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What changed in ENTERPRISE PRODUCTS PARTNERS L.P.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of ENTERPRISE PRODUCTS PARTNERS L.P.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+196 added−224 removedSource: 10-K (2025-02-28) vs 10-K (2024-02-28)

Top changes in ENTERPRISE PRODUCTS PARTNERS L.P.'s 2024 10-K

196 paragraphs added · 224 removed · 162 edited across 5 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur overall cybersecurity program is based on various industry-recognized frameworks and standards developed and issued by leading international, domestic and energy-industry standard-setting organizations. 56 Table of Contents As part of our overall cybersecurity strategy, we also engage third-party service providers to: (i) assist in our cybersecurity risk assessment procedures; (ii) perform penetration testing on external facing IT systems; (iii) perform security assessments on our IT and OT systems; (iv) assist in our incident response procedures; and (v) share information on industry-specific cybersecurity threats.
Biggest changeOur overall cybersecurity program is based on various industry-recognized frameworks and standards developed and issued by leading international, domestic and energy-industry standard-setting organizations. 57 Table of Contents As part of our overall cybersecurity strategy, we also engage third-party service providers to: (i) assist in our cybersecurity risk assessment procedures; (ii) perform penetration testing on external facing IT systems; (iii) perform security assessments on our IT and OT systems; (iv) assist in our incident response procedures; and (v) share information on industry-specific cybersecurity threats.
To this end, a number of our Cybersecurity Committee members, particularly the IT and OT representatives, hold one or more industry-recognized information security certifications such as the CISSP, CISM and CISA. 57 Table of Contents
To this end, a number of our Cybersecurity Committee members, particularly the IT and OT representatives, hold one or more industry-recognized information security certifications such as the CISSP, CISM and CISA. 58 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeEPA alleging that gasoline at two of our refined products terminals in Texas had exceeded certain Clean Air Act-related standards during two past regulatory control periods. • In August 2022, we received two Notices of Enforcement from the Texas Commission on Environmental Quality for alleged exceedances of air permit emission limits at our PDH 1 and iBDH facilities in Texas.
Biggest changeEPA alleging that gasoline at two of our refined products terminals in Texas had exceeded certain Clean Air Act-related standards during two past regulatory control periods. • In August 2022, we received two Notices of Enforcement from the Texas Commission on Environmental Quality for alleged exceedances of air permit emission limits at our PDH 1 and iBDH facilities in Texas. • In November 2024 and January 2025, we received notices that the New Mexico Environment Department intended to pursue enforcement for alleged exceedances of emission limits, and alleged associated late emissions reports, at our recently acquired Pinon Midstream treating facility and compressor station on various occasions from 2021 through October 2024 (prior to our acquisition date).
Environmental Protection Agency (“EPA”) in connection with regulatory requirements applicable to facilities that we operate near Baton Rouge, Louisiana. • In July 2021, we received a civil penalty demand from the U.S.
Environmental Protection Agency (“EPA”) in connection with regulatory requirements applicable to facilities that we operate near Baton Rouge, Louisiana. • In August 2022, we received a Notice of Violation from the U.S.
Removed
Department of Justice and the State of Colorado regarding alleged violations of hydrocarbon leak detection and repair regulations applicable to our Meeker gas processing plant in Colorado. • In August 2022, we received a Notice of Violation from the U.S.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe Partnership made quarterly PIK distributions of 18,076, 18,404, 18,737 and 19,077 preferred units to OTA Holdings, Inc. (“OTA”), an indirect, wholly owned subsidiary of the Partnership, in the first, second, third and fourth quarters of 2023, respectively. The preferred units held by OTA are accounted for as treasury units in consolidation.
Biggest changeWith the exception of 90, 92 and 93 preferred units distributed to an unaffiliated third party in the second, third and fourth quarters of 2024, respectively, all of the PIK distributions made during 2024 were to OTA Holdings, Inc. (“OTA”), an indirect, wholly owned subsidiary of the Partnership,.
The issuances of preferred units as PIK distributions during the year ended December 31, 2023 were undertaken in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof. Other than as described above, there were no sales of unregistered equity securities during the fourth quarter of 2023.
The issuances of preferred units as PIK distributions during the year ended December 31, 2024 were undertaken in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof. Other than as described above, there were no sales of unregistered equity securities during the fourth quarter of 2024.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common units are listed on the NYSE under the ticker symbol EPD. As of January 31, 2024, there were approximately 1,802 unitholders of record of our common units.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common units are listed on the NYSE under the ticker symbol EPD. As of January 31, 2025, there were approximately 1,700 unitholders of record of our common units.
We cancelled these units immediately upon acquisition. 59 Table of Contents ITEM 6. RESERVED.
We cancelled these units immediately upon acquisition. 60 Table of Contents ITEM 6. RESERVED.
Units repurchased under this program are cancelled immediately upon acquisition. (2) Of the 24,262 phantom unit awards that vested in November 2023 and converted to common units, 6,197 units were sold back to us by employees to cover related withholding tax requirements. These repurchases are not part of any announced program.
Units repurchased under this program are cancelled immediately upon acquisition. (2) Of the 69,142 phantom unit awards that vested in November 2024 and converted to common units, 17,777 units were sold back to us by employees to cover related withholding tax requirements. These repurchases are not part of any announced program.
For additional information regarding the preferred units, see Note 8 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
The preferred units held by OTA are accounted for as treasury units in consolidation. For additional information regarding the preferred units, see Note 8 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
Issuer Purchases of Equity Securities The following table summarizes our equity repurchase activity during the fourth quarter of 2023: Period Total Number of Units Purchased Average Price Paid per Unit Total Number Of Units Purchased as Part of 2019 Buyback Program Remaining Dollar Amount of Units That May Be Purchased Under the 2019 Buyback Program ($ thousands) 2019 Buyback Program: (1) October 2023 – $ – – $ 1,177,244 November 2023 2,867,527 $ 26.14 2,867,527 $ 1,102,297 December 2023 784,303 $ 26.28 784,303 $ 1,081,686 Vesting of phantom unit awards: November 2023 (2) 6,197 $ 25.98 n/a n/a (1) In January 2019, we announced the 2019 Buyback Program, which authorized the repurchase of up to $2 billion of EPD’s common units.
Issuer Purchases of Equity Securities The following table summarizes our equity repurchase activity during the fourth quarter of 2024: Period Total Number of Units Purchased Average Price Paid per Unit Total Number Of Units Purchased as Part of 2019 Buyback Program Remaining Dollar Amount of Units That May Be Purchased Under the 2019 Buyback Program ($ thousands) 2019 Buyback Program: (1) October 2024 177,074 $ 29.30 177,074 $ 920,520 November 2024 1,538,423 $ 29.56 1,538,423 $ 875,038 December 2024 387,946 $ 31.94 387,946 $ 862,646 Vesting of phantom unit awards: November 2024 (2) 17,777 $ 28.87 n/a n/a (1) In January 2019, we announced the 2019 Buyback Program, which authorized the repurchase of up to $2 billion of EPD’s common units.
Added
The Partnership made quarterly PIK distributions to preferred unitholders in the first, second, third and fourth quarters of 2024 of 19,423, 19,865, 20,225 and 20,591 preferred units, respectively.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

148 edited+33 added−61 removed123 unchanged
Biggest changeWe have approximately $6.8 billion of growth capital projects scheduled to be completed by the end of the first half of 2026, including the following projects (including their respective scheduled completion dates): • the first and second phase of our Texas Western Products System (first half of 2024); • our third natural gas processing train at Mentone in the Delaware Basin (first quarter of 2024); • our seventh natural gas processing train (“Leonidas”) in the Midland Basin (first quarter of 2024); • natural gas gathering expansion projects in the Delaware and Midland Basins (2024 and first half of 2025); • the expansion of our LPG and PGP export capacity at EHT (first half of 2025); • the Bahia NGL Pipeline (first half of 2025); • an NGL fractionator (“Frac 14”) and an associated DIB unit in Chambers County, Texas (second half of 2025); • our first natural gas processing train at our Mentone West location in the Delaware Basin (second half of 2025); • an eighth natural gas processing train (“Orion”) in the Midland Basin (second half of 2025); • an expansion of our Morgan’s Point terminal to increase ethylene export capacity (second half of 2024 and second half of 2025); and • our Neches River Ethane / Propane Export Facility located in Orange County, Texas (second half of 2025 and first half of 2026).
Biggest changeWe have approximately $7.6 billion of growth capital projects scheduled to be completed by the end of 2026, including the following projects (including their respective scheduled completion dates): • natural gas gathering, compression and treating expansion projects in the Delaware and Midland Basins (2025 and 2026); • an NGL fractionator (“Frac 14”) and an associated DIB unit at our Mont Belvieu area NGL fractionation complex (third quarter of 2025); • our first natural gas processing train at our Mentone West location in the Delaware Basin (third quarter of 2025); • an eighth natural gas processing train (“Orion”) in the Midland Basin (third quarter of 2025); • the Bahia NGL Pipeline (fourth quarter of 2025); • the second phase of enhancements at our Morgan’s Point terminal (fourth quarter of 2025); • our Neches River Ethane / Propane Export Facility located in Orange County, Texas (third quarter of 2025 and first half of 2026); • our second natural gas processing train at our Mentone West location in the Delaware Basin (first half of 2026); and • the expansion of our LPG and PGP export capacity at EHT, including Ref 4 (fourth quarter of 2026).
