ENTERPRISE PRODUCTS PARTNERS L.P.EPD
ENTERPRISE PRODUCTS PARTNERS L.P. Segments Disclosure
Note 10. Business Segments and Related Information
Segment Overview
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. Our business segments are generally organized and managed according to the types of services rendered (or technologies employed) and products produced and/or sold.
Financial information regarding these segments is evaluated regularly by our co-chief operating decision makers (“CODMs”) in deciding how to allocate resources and in assessing our operating and financial performance. The co-principal executive officers of our general partner have been identified as our CODMs.
The following information summarizes the assets and operations of each business segment:
•Our NGL Pipelines & Services business segment includes our natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities, and NGL marine terminals.
•Our Crude Oil Pipelines & Services business segment includes our crude oil pipelines, crude oil storage and marine terminals, and related crude oil marketing activities.
•Our Natural Gas Pipelines & Services business segment includes our natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. This segment also includes our natural gas marketing activities.
•Our Petrochemical & Refined Products Services business segment includes our (i) propylene production facilities, which include propylene fractionation units and PDH facilities, and related pipelines and marketing activities, (ii) butane isomerization complex and related deisobutanizer operations, (iii) octane enhancement, iBDH and HPIB production facilities, (iv) refined products pipelines, terminals and related marketing activities, (v) ethylene export terminal and related operations; and (vi) marine transportation business.
Our plants, pipelines and other fixed assets are located in the U.S.
Segment Gross Operating Margin
Our CODMs 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, forms the basis of our internal financial reporting, and is used by our CODMs on a monthly basis to monitor budgeted versus actual results. Our CODMs also consider gross operating margin results, in part, when determining how to allocate resources (e.g., employees and capital investments) to each segment, primarily in the annual budget process. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. Gross operating margin is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Gross operating margin is presented on a 100% basis before any allocation of earnings to noncontrolling interests. Our calculation of gross operating margin may or may not be comparable to similarly titled measures used by other companies.
The following table presents a reconciliation of total segment gross operating margin to income before income taxes for the years indicated:
| For the Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total segment gross operating margin | $ | 10,054 | $ | 10,018 | $ | 9,376 | |||||||||||
| Adjustments to reconcile total segment gross operating margin to income before income taxes (addition or subtraction indicated by sign): | |||||||||||||||||
| Depreciation, amortization and accretion expense in operating costs and expenses (1) | (2,477) | (2,343) | (2,215) | ||||||||||||||
| Asset impairment charges in operating costs and expenses | (50) | (57) | (30) | ||||||||||||||
| Net gains (losses) attributable to asset sales and related matters in operating costs and expenses | 14 | (2) | 10 | ||||||||||||||
| General and administrative costs | (251) | (244) | (231) | ||||||||||||||
| Non-refundable payments received from shippers attributable to make-up rights (2) | (55) | (75) | (52) | ||||||||||||||
| Subsequent recognition of revenues attributable to make-up rights (3) | 31 | 41 | 71 | ||||||||||||||
| Total other expense, net (4) | (1,367) | (1,303) | (1,228) | ||||||||||||||
| Income before income taxes | $ | 5,899 | $ | 6,035 | $ | 5,701 | |||||||||||
(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.
(2)Since make-up rights entail a future performance obligation by the pipeline to the shipper, these receipts are recorded as deferred revenue for GAAP purposes; however, these receipts are included in gross operating margin in the period of receipt since they are non-refundable to the shipper.
(3)As deferred revenues attributable to make-up rights are subsequently recognized as revenue under GAAP, gross operating margin must be adjusted to remove such amounts to prevent duplication since the associated non-refundable payments were previously included in gross operating margin.
(4)As presented on our Statements of Consolidated Operations, Total other expense, net is comprised of Interest expense, Interest income and Other, net.
