Three Months Ended March 31,
		2024				2023
($ in millions, except per unit amounts)
Operating income (1)		$	1,822			$	1,734
Net income (1) (2)		$	1,483			$	1,422
Fully diluted earnings per common unit (2)		$	0.66			$	0.63
Total gross operating margin (1) (3)		$	2,490			$	2,335
Adjusted EBITDA (3)		$	2,469			$	2,321
Adjusted CFFO (3)		$	2,147			$	2,022
Adjusted FCF (3)		$	1,079			$	1,347
DCF (3)		$	1,915			$	1,938
Operational DCF (3)		$	1,942			$	1,915

(1)	Operating income, net income, and gross operating margin  include non-cash, mark-to-market (“MTM”) losses on financial instruments used in our commodity hedging activities of $4 million for the first quarter of 2024 compared to losses of $3 million for the first quarter of 2023.
(2)	Net income and fully diluted earnings per common unit for the first quarters of 2024 and 2023 include non-cash, asset impairment and related charges of approximately $20 million, or $0.01 per common unit, and $13 million, or $0.01 per common unit, respectively.
(3)	Total gross operating margin, adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted CFFO, adjusted free cash flow (“Adjusted FCF”), DCF and Operational Distributable Cash Flow (“Operational DCF”) are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release.

First Quarter 2024 Volume Highlights		Three Months Ended March 31,
		2024				2023
Equivalent pipeline transportation volumes (million BPD)(1)			12.3				11.8
NGL, crude oil, refined products & petrochemical pipeline volumes    (million BPD)			7.4				7.1
Marine terminal volumes (million BPD)			2.3				2.0
Natural gas pipeline volumes (TBtus/d)			18.6				18.0
NGL fractionation volumes (MBPD)			1,557				1,370
Propylene plant production volumes (MBPD)			96				95
Fee-based natural gas processing volumes (Bcf/d)			6.4				5.5
Equity NGL-equivalent production volumes (MBPD)			185				160

(1)	Represents total NGL, crude oil, refined products and petrochemical transportation volumes plus equivalent energy volumes where 3.8 million British thermal units (“MMBtus”) of natural gas transportation volumes are equivalent to one barrel of NGLs transported.

As used in this press release, “NGL” means natural gas liquids, “LPG” means liquefied petroleum gas, “BPD” means barrels per day, “MBPD” means thousand barrels per day, “MMcf/d” means million cubic feet per day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means billion British thermal units per day and “TBtus/d” means trillion British thermal units per day.

“Enterprise began 2024 with another strong quarter,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner.  “Our integrated system of energy infrastructure transported 12.3 million equivalent barrels per day of NGLs, crude oil, petrochemicals, refined products and natural gas, while our marine terminals handled a record 2.3 million barrels per day of hydrocarbons in the first quarter of 2024.  The partnership’s total gross operating margin for the first quarter of 2024 was $2.5 billion, a 7 percent increase compared to the first quarter of 2023.  Our earnings growth in the first quarter of 2024 was primarily driven by contributions from new assets placed into service during the second half of 2023 in our NGL Pipeline & Services segment, a 17 percent increase in net marine terminal volumes attributable to growing international demand for U.S. energy, and higher sales volumes and margins in our octane enhancement business.”

“The partnership generated $1.9 billion in DCF during the quarter, which supported a 5 percent increase in cash distributions to partners compared to the same quarter last year.  We reinvested $786 million of DCF to fund organic growth investments and buybacks,” said Teague.

•	Gross operating margin from NGL marketing activities increased $22 million primarily due to higher average sales margins.

•

Gross operating margin from Permian natural gas processing facilities, including the Delaware Basin and Midland Basin assets, increased $33 million primarily due to higher fee-based processing volumes and higher margin-driven business performance.  Delaware Basin fee-based processing volumes increased 160 MMcf/d largely resulting from the addition of the Mentone 2 processing train, which was placed in service in October 2023, and equity NGL-equivalent production volumes were flat.  Midland Basin fee-based processing volumes increased 269 MMcf/d stemming from the addition of the Poseidon natural gas processing train, which was placed in service in July 2023, and equity NGL-equivalent production volumes increased 13 MBPD.

•

Gross operating margin from South Texas natural gas processing facilities increased $11 million primarily due to higher average processing margins and lower maintenance costs, partially offset by the impact of a decrease in equity NGL-equivalent production volumes.  South Texas fee-based gas processing volumes increased 57 MMcf/d, and equity NGL-equivalent production volumes decreased 9 MBPD.

•

Gross operating margin from Rockies natural gas processing facilities decreased $35 million primarily due to lower average processing margins, including the impact of hedging activities.  Rockies fee-based gas processing volumes increased 339 MMcf/d, and equity NGL-equivalent production volumes increased 14 MBPD.

•

Gross operating margin from Enterprise Hydrocarbons Terminal (“EHT”) increased $22 million primarily due to an 83 MBPD increase in LPG export volumes and higher average loading fees.  Gross operating margin from Morgan’s Point Ethane Export Terminal declined $8 million primarily due to lower average loading fees.  Gross operating margin from the Houston Ship Channel Pipeline System increased $11 million in connection with higher average transportation fees and an 86 MBPD increase in transportation volumes.

•	Eastern ethane pipelines, which include the ATEX and Aegis pipelines, reported a $20 million increase in gross operating margin largely due to higher transportation revenues and volumes.  Eastern ethane pipeline volumes increased 43 MBPD.

•	Gross operating margin from the Mont Belvieu Storage Complex increased $18 million primarily due to higher storage revenues.

•

On a combined basis, the pipelines serving the Permian and Rocky Mountain regions reported a $15 million increase in gross operating margin.  This includes the Mid-America and Seminole NGL Pipeline Systems, Shin Oak NGL Pipeline and Chaparral NGL Pipeline.  The variance was primarily driven by higher average transportation fees and a 45 MBPD, net to our interest, increase in transportation volumes, partially offset by higher operating costs.

