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Enterprise Products Before Q3 Earnings: Time to Sell or Reassess?
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Key Takeaways
Enterprise Products will report Q3 2025 results on Oct. 30, before the market opens.
Earnings are estimated at 67 cents per share, up 3.1% year over year, with revenues declining 9%.
EPD's strong pipelines and storage provide stable fee-based income despite Permian-driven margin pressure.
Enterprise Products Partners LP (EPD - Free Report) is set to report third-quarter 2025 results on Oct. 30, before the opening bell.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 67 cents per share, implying an improvement of 3.1% from the year-ago reported number. There has been one downward earnings estimate revision over the past seven days. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $12.6 billion, suggesting a 9% fall from the year-ago actuals.
EPD beat the consensus estimate for earnings in two of the trailing four quarters and missed the same twice, with the average surprise being 0.01%. This is depicted in the graph below:
Image Source: Zacks Investment Research
EPD’s Q3 Earnings Whispers
Our proven model doesn’t predict an earnings beat for EPD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
The partnership has an Earnings ESP of -0.75% and it currently carries a Zacks Rank #4 (Sell).
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note for EPD
Enterprise Products has a pipeline network spanning more than 50,000 miles, transporting oil, natural gas, natural gas liquids, refined products and petrochemicals. The partnership also has more than 300 million barrels of liquids storage capacity, which is expected to have generated stable fee-based revenues in the September quarter.
The Zacks Consensus Estimate for Gross operating margin from the Natural Gas Pipelines & Services segment is pegged at $402.33 million, suggesting an improvement from $349 million a year ago.
EPD’s Price Performance & Valuation
EPD's stock has soared 14.8% over the past year compared with the 2.9% rise of the composite stocks belonging to the industry. Kinder Morgan Inc. (KMI - Free Report) and Enbridge Inc. (ENB - Free Report) , two other leading midstream energy players, have gained 10.9% and 24.3%, respectively.
One-Year Price Chart
Image Source: Zacks Investment Research
EPD appears relatively undervalued, suggesting the potential for further price increases. The partnership's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 10.08 compared with the industry average of 10.44, reflecting that it is trading at a discount.
Image Source: Zacks Investment Research
Investment Thesis of EPD
To feed its pipelines and processing plants, Enterprise Products has a significant reliance on the Permian, the most prolific oil and gas shale play in the United States. On its second-quarter 2025 earnings call, EPD revealed that most of the core oil-producing regions in the Permian have already been used up, and the exploration and production companies are now increasingly focusing on those areas that are rich in natural gas.
Thus, the composition of commodities that EPD will be transporting in the coming days will probably be weighted more toward natural gas. This will likely create pressure on EPD’s profit margin as natural gas and NGL are less profitable than oil at the wellhead, considering energy density and transport costs.
Status of Other Big Energy Players: ENB, KMI
Enbridge will report third-quarter 2025 earnings on Nov. 7, 2025. ENB currently has an Earnings ESP of -7.36% and a Zacks Rank of 3.
Enbridge's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 5.61%.
KMI, on the other hand, reported results on Oct. 22. Kinder Morgan’s third-quarter 2025 adjusted earnings per share were 29 cents, which met the Zacks Consensus Estimate. The bottom line also increased year over year from 25 cents.
Total quarterly revenues of $4.15 billion beat the Zacks Consensus Estimate of $4.13 billion. KMI’s top line also increased from $3.70 billion in the prior-year quarter.
The in-line earnings and better-than-expected top line were primarily backed by business activities associated with natural gas pipelines.
Last Word
Thus, considering heavy Permian dependence, it would be ideal to stay away from the stock, although EPD generates stable fee-based revenues like KMI and ENB.
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Enterprise Products Before Q3 Earnings: Time to Sell or Reassess?
Key Takeaways
Enterprise Products Partners LP (EPD - Free Report) is set to report third-quarter 2025 results on Oct. 30, before the opening bell.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 67 cents per share, implying an improvement of 3.1% from the year-ago reported number. There has been one downward earnings estimate revision over the past seven days. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $12.6 billion, suggesting a 9% fall from the year-ago actuals.
EPD beat the consensus estimate for earnings in two of the trailing four quarters and missed the same twice, with the average surprise being 0.01%. This is depicted in the graph below:
EPD’s Q3 Earnings Whispers
Our proven model doesn’t predict an earnings beat for EPD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
The partnership has an Earnings ESP of -0.75% and it currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note for EPD
Enterprise Products has a pipeline network spanning more than 50,000 miles, transporting oil, natural gas, natural gas liquids, refined products and petrochemicals. The partnership also has more than 300 million barrels of liquids storage capacity, which is expected to have generated stable fee-based revenues in the September quarter.
The Zacks Consensus Estimate for Gross operating margin from the Natural Gas Pipelines & Services segment is pegged at $402.33 million, suggesting an improvement from $349 million a year ago.
EPD’s Price Performance & Valuation
EPD's stock has soared 14.8% over the past year compared with the 2.9% rise of the composite stocks belonging to the industry. Kinder Morgan Inc. (KMI - Free Report) and Enbridge Inc. (ENB - Free Report) , two other leading midstream energy players, have gained 10.9% and 24.3%, respectively.
One-Year Price Chart
EPD appears relatively undervalued, suggesting the potential for further price increases. The partnership's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 10.08 compared with the industry average of 10.44, reflecting that it is trading at a discount.
Investment Thesis of EPD
To feed its pipelines and processing plants, Enterprise Products has a significant reliance on the Permian, the most prolific oil and gas shale play in the United States. On its second-quarter 2025 earnings call, EPD revealed that most of the core oil-producing regions in the Permian have already been used up, and the exploration and production companies are now increasingly focusing on those areas that are rich in natural gas.
Thus, the composition of commodities that EPD will be transporting in the coming days will probably be weighted more toward natural gas. This will likely create pressure on EPD’s profit margin as natural gas and NGL are less profitable than oil at the wellhead, considering energy density and transport costs.
Status of Other Big Energy Players: ENB, KMI
Enbridge will report third-quarter 2025 earnings on Nov. 7, 2025. ENB currently has an Earnings ESP of -7.36% and a Zacks Rank of 3.
Enbridge's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 5.61%.
KMI, on the other hand, reported results on Oct. 22. Kinder Morgan’s third-quarter 2025 adjusted earnings per share were 29 cents, which met the Zacks Consensus Estimate. The bottom line also increased year over year from 25 cents.
Total quarterly revenues of $4.15 billion beat the Zacks Consensus Estimate of $4.13 billion. KMI’s top line also increased from $3.70 billion in the prior-year quarter.
The in-line earnings and better-than-expected top line were primarily backed by business activities associated with natural gas pipelines.
Last Word
Thus, considering heavy Permian dependence, it would be ideal to stay away from the stock, although EPD generates stable fee-based revenues like KMI and ENB.