Latest news with #EnterpriseProducts
Yahoo
3 days ago
- Business
- Yahoo
Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan
Enterprise Products Partners L.P. (NYSE:EPD) on Monday reported second-quarter 2025 earnings that beat analyst expectations on earnings per share but missed on revenue, while setting multiple operating volume records across its midstream network. Enterprise posted earnings of 66 cents per unit, up 3% from 64 cents in the same quarter a year earlier and beating the consensus estimate of 64 cents. However, revenue came in at $11.36 billion, missing analysts' expectations of $14.19 billion. Distributable cash flow (DCF) rose 7% year over year to $1.9 billion, providing 1.6 times coverage of the company's declared $0.545 per-unit distribution, up 3.8% from a year ago. Enterprise retained $748 million of DCF to reinvest in growth. Also Read: Adjusted cash flow from operations remained steady at $2.1 billion, and for the 12 months ended June 30, stood at $8.6 billion. Enterprise repurchased $110 million worth of common units during the quarter and reported a 12-month payout ratio of 57%. View more earnings on EPD 'In a seasonally weaker quarter challenged by macroeconomic and commodity headwinds, Enterprise reported solid earnings and cash flow,' said A. J. 'Jim' Teague, co-chief executive officer of Enterprise's general partner. Operating Records and Segment Highlights Despite broader market challenges, the company set five new operating records: Natural gas processing inlet volumes: 7.8 billion cubic feet per day (Bcf/d), up 3% year over year Natural gas pipeline volumes: 20.4 trillion Btus per day (TBtus/d), up 9% Crude oil pipeline volumes: 2.6 million barrels per day (BPD), a new high Refined products and petrochemical pipelines: 1.0 million BPD Total NGL pipeline volumes: 4.6 million BPD, up 5% Gross operating margin rose to $2.5 billion, up from $2.4 billion in the prior year's quarter. NGL Pipelines & Services held flat at $1.3 billion, with higher pipeline and terminal volumes offsetting lower NGL marketing and Rockies processing margins. Natural Gas Pipelines & Services surged 42% to $417 million, driven by stronger marketing margins, increased Permian volumes, and higher throughput on the Texas Intrastate System. Crude Oil Pipelines & Services fell to $403 million from $417 million, with lower marine terminal volumes and marketing activity partially offset by lower costs and storage revenues. Petrochemical & Refined Products slipped to $354 million from $392 million due to weaker octane enhancement margins, though pipeline volumes hit a record. Enterprise reaffirmed that approximately $6 billion in organic growth projects will enter service in the second half of 2025. These include: Two new Permian gas processing plants, Mentone West 1 and Orion, boosting processing capacity across the Delaware and Midland Basins to over 4.4 Bcf/d. Commissioning of the Neches River Terminal in mid-July, with a 120,000 BPD ethane refrigeration train now operational. Frac 14 and the Bahia NGL pipeline, scheduled to come online in Q4. Enterprise invested $1.3 billion in the second quarter of 2025, including $1.2 billion in growth capital and $117 million in sustaining capex. The company reaffirmed full-year 2025 organic growth capex guidance of $4.0 billion to $4.5 billion and $525 million in sustaining expenditures. As of June 30, the company had total debt of $33.1 billion and consolidated liquidity of $5.1 billion, including credit capacity and unrestricted cash. Price Action: EPD shares are trading lower by 1.38% to $31.12 at last check Monday. Read Next:Photo by sdf_qwe via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? ENTERPRISE PRODS PARTNERS (EPD): Free Stock Analysis Report This article Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Pick Enbridge Stock Over Enterprise Products in Today's Energy Market?
