We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enterprise Q4 Earnings Beat on Higher Gas Pipeline Volumes
Read MoreHide Full Article
Key Takeaways
EPD reported Q4 adjusted EPS of 75 cents on $13.8B revenues, beating estimates.
EPD increased NGL, crude, refined products and natural gas pipeline volumes from the year-ago quarter.
EPD generated $2.22B in distributable cash flow and expects $2.5-$2.9B in 2026 growth capex.
Enterprise Products Partners LP (EPD - Free Report) reported fourth-quarter 2025 adjusted earnings per limited partner unit of 75 cents, which beat the Zacks Consensus Estimate of 70 cents. The bottom line also increased from the year-ago level of 74 cents.
Total quarterly revenues of $13.8 billion surpassed the Zacks Consensus Estimate of $13.1 billion. However, the top line declined from $14.2 billion in the prior-year quarter.
Strong quarterly earnings are primarily attributable to higher natural gas pipeline volumes. Lower sales margins from marketing activities within Texas crude oil pipelines, related terminals and other marketing activities partially offset the positives.
Enterprise Products Partners L.P. Price, Consensus and EPS Surprise
Pipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 8.6 million barrels per day (bpd), higher than the year-ago quarter’s 8.4 million bpd. Natural gas pipeline volumes amounted to 21.1 trillion British thermal units per day (TBtus/d), higher than 19.9 TBtus/d in the year-ago quarter. Marine terminal volumes totaled 2.2 million bpd, flat with the year-ago period.
The gross operating margin at NGL Pipelines & Services remained unchanged at $1.5 billion. The gross operating margin from the NGL Pipelines & Services segment was unchanged year over year, reflecting consistent performance in the fourth quarter of both periods.
The gross operating margin from the natural gas processing business and related NGL marketing activities declined from the prior year. This was driven by changes in margins despite higher natural gas processing plant inlet volumes, increased fee-based processing volumes and higher equity NGL-equivalent production volumes in the fourth quarter of 2025 relative to the fourth quarter of 2024.
Natural Gas Pipelines and Services’ gross operating margin increased to $445 million from $323 million in the fourth quarter of 2024. The upside can be primarily attributed to the total higher natural gas pipeline volumes.
Crude Oil Pipelines & Services recorded a gross operating margin of $353 million, down from $417 million in the prior-year quarter. The decrease was mainly due to lower sales margins from marketing activities within Texas crude oil pipelines, related terminals and other marketing activities. Crude oil marine terminal volumes experienced a decline.
The gross operating margin at Petrochemical & Refined Products Services was $397 million, compared with $348 million in the fourth quarter of 2024. The increase was aided by higher pipeline volumes and marine terminal volumes in the segment.
Cash Flow
The distributable cash flow totaled $2.22 billion compared with $2.16 billion in the year-ago period, providing a coverage of 1.8X. Enterprise retained $1 billion of distributable cash flow in the fourth quarter. It generated an adjusted free cash flow of $1.17 billion, up from $336 million in the year-ago quarter.
Financials
In the reported quarter, Enterprise’s total capital investment was $1.31 billion.
As of Dec. 31, 2025, the outstanding total debt principal was $34.7 billion, and consolidated liquidity amounted to $5.2 billion.
Outlook
Enterprise’s growth capital expenditure for 2026 is expected to be $2.5-$2.9 billion.
The company expects to sustain a capital expenditure of $580 million for 2026.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and business opportunities, ensuring steady revenue growth.
OII’s earnings beat estimates in three of the trailing four quarters and missed in the other, delivering an average surprise of 12.3%. OII has a Zacks Style Score of B for Value and Growth.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
SUBCY is expected to witness year-over-year earnings growth of 37.7% in 2026. The company has a Zacks Style Score of A for Value and Growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
WTI’s earnings beat estimates in three of the trailing four quarters, met in the other, delivering an average surprise of 27.1%. The company has a Zacks Style Score of A for Value, and B for Growth and Momentum.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Enterprise Q4 Earnings Beat on Higher Gas Pipeline Volumes
Key Takeaways
Enterprise Products Partners LP (EPD - Free Report) reported fourth-quarter 2025 adjusted earnings per limited partner unit of 75 cents, which beat the Zacks Consensus Estimate of 70 cents. The bottom line also increased from the year-ago level of 74 cents.
Total quarterly revenues of $13.8 billion surpassed the Zacks Consensus Estimate of $13.1 billion. However, the top line declined from $14.2 billion in the prior-year quarter.
Strong quarterly earnings are primarily attributable to higher natural gas pipeline volumes. Lower sales margins from marketing activities within Texas crude oil pipelines, related terminals and other marketing activities partially offset the positives.
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
Pipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 8.6 million barrels per day (bpd), higher than the year-ago quarter’s 8.4 million bpd. Natural gas pipeline volumes amounted to 21.1 trillion British thermal units per day (TBtus/d), higher than 19.9 TBtus/d in the year-ago quarter. Marine terminal volumes totaled 2.2 million bpd, flat with the year-ago period.
The gross operating margin at NGL Pipelines & Services remained unchanged at $1.5 billion. The gross operating margin from the NGL Pipelines & Services segment was unchanged year over year, reflecting consistent performance in the fourth quarter of both periods.
The gross operating margin from the natural gas processing business and related NGL marketing activities declined from the prior year. This was driven by changes in margins despite higher natural gas processing plant inlet volumes, increased fee-based processing volumes and higher equity NGL-equivalent production volumes in the fourth quarter of 2025 relative to the fourth quarter of 2024.
Natural Gas Pipelines and Services’ gross operating margin increased to $445 million from $323 million in the fourth quarter of 2024. The upside can be primarily attributed to the total higher natural gas pipeline volumes.
Crude Oil Pipelines & Services recorded a gross operating margin of $353 million, down from $417 million in the prior-year quarter. The decrease was mainly due to lower sales margins from marketing activities within Texas crude oil pipelines, related terminals and other marketing activities. Crude oil marine terminal volumes experienced a decline.
The gross operating margin at Petrochemical & Refined Products Services was $397 million, compared with $348 million in the fourth quarter of 2024. The increase was aided by higher pipeline volumes and marine terminal volumes in the segment.
Cash Flow
The distributable cash flow totaled $2.22 billion compared with $2.16 billion in the year-ago period, providing a coverage of 1.8X. Enterprise retained $1 billion of distributable cash flow in the fourth quarter. It generated an adjusted free cash flow of $1.17 billion, up from $336 million in the year-ago quarter.
Financials
In the reported quarter, Enterprise’s total capital investment was $1.31 billion.
As of Dec. 31, 2025, the outstanding total debt principal was $34.7 billion, and consolidated liquidity amounted to $5.2 billion.
Outlook
Enterprise’s growth capital expenditure for 2026 is expected to be $2.5-$2.9 billion.
The company expects to sustain a capital expenditure of $580 million for 2026.
EPD’s Zacks Rank & Key Picks
EPD currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and W&T Offshore (WTI - Free Report) , each carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and business opportunities, ensuring steady revenue growth.
OII’s earnings beat estimates in three of the trailing four quarters and missed in the other, delivering an average surprise of 12.3%. OII has a Zacks Style Score of B for Value and Growth.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
SUBCY is expected to witness year-over-year earnings growth of 37.7% in 2026. The company has a Zacks Style Score of A for Value and Growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
WTI’s earnings beat estimates in three of the trailing four quarters, met in the other, delivering an average surprise of 27.1%. The company has a Zacks Style Score of A for Value, and B for Growth and Momentum.