Utilities: Derivatives & hedging (ASC 815)

For the Year Ended December 31,
2025	2024
Net income attributable to common unitholders (GAAP) (1)	5,810	5,897
Adjustments to net income attributable to common unitholders to derive DCF and Operational DCF (addition or subtraction indicated by sign):
Depreciation, amortization and accretion expenses	2,623	2,473
Cash distributions received from unconsolidated affiliates (2)	438	483
Equity in income of unconsolidated affiliates	(361)	(408)
Asset impairment charges	50	57
Change in fair market value of derivative instruments	16	(20)
Deferred income tax expense	46	45
Sustaining capital expenditures (3)	(620)	(667)
Other, net	(98)	(2)
Operational DCF (non-GAAP)	7,904	7,858
Proceeds from asset sales and other matters	82	14
Monetization of interest rate derivative instruments accounted for as cash flow hedges	14	(33)
DCF (non-GAAP)	8,000	7,839
Cash distributions paid to common unitholders with respect to period, including distribution equivalent rights on phantom unit awards	4,752	4,598
Cash distribution per common unit declared by Enterprise GP with respect to period (4)	2.1750	2.1000
Total DCF retained by the Partnership with respect to period (5)	3,248	3,241
Distribution coverage ratio (6)	1.7	x	1.7	x

(1) For a discussion of the primary drivers of changes in our comparative income statement amounts, see “ Income Statement Highlights ” within this Part II, Item 7.

(2) Reflects aggregate distributions received from unconsolidated affiliates attributable to both earnings and the return of capital.

(3) Sustaining capital expenditures include cash payments and accruals applicable to the period.

(4) See Note 8 of the Notes to Consolidated Financial Statements included under Part II, Item 8 of this annual report for information regarding our quarterly cash distributions declared with respect to the years indicated.

(5) Cash retained by the Partnership may be used for capital investments, debt service, working capital, operating expenses, common unit repurchases, commitments and contingencies and other amounts. The retention of cash reduces our reliance on the capital markets.

(6) Distribution coverage ratio is determined by dividing DCF by total cash distributions paid to common unitholders and in connection with distribution equivalent rights with respect to the period.

The following table presents a reconciliation of net cash flow provided by operating activities to DCF and Operational DCF for the years indicated (dollars in millions):