UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___.

Commission file number: 1-14323

ENTERPRISE PRODUCTS PARTNERS L.P.

(Exact Name of Registrant as Specified in Its Charter)

Delaware			76-0568219
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

(Address of Principal Executive Offices, including Zip Code)

(713) 381-6500

(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange On Which Registered
Common Units	EPD	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were 2,171,558,354 common units of Enterprise Products Partners L.P. outstanding at the close of business on April 30, 2024.

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ENTERPRISE PRODUCTS PARTNERS L.P.

TABLE OF CONTENTS

		Page No.
PART I. FINANCIAL INFORMATION.
Item 1.	Financial Statements.
	Unaudited Condensed Consolidated Balance Sheets	2
	Unaudited Condensed Statements of Consolidated Operations	3
	Unaudited Condensed Statements of Consolidated Comprehensive Income	4
	Unaudited Condensed Statements of Consolidated Cash Flows	5
	Unaudited Condensed Statements of Consolidated Equity	6
	Notes to Unaudited Condensed Consolidated Financial Statements:
	1. Partnership Organization and Operations	8
	2. Summary of Significant Accounting Policies	9
	3. Inventories	9
	4. Property, Plant and Equipment	10
	5. Investments in Unconsolidated Affiliates	11
	6. Intangible Assets and Goodwill	12
	7. Debt Obligations	13
	8. Capital Accounts	15
	9. Revenues	18
	10. Business Segments and Related Information	20
	11. Earnings Per Unit	24
	12. Equity-Based Awards	24
	13. Hedging Activities and Fair Value Measurements	26
	14. Related Party Transactions	32
	15. Income Taxes	33
	16. Commitments and Contingent Liabilities	35
	17. Supplemental Cash Flow Information	36
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	59
Item 4.	Controls and Procedures.	61

PART II. OTHER INFORMATION.
Item 1.	Legal Proceedings.	62
Item 1A.	Risk Factors.	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	63
Item 3.	Defaults Upon Senior Securities.	64
Item 4.	Mine Safety Disclosures.	64
Item 5.	Other Information.	64
Item 6.	Exhibits.	64

Signatures		73

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PART I. FINANCIAL INFORMATION.

ITEM 1. FINANCIAL STATEMENTS.

ENTERPRISE PRODUCTS PARTNERS L.P.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

	March 31, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	283		$	180
Restricted cash		101			140
Accounts receivable – trade, net of allowance for credit losses of $35 at March 31, 2024 and December 31, 2023		7,592			7,765
Accounts receivable – related parties		6			7
Inventories (see Note 3)		3,257			3,352
Derivative assets (see Note 13)		323			347
Prepaid and other current assets		531			457
Total current assets		12,093			12,248
Property, plant and equipment, net (see Note 4)		46,431			45,804
Investments in unconsolidated affiliates (see Note 5)		2,321			2,330
Intangible assets, net (see Note 6)		3,720			3,770
Goodwill (see Note 6)		5,608			5,608
Other assets		1,200			1,222
Total assets	$	71,373		$	70,982

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of debt (see Note 7)	$	1,149		$	1,300
Accounts payable – trade		1,372			1,195
Accounts payable – related parties		82			199
Accrued product payables		9,297			8,911
Accrued interest		254			455
Derivative liabilities (see Note 13)		332			396
Other current liabilities		544			675
Total current liabilities		13,030			13,131
Long-term debt (see Note 7)		28,285			27,448
Deferred tax liabilities (see Note 15)		620			611
Other long-term liabilities		912			984
Commitments and contingent liabilities (see Note 16)
Redeemable preferred limited partner interests: (see Note 8)
Series A cumulative convertible preferred units (“preferred units”) (50,412 units outstanding at March 31, 2024 and December 31, 2023)		49			49
Equity: (see Note 8)
Partners’ equity:
Common limited partner interests (2,171,558,354 units issued and outstanding at March 31, 2024, 2,168,245,238 units issued and outstanding at December 31, 2023)		28,831			28,663
Treasury units, at cost		(1,297	)		(1,297	)
Accumulated other comprehensive income		143			307
Total partners’ equity		27,677			27,673
Noncontrolling interests in consolidated subsidiaries		800			1,086
Total equity		28,477			28,759
Total liabilities, preferred units, and equity	$	71,373		$	70,982

