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HOUSTON - Enterprise Products Partners L.P. (NYSE: EPD), a $67.1 billion market cap energy infrastructure company with a strong track record of 27 consecutive years of dividend increases, is facing a challenge with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) signaling its intention to deny the company’s requests to export ethane to China. The notice, received on Tuesday, indicates that Enterprise has a 20-day period to provide comments or rebuttals regarding the proposed denials of three cargoes, amounting to roughly 2.2 million barrels. According to InvestingPro analysis, EPD maintains a GOOD financial health score, suggesting resilience in navigating regulatory challenges.
This development follows a recent change in export regulations, as reported on May 29, 2025, when BIS introduced immediate licensing requirements for ethane exports to China. The requirement for butane exports, however, was later withdrawn. EPD, currently trading at $30.95, has demonstrated remarkable stability with low price volatility, as noted in InvestingPro’s comprehensive analysis of over 100 financial metrics.
The U.S. Energy Information Administration data from 2024 shows the U.S. produced approximately 2.8 million barrels per day (BPD) of ethane and exported around 492,000 BPD. Exports to China accounted for roughly 227,000 BPD, which was 8 percent of the total U.S. production and 46 percent of its ethane exports. Enterprise’s marine export terminal on the Houston Ship Channel was responsible for about 213,000 BPD of ethane in 2024, with 40 percent destined for China. This equates to 37 percent of the total U.S. ethane exports to China for that year. Estimates for 2025 indicate an increase in U.S. ethane exports to China to approximately 290,000 BPD.
Enterprise Products Partners L.P. is a major provider of midstream energy services in North America, with an extensive network of pipelines and storage facilities, generating annual revenues of $56.88 billion. The company’s forward-looking statements in the press release are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. InvestingPro analysis indicates the stock is currently undervalued, with analysts setting price targets up to $40 per share. Discover detailed valuation metrics and 12 more exclusive ProTips by accessing the full Pro Research Report.
The information in this article is based on a press release statement from Enterprise Products Partners L.P. and does not include any subjective assessment or promotional content.
In other recent news, Enterprise Products Partners LP reported its first-quarter 2025 earnings, with earnings per share (EPS) of $0.64, falling short of the anticipated $0.70. Despite the earnings miss, the company exceeded revenue expectations, reporting $15.42 billion compared to the forecasted $14.14 billion. The company also announced a 3.9% increase in its distribution to $0.535 per common unit. Looking forward, Enterprise Products plans to invest $4.0 to $4.5 billion in growth projects for 2025, including new gas processing plants in the Permian Basin. Analyst firm Bank of America noted that Enterprise Products is well-positioned in the LPG export market despite global trade tensions. The company has signed contracts with Southeast Asian companies and remains confident in its market position. Additionally, Enterprise Products has returned a total of $58 billion to unitholders since its IPO, highlighting its commitment to shareholder returns. The company continues to focus on expanding its asset base, with significant projects expected to come online later in the year.
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