Three themes from Enterprise Products Q2 2026 earnings call on Thursday were especially noteworthy: several new NGL infrastructure projects, increasing confidence that additional Permian gas and NGL production will emerge as natural gas egress expands, and a heartfelt tribute to Co-CEO Jim Teague ahead of his retirement.
On the project front, Enterprise announced plans for two new 300 MMcf/d gas processing plants — Plant 13 in the Delaware Basin, targeted for third-quarter 2028 startup, and Plant 11 in the Midland Basin, expected online in first-quarter 2029. Together, those plants will feed additional Y-grade NGLs into Enterprise's Shin Oak and Bahia pipeline systems, which management said are currently operating at approximately 86% of capacity. The company also approved construction of Frac 15, a new 150-Mb/d fractionator at Mont Belvieu scheduled for first-quarter 2028 service. In another positive development, Enterprise also reported that it accelerated construction of the second phase of its Neches River marine terminal expansion, allowing commissioning activities to begin ahead of schedule.
One of the more interesting exchanges during the Q&A centered on the outlook for Permian natural gas production. Management reaffirmed its view that approximately 2 Bcf/d of production remains constrained by limited takeaway capacity, with much of that gas coming from existing wells that have been choked back rather than from new drilling. As new pipelines enter service and transportation bottlenecks ease, Enterprise expects those volumes — and the associated NGL production that comes with them — to begin flowing into the Enterprise and competitor systems.
The call also included well-deserved tributes to our good friend Co-CEO Jim Teague, who is preparing to retire after 28 years at Enterprise. At 81 years old, Teague described his career in typically understated fashion: "It's been a hell of a ride." After 22 years at Dow and nearly three decades at Enterprise, few executives have had a greater impact on the North American midstream business. He helped build the world's premier NGL infrastructure system and played a central role in transforming the United States into the world's leading exporter of NGLs. Jim Teague reshaped the U.S. NGL industry. There will never be another quite like him.
