Enterprise Performance Lifted by Permian Gas

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Supported by activity in the Permian Basin, the largest inland oil producer in the United States, Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) said the basin helped support record volumes of gas processing and pipeline deliveries.

Enterprise on Tuesday reported a record volume of gas processing, at 7.7 billion cubic feet per day (Bcf/d), which in turn supported record natural gas pipeline volumes during the first quarter.

"During the first quarter of 2025, Enterprise continued to benefit from Permian-driven volume growth and consistent domestic and international energy demand pull across our midstream infrastructure system," said A. J. "Jim" Teague, the co-chief executive officer of Enterprise.

The Permian is among the oldest oil and gas producing regions in the United States, with the first well tapped in 1920 yielding only 10 barrels of oil per day (BBL/d). The basin now accounts for about half of total U.S. crude oil production, or around 6.5 million BBL/d.

But as the basin matures, it's yielding more natural gas. The gas-to-oil ratio in a basin increases as pressure declines in the reservoir due to production. As the pressure drops, heavier hydrocarbons get trapped in subsurface pores, allowing room for lighter products such as natural gas to move into the production well.

Federal data show the Permian should average 27.6 Bcf/d in production this year, representing about 25% of total inland natural gas production. That's 2% greater than the total share from last year.

"If it were a country, the Permian Basin would be one of the largest producers of oil in the world," analysis from the U.S. Energy Department found. "And while the area receives much attention for its oil production, it has also become a major producer of natural gas and of natural gas liquids."

Teaque, meanwhile, said his company has about $6 billion in growth projects scheduled for this year, including two gas-processing plant in the Permian slated for the third quarter. In the fourth quarter, it announced that construction started on its Bahia pipeline, designed to carry 600,000 BBL/d in natural gas liquids away from the Permian Basin to the company's fractionation facilities in Mont Belvieu, Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Project Database can learn more by viewing the Bahia project report.

Enterprise last year posted total capital investments of $5.5 billion, and plans for at least $6 billion in capital growth projects this year. For the first quarter, Enterprise outperformed some on the upstream side of the industry who are reporting poor results so far.

Net income during the first quarter was $1.4 billion, compared with $1.48 billion during the same period last year. From just its natural gas pipeline and services segment, Enterprise reported net income of $357 million, an improvement over year-ago levels of $312 million.

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