Enbridge Inc. ENB and Enterprise Products Partners EPD are two midstream energy giants. Given the nature of their business model, where shippers utilize their oil and gas storage and transportation assets, the players are less vulnerable to volatility in commodity prices. Over the past year, ENB has risen 33.2%, outperforming EPD's 16.4% growth. However, this outperformance alone doesn't necessarily put Enbridge in a stronger position than Enterprise Products. To build a solid investment case, it's important to dive deeper into the underlying business fundamentals and long-term outlook. One-Year Price Chart Image Source: Zacks Investment Research Enbridge's Cash Flows More Insulated Than EPD's The minimization of commodity price volatility and volume risks in Enbridge's business model stems from regulated or take-or-pay contracts, which support 98% of its EBITDA. Further, more than 80% of this midstream energy firm's profits are generated from activities where the company can automatically raise prices or fees. Thus, ENB, a leading midstream energy player, is keeping pace with rising costs, which protects its earnings and dividend payments even in a high-inflationary environment. This stability in the business model is contributing to its investment-grade credit rating while providing long-term visibility into cash flows. On the contrary, Enterprise Products' midstream business is more dependent on the volumes of oil and gas being transported through its pipelines. Hence, its earnings are more vulnerable to global demand for commodities. ENB Bets Big on Clean Energy While EPD Sticks to Fossil Fuels Apart from traditional midstream operations, Enbridge is allocating huge capital toward cleaner energy, including wind farms and solar energy projects. With the world gradually demanding cleaner energy, the company's renewable energy projects will meet the growing need for electricity from millions of homes. Enterprise Products, on the other hand, while staying focused mostly on fossil fuels and related chemicals, is losing appeal to investors with a preference for cleaner alternatives. Which Stock Should Investors Buy? Coming to the valuation story, it seems that investors are willing to pay a premium for ENB compared to EPD. This is reflected in Enbridge's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio of 15.13 compared with Enterprise Products' 10.24. Image Source: Zacks Investment Research Also, unlike EPD, Enbridge has witnessed upward earnings estimate revisions for 2025 over the past 30 days. Image Source: Zacks Investment Research Given the current landscape, it's evident that Enbridge stands out as a stronger stock than Enterprise Products, offering more promising growth prospects. Hence, investors should refrain from EPD and bet on ENB right away. Currently, ENB has a Zacks Rank #2 (Buy), while EPD carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Pick Enbridge Stock Over Enterprise Products in Today's Energy Market?
Enbridge Inc. ENB and Enterprise Products Partners EPD are two midstream energy giants. Given the nature of their business model, where shippers utilize their oil and gas storage and transportation assets, the players are less vulnerable to volatility in commodity prices. Over the past year, ENB has risen 33.2%, outperforming EPD's 16.4% growth. However, this outperformance alone doesn't necessarily put Enbridge in a stronger position than Enterprise Products. To build a solid investment case, it's important to dive deeper into the underlying business fundamentals and long-term outlook. One-Year Price Chart Image Source: Zacks Investment Research Enbridge's Cash Flows More Insulated Than EPD's The minimization of commodity price volatility and volume risks in Enbridge's business model stems from regulated or take-or-pay contracts, which support 98% of its EBITDA. Further, more than 80% of this midstream energy firm's profits are generated from activities where the company can automatically raise prices or fees. Thus, ENB, a leading midstream energy player, is keeping pace with rising costs, which protects its earnings and dividend payments even in a high-inflationary environment. This stability in the business model is contributing to its investment-grade credit rating while providing long-term visibility into cash flows. On the contrary, Enterprise Products' midstream business is more dependent on the volumes of oil and gas being transported through its pipelines. Hence, its earnings are more vulnerable to global demand for commodities. ENB Bets Big on Clean Energy While EPD Sticks to Fossil Fuels Apart from traditional midstream operations, Enbridge is allocating huge capital toward cleaner energy, including wind farms and solar energy projects. With the world gradually demanding cleaner energy, the company's renewable energy projects will meet the growing need for electricity from millions of homes. Enterprise Products, on the other hand, while staying focused mostly on fossil fuels and related chemicals, is losing appeal to investors with a preference for cleaner alternatives. Which Stock Should Investors Buy? Coming to the valuation story, it seems that investors are willing to pay a premium for ENB compared to EPD. This is reflected in Enbridge's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio of 15.13 compared with Enterprise Products' 10.24. Image Source: Zacks Investment Research Also, unlike EPD, Enbridge has witnessed upward earnings estimate revisions for 2025 over the past 30 days. Image Source: Zacks Investment Research Given the current landscape, it's evident that Enbridge stands out as a stronger stock than Enterprise Products, offering more promising growth prospects. Hence, investors should refrain from EPD and bet on ENB right away. Currently, ENB has a Zacks Rank #2 (Buy), while EPD carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Enterprise Products After Ethane Export Ban: Opportunity or Overhang?
