EPD: 2Q26 Preview

Research evidence excerpt

EPD: 2Q26 Preview

Enterprise Products Partners L.P.

Key sustainability questions

This section is intended to highlight key sustainability discussion points relevant to this company, as well as our views on the outlook. Both the

questions we highlight and our responses will evolve over time as the dialogue between management, analysts and investors continues to

advance. We welcome any feedback on the topics.

Our view

What are the most material EPD’s earnings come from the transport of fossil fuels, and being part of the energy

sustainability issues facing this industry, the company faces public scrutiny for the effects of climate change. A

company? key challenge for midstream companies will be carbon accounting, and whether

midstream companies are responsible for the carbon of the products they transport.

Does the company integrate We believe EPD is one of the better positioned midstream companies with how

sustainability considerations into its it integrated sustainability considerations into its strategy with rational goals, and

strategy? EPD believes energy security through energy addition is the highest priority for

the industry. EPD is focused on sustainability through multiple paths, including

modifying plants for reduced carbon emissions, management compensation based

on ESG metrics, and pursuing carbon capture and hydrogen opportunities, among

others.

What is diversity like at the board/ Three directors on the board are women, including the Chairman.

management level?

How has governance improved for Most MLPs historically had IDRs. IDRs turned out to be detrimental to governance

MLPs? and are a concern for investors. IDRs were originally implemented to align the

interests of the MLP with its general partner, but the IDR structure was not

sustainable.