The results of operations from our liquids pipelines are primarily dependent upon the volumes transported and the associated fees we charge for such transportation services. Typically, pipeline transportation revenue is recognized when volumes are re-delivered to customers. However, under certain pipeline transportation agreements, customers are required to ship a minimum volume over an agreed-upon period. These arrangements may entail the shipper paying a transportation fee based on a minimum volume commitment, with a provision that allows the shipper to make-up any volume shortfalls over the agreed-upon period (referred to as shipper “make-up rights”). Revenue pursuant to such agreements is initially deferred and subsequently recognized under GAAP at the earlier of when the deficiency volume is shipped, when the likelihood of the shipper’s ability to meet the minimum volume commitment becomes remote, or when the pipeline is otherwise released from its performance obligation.
However, management includes deferred transportation revenues relating to the “make-up rights” of committed shippers when reviewing the financial results of certain pipelines (Texas Express Pipeline, Front Range Pipeline, ATEX, Aegis Ethane Pipeline, and Seaway Pipeline). From an internal (and segment) reporting standpoint, management considers the transportation fees paid by committed shippers on these pipelines, including any non-refundable revenues that may be deferred under GAAP related to make-up rights, to be important in assessing the financial performance of these pipeline assets. Although the adjustments for make-up rights are included in segment gross operating margin, our consolidated revenues do not reflect any deferred revenues until the conditions for recognizing such revenues are met in accordance with GAAP.
Summarized Segment Financial Information
The following tables present segment revenues and significant segment expenses by segment, together with a reconciliation to segment gross operating margin, for the periods indicated:
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| NGL Pipelines & Services | Crude Oil Pipelines & Services | Natural Gas Pipelines & Services | Petrochemical & Refined Products Services | Segment Total | |||||||||||||||||||||||||
| Segment revenues: | |||||||||||||||||||||||||||||
| Revenues from third parties | $ | 17,308 | $ | 20,735 | $ | 4,149 | $ | 10,352 | $ | 52,544 | |||||||||||||||||||
| Revenues from related parties | 8 | 26 | 18 | – | 52 | ||||||||||||||||||||||||
| Intersegment and intrasegment revenues | 67,059 | 42,375 | 960 | 21,146 | 131,540 | ||||||||||||||||||||||||
| Total segment revenues | 84,375 | 63,136 | 5,127 | 31,498 | 184,136 | ||||||||||||||||||||||||
| Significant segment expenses: | |||||||||||||||||||||||||||||
| Cost of sales | 76,347 | 61,380 | 2,746 | 28,496 | 168,969 | ||||||||||||||||||||||||
| Variable operating costs and expenses (1) | 844 | 140 | 77 | 453 | 1,514 | ||||||||||||||||||||||||
| Fixed operating costs and expenses (2) | 1,750 | 408 | 758 | 1,129 | 4,045 | ||||||||||||||||||||||||
| Total significant segment expenses | 78,941 | 61,928 | 3,581 | 30,078 | 174,528 | ||||||||||||||||||||||||
| Other segment income: | |||||||||||||||||||||||||||||
| Equity in income of unconsolidated affiliates | 83 | 271 | 5 | 2 | 361 | ||||||||||||||||||||||||
| Other segment items (3) | 42 | 22 | 7 | 14 | 85 | ||||||||||||||||||||||||
| Total other segment income | 125 | 293 | 12 | 16 | 446 | ||||||||||||||||||||||||
| Total segment gross operating margin | $ | 5,559 | $ | 1,501 | $ | 1,558 | $ | 1,436 | $ | 10,054 | |||||||||||||||||||
| Other financial information: | |||||||||||||||||||||||||||||
| Capital expenditures | $ | 3,326 | $ | 112 | $ | 1,628 | $ | 554 | $ | 5,620 | |||||||||||||||||||
(1)Variable operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally fluctuate based on utilization.
(2)Fixed operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally remain constant independent of utilization.