Bachmann, who is also a director and Vice Chairman of the Board; and (iii) W. Randall Fowler, who is also a director and the Co-Chief Executive Officer and Chief Financial Officer of Enterprise GP. Ms. Duncan Williams and Messrs. Bachmann and Fowler also currently serve as managers of Dan Duncan LLC.
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.
Based on our most recent goodwill impairment test at December 31, 2023, the estimated fair value of each of our reporting units was substantially in excess of its carrying value (i.e., by at least 10%). For information regarding our goodwill, see Note 6 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
Based on our most recent goodwill impairment test at December 31, 2024, the estimated fair value of each of our reporting units was substantially in excess of its carrying value (i.e., by at least 10%). For information regarding our goodwill, see Note 6 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
For information regarding our income taxes, see Note 16 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. 70 Table of Contents Business Segment Highlights Our operations are reported under four business segments: (i) NGL Pipelines & Services, (ii) Crude Oil Pipelines & Services, (iii) Natural Gas Pipelines & Services and (iv) Petrochemical & Refined Products Services.
For information regarding our income taxes, see Note 16 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. 71 Table of Contents Business Segment Highlights Our operations are reported under four business segments: (i) NGL Pipelines & Services, (ii) Crude Oil Pipelines & Services, (iii) Natural Gas Pipelines & Services and (iv) Petrochemical & Refined Products Services.
We have a universal shelf registration statement on file with the SEC that allows the Partnership and EPO to issue an unlimited amount of equity and debt securities, respectively. 77 Table of Contents Cash Flow Statement Highlights The following table summarizes our consolidated cash flows from operating, investing and financing activities for the years indicated (dollars in millions).
We have a universal shelf registration statement on file with the SEC that allows the Partnership and EPO to issue an unlimited amount of equity and debt securities, respectively. 78 Table of Contents Cash Flow Statement Highlights The following table summarizes our consolidated cash flows from operating, investing and financing activities for the years indicated (dollars in millions).
The estimated cash payments assume that (i) the junior subordinated notes are not repaid prior to their respective maturity dates and (ii) the amount of interest paid on the junior subordinated notes is based on either (a) the current fixed interest rate charged or (b) the weighted-average variable rate paid in 2023, as applicable, for each note through the respective maturity date.
The estimated cash payments assume that (i) the junior subordinated notes are not repaid prior to their respective maturity dates and (ii) the amount of interest paid on the junior subordinated notes is based on either (a) the current fixed interest rate charged or (b) the weighted-average variable rate paid in 2024, as applicable, for each note through the respective maturity date.
Additionally, less than 3% of our top 200 customers were attributable to sub-investment grade companies or non-rated upstream producers. • Our Balance Sheet and Liquidity – We currently maintain investment grade credit ratings on EPO’s long-term senior unsecured debt of A-, A3 and A- from Standard and Poor’s, Moody’s and Fitch Ratings, respectively.
Additionally, less than 3% of the revenues from our top 200 customers were attributable to sub-investment grade companies or non-rated upstream producers. • Our Balance Sheet and Liquidity – We currently maintain investment grade credit ratings on EPO’s long-term senior unsecured debt of A-, A3 and A- from Standard and Poor’s, Moody’s and Fitch Ratings, respectively.
For the Years Ended December 31, 2023, 2022 and 2021 The following discussion and analysis of our financial condition, results of operations and related information for the years ended December 31, 2023 and 2022, including applicable year-to-year comparisons, should be read in conjunction with our Consolidated Financial Statements and accompanying notes included under Part II, Item 8 of this annual report.
For the Years Ended December 31, 2024, 2023 and 2022 The following discussion and analysis of our financial condition, results of operations and related information for the years ended December 31, 2024 and 2023, including applicable year-to-year comparisons, should be read in conjunction with our Consolidated Financial Statements and accompanying notes included under Part II, Item 8 of this annual report.
Discussion and analysis of matters pertaining to the year ended December 31, 2021 and year-to-year comparisons between the years ended December 31, 2022 and 2021 are not included in this Form 10-K, but can be found under Part II, Item 7 of our annual report on Form 10-K for the year ended December 31, 2022 that was filed on February 28, 2023.
Discussion and analysis of matters pertaining to the year ended December 31, 2022 and year-to-year comparisons between the years ended December 31, 2023 and 2022 are not included in this Form 10-K, but can be found under Part II, Item 7 of our annual report on Form 10-K for the year ended December 31, 2023 that was filed on February 28, 2024.
Impact of Inflation Inflation rates in the U.S. increased significantly in 2022 and remained elevated in 2023 compared to recent historical levels. While pandemic-era supply chain disruptions have largely dissipated and measures taken by the U.S. Federal Reserve Bank helped slow the growth of inflation in 2023, the high-cost environment that began in 2022 generally remained intact in 2023.
Impact of Inflation Inflation rates in the U.S. increased significantly in 2022 and remained elevated in 2024 compared to recent historical levels. While pandemic-era supply chain disruptions have largely dissipated and measures taken by the U.S. Federal Reserve Bank helped slow the growth of inflation, the high-cost environment that began in 2022 generally remained intact in 2024.
However, these adjustments are excluded from non-GAAP total gross operating margin. 71 Table of Contents The GAAP financial measure most directly comparable to total gross operating margin is operating income. For a discussion of operating income and its components, see the previous section titled “ Income Statement Highlights ” within this Part II, Item 7.
However, these adjustments are excluded from non-GAAP total gross operating margin. 72 Table of Contents The GAAP financial measure most directly comparable to total gross operating margin is operating income. For a discussion of operating income and its components, see the previous section titled “ Income Statement Highlights ” within this Part II, Item 7.
As generally used in the energy industry and in this annual report, the acronyms below have the following meanings: /d = per day MMBPD = million barrels per day BBtus = billion British thermal units MMBtus = million British thermal units Bcf = billion cubic feet MMcf = million cubic feet BPD = barrels per day MWac = megawatts, alternating current MBPD = thousand barrels per day MWdc = megawatts, direct current MMBbls = million barrels TBtus = trillion British thermal units 60 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This annual report on Form 10-K for the year ended December 31, 2023 (our “annual report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.
As generally used in the energy industry and in this annual report, the acronyms below have the following meanings: /d = per day MMBPD = million barrels per day BBtus = billion British thermal units MMBtus = million British thermal units Bcf = billion cubic feet MMcf = million cubic feet BPD = barrels per day MWac = megawatts, alternating current MBPD = thousand barrels per day MWdc = megawatts, direct current MMBbls = million barrels TBtus = trillion British thermal units 61 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This annual report on Form 10-K for the year ended December 31, 2024 (our “annual report”) contains various forward-looking statements and information that are based on our beliefs and those of our general partner, as well as assumptions made by us and information currently available to us.
The prices that we are obligated to pay under these contracts approximate market prices at the time we take delivery of the volumes. The preceding table presents our estimated future payment obligations under these contracts based on the contractual price in each agreement at December 31, 2023 applied to all future volume commitments.
The prices that we are obligated to pay under these contracts approximate market prices at the time we take delivery of the volumes. The preceding table presents our estimated future payment obligations under these contracts based on the contractual price in each agreement at December 31, 2024 applied to all future volume commitments.
However, due to uncertainties in the estimation process and volatility in the supply and demand for hydrocarbons and similar risk factors, actual results could differ significantly from our estimates. We did not record any goodwill impairment charges during the year ended December 31, 2023.
However, due to uncertainties in the estimation process and volatility in the supply and demand for hydrocarbons and similar risk factors, actual results could differ significantly from our estimates. We did not record any goodwill impairment charges during the year ended December 31, 2024.
Capitalized interest amounts fluctuate based on the timing of when projects are placed into service, our capital investment levels and the interest rates charged on borrowings. Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net $67 million year-to-year.
Capitalized interest amounts fluctuate based on the timing of when projects are placed into service, our capital investment levels and the interest rates charged on borrowings. Interest charged on debt principal outstanding, which is a key driver of interest expense, increased a net $96 million year-to-year.
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 32.4% of the Partnership’s common units outstanding at December 31, 2023.
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 32.4% of the Partnership’s common units outstanding at December 31, 2024.
We believe that these anticipated additions to petroleum production and consumption levels, along with favorable pricing trends, will create additional opportunities for us to provide midstream services to our customers while leveraging the strengths of our portfolio, which include: • Our Assets – Our employees find innovative ways to optimize our large, integrated and diversified asset base to provide incremental services to customers and to respond to market opportunities.
