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Enterprise Products (EPD) Q1 Earnings & Revenues Top Estimates
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Enterprise Products Partners LP (EPD - Free Report) reported first-quarter 2021 adjusted earnings per limited partner unit of 64 cents, beating the Zacks Consensus Estimate of 50 cents and improving from the year-ago quarter profit of 61 cents.
Revenues increased to $9,155 million from $7,483 million in the prior-year quarter. Moreover, the top line beat the consensus estimate of $6,951 million.
The strong quarterly results were supported by higher contributions from natural gas processing business and the partnership’s Permian Basin natural gas gathering system.
Enterprise Products Partners L.P. Price, Consensus and EPS Surprise
Gross operating income at NGL Pipelines & Services increased from $1,042 million in the year-ago quarter to $1,086.4 million. Higher contributions from natural gas processing business and associated NGL marketing activities primarily aided the segment.
Natural Gas Pipelines and Services’ gross operating income increased to $535.2 million from $283.8 million in the year-ago quarter. The upside was owing to higher contributions from the partnership’s Permian Basin natural gas gathering system.
Crude Oil Pipelines & Services recorded gross operating income of $400.2 million, which decreased from $452.9 million in the prior-year quarter owing to a drop in fees and transportation volumes from the South Texas crude oil pipeline system.
Gross operating income at Petrochemical & Refined Products Services amounted to $281.5 million compared with $278.5 million a year ago, thanks to higher pipeline transportation volumes.
DCF
Quarterly distribution improved 1.1% year over year to 45 cents per common unit or $1.80 per unit on an annualized basis.
Adjusted distributable cash flow was $1,737.3 million, up from $1,553.6 million a year ago, and provided coverage of 1.7x. Notably, the partnership retained $746 million of distributable cash flow in the March quarter.
Financials
For the quarter, Enterprise Products’ total capital expenditure was $682 million.
As of Mar 31, 2021, its outstanding total debt principal was $28.9 billion. Enterprise Products’ consolidated liquidity amounted to $5.1 billion, which included unrestricted cash on hand and available borrowing capacity under revolving credit facility.
Outlook
The partnership reaffirmed expectations for growth capital spending for 2021 and 2022 at $1.6 billion and $800 million, respectively. Notably, the partnership projects sustaining capital spending for this year at $440 million.
Zacks Rank & Stocks to Consider
Enterprise Products currently carries a Zacks Rank #3 (Hold). Meanwhile, a fe- better ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is likely to see earnings growth of 256% in 2021.
Matador is expected to witness earnings growth of 300% in 2021.
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The only question is “Will you get into the right stocks early when their growth potential is greatest?
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Enterprise Products (EPD) Q1 Earnings & Revenues Top Estimates
Enterprise Products Partners LP (EPD - Free Report) reported first-quarter 2021 adjusted earnings per limited partner unit of 64 cents, beating the Zacks Consensus Estimate of 50 cents and improving from the year-ago quarter profit of 61 cents.
Revenues increased to $9,155 million from $7,483 million in the prior-year quarter. Moreover, the top line beat the consensus estimate of $6,951 million.
The strong quarterly results were supported by higher contributions from natural gas processing business and the partnership’s Permian Basin natural gas gathering system.
Enterprise Products Partners L.P. Price, Consensus and EPS Surprise
Enterprise Products Partners L.P. price-consensus-eps-surprise-chart | Enterprise Products Partners L.P. Quote
Segmental Performance
Gross operating income at NGL Pipelines & Services increased from $1,042 million in the year-ago quarter to $1,086.4 million. Higher contributions from natural gas processing business and associated NGL marketing activities primarily aided the segment.
Natural Gas Pipelines and Services’ gross operating income increased to $535.2 million from $283.8 million in the year-ago quarter. The upside was owing to higher contributions from the partnership’s Permian Basin natural gas gathering system.
Crude Oil Pipelines & Services recorded gross operating income of $400.2 million, which decreased from $452.9 million in the prior-year quarter owing to a drop in fees and transportation volumes from the South Texas crude oil pipeline system.
Gross operating income at Petrochemical & Refined Products Services amounted to $281.5 million compared with $278.5 million a year ago, thanks to higher pipeline transportation volumes.
DCF
Quarterly distribution improved 1.1% year over year to 45 cents per common unit or $1.80 per unit on an annualized basis.
Adjusted distributable cash flow was $1,737.3 million, up from $1,553.6 million a year ago, and provided coverage of 1.7x. Notably, the partnership retained $746 million of distributable cash flow in the March quarter.
Financials
For the quarter, Enterprise Products’ total capital expenditure was $682 million.
As of Mar 31, 2021, its outstanding total debt principal was $28.9 billion. Enterprise Products’ consolidated liquidity amounted to $5.1 billion, which included unrestricted cash on hand and available borrowing capacity under revolving credit facility.
Outlook
The partnership reaffirmed expectations for growth capital spending for 2021 and 2022 at $1.6 billion and $800 million, respectively. Notably, the partnership projects sustaining capital spending for this year at $440 million.
Zacks Rank & Stocks to Consider
Enterprise Products currently carries a Zacks Rank #3 (Hold). Meanwhile, a fe- better ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is likely to see earnings growth of 256% in 2021.
Matador is expected to witness earnings growth of 300% in 2021.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>