Enterprise Products Partners (NYSE: EPD) reported Q3 2026 revenue of $17.95 billion, up about 49% from $12.02 billion a year earlier, while diluted earnings per common unit rose to $0.75 from $0.61. Net income attributable to common unitholders increased 21% to $1.62 billion, supported by record system volumes, higher marketing margins and assets placed in service over the prior 12 months. Three of four operating segments increased gross operating margin, while the crude oil segment was nearly flat.
Core Results
Growth extended beyond revenue: non-GAAP total gross operating margin increased 15%, adjusted EBITDA rose 16% and operational distributable cash flow increased 27%. The main drivers were higher processing and export volumes, improved marketing margins and contributions from new capacity, although gross operating margin included a $21 million year-over-year increase in unrealized mark-to-market hedging earnings.
Dollar figures are in millions except per-unit amounts.
| Metric | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| Revenue | $17,948 | $12,023 | About 49% |
| Operating income | $1,990 | $1,686 | About 18% |
| Net income attributable to common unitholders | $1,624 | $1,338 | 21% |
| Diluted earnings per common unit | $0.75 | $0.61 | About 23% |
| Non-GAAP total gross operating margin | $2,735 | $2,385 | 15% |
| Adjusted EBITDA | $2,789 | $2,405 | 16% |
| Operational distributable cash flow | $2,311 | $1,819 | 27% |
| Net cash provided by operating activities | $2,185 | $1,738 | About 26% |
Business and Segment Performance
NGL Pipelines & Services remained Enterprise’s largest contributor and generated the biggest dollar increase in segment gross operating margin. Natural gas and petrochemical services also recorded double-digit growth, while crude oil gross operating margin slipped despite higher pipeline and marine terminal volumes.
| Segment Gross Operating Margin | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| NGL Pipelines & Services | $1,535 million | $1,303 million | About 18% |
| Crude Oil Pipelines & Services | $367 million | $371 million | About 1% lower |
| Natural Gas Pipelines & Services | $411 million | $339 million | About 21% |
| Petrochemical & Refined Products Services | $430 million | $370 million | About 16% |
The NGL segment benefited from several sources. Natural gas processing and related NGL marketing gross operating margin rose to $488 million from $354 million, including a $75 million improvement in NGL marketing from higher average sales margins. Delaware Basin processing added $31 million, while Midland Basin processing contributed another $12 million. NGL fractionation gross operating margin increased to $262 million from $203 million, primarily because Frac 14 entered service in Q4 2025.
Natural Gas Pipelines & Services benefited from a $31 million increase in marketing gross operating margin and a $17 million increase from the Delaware Basin Gathering System. Natural gas pipeline volumes reached a record 22.7 TBtus per day, up 8%.
Petrochemical and refined products growth reflected higher octane additive and refined products sales volumes. In contrast, the crude oil segment’s higher volumes did not produce higher gross operating margin: increased costs across Texas pipelines, terminals and marketing activities more than offset part of the benefit from increased loading at the Enterprise Hydrocarbons Terminal.
System-wide operating volumes were higher. Equivalent pipeline volumes reached a record 14.8 million barrels per day, up 7%, and marine terminal volumes increased 28% to 2.5 million barrels per day. Natural gas processing inlet volumes rose 6% to a record 8.5 Bcf per day, including 12% growth to 4.6 Bcf per day in the Permian Basin.
Revenue Growth Outpaced Profit Growth, but Cash Generation Improved
The 49% revenue increase did not translate proportionally into operating profit. Total costs and expenses rose about 54% to $16.05 billion from $10.43 billion, limiting operating income growth to about 18%. Calculated GAAP operating margin consequently narrowed to approximately 11.1% from 14.0%.
Cash generation nevertheless improved. In addition to the increase in GAAP operating cash flow, adjusted cash flow from operations rose 18% to $2.42 billion. Adjusted free cash flow increased to $1.37 billion from $96 million.
Operational distributable cash flow of $2.31 billion provided 1.9 times coverage of the quarterly distribution, leaving $1.1 billion available for reinvestment, repurchases and debt reduction. Enterprise declared a distribution of $0.56 per common unit, up 2.8%, and repurchased $112 million of common units during the quarter.
Capital investments totaled $1.1 billion, consisting of approximately $0.9 billion for growth projects and $185 million for sustaining expenditures. Debt principal stood at $33.74 billion, slightly below $33.90 billion a year earlier, although quarterly interest expense increased to $385 million from $354 million.
Project and Capital Outlook
Enterprise expects 2026 growth capital spending, net of $600 million in asset-sale proceeds, to be between $2.9 billion and $3.4 billion, with another $650 million allocated to sustaining capital. The release did not provide a previous range, so the direction of any guidance change cannot be assessed.
| Outlook Item | Current Expectation |
|---|---|
| 2026 growth capital spending | $2.9 billion to $3.4 billion, net of $600 million in asset-sale proceeds |
| 2026 sustaining capital spending | $650 million |
| Growth projects under construction | $6.3 billion, entering service between the report date and 2028 |
| Houston Ship Channel LPG terminal expansion | Q4 2026; adds about 300 MBPD of loading capacity for a total of 1.1 MMBPD |
| Athena natural gas processing plant | Q4 2026; 300 MMcf/d of processing capacity and up to 40 MBPD of NGL extraction |
The LPG terminal expansion and Athena plant are the next scheduled completions. Their startup will be an important near-term test of whether Enterprise can convert its construction backlog into additional volumes and cash flow.
Recent Insider Transactions
The most recent insider entry with complete transaction details was an indirect purchase by A. James Teague. A separate six-month summary showed no purchases or sales because this March transaction fell outside that reporting window.
| Date | Insider | Role | Direction | Ownership | Price | Reported Value |
|---|---|---|---|---|---|---|
| March 20, 2026 | A. James Teague | Chief Executive Officer | Purchase | Indirect | $37.55 per share | $100,069 |
The other recent entries provided did not include a transaction direction or value and therefore do not support further conclusions. A single purchase also does not establish management’s broader view of the partnership’s valuation or outlook.
Risks Investors Should Watch
- Cost growth and margin conversion: Total costs and expenses grew faster than revenue, reducing the calculated GAAP operating margin despite higher operating income.
- Crude oil segment cost pressure: Crude oil pipeline and terminal volumes increased, but segment gross operating margin declined because higher operating costs offset the volume benefit.
- Marketing and mark-to-market variability: Part of the quarterly improvement came from higher marketing margins and increased unrealized hedging earnings, which can make period-to-period results less consistent.
- Project execution and financing costs: Enterprise has $6.3 billion of projects under construction and a sizable capital program. Delays, cost increases or weaker project returns could affect cash flow, while interest expense has already risen despite slightly lower debt principal.
Bottom Line
Enterprise’s Q3 2026 results reflected broad volume growth, new infrastructure and higher marketing margins, with the NGL and natural gas segments providing most of the improvement. Cash flow growth and 1.9 times distribution coverage supported ongoing capital investment and unit repurchases, but investors should monitor cost growth, crude oil segment margins, rising interest expense and the scheduled startup of major projects beginning in Q4 2026.
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