Enterprise Products Q3 revenue tops estimates on record volumes at Permian Basin
Enterprise Products Q3 revenue tops estimates on record volumes at Permian Basin
Overview
U.S. midstream energy firm's Q3 revenue rose and beat analyst expectations
Adjusted EBITDA for Q3 increased and beat analyst expectations
Net income for Q3 rose 21% yr/yr, driven by record operating volumes
Outlook
Enterprise expects 2026 growth capital spending, net of asset sales, at $2.9-$3.4 bln
Company sees $650 mln in sustaining capital expenditures for 2026
Enterprise says strong international demand and new assets support future cash flow growth
Result Drivers
RECORD OPERATING VOLUMES - Co said Q3 results were driven by record volumes at Permian Basin natural gas processing plants, NGL pipelines, natural gas pipelines and ethane marine export terminals
HIGHER SALES MARGINS - Co attributed increased NGL marketing and natural gas marketing gross operating margin to higher average sales margins and marketing strategies tied to export and processing assets
NEW ASSETS IN SERVICE - Co said new assets, including Delaware Basin gas plant, Bahia NGL pipeline, Frac 14 and Neches River NGL marine terminal, contributed to higher volumes and gross operating margin
Company press release: ID:nBw3FjQcca
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $17.95 bln | $14.47 bln (7 Analysts) |
Q3 Net Income |
| $1.64 bln |
|
Q3 Adjusted EBITDA | Beat | $2.79 bln | $2.67 bln (17 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for Enterprise Products Partners L.P is $41.00, about 7.7% above its October 28 closing price of $38.06
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)