We believe that these anticipated additions to hydrocarbon production and consumption levels, along with favorable pricing trends, will create additional opportunities for us to provide midstream services to our customers while leveraging the strengths of our portfolio, which include: • Our Assets – Our employees find innovative ways to optimize our large, integrated and diversified asset base both to provide incremental services to customers and to respond to market opportunities.
For additional information, see “ Regulatory Matters - Environmental, Safety and Conservation ” within Part I, Items 1 and 2 of this annual report. 61 Table of Contents Like many publicly traded partnerships, we have no employees.
For additional information, see “ Regulatory Matters - Environmental, Safety and Conservation ” within Part I, Items 1 and 2 of this annual report. 62 Table of Contents Like many publicly traded partnerships, we have no employees.
Additionally, we take measures to mitigate the impact of cost increases in certain commodities, including a portion of our electricity needs, using fixed-price, term purchase agreements. For these reasons, the increased cost environment, caused in part by inflation, has not had a material impact on our historical results of operations for the periods presented in this report.
Additionally, we take measures to mitigate the impact of cost increases in certain commodities, including a portion of our electricity needs, using fixed-price, term purchase agreements, or financial derivatives. For these reasons, the increased cost environment, caused in part by inflation, has not had a material impact on our historical results of operations for the periods presented in this report.
Our use of DCF and Operational DCF for the limited purposes described above and in this report is not a substitute for net cash flows provided by operating activities, which is the most comparable GAAP measure to DCF.
Our use of DCF and Operational DCF for the limited purposes described above and in this report is not a substitute for net cash flow provided by operating activities, which is the most comparable GAAP measure to DCF.
In addition, fair value estimates also include the usage of probabilities when there is a range of possible outcomes. 85 Table of Contents We evaluate our equity method investments for impairment when there are events or changes in circumstances that indicate there is a potential loss in value of the investment attributable to an other-than-temporary decline.
In addition, fair value estimates also include the usage of probabilities when there is a range of possible outcomes. We evaluate our equity method investments for impairment when there are events or changes in circumstances that indicate there is a potential loss in value of the investment attributable to an other-than-temporary decline.
These benefits include revenue rate escalations based on inflation factors, fuel and electricity rebills or surcharges, and increased volumetric throughput often achieved during periods of higher commodity prices. • Our Quality Customers – We have contracted with a large number of quality customers in order to achieve revenue diversification.
These benefits include revenue rate escalations based on inflation factors, fuel and electricity rebills or surcharges, and increased volumetric throughput often achieved during periods of higher commodity prices. 64 Table of Contents • Our Quality Customers – We have contracted with a large number of quality customers in order to achieve revenue diversification.
For additional information regarding our consolidated debt obligations, see Note 7 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. 83 Table of Contents Credit Ratings As of February 28, 2024, the investment-grade credit ratings of EPO’s long-term senior unsecured debt securities were A- from Standard and Poor’s, A3 from Moody’s and A- from Fitch Ratings.
For additional information regarding our consolidated debt obligations, see Note 7 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. 84 Table of Contents Credit Ratings As of February 28, 2025, the investment-grade credit ratings of EPO’s long-term senior unsecured debt securities were A- from Standard and Poor’s, A3 from Moody’s and A- from Fitch Ratings.
(2) Midland and Houston crude oil prices are based on commercial index prices as reported by Argus. (3) Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts. Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices.
(2) Midland and Houston crude oil prices are based on commercial index prices as reported by Argus. (3) Light Louisiana Sweet (“LLS”) prices are based on commercial index prices as reported by Platts. 67 Table of Contents Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices.
Senior Notes III were issued at 99.705% of their principal amount and have a fixed interest rate of 4.85% per year.
Senior Notes HHH were issued at 99.897% of their principal amount and have a fixed interest rate of 4.60% per year. Senior Notes III were issued at 99.705% of their principal amount and have a fixed interest rate of 4.85% per year.
Recent Developments Enterprise Announces Acquisition of Equity Interests from Western Midstream In February 2024, we announced that we had acquired the remaining equity interests in Whitethorn Pipeline Company, LLC (“Whitethorn”) and Enterprise EF78 LLC (“EF78”) from affiliates of Western Midstream Partners, LP (“Western Midstream”) for $375 million in total cash consideration.
Enterprise Acquires Equity Interests from Western Midstream In February 2024, we announced that we had acquired the remaining equity interests in Whitethorn Pipeline Company LLC (“Whitethorn”) and Enterprise EF78 LLC (“EF78”) from affiliates of Western Midstream Partners, LP (“Western Midstream”) for $375 million in total cash consideration.
Energy Information Administration (“EIA”) forecasts and expectations are derived from its February 2024 Short-Term Energy Outlook (“February 2024 STEO”), which was published on February 6, 2024. The level of services we provide and the amount of volumes we purchase and sell are directly affected by changes in supply and demand for hydrocarbon products.
Energy Information Administration (“EIA”) forecasts and expectations are derived from its February 2025 Short-Term Energy Outlook (“February 2025 STEO”), which was published on February 11, 2025. The level of services we provide and the amount of volumes we purchase and sell are affected by changes in supply and demand fundamentals for hydrocarbon products.
Net proceeds from this offering will be used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all or a portion of our $850 million principal amount of 3.90% Senior Notes JJ at their maturity in February 2024 and amounts outstanding under our commercial paper program).
Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of our $850 million principal amount of 3.90% Senior Notes JJ at their maturity in February 2024 and amounts outstanding under our commercial paper program).
Net proceeds from this offering will be used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all or a portion of our $850 million principal amount of 3.90% Senior Notes JJ at their maturity in February 2024 and amounts outstanding under our commercial paper program).
Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of our $850 million principal amount of 3.90% Senior Notes JJ at their maturity in February 2024 and amounts outstanding under our commercial paper program).
Enterprise Declares Cash Distribution for Fourth Quarter of 2023 On January 8 , 2024, we announced that the Board declared a quarterly cash distribution of $0.515 per common unit, or $2.06 per common unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the fourth quarter of 2023.
Enterprise Declares Cash Distribution for Fourth Quarter of 2024 On January 8 , 2025, we announced that the Board declared a quarterly cash distribution of $0.535 per common unit, or $2.14 per common unit on an annualized basis, to be paid to the Partnership’s common unitholders with respect to the fourth quarter of 2024.
No time limit has been set for completion of the 2019 Buyback Program, and it may be suspended or discontinued at any time. The Partnership repurchased an aggregate 7,244,540 common units under the 2019 Buyback Program through open market purchases during the year ended December 31, 2023. The total cost of these repurchases, including commissions and fees, was $188 million.
No time limit has been set for completion of the 2019 Buyback Program, and it may be suspended or discontinued at any time. The Partnership repurchased an aggregate 7,556,210 common units under the 2019 Buyback Program through open market purchases during the year ended December 31, 2024. The total cost of these repurchases, including commissions and fees, was $219 million.
We believe our access to capital resources is sufficient to meet the demands of our current and future growth needs, and although we currently expect to make the forecast capital investments noted above, we may revise our plans in response to changes in economic and capital market conditions. 81 Table of Contents The following table summarizes our capital investments for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 Capital investments for property, plant and equipment: (1) Growth capital projects (2) $ 2,844 $ 1,606 Sustaining capital projects (3) 422 358 Total $ 3,266 $ 1,964 Cash used for business combinations, net (4) $ – $ 3,204 Investments in unconsolidated affiliates $ 2 $ 1 (1) Growth and sustaining capital amounts presented in the table above are presented on a cash basis.
We believe our access to capital resources is sufficient to meet the demands of our current and future growth needs, and although we currently expect to make the forecast capital investments noted above, we may revise our plans in response to changes in economic and capital market conditions. 82 Table of Contents The following table summarizes our capital investments for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 Capital investments for property, plant and equipment: (1) Growth capital projects (2) $ 3,890 $ 2,844 Sustaining capital projects (3) 654 422 Total $ 4,544 $ 3,266 Cash used for business combinations, net of cash received (4) $ 949 $ – Investments in unconsolidated affiliates $ – $ 2 (1) Growth and sustaining capital amounts presented in the table above are presented on a cash basis.
U.S. crude oil and natural gas producers have continued to increase production at higher than expected rates, particularly in the Permian Basin, thanks in part to innovations in both drilling and completion techniques. This growth has been dependent on the availability of both crude oil and natural gas export capacity due to limited growth in domestic consumption.
U.S. crude oil and natural gas producers have continued to increase production to record levels, particularly in the Permian Basin, thanks in part to innovations in both drilling and completion techniques. This growth has been dependent on the availability of both crude oil and natural gas export capacity due to limited growth in domestic consumption.