•

On a combined basis, gross operating margin from our equity investments in Front Range Pipeline, Texas Express Pipeline, and Texas Express Gathering System decreased $12 million primarily due to a combined 16 MBPD, net to our interest, decrease in transportation volumes and lower transportation fees on the Texas Express systems.

•	The South Texas NGL Pipeline System reported a $7 million decrease in gross operating margin primarily due to lower average transportation related fees and higher operating costs, partially offset by the benefit of a 17 MBPD increase in transportation volumes.

•

The Midland-to-ECHO Pipeline System and related business activities reported a net $21 million increase primarily due to higher transportation volumes in addition to higher average transportation fees and related margins, partially offset by higher variable operating costs.  Transportation volumes on the system increased 65 MBPD, net to our interest.

•	On a combined basis, gross operating margin from our Texas in-basin crude oil pipelines, terminals and other marketing activities decreased $10 million primarily due to lower average sales margins and transportation fees, partially offset by higher sales volumes.

•

On a combined basis, gross operating margin from the Rocky Mountain Gathering Systems decreased $37 million primarily due to lower average gathering fees indexed to regional natural gas prices. Gathering volumes on these systems, which include the Jonah Gathering, Piceance Basin Gathering, and San Juan Gathering systems, decreased a combined 16 BBtus/d, or 1 percent.

•	Gross operating margin from the Texas Intrastate System increased $14 million primarily due to higher capacity reservation and transportation revenues, in addition to lower operating costs.  Transportation volumes increased 46 BBtus/d.

•	Gross operating margin from our natural gas marketing business increased $17 million primarily due to higher sales volumes and average margins.

•	Permian natural gas gathering, including Delaware Basin and Midland Basin Gathering Systems, reported a combined $4 million increase in gross operating margin primarily due to a 503 BBtus/d increase in gathering volumes, partially offset by higher operating costs.

•	Gross operating margin from our octane enhancement and related plant operations increased $57 million primarily due to higher sales volumes and revenues.

•	Gross operating margin from our ethylene business increased $19 million primarily due to higher revenues on our pipelines and terminal assets.

•

Propylene production and related activities reported a $45 million decrease in gross operating margin.  At our Mont Belvieu propylene production facilities, higher propylene processing revenues from the PDH 2 facility, which was placed in service in July 2023, were offset by lower propylene sales revenues and higher operating costs.  The partnership’s PDH 1 facility was down for approximately 52 days during the first quarter of 2024 for planned and unplanned maintenance, compared to 24 days in the same quarter last year. Certain of our propylene splitters were down approximately 32 days during the first quarter of this year for unplanned maintenance.  Total propylene and associated by-product production volumes were 96 MBPD, net to our interest, including a 20 MBPD contribution from the PDH 2 facility.

The weighted-average indicative market price for NGLs (based on prices for such products at Mont Belvieu, Texas, which is the primary industry hub for domestic NGL production) was $0.62 per gallon during the first quarter of 2024 versus $0.66 per gallon during the first quarter of 2023.  Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices.  An increase in our consolidated marketing revenues due to higher energy commodity sales prices may not result in an increase in gross operating margin or cash available for distribution, since our consolidated cost of sales amounts would also be expected to increase due to comparable increases in the purchase prices of the underlying energy commodities.  The same type of relationship would be true in the case of lower energy commodity sales prices and purchase costs.

FCF is a non-GAAP measure of how much cash a business generates after accounting for capital expenditures such as plants or pipelines.  Additionally, Adjusted FCF is a non-GAAP measure of how much cash a business generates, excluding the net effect of changes in operating accounts, after accounting for capital expenditures.  We believe that FCF is important to traditional investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects and/or paying distributions.  We believe that Adjusted FCF is also important to traditional investors for the same reasons as FCF, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Since we partner with other companies to fund certain capital projects of our consolidated subsidiaries, our determination of FCF and Adjusted FCF appropriately reflect the amount of cash contributed from and distributed to noncontrolling interests.

Adjusted CFFO is a non-GAAP measure that represents net cash flow provided by operating activities before the net effect of changes in operating accounts. We believe that it is important to consider this non-GAAP measure as it can often be a better way to measure the amount of cash generated from our operations that can be used to fund our capital investments or return value to our investors through cash distributions and buybacks, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.

DCF is an important non-GAAP liquidity measure for our common unitholders since it serves as an indicator of our success in providing a cash return on investment.  Specifically, this liquidity measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions.  DCF is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a common unitholder.

Operational DCF, which is defined as DCF excluding the impact of proceeds from asset sales and other matters and monetization of interest rate derivative instruments, is a supplemental non-GAAP liquidity measure that quantifies the portion of cash available for distribution to common unitholders that was generated from our normal operations.  We believe that it is important to consider this non-GAAP measure as it provides an enhanced perspective of our assets’ ability to generate cash flows without regard for certain items that do not reflect our core operations.

The GAAP measure most directly comparable to DCF and Operational DCF is net cash flow provided by operating activities.

Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities.

Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies.  The GAAP measure most directly comparable to Adjusted EBITDA is net cash flow provided by operating activities.

We evaluate segment performance based on our financial measure of gross operating margin.  Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting.  We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. 

The term “total gross operating margin” represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants), (ii) impairment charges, (iii) gains and losses attributable to asset sales and related matters, and (iv) general and administrative costs.  Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges.  Total gross operating margin is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests.  The GAAP financial measure most directly comparable to total gross operating margin is operating income.

Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (6) to Exhibit A of this press release.

The following table summarizes the non-cash mark-to-market gains (losses) for the periods indicated: