Enterprise Products Partners prices $2 billion in senior notes

HOUSTON - Enterprise Products Partners L.P. (NYSE:EPD), a $67.7 billion midstream energy giant with a "GOOD" financial health rating according to InvestingPro, announced Tuesday that its operating subsidiary has priced a $2 billion public offering of senior notes with maturities ranging from 2028 to 2036. Based on InvestingPro’s Fair Value analysis, the company appears to be trading near its fair value.

The offering consists of $500 million in senior notes due June 20, 2028, with a 4.30% interest coupon; $750 million in notes due January 15, 2031, with a 4.60% coupon; and $750 million in notes due January 15, 2036, with a 5.20% coupon. All notes will be guaranteed by Enterprise Products Partners on an unsecured and unsubordinated basis. The company maintains a total debt of $32.05 billion with a current ratio of 0.86.

The company plans to use proceeds for general corporate purposes, including growth capital investments, acquisitions, and debt repayment. Settlement is expected to occur on June 20, 2025, subject to customary closing conditions.

Citigroup Global Markets Inc., BBVA Securities Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., and TD Securities (USA) LLC served as joint book-running managers for the offering.

Enterprise Products Partners is a midstream energy services provider with assets including more than 50,000 miles of pipelines, over 300 million barrels of storage capacity for natural gas liquids, crude oil, petrochemicals and refined products, and 14 billion cubic feet of natural gas storage capacity. The company has demonstrated remarkable stability with 27 consecutive years of dividend increases, currently offering a 6.79% yield. InvestingPro subscribers can access detailed analysis of EPD’s financial health metrics and 10+ additional ProTips about the company’s performance and outlook.

The information in this article is based on a press release statement from the company.

In other recent news, Enterprise Products Partners LP reported its first-quarter 2025 earnings, which fell short of analyst expectations with earnings per share (EPS) of $0.64, compared to the projected $0.70. However, the company exceeded revenue forecasts, posting $15.42 billion against the anticipated $14.14 billion. Despite the earnings miss, Enterprise increased its distribution by 3.9% to $0.535 per common unit. In another development, the U.S. Department of Commerce’s Bureau of Industry and Security is set to deny Enterprise’s requests to export ethane to China, impacting three cargoes totaling approximately 2.2 million barrels. This follows a regulatory change requiring licenses for ethane exports to China, although butane exports are no longer subject to such requirements. Enterprise’s marine export terminal was responsible for a significant portion of U.S. ethane exports to China in 2024. Lastly, the company plans significant capital expenditures in 2025, including new gas processing plants, with an expected mid-single-digit cash flow growth per unit.

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