The following table presents gross operating margin by segment and total gross operating margin, a non-generally accepted accounting principle (“non-GAAP”) financial measure, for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 Gross operating margin by segment: NGL Pipelines & Services $ 4,898 $ 5,142 Crude Oil Pipelines & Services 1,707 1,655 Natural Gas Pipelines & Services 1,077 1,042 Petrochemical & Refined Products Services 1,694 1,517 Total segment gross operating margin (1) 9,376 9,356 Net adjustment for shipper make-up rights 19 (47 ) Total gross operating margin (non-GAAP) $ 9,395 $ 9,309 (1) Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within our business segment disclosures found under Note 10 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
The following table presents gross operating margin by segment and total gross operating margin, a non-generally accepted accounting principle (“non-GAAP”) financial measure, for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 Gross operating margin by segment: NGL Pipelines & Services $ 5,548 $ 4,898 Crude Oil Pipelines & Services 1,646 1,707 Natural Gas Pipelines & Services 1,277 1,077 Petrochemical & Refined Products Services 1,547 1,694 Total segment gross operating margin (1) 10,018 9,376 Net adjustment for shipper make-up rights (34 ) 19 Total gross operating margin (non-GAAP) $ 9,984 $ 9,395 (1) Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled within our business segment disclosures found under Note 10 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
The quarterly distribution was paid on February 14, 2024 to unitholders of record as of the close of business on January 31 , 2024 . The total amount paid was $1.13 billion, which includes $10 million for distribution equivalent rights on phantom unit awards.
The quarterly distribution was paid on February 14, 2025 to unitholders of record as of the close of business on January 31 , 2025 . The total amount paid was $1.17 billion, which includes $11 million for distribution equivalent rights on phantom unit awards.
On a combined basis, gross operating margin from these pipelines increased a net $49 million year-to-year primarily due to higher average transportation fees, which accounted for a $50 million increase, and an 80 MBPD (net to our interest) increase in transportation volumes, which accounted for an additional $23 million increase, partially offset by higher operating costs, which accounted for a $20 million decrease.
On a combined basis, gross operating margin from these pipelines increased a net $64 million year-to-year primarily due to a 186 MBPD (net to our interest) increase in transportation volumes, which accounted for a $95 million increase, and higher average transportation fees, which accounted for an additional $25 million increase, partially offset by higher operating costs, which accounted for a $50 million decrease.
The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $46.8 billion at December 31, 2023. The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the year ended December 31, 2023 was $6.0 billion.
The total carrying value of the Obligor Group’s investments in the Non-Obligor Subsidiaries was $50.8 billion at December 31, 2024. The Obligor Group’s equity in the earnings of the Non-Obligor Subsidiaries for the year ended December 31, 2024 was $6.8 billion.
Based on current market conditions, we believe that we have sufficient consolidated liquidity as of December 31, 2023, which was comprised of $3.75 billion of available borrowing capacity under EPO’s revolving credit facilities and $180 million of unrestricted cash on hand.
Based on current market conditions, we believe that we have sufficient consolidated liquidity as of December 31, 2024, which was comprised of $4.2 billion of available borrowing capacity under EPO’s revolving credit facilities and $583 million of unrestricted cash on hand.
Interest expense The following table presents the components of our consolidated interest expense for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 Interest charged on debt principal outstanding (1) $ 1,355 $ 1,288 Impact of interest rate hedging program, including related amortization (5 ) 19 Interest costs capitalized in connection with construction projects (2) (106 ) (90 ) Other 25 27 Total $ 1,269 $ 1,244 (1) The weighted-average interest rates on debt principal outstanding were 4.56% and 4.33% during the years ended December 31, 2023 and 2022, respectively.
Interest expense The following table presents the components of our consolidated interest expense for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 Interest charged on debt principal outstanding (1) $ 1,451 $ 1,355 Impact of interest rate hedging program, including related amortization (6 ) (5 ) Interest costs capitalized in connection with construction projects (2) (121 ) (106 ) Other 28 25 Total $ 1,352 $ 1,269 (1) The weighted-average interest rates on debt principal outstanding were 4.54% and 4.56% during the years ended December 31, 2024 and 2023, respectively.
Other operating costs and expenses Other operating costs and expenses increased a net $241 million year-to-year primarily due to higher maintenance, rental, employee compensation and other operating costs, which accounted for a $ 286 million increase, partially offset by lower utility costs, which accounted for a $ 45 million decrease.
Other operating costs and expenses Other operating costs and expenses increased a net $309 million year-to-year primarily due to higher maintenance, employee compensation, rental, chemical and other operating costs, which accounted for a $364 million increase, partially offset by lower utility costs, which accounted for a $55 million decrease.
Gross operating margin from our related Houston Ship Channel Pipeline System increased $ 36 million year-to-year primarily due to a 123 MBPD increase in transportation volumes, which accounted for a $ 22 million increase, and higher average transportation fees, which accounted for an additional $ 14 million increase.
Gross operating margin from our related Houston Ship Channel Pipeline System increased $28 million year-to-year primarily due to a 99 MBPD increase in transportation volumes, which accounted for a $19 million increase, and higher average transportation fees, which accounted for an additional $11 million increase.
At December 31, 2023 and 2022, the net carrying value of our property, plant and equipment was $45.8 billion and $ 44.4 billion, respectively. We recorded $1.9 billion and $ 1.8 billion of depreciation expense during the years ended December 31, 2023 and 2022, respectively.
At December 31, 2024 and 2023, the net carrying value of our property, plant and equipment was $49.1 billion and $ 45.8 billion, respectively. We recorded $2.0 billion and $ 1.9 billion of depreciation expense during the years ended December 31, 2024 and 2023, respectively.
At December 31, 2023, the total amount of Guaranteed Debt was $29.5 billion, which was comprised of $26.3 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes, $450 million of short-term commercial paper notes and $455 million of related accrued interest. 87 Table of Contents The Partnership’s guarantees of EPO’s senior note obligations, commercial paper notes and borrowings under bank credit facilities represent unsecured and unsubordinated obligations of the Partnership that rank equal in right of payment to all other existing or future unsecured and unsubordinated indebtedness of the Partnership.
At December 31, 2024, the total amount of Guaranteed Debt was $32.7 billion, which was comprised of $29.9 billion of EPO’s senior notes, $2.3 billion of EPO’s junior subordinated notes and $536 million of related accrued interest. 88 Table of Contents The Partnership’s guarantees of EPO’s senior note obligations, commercial paper notes and borrowings under bank credit facilities represent unsecured and unsubordinated obligations of the Partnership that rank equal in right of payment to all other existing or future unsecured and unsubordinated indebtedness of the Partnership.
For a discussion of net cash flows provided by operating activities, see “ Cash Flow Statement Highlights ” within this Part II, Item 7. 79 Table of Contents The following table summarizes our calculation of DCF and Operational DCF for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 Net income attributable to common unitholders (GAAP) (1) $ 5,529 $ 5,487 Adjustments to net income attributable to common unitholders to derive DCF and Operational DCF (addition or subtraction indicated by sign): Depreciation, amortization and accretion expenses 2,343 2,245 Cash distributions received from unconsolidated affiliates (2) 488 544 Equity in income of unconsolidated affiliates (462 ) (464 ) Asset impairment charges 32 53 Change in fair market value of derivative instruments 33 78 Deferred income tax expense 12 60 Sustaining capital expenditures (3) (413 ) (372 ) Other, net (24 ) (2 ) Operational DCF (non-GAAP) $ 7,538 $ 7,629 Proceeds from asset sales and other matters 42 122 Monetization of interest rate derivative instruments accounted for as cash flow hedges 21 – DCF (non-GAAP) $ 7,601 $ 7,751 Cash distributions paid to common unitholders with respect to period, including distribution equivalent rights on phantom unit awards $ 4,393 $ 4,182 Cash distribution per common unit declared by Enterprise GP with respect to period (4) $ 2.0050 $ 1.9050 Total DCF retained by the Partnership with respect to period (5) $ 3,208 $ 3,569 Distribution coverage ratio (6) 1.73 x 1.85 x (1) For a discussion of the primary drivers of changes in our comparative income statement amounts, see “ Income Statement Highlights ” within this Part II, Item 7.
For a discussion of net cash flow provided by operating activities, see “ Cash Flow Statement Highlights ” within this Part II, Item 7. 80 Table of Contents The following table summarizes our calculation of DCF and Operational DCF for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 Net income attributable to common unitholders (GAAP) (1) $ 5,897 $ 5,529 Adjustments to net income attributable to common unitholders to derive DCF and Operational DCF (addition or subtraction indicated by sign): Depreciation, amortization and accretion expenses 2,473 2,343 Cash distributions received from unconsolidated affiliates (2) 483 488 Equity in income of unconsolidated affiliates (408 ) (462 ) Asset impairment charges 57 32 Change in fair market value of derivative instruments (20 ) 33 Deferred income tax expense 45 12 Sustaining capital expenditures (3) (667 ) (413 ) Other, net (2 ) (24 ) Operational DCF (non-GAAP) $ 7,858 $ 7,538 Proceeds from asset sales and other matters 14 42 Monetization of interest rate derivative instruments accounted for as cash flow hedges (33 ) 21 DCF (non-GAAP) $ 7,839 $ 7,601 Cash distributions paid to common unitholders with respect to period, including distribution equivalent rights on phantom unit awards $ 4,598 $ 4,393 Cash distribution per common unit declared by Enterprise GP with respect to period (4) $ 2.1000 $ 2.0050 Total DCF retained by the Partnership with respect to period (5) $ 3,241 $ 3,208 Distribution coverage ratio (6) 1.70 x 1.73 x (1) For a discussion of the primary drivers of changes in our comparative income statement amounts, see “ Income Statement Highlights ” within this Part II, Item 7.
