Enterprise Products Partners L.P. (EPD) recently announced its third-quarter financial outcomes, revealing a downturn in profitability. The company's earnings per share were below market forecasts, a consequence of prevailing lower commodity prices and diminished profit margins. However, robust pipeline throughput and an amplified share repurchase authorization underscore the firm's optimistic outlook regarding sustained demand for its services. While overall revenue experienced a year-over-year reduction, it marginally surpassed analysts' predictions, reflecting resilience in certain operational areas.
The U.S. pipeline operator recorded earnings of 61 cents per share for the quarter, a figure that did not meet the 68 cents per share anticipated by financial analysts and was also a decline from the 65 cents per share reported in the corresponding period of the previous year. Quarterly revenue stood at $12.02 billion, marking a 12.7% decrease from $13.78 billion a year ago. Despite this, the revenue slightly exceeded the estimated $11.93 billion, suggesting better-than-expected top-line performance under challenging market conditions.
The company's gross operating margin for the third quarter of 2025 was $2.4 billion, a slight reduction from $2.5 billion in the third quarter of 2024. Operating income also saw a decrease, falling to $1.69 billion from $1.78 billion year-over-year. Adjusted EBITDA was reported at $2.41 billion, a minor dip from $2.44 billion in the same quarter last year. Distributable cash flow (DCF) decreased to $1.8 billion from $2.0 billion, although adjusted cash flow from operations remained stable at $2.1 billion.
In a move to enhance shareholder value, Enterprise Products Partners repurchased approximately $80 million worth of its common units during the quarter. Furthermore, the company significantly increased its common unit buyback authorization from $2 billion to $5 billion, with $3.6 billion remaining available. This multi-year program signifies a key strategy for returning capital to investors, reinforcing confidence in the company's financial health and future prospects despite the current profit dip.
Strategic investments continued, with Enterprise deploying $2.0 billion in capital during the third quarter of 2025. This included $1.2 billion for growth projects, a substantial $583 million allocated to acquire Midland Basin natural gas gathering systems from Occidental Petroleum Corporation (OXY), and $198 million for sustaining capital expenditures. As of September 30, 2025, the company's total outstanding debt was $33.9 billion, and it maintained a consolidated liquidity of approximately $3.6 billion, comprising available revolving credit facilities and unrestricted cash.
Examining segment performance, the NGL Pipelines & Services division sustained a gross operating margin of $1.3 billion, consistent with the prior year. However, its natural gas processing and NGL marketing business experienced a minor decrease from $371 million to $354 million. Notably, NGL pipeline volumes saw a significant 9% increase, reaching 4.7 million barrels per day. The Crude Oil Pipelines & Services segment recorded a gross operating margin decline to $371 million from $401 million, yet achieved a record 2.6 million barrels per day in total crude oil pipeline volumes. The Natural Gas Pipelines & Services segment's margin was $339 million, slightly down from $349 million, but also hit a record in total natural gas pipeline volumes at 21.0 TBtus/d. The Petrochemical & Refined Products Services segment demonstrated growth, with a gross operating margin of $370 million, an increase from $363 million, largely due to strong performance in refined products pipelines and ethylene export operations.
This quarter's results demonstrate the midstream energy giant's ability to maintain strong operational performance and strategic growth initiatives, even as it navigates a challenging pricing environment. The expanded buyback program and continued investment in infrastructure highlight the company's long-term vision and commitment to its stakeholders.