Test Blog

Test Post

Comments: 0
First Take: July 6, 2023
  • At the end of June, Enterprise (EPD) received approval from the Texas Railroad Commission for a new 630-mile NGL pipeline. The project appears to follow the same right-of-way as the company's Shin Oak NGL pipeline. 
  • If constructed, the new pipeline would connect EPD's Delaware and Midland processing complexes to its US Gulf Coast assets, where EPD holds a dominant share of fractionation and export capacity in the Houston/Mont Belvieu area.
  • East Daley's
  • Although EPD is actively expanding Shin Oak by +275 Mb/d to 825 Mb/d, Permian supply growth suggests the expanded pipe out of the basin will be tight by YE2027. We model egress hits over 90% utilization, making the case for a new pipe to be constructed.
  • Like other midstream companies, Permian infrastructure is at the core of Enterprise's strategy. EPD has sanctioned a $3.8B capital program in 2023-24, nearly all tied to the basin. 
  • EPD will phase in some of these projects over the next nine months, starting with four new processing plants (two at each of its Permian processing complexes) for a combined capacity of 1.2 Bcf/d. These will serve as a backbone for future supply.
  • Enterprise is set to report 2Q23 earnings at the beginning of August, when we hope for an update on this proposed pipeline project.
  • Be on the lookout for our updated financial outlook on EPD (released later next week), which can be accessed via the

BAHIA

For more questions, reach out to AJ O'Donnell.

Next

Recent Posts

feature image

Second Test Post

feature image

Test Post