Based on current conditions, we believe that we will have sufficient liquidity and/or access to debt capital markets to fund our operations, capital investments and the remaining principal amount of senior notes maturing in 2024 and beyond.
Based on current financial market conditions, we believe that we will have sufficient liquidity and/or access to debt capital markets to fund our operations, capital investments and the remaining principal amount of senior notes maturing over the next twelve months and beyond.
Gross operating margin from LPG-related activities at EHT increased $71 million year-to-year primarily due to a 68 MBPD increase in LPG export volumes, which accounted for a $37 million increase, and higher average loading fees, which accounted for an additional $33 million increase.
Gross operating margin from LPG-related activities at EHT increased $63 million year-to-year primarily due to a 79 MBPD increase in LPG export volumes, which accounted for a $46 million increase, and higher average loading fees, which accounted for an additional $21 million increase.
NGL Pipelines & Services The following table presents segment gross operating margin and selected volumetric data for the NGL Pipelines & Services segment for the years indicated (dollars in millions, volumes as noted): For the Year Ended December 31, 2023 2022 Segment gross operating margin: Natural gas processing and related NGL marketing activities $ 1,300 $ 1,946 NGL pipelines, storage and terminals 2,771 2,362 NGL fractionation 827 834 Total $ 4,898 $ 5,142 Selected volumetric data: NGL pipeline transportation volumes (MBPD) 4,040 3,703 NGL marine terminal volumes (MBPD) 821 723 NGL fractionation volumes (MBPD) 1,556 1,339 Equity NGL-equivalent production volumes (MBPD) (1) 175 182 Fee-based natural gas processing volumes (MMcf/d) (2, 3) 5,848 5,182 (1) Primarily represents the NGL and condensate volumes we earn and take title to in connection with our processing activities.
NGL Pipelines & Services The following table presents segment gross operating margin and selected volumetric data for the NGL Pipelines & Services segment for the years indicated (dollars in millions, volumes as noted): For the Year Ended December 31, 2024 2023 Segment gross operating margin: Natural gas processing and related NGL marketing activities $ 1,598 $ 1,300 NGL pipelines, storage and terminals 2,988 2,771 NGL fractionation 962 827 Total $ 5,548 $ 4,898 Selected volumetric data: NGL pipeline transportation volumes (MBPD) 4,355 4,040 NGL marine terminal volumes (MBPD) 915 821 NGL fractionation volumes (MBPD) 1,608 1,556 Equity NGL-equivalent production volumes (MBPD) (1) 203 175 Fee-based natural gas processing volumes (MMcf/d) (2, 3) 6,670 5,848 (1) Primarily represents the NGL and condensate volumes we earn and take title to in connection with our processing activities.
For additional information regarding our revenues, see Note 9 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. Operating costs and expenses Total operating costs and expenses for 2023 decreased $8.5 billion when compared to 2022. Cost of sales Cost of sales for 2023 decreased $8.8 billion when compared to 2022.
For additional information regarding our revenues, see Note 9 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. Operating costs and expenses Total operating costs and expenses for 2024 increased $6.0 billion when compared to 2023.
As of December 31, 2023, approximately 96.4% of our debt portfolio is fixed-rate debt at a weighted-average cost of 4.6% and weighted-average maturity of 19 years. • Our Access to Capital Markets – EPO successfully issued $2.0 billion in aggregate principal amount of senior notes in January 2024.
As of December 31, 2024, approximately 98.2% of our debt portfolio is fixed-rate debt at a weighted-average cost of 4.7% and weighted-average maturity of 18 years. • Our Access to Capital Markets – In 2024, EPO successfully issued $4.5 billion in aggregate principal amount of senior notes.
The following table presents a reconciliation of operating income to total gross operating margin for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 Operating income $ 6,929 $ 6,907 Adjustments to reconcile operating income to total gross operating margin (addition or subtraction indicated by sign): Depreciation, amortization and accretion expense in operating costs and expenses (1) 2,215 2,107 Asset impairment charges in operating costs and expenses 30 53 Net losses (gains) attributable to asset sales and related matters in operating costs and expenses (10 ) 1 General and administrative costs 231 241 Total gross operating margin (non-GAAP) $ 9,395 $ 9,309 (1) Excludes amortization of major maintenance costs for reaction-based plants, which are a component of gross operating margin.
The following table presents a reconciliation of operating income to total gross operating margin for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 Operating income $ 7,338 $ 6,929 Adjustments to reconcile operating income to total gross operating margin (addition or subtraction indicated by sign): Depreciation, amortization and accretion expense in operating costs and expenses (1) 2,343 2,215 Asset impairment charges in operating costs and expenses 57 30 Net losses (gains) attributable to asset sales and related matters in operating costs and expenses 2 (10 ) General and administrative costs 244 231 Total gross operating margin (non-GAAP) $ 9,984 $ 9,395 (1) Excludes amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets, which are components of gross operating margin.
Income Taxes On September 29, 2021, the Internal Revenue Service (“IRS”) issued a Notice of Selection for Examination to EPO, stating that the IRS has selected its 2019 and 2020 partnership tax returns for examination.
Income Taxes During 2021 and 2022, the Internal Revenue Service (“IRS”) issued a Notice of Selection for Examination to EPO and the Partnership, respectively, stating that the IRS has selected their 2019 and 2020 partnership tax returns for examination.
In March 2023, EPO entered into a new 364-Day Revolving Credit Agreement (the “March 2023 $1.5 Billion 364-Day Revolving Credit Agreement”) that replaced its September 2022 364-Day Revolving Credit Agreement. The March 2023 $1.5 Billion 364-Day Revolving Credit Agreement matures in March 2024. EPO’s borrowing capacity was unchanged from the prior 364-day revolving credit agreement.
In March 2024, EPO entered into a new 364-Day Revolving Credit Agreement (the “March 2024 $1.5 Billion 364-Day Revolving Credit Agreement”) that replaced its prior 364-day revolving credit agreement. EPO’s borrowing capacity was unchanged from the prior 364-day revolving credit agreement. The March 2024 $1.5 Billion 364-Day Revolving Credit Agreement is scheduled to mature in March 2025.
For the Year Ended December 31, 2023 2022 Net cash flows provided by operating activities $ 7,569 $ 8,039 Cash used in investing activities 3,197 4,954 Cash used in financing activities 4,258 5,844 Net cash flows provided by operating activities are largely dependent on earnings from our consolidated business activities.
For the Year Ended December 31, 2024 2023 Net cash flow provided by operating activities $ 8,115 $ 7,569 Net cash flow used in investing activities 5,433 3,197 Net cash flow used in financing activities 2,164 4,258 Net cash flow provided by operating activities are largely dependent on earnings from our consolidated business activities.
Butane isomerization and related operations Gross operating margin from butane isomerization and related operations increased a net $10 million year-to-year primarily due to lower utility and other operating costs, which accounted for an $ 18 million increase, and a 19 MBPD increase in transportation volumes, which accounted for an additional $6 million increase, partially offset by lower by-product sales, which accounted for an $ 8 million decrease.
Butane isomerization and related operations Gross operating margin from butane isomerization and related operations increased a net $2 million year-to-year primarily due to lower operating costs, which accounted for an $8 million increase, and a 6 MBPD increase in isomerization volumes, which accounted for an additional $4 million increase, partially offset by lower ancillary service revenues, which accounted for a $5 million decrease, and lower by-product sales, which accounted for an additional $5 million decrease.
In 2023, our top 200 largest customers represented 95.9% of our consolidated revenues. Based on their respective year-end 2023 debt ratings, 88.9% of the revenues from our top 200 customers came from companies who were either investment grade rated or backed by letters of credit.
In 2024, our top 200 largest customers represented 96.4% of our consolidated revenues. Based on their respective year-end 2024 debt ratings, approximately 89% of the revenues from our top 200 customers came from companies that were either investment grade rated or backed by letters of credit.
Investing activities Cash used in investing activities for the year ended December 31, 2023 decreased a net $1.8 billion when compared to the year ended December 31, 2022 primarily due to: • a net $ 3.2 billion cash outflow in February 2022 in connection with the acquisition of our Midland Basin System; partially offset by • a $1.3 billion year-to-year increase in investments for property, plant and equipment (see “ Capital Investments ” within this Part II, Item 7 for additional information). 78 Table of Contents Financing activities Cash used in financing activities for the year ended December 31, 2023 decreased a net $1.6 billion when compared to the year ended December 31, 2022 primarily due to: • a net cash inflow of $456 million related to debt transactions that occurred during the year ended December 31, 2023 compared to a net cash outflow of $1.3 billion related to debt transactions that occurred during the year ended December 31, 2022.
