Pipeline operator Enterprise misses Q2 revenue estimates on lower commodity prices

Enterprise Products Partners L.P

28/07/2025 12:12

Overview

Enterprise Q2 2025 revenue missed analyst expectations, adjusted EBITDA also missed

EPS for Q2 2025 beat analyst expectations, indicating stronger earnings per unit

Company repurchased $110 mln of common units, reported record pipeline volumes

Outlook

Enterprise expects 2025 growth capital investments of $4.0 bln to $4.5 bln

Company projects 2026 growth capital investments at $2.0 bln to $2.5 bln

Enterprise anticipates 2025 sustaining capital expenditures of $525 mln

Company sees opportunities with $6 bln in projects entering service in H2 2025

Continued investment in natural gas processing infrastructure with new facilities in the Permian Basin

Result Drivers

RECORD VOLUMES - Record natural gas processing plant inlet volumes of 7.8 Bcf/d and natural gas pipeline volumes of 20.4 TBtus/d driven by Permian and Haynesville Basins

FEE-BASED ASSETS - Performance of fee-based assets and natural gas marketing offset lower earnings in crude oil marketing and lower commodity prices

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$11.36 bln
$14.23 bln (6 Analysts)
Q2 EPS
Beat
$0.66
$0.65 (13 Analysts)
Q2 Net Income
$1.45 bln
Q2 Adjusted EBITDA
Miss
$2.41 bln
$2.44 bln (14 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and no "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 LP is $36.00, about 12.4% above its July 25 closing price of $31.55

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw7wdWWQa

(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.)