Enterprise Posts $1.6 Billion in Third-Quarter Net Income, Up 21%
Key Facts
Enterprise Products Partners reported third-quarter 2026 results on October 29, posting net income attributable to common unitholders of $1.6 billion, or $0.75 per diluted common unit, up 21% year over year, according to a summary of the results statement published by Business Wire. Adjusted EBITDA was $2.8 billion, up 16% from the third quarter of 2025. Distributable cash flow reached $2.3 billion, up 27%, and covered declared distributions 1.9 times. The figures put income, cash flow and coverage growth at the center of the company's results, alongside its cash distributions and unit repurchases during the period.
Operationally, equivalent pipeline transportation volumes reached 14.8 million barrels per day, a third-quarter record, according to EL7 data. The company provides midstream infrastructure services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals, with operations that include transportation, storage and processing. The record figure puts operating activity volumes alongside earnings and cash flow growth in the same period. These volumes are part of the company's energy infrastructure services activity in North America. The results summary provided no breakdown linking the change in transportation volumes to the contributions of individual businesses.
The partnership declared a quarterly cash distribution of $0.56 per unit for the third quarter, equivalent to $2.24 on an annualized basis, up 2.8% from the corresponding period in 2025, according to the company statement. The distribution is scheduled to be paid on November 13 to unitholders of record at the close of business on October 30. In addition to the distribution, the company repurchased about $112 million of common units during the third quarter. Those purchases brought total repurchases since the start of 2026 to $387 million, or about 36% of its authorized $5.0 billion repurchase program. The announcement thus combines the cash distribution and unit repurchases as two avenues of the capital returns disclosed for the period.
Second-quarter results provide context for comparison within 2026; the company then reported record net income of $1.8 billion, or $0.84 per diluted common unit, up 28% from the second quarter of 2025. Adjusted EBITDA also reached a record $2.8 billion, up 17% year over year. Distributable cash flow in that quarter was $2.3 billion and covered distributions 1.9 times, with the company retaining $1.1 billion of it. The comparison shows that third-quarter adjusted EBITDA matched the second-quarter record, while third-quarter net income came in below the second-quarter figure. Third-quarter net income growth was 21% year over year, compared with 28% in the second quarter.
The figures reflect the continued allocation of cash flow to distributions, reinvestment and unit repurchases, uses also seen in earlier disclosures. In the second quarter, unit purchases totaled $159 million, while purchases for the twelve months ended June 30 reached $405 million; distributions and repurchases amounted to 56% of adjusted operating cash flow during that period. In the first quarter, the company posted net income of $1.5 billion and adjusted EBITDA of $2.7 billion, while distributable cash flow was $2.1 billion and covered distributions 1.8 times. Jim Teague, then co-chief executive officer, said the company recorded 12 operational records in the first quarter. He added that cash flow allowed it to retain $1.5 billion for reinvestment and fund $116 million in unit repurchases.
The company announced plans in the second quarter to build a new natural gas liquids fractionator with capacity of 150,000 barrels per day and two gas processing plants, each with capacity of 300 million cubic feet per day. It expected the Delaware Basin plant to begin operations in the third quarter of 2028 and the Midland Basin plant in the first quarter of 2029. The projects form part of the company's future plans to expand fractionation and gas processing capacity, alongside its existing transportation, storage and processing operations. The conference call for analysts and investors to discuss third-quarter results was scheduled in the company's announcement for 9 a.m. Central time on October 29, after the results were released. The results announcement has therefore taken place, while future dates listed in the materials included the distribution payment on November 13 and the planned start of operations at the facilities in 2028 and 2029.