Investing activities Net cash flow used in investing activities for the year ended December 31, 2024 increased $2.2 billion when compared to the year ended December 31, 2023 primarily due to: • a $1.3 billion year-to-year increase in investments for property, plant and equipment (see “ Capital Investments ” within this Part II, Item 7 for additional information); and • a net $ 949 million cash outflow in October 2024 in connection with the acquisition of Pinon Midstream. 79 Table of Contents Financing activities Net cash flow used in financing activities for the year ended December 31, 2024 decreased a net $2.1 billion when compared to the year ended December 31, 2023 primarily due to: • a net cash inflow of $3.1 billion related to debt transactions that occurred during the year ended December 31, 2024 compared to a net cash inflow of $456 million related to debt transactions that occurred during the year ended December 31, 2023.
Based on information currently available, we expect our total capital investments for 2024, net of contributions from noncontrolling interests, to approximate $3.8 billion to $4.3 billion, which reflects growth capital investments of $3.25 billion to $3.75 billion and sustaining capital expenditures of $550 million.
Based on information currently available, we expect our total capital investments for 2025, net of contributions from noncontrolling interests, to approximate $4.5 billion to $5.0 billion, which reflects growth capital investments of $4.0 billion to $4.5 billion and sustaining capital expenditures of $525 million.
For information regarding these charges, see Note 4 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. General and administrative costs General and administrative costs for 2023 decreased $10 million when compared to 2022 primarily due to lower professional services costs.
For information regarding these charges, see Note 4 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. General and administrative costs General and administrative costs for 2024 increased $13 million when compared to 2023 primarily due to higher employee compensation costs.
Selected Energy Commodity Price Data The following table presents selected average index prices for natural gas and selected NGL and petrochemical products for the periods indicated: Polymer Refinery Indicative Gas Natural Normal Natural Grade Grade Processing Gas, Ethane, Propane, Butane, Isobutane, Gasoline, Propylene, Propylene, Gross Spread $/MMBtu $/gallon $/gallon $/gallon $/gallon $/gallon $/pound $/pound $/gallon (1) (2) (2) (2) (2) (2) (3) (3) (4) 2022 by quarter: 1st Quarter $4.96 $0.40 $1.30 $1.59 $1.60 $2.21 $0.63 $0.39 $0.55 2nd Quarter $7.17 $0.59 $1.24 $1.50 $1.68 $2.17 $0.61 $0.40 $0.46 3rd Quarter $8.20 $0.55 $1.08 $1.19 $1.44 $1.72 $0.47 $0.28 $0.26 4th Quarter $6.26 $0.39 $0.79 $0.97 $1.03 $1.54 $0.32 $0.18 $0.17 2022 Averages $6.65 $0.48 $1.10 $1.31 $1.44 $1.91 $0.51 $0.31 $0.36 2023 by quarter: 1st Quarter $3.44 $0.25 $0.82 $1.11 $1.16 $1.62 $0.50 $0.22 $0.37 2nd Quarter $2.09 $0.21 $0.67 $0.78 $0.84 $1.44 $0.40 $0.21 $0.37 3rd Quarter $2.54 $0.30 $0.68 $0.83 $0.94 $1.55 $0.36 $0.15 $0.40 4th Quarter $2.88 $0.23 $0.67 $0.91 $1.07 $1.48 $0.46 $0.17 $0.33 2023 Averages $2.74 $0.25 $0.71 $0.91 $1.00 $1.52 $0.43 $0.19 $0.37 (1) Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts , which is a division of S&P Global, Inc.
The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis. 66 Table of Contents Selected Energy Commodity Price Data The following table presents selected average index prices for natural gas and selected NGL and petrochemical products for the periods indicated: Polymer Refinery Indicative Gas Natural Normal Natural Grade Grade Processing Gas, Ethane, Propane, Butane, Isobutane, Gasoline, Propylene, Propylene, Gross Spread $/MMBtu $/gallon $/gallon $/gallon $/gallon $/gallon $/pound $/pound $/gallon (1) (2) (2) (2) (2) (2) (3) (3) (4) 2023 by quarter: 1st Quarter $3.44 $0.25 $0.82 $1.11 $1.16 $1.62 $0.50 $0.22 $0.37 2nd Quarter $2.09 $0.21 $0.67 $0.78 $0.84 $1.44 $0.40 $0.21 $0.37 3rd Quarter $2.54 $0.30 $0.68 $0.83 $0.94 $1.55 $0.36 $0.15 $0.40 4th Quarter $2.88 $0.23 $0.67 $0.91 $1.07 $1.48 $0.46 $0.17 $0.33 2023 Averages $2.74 $0.25 $0.71 $0.91 $1.00 $1.52 $0.43 $0.19 $0.37 2024 by quarter: 1st Quarter $2.25 $0.19 $0.84 $1.03 $1.14 $1.54 $0.55 $0.18 $0.43 2nd Quarter $1.89 $0.19 $0.75 $0.90 $1.26 $1.55 $0.47 $0.21 $0.43 3rd Quarter $2.15 $0.16 $0.73 $0.97 $1.08 $1.48 $0.53 $0.28 $0.39 4th Quarter $2.79 $0.22 $0.78 $1.13 $1.12 $1.50 $0.42 $0.24 $0.39 2024 Averages $2.27 $0.19 $0.78 $1.01 $1.15 $1.52 $0.49 $0.23 $0.41 (1) Natural gas prices are based on Henry-Hub Inside FERC commercial index prices as reported by Platts , which is a division of S&P Global, Inc.
Gross operating margin from our Midland Basin Gathering System increased a net $ 12 million year-to-year primarily due to an increase in total natural gas gathering volumes, which accounted for a $ 56 million increase, partially offset by higher rental and other operating costs, which accounted for a $ 44 million decrease.
Gross operating margin from our Midland Basin Gathering System increased a net $16 million year-to-year primarily due to a 434 BBtus/d increase in natural gas gathering volumes, which accounted for a $60 million increase, partially offset by higher operating costs, which accounted for a $44 million decrease.
On January 6, 2022, the IRS issued a Notice of Selection for Examination to the Partnership stating that the IRS has selected our 2019 and 2020 partnership tax returns for examination. These are routine compliance examinations of various items of income, gain, deductions, losses and credits of EPO and the Partnership, respectively, during the years under examination.
In 2024, the IRS issued a Notice of Selection for Examination to both EPO and the Partnership, stating that the IRS has selected their 2021 partnership tax returns for examination. These are routine compliance examinations of various items of income, gain, deductions, losses and credits of EPO and the Partnership during the years under examination.
The cost of sales associated with the marketing of crude oil increased a net $ 310 million year-to-year primarily due to higher volumes, which accounted for a $ 3.5 billion increase, partially offset by lower average purchase prices, which accounted for a $ 3.2 billion decrease.
The cost of sales associated with the marketing of NGLs, crude oil and petrochemicals and refined products increased a combined net $5.7 billion year-to-year primarily due to higher volumes, which accounted for a $6.6 billion increase, partially offset by lower average purchase prices, which accounted for an $896 million decrease.
Marine transportation and other services Gross operating margin from marine transportation and other services increased a net $ 20 million year-to-year primarily due to higher average fees, which accounted for a $ 24 million increase, and higher fleet utilization rates, which accounted for an additional $ 7 million increase, partially offset by higher operating costs, which accounted for a $ 12 million decrease.
Marine transportation and other services Gross operating margin from marine transportation and other services increased a net $5 million year-to-year primarily due to higher average fees, which accounted for a $16 million increase, partially offset by higher operating costs, which accounted for a $9 million decrease.
In 2023, we issued $1.75 billion aggregate principal amount of senior notes, partially offset by the repayment of $1.25 billion principal amount of senior notes and net repayments of $45 million under EPO’s commercial paper program.
In 2024, we issued $4.5 billion aggregate principal amount of senior notes, partially offset by the repayment of $850 million principal amount of senior notes and net repayments of $450 million under EPO’s commercial paper program.
Senior Notes HHH were issued at 99.897% of their principal amount and have a fixed interest rate of 4.60% per year. Senior Notes III were issued at 99.705% of their principal amount and have a fixed interest rate of 4.85% per year. The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.
Senior Notes JJJ were issued at 99.400% of their principal amount and have a fixed interest rate of 4.95% per year. Senior Notes KKK were issued at 99.663% of their principal amount and have a fixed interest rate of 5.55% per year. The Partnership guaranteed these senior notes through an unconditional guarantee on an unsecured and unsubordinated basis.
Gross operating margin from our Texas Intrastate System increased a net $18 million year-to-year primarily due to a 592 BBtus/d increase in transportation volumes, which accounted for a $25 million increase, and higher average transportation fees, which accounted for an additional $10 million increase, partially offset by higher operating costs, which accounted for an $11 million decrease, and lower ancillary and other revenues, which accounted for an additional $6 million decrease.