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ENTERPRISE PRODUCTS PARTNERS L.P.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS

(Dollars in millions, except per unit amounts)

	For the Three Months Ended March 31,
	2024			2023
Revenues:
Third parties	$	14,745		$	12,431
Related parties		15			13
Total revenues (see Note 9)		14,760			12,444
Costs and expenses:
Operating costs and expenses:
Third party and other costs		12,591			10,432
Related parties		383			325
Total operating costs and expenses		12,974			10,757
General and administrative costs:
Third party and other costs		22			23
Related parties		44			34
Total general and administrative costs		66			57
Total costs and expenses (see Note 10)		13,040			10,814
Equity in income of unconsolidated affiliates		102			104
Operating income		1,822			1,734
Other income (expense):
Interest expense		(331	)		(314	)
Interest income		13			12
Total other expense, net		(318	)		(302	)
Income before income taxes		1,504			1,432
Provision for income taxes (see Note 15)		(21	)		(10	)
Net income		1,483			1,422
Net income attributable to noncontrolling interests		(26	)		(31	)
Net income attributable to preferred units		(1	)		(1	)
Net income attributable to common unitholders	$	1,456		$	1,390

Earnings per unit: (see Note 11)
Basic and diluted earnings per common unit	$	0.66		$	0.63

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ENTERPRISE PRODUCTS PARTNERS L.P.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED

COMPREHENSIVE INCOME

(Dollars in millions)

	For the Three Months Ended March 31,
	2024			2023

Net income	$	1,483		$	1,422
Other comprehensive income (loss):
Cash flow hedges: (see Note 13)
Commodity hedging derivative instruments:
Changes in fair value of cash flow hedges		(162	)		(89	)
Reclassification of gains to net income		(2	)		(32	)
Interest rate hedging derivative instruments:
Changes in fair value of cash flow hedges		2			(5	)
Reclassification of losses (gains) to net income		(2	)		2
Total cash flow hedges		(164	)		(124	)
Total other comprehensive loss		(164	)		(124	)
Comprehensive income		1,319			1,298
Comprehensive income attributable to noncontrolling interests		(26	)		(31	)
Comprehensive income attributable to preferred units		(1	)		(1	)
Comprehensive income attributable to common unitholders	$	1,292		$	1,266

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ENTERPRISE PRODUCTS PARTNERS L.P.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(Dollars in millions)

	For the Three Months Ended March 31,
	2024			2023
Operating activities:
Net income	$	1,483		$	1,422
Reconciliation of net income to net cash flows provided by operating activities:
Depreciation and accretion		488			454
Amortization of intangible assets		50			46
Amortization of major maintenance costs for reaction-based plants		13			14
Other amortization expense		65			53
Impairment of assets other than goodwill		20			13
Equity in income of unconsolidated affiliates		(102	)		(104	)
Distributions received from unconsolidated affiliates attributable to earnings		97			104
Net gains attributable to asset sales and related matters		–			(2	)
Deferred income tax expense		9			3
Change in fair market value of derivative instruments		4			3
Non-cash expense related to long-term operating leases (see Note 16)		20			16
Net effect of changes in operating accounts (see Note 17)		(36	)		(439	)
Net cash flows provided by operating activities		2,111			1,583
Investing activities:
Capital expenditures		(1,047	)		(653	)
Distributions received from unconsolidated affiliates attributable to the return of capital		15			15
Proceeds from asset sales and other matters		2			2
Other investing activities		(8	)		(1	)
Cash used in investing activities		(1,038	)		(637	)
Financing activities:
Borrowings under debt agreements		14,328			8,321
Repayments of debt		(13,632	)		(8,018	)
Debt issuance costs		(18	)		(17	)
Monetization of interest rate derivative instruments		(29	)		21
Cash distributions paid to common unitholders (see Note 8)		(1,117	)		(1,064	)
Cash payments made in connection with distribution equivalent rights		(10	)		(9	)
Cash distributions paid to noncontrolling interests		(38	)		(42	)
Cash contributions from noncontrolling interests		8			4
Repurchase of common units under 2019 Buyback Program		(40	)		(17	)
Acquisition of noncontrolling interests		(400	)		–
Other financing activities		(61	)		(55	)
Cash used in financing activities		(1,009	)		(876	)
Net change in cash and cash equivalents, including restricted cash		64			70
Cash and cash equivalents, including restricted cash, at beginning of period		320			206
Cash and cash equivalents, including restricted cash, at end of period	$	384		$	276

