Enterprise Products CEO Warns of 12–15M BPD Supply Constraints, Q1 Revenue $14.39B
Enterprise Products Partners warned that a prolonged Strait of Hormuz closure could constrain 12–15 million barrels per day of crude, refined products, propane and petrochemicals. The pipeline operator posted Q1 revenue of $14.39 billion, topping the $13.58 billion estimate, as NGL pipeline margins rose nearly 6%.
1. Hormuz Closure Supply Risks
Chief Executive Jim Teague cautioned that a prolonged shutdown of the Strait of Hormuz could remove 12 to 15 million barrels per day of crude oil, refined products, propane and petrochemical volumes from global markets, a disruption he says is underestimated by financial participants.
2. Robust Q1 Financial Results
Enterprise reported first-quarter revenue of $14.39 billion, surpassing the $13.58 billion consensus, and delivered 10% EBITDA growth driven by the immediate capacity ramps of new assets such as the Bahia NGL pipeline and Frac 14 expansion.
3. Margin Expansion in NGL Pipelines
Gross operating margin for the natural gas liquids pipelines and services segment rose almost 6% year over year, while US ethane-to-ethylene cracking margins jumped from $7 to $23 per pound as international buyers pivot to cheaper domestic feedstock.
4. Strong Petrochemical Shipments and Exports
The partnership will ship around 3 million barrels of ethylene in April and averaged about 70 million barrels per month of exports across its US NGL docks in Q1, with plans to exceed 88 million barrels loaded this month amid sustained global appetite for ethane and propane.