Gross operating margin from our Texas Intrastate System increased a net $109 million year-to-year primarily due to higher average transportation fees, which accounted for a $67 million increase, higher capacity reservation fees and other revenues, which accounted for a $39 million increase, and a 293 BBtus/d increase in transportation volumes, which accounted for an additional $16 million increase, partially offset by higher operating costs, which accounted for a $13 million decrease.
The following table presents summarized balance sheet information for the combined Obligor Group at December 31, 2023 (dollars in millions): Selected asset information: Current receivables from Non-Obligor Subsidiaries $ 2,569 Other current assets 5,416 Long-term receivables from Non-Obligor Subsidiaries 187 Other noncurrent assets, excluding investments in Non-Obligor Subsidiaries of $46.8 billion 9,185 Selected liability information: Current portion of Guaranteed Debt, including interest of $455 million $ 1,755 Current payables to Non-Obligor Subsidiaries 1,567 Other current liabilities 4,239 Noncurrent portion of Guaranteed Debt, principal only 27,707 Noncurrent payables to Non-Obligor Subsidiaries 57 Other noncurrent liabilities 122 Mezzanine equity of Obligor Group: Preferred units $ 49 88 Table of Contents The following table presents summarized income statement information for the combined Obligor Group for the year ended December 31, 2023 (dollars in millions): Revenues from Non-Obligor Subsidiaries $ 17,344 Revenues from other sources 15,375 Operating income of Obligor Group 835 Net loss of Obligor Group, excluding equity in earnings of Non-Obligor Subsidiaries of $6.0 billion (483 ) Related Party Transactions For information regarding our related party transactions, see Note 15 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report as well as Part III, Item 13 of this annual report.
The following table presents summarized balance sheet information for the combined Obligor Group at December 31, 2024 (dollars in millions): Selected asset information: Current receivables from Non-Obligor Subsidiaries $ 1,569 Other current assets 6,487 Long-term receivables from Non-Obligor Subsidiaries 187 Other noncurrent assets, excluding investments in Non-Obligor Subsidiaries of $50.8 billion 9,350 Selected liability information: Current portion of Guaranteed Debt, including interest of $536 million $ 1,686 Current payables to Non-Obligor Subsidiaries 1,438 Other current liabilities 4,074 Noncurrent portion of Guaranteed Debt, principal only 31,057 Noncurrent payables to Non-Obligor Subsidiaries 55 Other noncurrent liabilities 215 Mezzanine equity of Obligor Group: Preferred units $ 50 89 Table of Contents The following table presents summarized income statement information for the combined Obligor Group for the year ended December 31, 2024 (dollars in millions): Revenues from Non-Obligor Subsidiaries $ 22,286 Revenues from other sources 19,781 Operating income of Obligor Group 443 Net loss of Obligor Group, excluding equity in earnings of Non-Obligor Subsidiaries of $6.8 billion (933 ) Related Party Transactions For information regarding our related party transactions, see Note 15 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report as well as Part III, Item 13 of this annual report.
Additionally, see Part I, Item 1A “ Risk Factors - Changes in price levels could negatively impact our revenue, our expenses, or both, which could adversely affect our business. ” 67 Table of Contents Income Statement Highlights The following table summarizes the key components of our consolidated results of operations for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 Revenues $ 49,715 $ 58,186 Costs and expenses: Operating costs and expenses: Cost of sales 37,023 45,836 Other operating costs and expenses 3,695 3,454 Depreciation, amortization and accretion expenses 2,279 2,158 Asset impairment charges 30 53 Net losses (gains) attributable to asset sales and related matters (10 ) 1 Total operating costs and expenses 43,017 51,502 General and administrative costs 231 241 Total costs and expenses 43,248 51,743 Equity in income of unconsolidated affiliates 462 464 Operating income 6,929 6,907 Other income (expense): Interest expense (1,269 ) (1,244 ) Other, net 41 34 Total other expense, net (1,228 ) (1,210 ) Income before income taxes 5,701 5,697 Provision for income taxes (44 ) (82 ) Net income 5,657 5,615 Net income attributable to noncontrolling interests (125 ) (125 ) Net income attributable to preferred units (3 ) (3 ) Net income attributable to common unitholders $ 5,529 $ 5,487 Revenues The following table presents each business segment’s contribution to consolidated revenues for the years indicated (dollars in millions): For the Year Ended December 31, 2023 2022 NGL Pipelines & Services: Sales of NGLs and related products $ 14,846 $ 21,307 Midstream services 2,799 2,952 Total 17,645 24,259 Crude Oil Pipelines & Services: Sales of crude oil 18,185 17,301 Midstream services 1,151 1,260 Total 19,336 18,561 Natural Gas Pipelines & Services: Sales of natural gas 2,373 5,019 Midstream services 1,403 1,241 Total 3,776 6,260 Petrochemical & Refined Products Services: Sales of petrochemicals and refined products 7,689 8,003 Midstream services 1,269 1,103 Total 8,958 9,106 Total consolidated revenues $ 49,715 $ 58,186 68 Table of Contents Total revenues for 2023 decreased a net $8.5 billion when compared to 2022 primarily due to lower marketing revenues.
Additionally, see Part I, Item 1A “ Risk Factors - Changes in price levels could negatively impact our revenue, our expenses, or both, which could adversely affect our business. ” 68 Table of Contents Income Statement Highlights The following table summarizes the key components of our consolidated results of operations for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 Revenues $ 56,219 $ 49,715 Costs and expenses: Operating costs and expenses: Cost of sales 42,580 37,023 Other operating costs and expenses 4,004 3,695 Depreciation, amortization and accretion expenses 2,402 2,279 Asset impairment charges 57 30 Net losses (gains) attributable to asset sales and related matters 2 (10 ) Total operating costs and expenses 49,045 43,017 General and administrative costs 244 231 Total costs and expenses 49,289 43,248 Equity in income of unconsolidated affiliates 408 462 Operating income 7,338 6,929 Other income (expense): Interest expense (1,352 ) (1,269 ) Other, net 49 41 Total other expense, net (1,303 ) (1,228 ) Income before income taxes 6,035 5,701 Provision for income taxes (65 ) (44 ) Net income 5,970 5,657 Net income attributable to noncontrolling interests (69 ) (125 ) Net income attributable to preferred units (4 ) (3 ) Net income attributable to common unitholders $ 5,897 $ 5,529 Revenues The following table presents each business segment’s contribution to consolidated revenues for the years indicated (dollars in millions): For the Year Ended December 31, 2024 2023 NGL Pipelines & Services: Sales of NGLs and related products $ 17,397 $ 14,846 Midstream services 2,879 2,799 Total 20,276 17,645 Crude Oil Pipelines & Services: Sales of crude oil 20,389 18,185 Midstream services 1,191 1,151 Total 21,580 19,336 Natural Gas Pipelines & Services: Sales of natural gas 1,458 2,373 Midstream services 1,546 1,403 Total 3,004 3,776 Petrochemical & Refined Products Services: Sales of petrochemicals and refined products 10,013 7,689 Midstream services 1,346 1,269 Total 11,359 8,958 Total consolidated revenues $ 56,219 $ 49,715 69 Table of Contents Total revenues for 2024 increased a net $6.5 billion when compared to 2023 primarily due to higher marketing revenues.
On a combined basis, gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased $ 29 million year-to-year primarily due to a lower average processing margins (including the impact of hedging activities), which accounted for a $17 million decrease, and 5 MBPD decrease in equity NGL-equivalent production volumes, which accounted for an additional $7 million decrease.
Gross operating margin from our Rockies natural gas processing facilities (Meeker, Pioneer and Chaco) decreased a combined $60 million year-to-year primarily due to lower average processing margins (including the impact of hedging activities). On a combined basis, fee-based natural gas processing volumes and equity NGL-equivalent production volumes increased 240 MMcf/d and 7 MBPD, respectively, year-to-year.
U.S. energy and feedstock advantages position our assets well to compete globally for incremental production and processing volumes. To the extent a rising operating cost environment impacts our results, there are typically offsetting benefits either inherent in our business or that result from other steps we take proactively to reduce the impact of inflation on our net operating results.
To the extent a rising operating cost environment impacts our results, there are typically offsetting benefits either inherent in our business or that result from other steps we take proactively to reduce the impact of inflation on our net operating results.
If our assumptions regarding the estimated economic life of an intangible asset were to change, then the amortization period for such asset would be adjusted accordingly.
If our assumptions regarding the estimated economic life of an intangible asset were to change, then the amortization period for such asset would be adjusted accordingly. Changes in the estimated useful life of an intangible asset would impact operating costs and expenses prospectively from the date of change.
Equity in income of unconsolidated affiliates Equity income from our unconsolidated affiliates for 2023 decreased a net $2 million when compared to 2022 primarily due to lower earnings from investments in NGL pipelines, which accounted for a $16 million decrease, partially offset by higher earnings from investments in crude oil pipelines, which accounted for a $12 million increase. 69 Table of Contents Operating income Operating income for the year ended December 31, 2023 increased $22 million when compared to the year ended December 31, 2022 due to the previously described year-to-year changes in revenues, operating costs and expenses, general and administrative costs and equity in income of unconsolidated affiliates.