(3)Other segment items for each segment primarily represent the following:
•NGL Pipelines & Services – Non-refundable payments received from shippers attributable to make-up rights, subsequent recognition of revenues attributable to make-up rights, and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Other miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| NGL Pipelines & Services | Crude Oil Pipelines & Services | Natural Gas Pipelines & Services | Petrochemical & Refined Products Services | Segment Total | |||||||||||||||||||||||||
| Segment revenues: | |||||||||||||||||||||||||||||
| Revenues from third parties | $ | 20,264 | $ | 21,546 | $ | 2,992 | $ | 11,359 | $ | 56,161 | |||||||||||||||||||
| Revenues from related parties | 12 | 34 | 12 | – | 58 | ||||||||||||||||||||||||
| Intersegment and intrasegment revenues | 48,822 | 54,415 | 667 | 25,352 | 129,256 | ||||||||||||||||||||||||
| Total segment revenues | 69,098 | 75,995 | 3,671 | 36,711 | 185,475 | ||||||||||||||||||||||||
| Significant segment expenses: | |||||||||||||||||||||||||||||
| Cost of sales | 61,260 | 74,098 | 1,656 | 33,755 | 170,769 | ||||||||||||||||||||||||
| Variable operating costs and expenses (1) | 745 | 132 | 73 | 373 | 1,323 | ||||||||||||||||||||||||
| Fixed operating costs and expenses (2) | 1,682 | 414 | 676 | 1,048 | 3,820 | ||||||||||||||||||||||||
| Total significant segment expenses | 63,687 | 74,644 | 2,405 | 35,176 | 175,912 | ||||||||||||||||||||||||
| Other segment income (expense): | |||||||||||||||||||||||||||||
| Equity in income of unconsolidated affiliates | 117 | 285 | 5 | 1 | 408 | ||||||||||||||||||||||||
| Other segment items (3) | 20 | 10 | 6 | 11 | 47 | ||||||||||||||||||||||||
| Total other segment income | 137 | 295 | 11 | 12 | 455 | ||||||||||||||||||||||||
| Total segment gross operating margin | $ | 5,548 | $ | 1,646 | $ | 1,277 | $ | 1,547 | $ | 10,018 | |||||||||||||||||||
| Other financial information: | |||||||||||||||||||||||||||||
| Capital expenditures | $ | 2,498 | $ | 161 | $ | 932 | $ | 953 | $ | 4,544 | |||||||||||||||||||
(1)Variable operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally fluctuate based on utilization.
(2)Fixed operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally remain constant independent of utilization.
(3)Other segment items for each segment primarily represent the following:
•NGL Pipelines & Services – Non-refundable payments received from shippers attributable to make-up rights, subsequent recognition of revenues attributable to make-up rights, and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Other miscellaneous segment items.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| NGL Pipelines & Services | Crude Oil Pipelines & Services | Natural Gas Pipelines & Services | Petrochemical & Refined Products Services | Segment Total | |||||||||||||||||||||||||
| Segment revenues: | |||||||||||||||||||||||||||||
| Revenues from third parties | $ | 17,635 | $ | 19,300 | $ | 3,761 | $ | 8,958 | $ | 49,654 | |||||||||||||||||||
| Revenues from related parties | 10 | 36 | 15 | – | 61 | ||||||||||||||||||||||||
| Intersegment and intrasegment revenues | 45,490 | 57,122 | 527 | 18,882 | 122,021 | ||||||||||||||||||||||||
| Total segment revenues | 63,135 | 76,458 | 4,303 | 27,840 | 171,736 | ||||||||||||||||||||||||
| Significant segment expenses: | |||||||||||||||||||||||||||||
| Cost of sales | 56,143 | 74,437 | 2,583 | 24,810 | 157,973 | ||||||||||||||||||||||||
| Variable operating costs and expenses (1) | 741 | 191 | 59 | 397 | 1,388 | ||||||||||||||||||||||||
| Fixed operating costs and expenses (2) | 1,589 | 403 | 595 | 877 | 3,464 | ||||||||||||||||||||||||
| Total significant segment expenses | 58,473 | 75,031 | 3,237 | 26,084 | 162,825 | ||||||||||||||||||||||||
| Other segment income (expense): | |||||||||||||||||||||||||||||
| Equity in income of unconsolidated affiliates | 133 | 320 | 6 | 3 | 462 | ||||||||||||||||||||||||
| Other segment items (3) | 103 | (40) | 5 | (65) | 3 | ||||||||||||||||||||||||
| Total other segment income (expense), net | 236 | 280 | 11 | (62) | 465 | ||||||||||||||||||||||||
| Total segment gross operating margin | $ | 4,898 | $ | 1,707 | $ | 1,077 | $ | 1,694 | $ | 9,376 | |||||||||||||||||||
| Other financial information: | |||||||||||||||||||||||||||||
| Capital expenditures | $ | 1,366 | $ | 119 | $ | 793 | $ | 988 | $ | 3,266 | |||||||||||||||||||
(1)Variable operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally fluctuate based on utilization.
