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Why Is Enterprise Products (EPD) Up 0.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for Enterprise Products Partners (EPD - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Enterprise Products due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Enterprise Products Partners L.P. before we dive into how investors and analysts have reacted as of late.
Enterprise Products Partners LP’s second-quarter 2025 adjusted earnings per limited partner unit of 66 cents beat the Zacks Consensus Estimate of 65 cents. The bottom line also increased from the year-ago level of 64 cents.
However, total quarterly revenues of $11.4 billion missed the Zacks Consensus Estimate of $14.2 billion. The top line declined from $13.5 billion in the prior-year quarter.
The strong quarterly earnings can be primarily attributed to record natural gas processing and pipeline volumes.
Segmental Performance
Pipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 8.2 million barrels per day (bpd), higher than the year-ago quarter’s 7.8 million bpd. Natural gas pipeline volumes amounted to 20.4 trillion British thermal units per day (TBtus/d), higher than 18.7 TBtus/d recorded in the year-ago quarter. Also, marine terminal volumes totaled 2.1 million bpd, lower than 2.2 million bpd in the year-ago period.
The gross operating margin at NGL Pipelines & Services remained unchanged at $1.3 billion. This can be primarily attributed to higher processing volumes at its natural gas processing plant despite small MTM hedging losses.
Natural Gas Pipelines and Services’ gross operating margin decreased to $341 million from $386 million in the year-ago quarter. The downside was primarily due to MTM hedging losses and lower margins in Permian and Rockies facilities.
Crude Oil Pipelines & Services recorded a gross operating margin of $403 million, down from $417 million in the prior-year quarter. The decrease can be attributed to lower sales volumes and margins. Crude oil marine terminal volumes experienced a sharp decline, while pipeline volumes increased slightly.
The gross operating margin at Petrochemical & Refined Products Services was $354 million, down from $392 million in the second quarter of 2024. The segment was affected by lower margins in octane enhancement.
Cash Flow
The distributable cash flow totaled $1.9 billion compared with $1.8 billion in the year-ago period, providing a coverage of 1.6X. Enterprise retained $748 million of distributable cash flow in the second quarter. It generated an adjusted free cash flow of $2.1 billion, flat year over year.
Financials
In the reported quarter, Enterprise’s total capital investment was $1.3 billion.
As of June 30, 2025, the outstanding total debt principal was $33.1 billion, and consolidated liquidity amounted to approximately $5.1 billion.
Outlook
For 2025, EPD expects growth capital expenditures to remain unchanged in the range of $4.0-$4.5 billion.
The company expects sustaining capital expenditure to be approximately $525 million in 2025.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Enterprise Products has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Enterprise Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Enterprise Products (EPD) Up 0.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Enterprise Products Partners (EPD - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Enterprise Products due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Enterprise Products Partners L.P. before we dive into how investors and analysts have reacted as of late.
Enterprise Q2 Earnings Beat Estimates, Revenues Decrease Y/Y
Enterprise Products Partners LP’s second-quarter 2025 adjusted earnings per limited partner unit of 66 cents beat the Zacks Consensus Estimate of 65 cents. The bottom line also increased from the year-ago level of 64 cents.
However, total quarterly revenues of $11.4 billion missed the Zacks Consensus Estimate of $14.2 billion. The top line declined from $13.5 billion in the prior-year quarter.
The strong quarterly earnings can be primarily attributed to record natural gas processing and pipeline volumes.
Segmental Performance
Pipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 8.2 million barrels per day (bpd), higher than the year-ago quarter’s 7.8 million bpd. Natural gas pipeline volumes amounted to 20.4 trillion British thermal units per day (TBtus/d), higher than 18.7 TBtus/d recorded in the year-ago quarter. Also, marine terminal volumes totaled 2.1 million bpd, lower than 2.2 million bpd in the year-ago period.
The gross operating margin at NGL Pipelines & Services remained unchanged at $1.3 billion. This can be primarily attributed to higher processing volumes at its natural gas processing plant despite small MTM hedging losses.
Natural Gas Pipelines and Services’ gross operating margin decreased to $341 million from $386 million in the year-ago quarter. The downside was primarily due to MTM hedging losses and lower margins in Permian and Rockies facilities.
Crude Oil Pipelines & Services recorded a gross operating margin of $403 million, down from $417 million in the prior-year quarter. The decrease can be attributed to lower sales volumes and margins. Crude oil marine terminal volumes experienced a sharp decline, while pipeline volumes increased slightly.
The gross operating margin at Petrochemical & Refined Products Services was $354 million, down from $392 million in the second quarter of 2024. The segment was affected by lower margins in octane enhancement.
Cash Flow
The distributable cash flow totaled $1.9 billion compared with $1.8 billion in the year-ago period, providing a coverage of 1.6X. Enterprise retained $748 million of distributable cash flow in the second quarter. It generated an adjusted free cash flow of $2.1 billion, flat year over year.
Financials
In the reported quarter, Enterprise’s total capital investment was $1.3 billion.
As of June 30, 2025, the outstanding total debt principal was $33.1 billion, and consolidated liquidity amounted to approximately $5.1 billion.
Outlook
For 2025, EPD expects growth capital expenditures to remain unchanged in the range of $4.0-$4.5 billion.
The company expects sustaining capital expenditure to be approximately $525 million in 2025.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Enterprise Products has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Enterprise Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.