Equity in income of unconsolidated affiliates Equity income from our unconsolidated affiliates for 2024 decreased $54 million when compared to 2023 primarily due to lower earnings from investments in crude oil and NGL pipelines. 70 Table of Contents Operating income Operating income for the year ended December 31, 2024 increased $409 million when compared to the year ended December 31, 2023 due to the previously described year-to-year changes in revenues, operating costs and expenses, general and administrative costs and equity in income of unconsolidated affiliates.
In its February 2024 STEO, the EIA provided expectations of continued growth in U.S. crude oil and liquid fuels production of nearly 0.2 MMBPD to reach a total of 22.1 MMBPD in 2024.
In its February 2025 STEO, the EIA provided expectations of continued growth in U.S. crude oil and liquid fuels production of 0.6 MMBPD to reach 23.3 MMBPD in 2025.
As of February 13, 2024, the price of West Texas Intermediate (“WTI”) crude oil (as reported by New York Mercantile Exchange (“NYMEX”)) was $77.87 per barrel, slightly above the 2023 calendar year average of $77.62.
As of January 28, 2025, the price of West Texas Intermediate (“WTI”) crude oil (as reported by New York Mercantile Exchange (“NYMEX”)) was $73.77 per barrel, slightly below the 2024 calendar year average of $75.76 per barrel.
Additional production volumes could lead to higher demand for processing, transportation, fractionation and terminaling services. Storage services provide valuable flexibility for customers seeking to balance supply and demand while also allowing us to capture valuable contango and other marketing opportunities should they arise.
Additional production volumes could lead to higher demand for processing, transportation, fractionation and terminaling services. Storage services provide valuable flexibility for customers seeking to balance supply and demand while also allowing us to capture potentially valuable contango and other marketing opportunities. U.S. energy and feedstock advantages position our assets well to compete globally for incremental production and processing volumes.
Natural Gas Pipelines & Services The following table presents segment gross operating margin and selected volumetric data for the Natural Gas Pipelines & Services segment for the years indicated (dollars in millions, volumes as noted): For the Year Ended December 31, 2023 2022 Segment gross operating margin $ 1,077 $ 1,042 Selected volumetric data: Natural gas pipeline transportation volumes (BBtus/d) 18,365 17,107 Gross operating margin from our Natural Gas Pipelines & Services segment for the year ended December 31, 2023 increased $35 million when compared to the year ended December 31, 2022.
Crude oil terminal volumes at EHT increased 52 MBPD year-to-year. 75 Table of Contents Natural Gas Pipelines & Services The following table presents segment gross operating margin and selected volumetric data for the Natural Gas Pipelines & Services segment for the years indicated (dollars in millions, volumes as noted): For the Year Ended December 31, 2024 2023 Segment gross operating margin $ 1,277 $ 1,077 Selected volumetric data: Natural gas pipeline transportation volumes (BBtus/d) 19,272 18,376 Gross operating margin from our Natural Gas Pipelines & Services segment for the year ended December 31, 2024 increased $200 million when compared to the year ended December 31, 2023.
Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of all of our $1.25 billion principal amount of 3.35% Senior Notes HH at their maturity in March 2023 and amounts outstanding under our commercial paper program).
Net proceeds from this offering were used by EPO for general company purposes, including for growth capital investments, and the repayment of debt (including the repayment of our $1.15 billion principal amount of 3.75% Senior Notes MM at their maturity in February 2025).
Customer relationship intangible assets represent the estimated economic value assigned to commercial relationships acquired in connection with business combinations. In certain instances, the acquisition of these intangible assets provides us with access to customers in a defined resource basin and is analogous to having a franchise in a particular area.
In certain instances, the acquisition of these intangible assets provides us with access to customers in a defined resource basin and is analogous to having a franchise in a particular area.
Gross operating margin from our Chambers County propylene production facilities decreased a combined net $7 million year-to-year primarily due to lower propylene sales volumes, which accounted for a $55 million decrease, and higher operating costs , which accounted for an additional $17 million decrease, partially offset by higher propylene processing revenues, which accounted for a $32 million increase, and higher storage and other revenues, which accounted for an additional $28 million increase.
On a combined basis, gross operating margin from our Mont Belvieu area propylene production facilities decreased a net $67 million year-to-year primarily due to lower propylene sales volumes, which accounted for a $70 million decrease, and higher operating costs, which accounted for an additional $78 million decrease, partially offset by higher propylene processing revenues, which accounted for a $77 million increase.
For information regarding our debt obligations, see Note 7 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report.
For information regarding our debt obligations, see Note 7 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report. Income taxes Our income taxes are primarily comprised of our state tax obligations under the Revised Texas Franchise Tax (“Texas Margin Tax”).

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeNatural gas marketing portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2022 December 31, 2023 January 31, 2024 Fair value assuming no change in underlying commodity prices Asset (Liability) $ 90 $ 7 $ 10 Fair value assuming 10% increase in underlying commodity prices Asset (Liability) 97 6 9 Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) 83 8 11 NGL and refined products marketing, natural gas processing and octane enhancement portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2022 December 31, 2023 January 31, 2024 Fair value assuming no change in underlying commodity prices Asset (Liability) $ 18 $ 39 $ (31 ) Fair value assuming 10% increase in underlying commodity prices Asset (Liability) (29 ) 9 (64 ) Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) 64 69 2 Crude oil marketing portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2022 December 31, 2023 January 31, 2024 Fair value assuming no change in underlying commodity prices Asset (Liability) $ 53 $ 66 $ 8 Fair value assuming 10% increase in underlying commodity prices Asset (Liability) 24 (61 ) (97 ) Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) 81 193 113 Commercial energy derivative portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2022 December 31, 2023 January 31, 2024 Fair value assuming no change in underlying commodity prices Asset (Liability) $ (38 ) $ (9 ) $ (10 ) Fair value assuming 10% increase in underlying commodity prices Asset (Liability) (10 ) 9 7 Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) (63 ) (27 ) (27 ) 90 Table of Contents Interest Rate Hedging Activities We may utilize interest rate swaps, forward-starting swaps, options to enter into forward-starting swaps (“swaptions”), treasury locks and similar derivative instruments to manage our exposure to changes in interest rates charged on borrowings under certain consolidated debt agreements.
Biggest changeNatural gas marketing portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2023 December 31, 2024 January 31, 2025 Fair value assuming no change in underlying commodity prices Asset (Liability) $ 7 $ 5 $ 12 Fair value assuming 10% increase in underlying commodity prices Asset (Liability) 6 4 11 Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) 8 6 13 NGL and refined products marketing, natural gas processing and octane enhancement portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2023 December 31, 2024 January 31, 2025 Fair value assuming no change in underlying commodity prices Asset (Liability) $ 39 $ 61 $ 54 Fair value assuming 10% increase in underlying commodity prices Asset (Liability) 9 24 57 Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) 69 98 51 Crude oil marketing portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2023 December 31, 2024 January 31, 2025 Fair value assuming no change in underlying commodity prices Asset (Liability) $ 66 $ 19 $ 13 Fair value assuming 10% increase in underlying commodity prices Asset (Liability) (61 ) (79 ) (85 ) Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) 193 117 111 Commercial energy derivative portfolio Portfolio Fair Value at Scenario Resulting Classification December 31, 2023 December 31, 2024 January 31, 2025 Fair value assuming no change in underlying commodity prices Asset (Liability) $ (9 ) $ (3 ) $ (12 ) Fair value assuming 10% increase in underlying commodity prices Asset (Liability) 9 7 (3 ) Fair value assuming 10% decrease in underlying commodity prices Asset (Liability) (27 ) (13 ) (21 ) 91 Table of Contents Interest Rate Hedging Activities We may utilize interest rate swaps, forward-starting swaps, options to enter into forward-starting swaps (“swaptions”), treasury locks and similar derivative instruments to manage our exposure to changes in interest rates charged on borrowings under certain consolidated debt agreements.
See Note 14 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for additional information regarding our derivative instruments and hedging activities. 89 Table of Contents Commodity Hedging Activities The price of energy commodities such as natural gas, NGLs, crude oil, petrochemicals and refined products and power are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control.
See Note 14 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for additional information regarding our derivative instruments and hedging activities. 90 Table of Contents Commodity Hedging Activities The price of energy commodities such as natural gas, NGLs, crude oil, petrochemicals and refined products and power are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control.
At December 31, 2023, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging natural gas processing margins, (iii) hedging the fair value of commodity products held in inventory and (iv) hedging anticipated future purchases of power for certain operations in Southeast Texas.
At December 31, 2024, our predominant commodity hedging strategies consisted of (i) hedging anticipated future purchases and sales of commodity products associated with transportation, storage and blending activities, (ii) hedging natural gas processing margins, (iii) hedging the fair value of commodity products held in inventory and (iv) hedging anticipated future purchases of power for certain operations in Southeast Texas.

Other EPD 10-K year-over-year comparisons