned that its forward-looking expectations remain subject to risks including insufficient operating cash flow, adverse market conditions, regulation, competition and potentially higher taxes, costs or project-related difficulties. Actual capital spending, project timing and production forecasts may therefore differ from current estimates.
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