See Notes to Unaudited Condensed Consolidated Financial Statements.

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ENTERPRISE PRODUCTS PARTNERS L.P.

UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY

(Dollars in millions)

	Partners’ Equity
	Common Limited Partner Interests			Treasury Units			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests in Consolidated Subsidiaries			Total
Balance, December 31, 2023	$	28,663		$	(1,297	)	$	307		$	1,086		$	28,759
Net income		1,456			–			–			26			1,482
Cash distributions paid to common unitholders		(1,117	)		–			–			–			(1,117	)
Cash payments made in connection with distribution equivalent rights		(10	)		–			–			–			(10	)
Cash distributions paid to noncontrolling interests		–			–			–			(38	)		(38	)
Cash contributions from noncontrolling interests		–			–			–			8			8
Repurchase and cancellation of common units under 2019 Buyback Program		(40	)		–			–			–			(40	)
Amortization of fair value of equity-based awards		56			–			–			–			56
Acquisition of noncontrolling interests		(118	)		–			–			(282	)		(400	)
Cash flow hedges		–			–			(164	)		–			(164	)
Other, net		(59	)		–			–			–			(59	)
Balance, March 31, 2024	$	28,831		$	(1,297	)	$	143		$	800		$	28,477

	Partners’ Equity
	Common Limited Partner Interests			Treasury Units			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interests in Consolidated Subsidiaries			Total
Balance, December 31, 2022	$	27,555		$	(1,297	)	$	365		$	1,079		$	27,702
Net income		1,390			–			–			31			1,421
Cash distributions paid to common unitholders		(1,064	)		–			–			–			(1,064	)
Cash payments made in connection with distribution equivalent rights		(9	)		–			–			–			(9	)
Cash distributions paid to noncontrolling interests		–			–			–			(42	)		(42	)
Cash contributions from noncontrolling interests		–			–			–			4			4
Repurchase and cancellation of common units under 2019 Buyback Program		(17	)		–			–			–			(17	)
Amortization of fair value of equity-based awards		41			–			–			–			41
Cash flow hedges		–			–			(124	)		–			(124	)
Other, net		(53	)		–			–			–			(53	)
Balance, March 31, 2023	$	27,843		$	(1,297	)	$	241		$	1,072		$	27,859

See Notes to Unaudited Condensed Consolidated Financial Statements. For information regarding Unit History,

Accumulated Other Comprehensive Income (Loss), see Note 8.

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ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

KEY REFERENCES USED IN THESE

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unless the context requires otherwise, references to “we,” “us” or “our” within these Notes to Unaudited Condensed Consolidated Financial Statements are intended to mean the business and operations of Enterprise Products Partners L.P. and its consolidated subsidiaries.

References to the “Partnership” or “Enterprise” mean Enterprise Products Partners L.P. on a standalone basis.

References to “EPO” mean Enterprise Products Operating LLC, which is an indirect wholly owned subsidiary of the Partnership, and its consolidated subsidiaries, through which the Partnership conducts its business. We are managed by our general partner, Enterprise Products Holdings LLC (“Enterprise GP”), which is a wholly owned subsidiary of Dan Duncan LLC, a privately held Texas limited liability company.