(2)Fixed operating costs and expenses represent the cost of operating our plants, pipelines and other fixed assets that generally remain constant independent of utilization.
(3)Other segment items for each segment primarily represent the following:
•NGL Pipelines & Services – Non-refundable payments received from shippers attributable to make-up rights, subsequent recognition of revenues attributable to make-up rights, and other miscellaneous segment items.
•Crude Oil Pipelines & Services – Subsequent recognition of revenues attributable to make-up rights.
•Natural Gas Pipelines & Services – Other miscellaneous segment items.
•Petrochemical & Refined Products Services – Other miscellaneous segment items.
Segment revenues include intersegment and intrasegment transactions, which are generally based on transactions made at market-based rates. Our consolidated revenues reflect the elimination of intercompany transactions. The following table reconciles total segment revenues as reported in the preceding tables to consolidated revenues as presented on our Statements of Consolidated Operations:
| For the Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Segment revenues: | |||||||||||||||||
| NGL Pipelines & Services | $ | 84,375 | $ | 69,098 | $ | 63,135 | |||||||||||
| Crude Oil Pipelines & Services | 63,136 | 75,995 | 76,458 | ||||||||||||||
| Natural Gas Pipelines & Services | 5,127 | 3,671 | 4,303 | ||||||||||||||
| Petrochemical & Refined Products Services | 31,498 | 36,711 | 27,840 | ||||||||||||||
| Total segment revenues | 184,136 | 185,475 | 171,736 | ||||||||||||||
| Elimination of intersegment and intrasegment revenues | (131,540) | (129,256) | (122,021) | ||||||||||||||
| Total consolidated revenues | $ | 52,596 | $ | 56,219 | $ | 49,715 | |||||||||||
Segment expenses represent operating costs and expenses exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets), (ii) impairment charges, and (iii) gains and losses attributable to asset sales and related matters. Segment expense presented in the tables above include intersegment and intrasegment transactions, which are generally based on transactions made at market-based rates. Additionally, the significant segment expense categories presented align with the manner in which our CODMs evaluate segment results. Our consolidated operating costs and expenses are inclusive of the aforementioned adjustments and reflect the elimination of intercompany transactions.
We include equity in income of unconsolidated affiliates in our measurement of segment gross operating margin and operating income. Equity investments with industry partners are a significant component of our business strategy. They are a means by which we conduct our operations to align our interests with those of customers and/or suppliers. This method of operation enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed. Many of these businesses perform supporting or complementary roles to our other midstream business operations. Given the integral nature of these equity method investees to our operations, we believe the presentation of equity earnings from such investees as a component of gross operating margin and operating income is meaningful and appropriate.