Enterprise Products Partners EPD recently disclosed in an 8K filing, about the receipt of a letter from the Bureau of Industry and Security ('BIS'), U.S. Department of Commerce. The letter signifies the removal of previous restrictions on ethane exports to China or entities linked to the Chinese military, boosting investors' sentiments for the operator of a marine export terminal located along the Houston Ship Channel. Enterprise Products plays a key role in the midstream space by handling everything from gathering natural gas to processing, transporting, and storing it. After processing natural gas liquids (NGL) from natural gas, EPD transports the NGLs through its pipeline network. After that, through the process of fractionation at specialized plants, the partnership engages in separating the NGL mixture into its components, such as ethane. Enterprise Products' midstream services also include storing the components and loading these products onto ships at its marine export terminal for overseas export. Now, the resumption of ethane exports to China is likely to generate cash flows for Enterprise Products. From transporting natural gas, to processing it into NGLs and transporting and loading NGLs like ethane, the partnership will generate stable fee-based revenues, which is beneficial for investors. However, given the ongoing U.S.-China tensions, EPD's overall risk persists. The Williams Companies, Inc. WMB has a 50% ownership interest in The Overland Pass Pipeline. WMB stated that the pipeline network covers 760 miles, transporting NGL to the Mid-Continent market hub located in Conway, KS, from Opal, WY. The pipeline network of Williams Companies has a daily capacity of 245,000 barrels of NGL. Energy Transfer LP ET is also involved in transporting NGL. The pipeline network of ET, transporting NGL, spans approximately 5,700 miles. Energy Transfer noted that the pipeline network has a daily transportation capacity of three million barrels. Units of EPD have surged 16% over the past year, outpacing the 14.7% improvement of the composite stocks belonging to the industry. Image Source: Zacks Investment Research From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.18X. This is below the broader industry average of 11.56X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for EPD's 2025 earnings hasn't been revised over the past seven days. Image Source: Zacks Investment Research EPD stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Enterprise Products After Ethane Export Ban: Opportunity or Overhang?
Enterprise Products Partners EPD recently disclosed in an 8K filing, about the receipt of a letter from the Bureau of Industry and Security ('BIS'), U.S. Department of Commerce. The letter signifies the removal of previous restrictions on ethane exports to China or entities linked to the Chinese military, boosting investors' sentiments for the operator of a marine export terminal located along the Houston Ship Channel. Enterprise Products plays a key role in the midstream space by handling everything from gathering natural gas to processing, transporting, and storing it. After processing natural gas liquids (NGL) from natural gas, EPD transports the NGLs through its pipeline network. After that, through the process of fractionation at specialized plants, the partnership engages in separating the NGL mixture into its components, such as ethane. Enterprise Products' midstream services also include storing the components and loading these products onto ships at its marine export terminal for overseas export. Now, the resumption of ethane exports to China is likely to generate cash flows for Enterprise Products. From transporting natural gas, to processing it into NGLs and transporting and loading NGLs like ethane, the partnership will generate stable fee-based revenues, which is beneficial for investors. However, given the ongoing U.S.-China tensions, EPD's overall risk persists. WMB & ET Also Have NGL Midstream Assets The Williams Companies, Inc. WMB has a 50% ownership interest in The Overland Pass Pipeline. WMB stated that the pipeline network covers 760 miles, transporting NGL to the Mid-Continent market hub located in Conway, KS, from Opal, WY. The pipeline network of Williams Companies has a daily capacity of 245,000 barrels of NGL. Energy Transfer LP ET is also involved in transporting NGL. The pipeline network of ET, transporting NGL, spans approximately 5,700 miles. Energy Transfer noted that the pipeline network has a daily transportation capacity of three million barrels. EPD's Price Performance, Valuation & Estimates Units of EPD have surged 16% over the past year, outpacing the 14.7% improvement of the composite stocks belonging to the industry. From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.18X. This is below the broader industry average of 11.56X. The Zacks Consensus Estimate for EPD's 2025 earnings hasn't been revised over the past seven days. EPD stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Energy Transfer LP (ET): Free Stock Analysis Report