The membership interests of Dan Duncan LLC are owned by a voting trust, the current trustees (“DD LLC Trustees”) of which are: (i) Randa Duncan Williams, who is also a director and Chairman of the Board of Directors of Enterprise GP (the “Board”); (ii) Richard H. Bachmann, who is also a director and Vice Chairman of the Board; and (iii) W. Randall Fowler, who is also a director and a Co-Chief Executive Officer of Enterprise GP. Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as managers of Dan Duncan LLC.

References to “EPCO” mean Enterprise Products Company, a privately held Texas corporation, and its privately held affiliates. The outstanding voting capital stock of EPCO is owned by a voting trust, the current trustees (“EPCO Trustees”) of which are: (i) Ms. Duncan Williams, who serves as Chairman of EPCO; (ii) Mr. Bachmann, who serves as the President and Chief Executive Officer of EPCO; and (iii) Mr. Fowler, who serves as an Executive Vice President and the Chief Financial Officer of EPCO. Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as directors of EPCO.

We, Enterprise GP, EPCO and Dan Duncan LLC are affiliates under the collective common control of the DD LLC Trustees and the EPCO Trustees. EPCO, together with its privately held affiliates, owned approximately 32.3% of the Partnership’s common units outstanding at March 31, 2024.

With the exception of per unit amounts, or as noted within the context of each disclosure,

the dollar amounts presented in the tabular data within these disclosures are

stated in millions of dollars.

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ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Partnership Organization and Operations

We are a publicly traded Delaware limited partnership, the common units of which are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “EPD.” Our preferred units are not publicly traded. We were formed in April 1998 to own and operate certain natural gas liquids (“NGLs”) related businesses of EPCO and are a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals and refined products. We are owned by our limited partners (preferred and common unitholders) from an economic perspective. Enterprise GP, which owns a non-economic general partner interest in us, manages our Partnership. We conduct substantially all of our business operations through EPO and its consolidated subsidiaries.

Our fully integrated, midstream energy asset network (or “value chain”) links producers of natural gas, NGLs and crude oil from some of the largest supply basins in the United States (“U.S.”), Canada and the Gulf of Mexico with domestic consumers and international markets. Our midstream energy operations include:

•

natural gas gathering, treating, processing, transportation and storage;

•

NGL transportation, fractionation, storage, and marine terminals (including those used to export liquefied petroleum gases (“LPG”) and ethane);

•

crude oil gathering, transportation, storage, and marine terminals;

•

propylene production facilities (including propane dehydrogenation (“PDH”) facilities), butane isomerization, octane enhancement, isobutane dehydrogenation (“iBDH”) and high purity isobutylene (“HPIB”) production facilities;

•

petrochemical and refined products transportation, storage, and marine terminals (including those used to export ethylene and polymer grade propylene (“PGP”)); and

•

a marine transportation business that operates on key U.S. inland and intracoastal waterway systems.

Like many publicly traded partnerships, we have no employees. All of our management, administrative and operating functions are performed by employees of EPCO pursuant to an administrative services agreement (the “ASA”) or by other service providers. See Note 14 for information regarding related party matters.

Our results of operations for the three months ended March 31, 2024 are not necessarily indicative of results expected for the full year of 2024. In our opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments consisting of normal recurring accruals necessary for fair presentation. Although we believe the disclosures in these financial statements are adequate and make the information presented not misleading, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”).

These Unaudited Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with the Audited Consolidated Financial Statements and Notes thereto included in our annual report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”) filed with the SEC on February 28, 2024.

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ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2. Summary of Significant Accounting Policies

Apart from those matters described in this footnote, there have been no updates to our significant accounting policies since those reported under Note 2 of the 2023 Form 10-K.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the Unaudited Condensed Consolidated Balance Sheets that sum to the total of the amounts shown in the Unaudited Condensed Statements of Consolidated Cash Flows.

