Three themes from Enterprise Products Partners’ Q3 2026 earnings call on Thursday stood out: an upward revision to its Permian natural gas and NGL production forecast, the approaching completion of a major LPG export expansion, and a farewell from Co-CEO Jim Teague on his final earnings call before retirement.
The biggest news was Enterprise’s revised outlook for Permian production. The company now expects wet natural gas and NGL production to increase 34% between 2025 and 2030, up from the 23% growth it forecast just six months ago. Its crude oil production outlook, however, increased by only 100 Mb/d. The difference reflects rising gas-to-oil ratios (GORs), meaning producers are recovering more natural gas relative to crude oil than previously anticipated. As Enterprise executive Corey Johnson explained, the revision was not driven by changes in drilling or completion activity, but by “what we’re seeing coming out of the rock.”
Several factors are behind the higher GORs. First, natural gas production decline curves have been flattening, allowing existing wells to sustain higher gas output relative to crude oil. Second, drilling activity is shifting toward formations with higher GORs, including the Woodford and Barnett, where initial GORs can reach 8-9, compared with roughly 2 in the Wolfcamp. Improved drilling and completion technologies are also increasing recoveries, with incremental production trending toward lighter hydrocarbons.
The implications for midstream infrastructure are significant. Enterprise now anticipates building closer to two Permian gas processing plants annually, with additional NGL transportation and fractionation capacity likely needed to accommodate growing volumes.
On exports, Enterprise said its fully contracted 300-Mb/d Houston Ship Channel LPG expansion is undergoing commissioning and should be completed before year-end, increasing terminal capacity to approximately 1.1 MMb/d. Management expects a substantial increase in export volumes in 2027.
Finally, Jim Teague closed out nearly three decades at Enterprise by emphasizing the teamwork behind its success. Few executives have had a greater impact on North American midstream infrastructure. Jim helped build the world's premier NGL system and reshape the U.S. NGL industry. There will never be another quite like him.
