Enterprise Products Q2 revenue beats estimates on record pipeline, terminal volumes 

Overview

• U.S. midstream energy firm's Q2 revenue, adjusted EPS and adjusted EBITDA all beat analyst expectations

• Company cited record pipeline and marine terminal volumes, and strong international demand as growth drivers

• Repurchased $159 mln in units during Q2; approved new capital projects for future growth

Outlook

• Enterprise expects 2026 growth capital spending of $2.9-$3.4 bln, net of $599 million of proceeds from asset sales

• Company expects $600 mln in sustaining capital expenditures for 2026

• Enterprise says global energy shipping remains disrupted due to Middle East instability

Result Drivers

• RECORD PIPELINE AND TERMINAL VOLUMES - Co said record pipeline and marine terminal volumes, supported by strong international demand for U.S. energy, drove results in Q2

• NEW ASSETS AND EXPANSIONS - Co attributed higher earnings to new assets and expansion projects placed into service in the last year, including the Neches River Terminal and Frac 14 at Mont Belvieu

• HIGHER PROPANE AND NGL MARGINS - Co cited increased margins and volumes in NGL and propylene businesses, with higher utilization rates at propylene facilities and increased NGL marketing margins

Company press release: ID:nBw9jHClda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "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 $41.50, about 7.3% above its July 29 closing price of $38.67

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 29 - Antero Midstream Q2 revenue slightly beats estimates, adjusted EBITDA misses

• July 29 - Shell, Phillips 66 weigh sale of stakes in $3.5 billion US pipeline Explorer, sources say

• July 30 - Vopak raises outlook as growth projects boost confidence, shares rise

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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.)