	March 31, 2024		December 31, 2023
Cash and cash equivalents	$	283	$	180
Restricted cash		101		140
Total cash, cash equivalents and restricted cash shown in the Unaudited Condensed Statements of Consolidated Cash Flows	$	384	$	320

Restricted cash primarily represents amounts held in segregated bank accounts by our clearing brokers as margin in support of our commodity derivative instruments portfolio and related physical purchases and sales of natural gas, NGLs, crude oil, refined products and power. Additional cash may be restricted to maintain our commodity derivative instruments portfolio as prices fluctuate or margin requirements change. See Note 13 for information regarding our derivative instruments and hedging activities.

Note 3. Inventories

Our inventory amounts by product type were as follows at the dates indicated:

	March 31, 2024		December 31, 2023
NGLs	$	2,157	$	2,392
Petrochemicals and refined products		345		536
Crude oil		752		419
Natural gas		3		5
Total	$	3,257	$	3,352

Due to fluctuating commodity prices, we recognize lower of cost or net realizable value adjustments when the carrying value of our available-for-sale inventories exceeds their net realizable value. The following table presents our total cost of sales amounts and lower of cost or net realizable value adjustments for the periods indicated:

	For the Three Months Ended March 31,
	2024			2023
Cost of sales (1)		$	11,405		$	9,331
Lower of cost or net realizable value adjustments recognized in cost of sales			1			7

(1)	Cost of sales is a component of “Operating costs and expenses” as presented on our Unaudited Condensed Statements of Consolidated Operations. Fluctuations in these amounts are primarily due to changes in energy commodity prices and sales volumes associated with our marketing activities.

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ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 4. Property, Plant and Equipment

The historical costs of our property, plant and equipment and related balances were as follows at the dates indicated:

	Estimated Useful Life in Years		March 31, 2024		December 31, 2023
Plants, pipelines and facilities (1)(5)		3-45	$	58,900	$	57,983
Underground and other storage facilities (2)(6)		5-40		4,532		4,401
Transportation equipment (3)		3-10		250		242
Marine vessels (4)		15-30		932		935
Land				412		411
Construction in progress				2,228		2,245
Subtotal				67,254		66,217
Less accumulated depreciation				20,931		20,462
Subtotal property, plant and equipment, net				46,323		45,755
Capitalized major maintenance costs for reaction-based plants, net of accumulated amortization (7)				108		49
Property, plant and equipment, net			$	46,431	$	45,804

(1)	Plants, pipelines and facilities include distillation-based and reaction-based plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets.
(2)	Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3)	Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(4)	Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(5)	In general, the estimated useful lives of major assets within this category are: distillation-based and reaction-based plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years.
(6)	In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
(7)	For reaction-based plants, we use the deferral method when accounting for major maintenance activities. Under the deferral method, major maintenance costs are capitalized and amortized over the period until the next major overhaul project. On a weighted-average basis, the expected remaining amortization period for these costs is 3.0 years.

Property, plant and equipment at March 31, 2024 and December 31, 2023 includes $108 million and $109 million, respectively, of asset retirement costs capitalized as an increase in the associated long-lived asset.

The following table presents information regarding our asset retirement obligations, or AROs, since December 31, 2023:

ARO liability balance, December 31, 2023	$	225
Liabilities incurred (1)		–
Revisions in estimated cash flows (2)		–
Liabilities settled (3)		–
Accretion expense (4)		3
ARO liability balance, March 31, 2024	$	228

(1)	Represents the initial recognition of estimated ARO liabilities during period.
(2)	Represents subsequent adjustments to estimated ARO liabilities during period.
(3)	Represents cash payments to settle ARO liabilities during period.
(4)	Represents net change in ARO liability balance attributable to the passage of time and other adjustments, including true-up amounts associated with revised closure estimates.

Of the $228 million total ARO liability recorded at March 31, 2024, $4 million was reflected as a current liability and $224 million as a long-term liability.

