Latest news with #AJTeague
Yahoo
6 days ago
- Business
- Yahoo
Enterprise Products Partners to buy Occidental's Midland Basin affiliate
Enterprise Products Partners' affiliates have executed an agreement to acquire a natural gas-gathering affiliate from Occidental. The acquisition includes a long-term dedication of approximately 73,000 acres across four counties in the Midland Basin, with assets comprising around 200 miles (321.8km) of natural gas-gathering pipelines. The pipelines support Occidental's production activities and offer Enterprise more than 1,000 drillable locations, providing long-term development visibility and an immediate expansion of its natural gas-gathering footprint. The $580m debt-free cash deal will also see Enterprise Products build the new Athena natural gas processing plant, enhancing its processing capacity in the region. The Athena plant, which is expected to start service in the fourth quarter of 2026 (Q4 2026), will have the capacity to process 300 million cubic feet per day (mcf/d) of natural gas and extract up to 40,000 barrels per day (bpd) of natural gas liquids (NGLs). Upon completion, Enterprise's Midland Basin assets will be capable of processing 2.2 billion cubic feet per day of natural gas and extracting 310,000bpd of NGLs. Enterprise's general partner co-CEO A.J. Teague said: 'These agreements with Occidental are consistent with Enterprise's focus on expanding our Midland Basin franchise through organic investments in our midstream network and through targeted acquisitions that bolt-on to our existing infrastructure. 'To accommodate production growth in this area of the basin, Enterprise will build its ninth Midland Basin natural gas processing plant and expand its natural gas-gathering system. The Permian Basin is responsible for approximately 90% of domestic liquid hydrocarbons growth and our continued investment in natural gas processing infrastructure supports Enterprise's producer customers and brings additional volume into the company's integrated natural gas liquids value chain.' The strategic investments in the Athena plant and expansions of Enterprise's Midland Basin gathering system are part of the company's estimated growth capital expenditures of $4bn–4.5bn for 2025 and $2.2bn–2.5bn for 2026. The deal is subject to customary regulatory approvals and is expected to close in Q3 2025. In February 2025, Occidental also agreed to divest certain upstream assets for a combined value of $1.2bn. These assets included non-operated assets in the Rockies and select Permian Basin assets not included in Occidental's immediate development plans. "Enterprise Products Partners to buy Occidental's Midland Basin affiliate" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
28-07-2025
- Business
- Yahoo
Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan
Enterprise Products Partners L.P. (NYSE:EPD) on Monday reported second-quarter 2025 earnings that beat analyst expectations on earnings per share but missed on revenue, while setting multiple operating volume records across its midstream network. Enterprise posted earnings of 66 cents per unit, up 3% from 64 cents in the same quarter a year earlier and beating the consensus estimate of 64 cents. However, revenue came in at $11.36 billion, missing analysts' expectations of $14.19 billion. Distributable cash flow (DCF) rose 7% year over year to $1.9 billion, providing 1.6 times coverage of the company's declared $0.545 per-unit distribution, up 3.8% from a year ago. Enterprise retained $748 million of DCF to reinvest in growth. Also Read: Adjusted cash flow from operations remained steady at $2.1 billion, and for the 12 months ended June 30, stood at $8.6 billion. Enterprise repurchased $110 million worth of common units during the quarter and reported a 12-month payout ratio of 57%. View more earnings on EPD 'In a seasonally weaker quarter challenged by macroeconomic and commodity headwinds, Enterprise reported solid earnings and cash flow,' said A. J. 'Jim' Teague, co-chief executive officer of Enterprise's general partner. Operating Records and Segment Highlights Despite broader market challenges, the company set five new operating records: Natural gas processing inlet volumes: 7.8 billion cubic feet per day (Bcf/d), up 3% year over year Natural gas pipeline volumes: 20.4 trillion Btus per day (TBtus/d), up 9% Crude oil pipeline volumes: 2.6 million barrels per day (BPD), a new high Refined products and petrochemical pipelines: 1.0 million BPD Total NGL pipeline volumes: 4.6 million BPD, up 5% Gross operating margin rose to $2.5 billion, up from $2.4 billion in the prior year's quarter. NGL Pipelines & Services held flat at $1.3 billion, with higher pipeline and terminal volumes offsetting lower NGL marketing and Rockies processing margins. Natural Gas Pipelines & Services surged 42% to $417 million, driven by stronger marketing margins, increased Permian volumes, and higher throughput on the Texas Intrastate System. Crude Oil Pipelines & Services fell to $403 million from $417 million, with lower marine terminal volumes and marketing activity partially offset by lower costs and storage revenues. Petrochemical & Refined Products slipped to $354 million from $392 million due to weaker octane enhancement margins, though pipeline volumes hit a record. Enterprise reaffirmed that approximately $6 billion in organic growth projects will enter service in the second half of 2025. These include: Two new Permian gas processing plants, Mentone West 1 and Orion, boosting processing capacity across the Delaware and Midland Basins to over 4.4 Bcf/d. Commissioning of the Neches River Terminal in mid-July, with a 120,000 BPD ethane refrigeration train now operational. Frac 14 and the Bahia NGL pipeline, scheduled to come online in Q4. Enterprise invested $1.3 billion in the second quarter of 2025, including $1.2 billion in growth capital and $117 million in sustaining capex. The company reaffirmed full-year 2025 organic growth capex guidance of $4.0 billion to $4.5 billion and $525 million in sustaining expenditures. As of June 30, the company had total debt of $33.1 billion and consolidated liquidity of $5.1 billion, including credit capacity and unrestricted cash. Price Action: EPD shares are trading lower by 1.38% to $31.12 at last check Monday. Read Next:Photo by sdf_qwe via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? ENTERPRISE PRODS PARTNERS (EPD): Free Stock Analysis Report This article Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