The following table presents our segment assets, together with a reconciliation to our consolidated total assets, at the dates indicated:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| NGL Pipelines & Services | $ | 24,999 | $ | 21,900 | |||||||
| Crude Oil Pipelines & Services | 11,097 | 11,390 | |||||||||
| Natural Gas Pipelines & Services | 13,194 | 12,260 | |||||||||
| Petrochemical & Refined Products Services | 11,725 | 11,350 | |||||||||
| Total segment assets | 61,015 | 56,900 | |||||||||
| Construction in progress | 2,400 | 4,138 | |||||||||
| Current assets | 13,360 | 15,133 | |||||||||
| Other assets | 1,127 | 997 | |||||||||
| Consolidated total assets | $ | 77,902 | $ | 77,168 | |||||||
Segment assets consist of property, plant and equipment (excluding construction-in-progress), investments in unconsolidated affiliates, intangible assets and goodwill. The carrying values of such amounts are assigned to each segment based on each asset’s or investment’s principal operations and contribution to the gross operating margin of that particular segment. Since construction-in-progress (a component of property, plant and equipment) does not contribute to segment gross operating margin, such amounts are excluded from segment asset totals until the underlying assets are placed in service. The remainder of our consolidated total assets, which consist primarily of working capital assets, are excluded from segment assets since these amounts are not attributable to one specific segment.
Supplemental Revenue and Expense Information
The following table presents additional information regarding our consolidated revenues and costs and expenses for the years indicated:
| For the Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Consolidated revenues: | |||||||||||||||||
| NGL Pipelines & Services | $ | 17,316 | $ | 20,276 | $ | 17,645 | |||||||||||
| Crude Oil Pipelines & Services | 20,761 | 21,580 | 19,336 | ||||||||||||||
| Natural Gas Pipelines & Services | 4,167 | 3,004 | 3,776 | ||||||||||||||
| Petrochemical & Refined Products Services | 10,352 | 11,359 | 8,958 | ||||||||||||||
| Total consolidated revenues | $ | 52,596 | $ | 56,219 | $ | 49,715 | |||||||||||
| Consolidated costs and expenses | |||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||
| Cost of sales | $ | 38,566 | $ | 42,580 | $ | 37,023 | |||||||||||
| Other operating costs and expenses (1) | 4,287 | 4,004 | 3,695 | ||||||||||||||
| Depreciation, amortization and accretion | 2,551 | 2,402 | 2,279 | ||||||||||||||
| Asset impairment charges | 50 | 57 | 30 | ||||||||||||||
| Net losses (gains) attributable to asset sales and related matters | (14) | 2 | (10) | ||||||||||||||
| General and administrative costs | 251 | 244 | 231 | ||||||||||||||
| Total consolidated costs and expenses | $ | 45,691 | $ | 49,289 | $ | 43,248 | |||||||||||
(1)Represents the cost of operating our plants, pipelines and other fixed assets excluding: depreciation, amortization and accretion; asset impairment charges; and net losses (gains) attributable to asset sales and related matters.
Fluctuations in our product sales revenues and cost of sales amounts are explained in large part by changes in energy commodity prices. In general, higher energy commodity prices result in an increase in our revenues attributable to product sales; however, these higher commodity prices would also be expected to increase the associated cost of sales as purchase costs are higher. The same type of relationship would be true in the case of lower energy commodity sales prices and purchase costs.
Major Customer Information
Substantially all of our consolidated revenues are earned in the U.S. and derived from a wide customer base. No single customer accounted for 10% or more of our consolidated revenues (thus constituting a “major customer”) for the year ended December 31, 2025. However, for the years ended December 31, 2024 and 2023, Vitol Holding B.V. and its affiliates (collectively, “Vitol”) accounted for $6.45 billion, or 11.5%, and $7.87 billion, or 15.8%, respectively, of our consolidated revenues. Vitol is a global energy and commodity trading company. Revenues earned from Vitol during 2024 and 2023 are included within each of our four business segments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.