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ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:

	For the Three Months Ended March 31,
	2024			2023
Depreciation expense (1)		$	485		$	450
Capitalized interest (2)			25			32

(1)

Depreciation expense is a component of “Costs and expenses” as presented on our Unaudited Condensed Statements of Consolidated Operations.

(2)

We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life as a component of depreciation expense. When capitalized interest is recorded, it reduces interest expense from what it would be otherwise.

Note 5. Investments in Unconsolidated Affiliates

The following table presents our investments in unconsolidated affiliates by business segment at the dates indicated. We account for these investments using the equity method.

	March 31, 2024		December 31, 2023
NGL Pipelines & Services	$	610	$	612
Crude Oil Pipelines & Services		1,674		1,681
Natural Gas Pipelines & Services		34		33
Petrochemical & Refined Products Services		3		4
Total	$	2,321	$	2,330

The following table presents our equity in income of unconsolidated affiliates by business segment for the periods indicated:

	For the Three Months Ended March 31,
	2024		2023
NGL Pipelines & Services	$	31	$	39
Crude Oil Pipelines & Services		69		64
Natural Gas Pipelines & Services		2		1
Petrochemical & Refined Products Services		–		–
Total	$	102	$	104

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ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 6. Intangible Assets and Goodwill

Identifiable Intangible Assets

The following table summarizes our intangible assets by business segment at the dates indicated:

	March 31, 2024							December 31, 2023
	Gross Value		Accumulated Amortization			Carrying Value		Gross Value		Accumulated Amortization			Carrying Value
NGL Pipelines & Services:
Customer relationship intangibles	$	449	$	(267	)	$	182	$	449	$	(263	)	$	186
Contract-based intangibles		752		(116	)		636		752		(110	)		642
Segment total		1,201		(383	)		818		1,201		(373	)		828
Crude Oil Pipelines & Services:
Customer relationship intangibles		2,195		(555	)		1,640		2,195		(530	)		1,665
Contract-based intangibles		283		(275	)		8		283		(275	)		8
Segment total		2,478		(830	)		1,648		2,478		(805	)		1,673
Natural Gas Pipelines & Services:
Customer relationship intangibles		1,351		(634	)		717		1,351		(625	)		726
Contract-based intangibles		641		(213	)		428		641		(209	)		432
Segment total		1,992		(847	)		1,145		1,992		(834	)		1,158
Petrochemical & Refined Products Services:
Customer relationship intangibles		181		(87	)		94		181		(86	)		95
Contract-based intangibles		45		(30	)		15		45		(29	)		16
Segment total		226		(117	)		109		226		(115	)		111
Total intangible assets	$	5,897	$	(2,177	)	$	3,720	$	5,897	$	(2,127	)	$	3,770

The following table presents the amortization expense of our intangible assets by business segment for the periods indicated:

	For the Three Months Ended March 31,
	2024		2023
NGL Pipelines & Services	$	10	$	9
Crude Oil Pipelines & Services		25		23
Natural Gas Pipelines & Services		13		12
Petrochemical & Refined Products Services		2		2
Total	$	50	$	46

The following table presents our forecast of amortization expense associated with existing intangible assets for the periods indicated:

Remainder of 2024				2025				2026				2027				2028
$	160			$	208			$	203			$	185			$	180

Goodwill

Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in the transaction. There has been no change in our goodwill amounts since those reported in our 2023 Form 10-K.

Table of Contents

ENTERPRISE PRODUCTS PARTNERS L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 7. Debt Obligations

The following table presents our consolidated debt obligations (arranged by company and maturity date) at the dates indicated:

	March 31, 2024		December 31, 2023
EPO senior debt obligations:
Commercial Paper Notes, variable-rates	$	–	$	450
Senior Notes JJ, 3.90% fixed-rate, due February 2024		–		850
Senior Notes MM, 3.75% fixed-rate, due February 2025		1,150		1,150
March 2024 $1.5 Billion 364-Day Revolving Credit Agreement, variable-rate, due March 2025 (1)		–		–
Senior Notes FFF, 5.05% fixed-rate, due January 2026		750		750
Senior Notes PP,