Enterprise Declares Quarterly Distribution

Rhea-AI Summary

Enterprise Products Partners (NYSE: EPD) has declared a quarterly cash distribution of $0.535 per unit for Q4 2024, equivalent to $2.14 annually, representing a 3.9% increase from Q4 2023. The distribution will be paid on February 14, 2025, to unitholders of record as of January 31, 2025.

The company repurchased $63 million of common units during Q4 2024, bringing the total 2024 repurchases to $219 million. EPD has now utilized approximately 57% of its authorized $2.0 billion buyback program. The company will announce Q4 2024 earnings on February 4, 2025, before NYSE trading opens, followed by an analyst conference call.

Positive

• Quarterly distribution increased by 3.9% year-over-year
• Continued execution of share buyback program with $219 million in repurchases during 2024
• Strong capital return program with both distributions and buybacks

Negative

• None.

Insights

Financial Analyst

EPD's latest quarterly distribution announcement reveals strategic financial moves that strengthen unitholder value. The $0.535 per unit distribution marks a 3.9% year-over-year increase, demonstrating robust cash flow generation and commitment to distribution growth. The $63 million unit repurchase in Q4, bringing 2024's total to $219 million, represents aggressive capital return optimization. With 57% of the $2.0 billion buyback program utilized, management shows confidence in the partnership's financial health and valuation.

The combined distribution increase and buyback strategy indicates EPD's strong operational performance and financial flexibility. For income-focused investors, the annualized $2.14 per unit distribution provides an attractive yield while the ongoing buyback program supports unit price stability by reducing float. The partnership's extensive infrastructure portfolio, including over 50,000 miles of pipelines and substantial storage capacity, continues generating stable cash flows supporting these unitholder-friendly policies.

Market Research Analyst

The distribution increase signals EPD's competitive positioning in the midstream energy sector. As one of North America's largest energy infrastructure operators, the partnership's diverse asset base spanning natural gas, NGLs, crude oil and petrochemicals provides multiple revenue streams and operational stability. The steady distribution growth trajectory, supported by significant buyback activity, positions EPD favorably against peers in attracting yield-seeking investors.

In simpler terms, think of EPD as a toll collector for energy products - they get paid for moving and storing various forms of energy, regardless of commodity price fluctuations. The increased 'toll payments' to investors (distributions) and buying back 'toll collector rights' (units) shows business is good and management believes their units are undervalued. For retail investors, this combination of growing income and management's vote of confidence through buybacks presents a compelling investment case in the midstream energy sector.

HOUSTON--(BUSINESS WIRE)-- Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) announced today that the board of directors of its general partner declared a quarterly cash distribution to be paid to Enterprise common unitholders with respect to the fourth quarter of 2024 of $0.535 per unit, or $2.14 per unit on an annualized basis.

The quarterly distribution will be paid Friday, February 14, 2025, to common unitholders of record as of the close of business Friday, January 31, 2025. This distribution represents a 3.9 percent increase over the distribution declared with respect to the fourth quarter of 2023.

Enterprise repurchased $63 million of its common units in the open market during the fourth quarter of 2024, bringing total common unit repurchases in 2024 to $219 million. Inclusive of these purchases, the partnership has utilized approximately 57 percent of its authorized $2.0 billion buyback program.

Enterprise will announce its earnings for the fourth quarter of 2024 on Tuesday, February 4, 2025, before the New York Stock Exchange opens for trading. Following the announcement, the partnership will host a conference call at 9 a.m. CST with analysts and investors to discuss earnings. The call will be webcast live on the Internet and may be accessed through the “Investors” section of the partnership’s website at www.enterpriseproducts.com. A replay of the webcast will be available following the conference call and may be accessed approximately one hour after completion of the call.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity.

Qualified Notice for Non-U.S. Unitholder Income Tax Withholding

This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent of Enterprise’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Enterprise’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Enterprise Products Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and its general partner expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Enterprise’s reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250108715158/en/

Libby Strait, Investor Relations (713) 381-4754 or (866) 230-0745, investor.relations@eprod.com

Rick Rainey, Media Relations (713) 381-3635, RRainey@eprod.com

Source: Enterprise Products Partners L.P.

FAQ

What is Enterprise Products Partners' Q4 2024 distribution amount?

Enterprise Products Partners (EPD) declared a quarterly distribution of $0.535 per unit for Q4 2024, or $2.14 per unit on an annualized basis.

When will EPD pay its Q4 2024 distribution?

EPD will pay its Q4 2024 distribution on February 14, 2025, to unitholders of record as of January 31, 2025.

How much did EPD's distribution increase compared to Q4 2023?

EPD's Q4 2024 distribution represents a 3.9% increase compared to the distribution declared for Q4 2023.

How much did EPD spend on unit repurchases in 2024?

EPD spent $219 million on unit repurchases in 2024, with $63 million of that amount occurring in Q4 2024.

What percentage of EPD's buyback program has been utilized?

EPD has utilized approximately 57% of its authorized $2.0 billion buyback program.

When will EPD announce its Q4 2024 earnings?

EPD will announce its Q4 2024 earnings on Tuesday, February 4, 2025, before the New York Stock Exchange opens for trading.