Enterprise Products Partners L.P. (EPD Quick QuoteEPD - Free Report) emphasized accelerating Permian Basin natural gas production, infrastructure expansion and disciplined capital allocation during its third-quarter 2026 earnings call.

Management raised its long-term natural gas and natural gas liquids (“NGL”) production outlook while cautioning that exceptional 2026 earnings growth could moderate in 2027. The discussion also highlighted expanding export capacity, strong cash generation and an upcoming leadership transition.

Quarterly earnings of 75 cents per unit exceeded the Zacks Consensus Estimate of 74 cents. Revenues reached $17.95 billion, surpassing the consensus estimate of $15.35 billion.

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

EPD Raises Permian Natural Gas Growth Forecast

Co-CEO Randy Fowler said Enterprise increased its forecast for Permian wet natural gas and NGL production growth through 2030 to 34%, compared with its previous estimate of 23%.

During the Q&A, BofA Securities questioned the assumptions underlying the revision. Corey Johnson, senior vice president of fundamentals and commodity risk assessment, attributed the increase to higher gas-to-oil ratios, changing production characteristics and drilling activity in gas-rich formations.

Barclays also questioned whether production could exceed the revised expectations. Johnson acknowledged conservative assumptions in the forecast and indicated that emerging formations could produce additional gas.

Enterprise Sees More Modest Growth in 2027

Fowler offered a measured assessment of next year's earnings trajectory when a Citigroup analyst questioned the sustainability of recent performance.

Adjusted EBITDA increased 15% during the first nine months of 2026. Fowler explained that growth originally anticipated for 2027 had materialized earlier than expected.

He indicated that 2027 growth could be more modest than 2026, particularly without the favorable commodity spreads associated with geopolitical disruptions. Management refrained from assigning a specific growth percentage.

EPD Accelerates Infrastructure Expansion

Enterprise has $6.3 billion of sanctioned organic growth projects under construction, supporting its strategy of expanding capacity across the natural gas and NGL value chain.

Fowler highlighted two projects scheduled for completion during the fourth quarter of 2026: the Athena gas processing plant and a 300,000-barrel-per-day LPG export expansion at the Houston Ship Channel.

During the Q&A, Goldman Sachs questioned future processing requirements. Justin Kleiderer, senior vice president of pipelines and terminals, indicated that stronger Permian production supports development closer to two additional processing plants annually.

Enterprise Highlights Export Contracting Strength

International demand remains an important driver of Enterprise's infrastructure utilization. Management cited energy security concerns and customer confidence in U.S. production as supporting export demand.

During a Wolfe Research exchange, Tyler Cott, senior vice president of hydrocarbon marketing, confirmed that the upcoming Houston Ship Channel LPG expansion was fully contracted.

Cott also told Goldman Sachs that approximately 90% of LPG export capacity was contracted through the end of the decade. Management expects a substantial increase in export volumes during 2027.

EPD Maintains Disciplined Capital Spending

Fowler reiterated Enterprise's preference for organic development over acquisitions at elevated valuations, citing more consistent historical returns and fewer operational surprises.

The partnership expects 2026 growth capital expenditures of $2.9 billion to $3.4 billion, net of $600 million in asset sale proceeds. Spending in 2027 remains approximately $3 billion, subject to an updated budget review.

Enterprise ended September with a net leverage ratio of 2.9 times. Fowler emphasized maintaining balance sheet flexibility while pursuing growth opportunities across its integrated system.

Enterprise Reinforces Unitholder Returns

The partnership declared a quarterly distribution of 56 cents per common unit, representing a 2.8% year-over-year increase.

Operational distributable cash flow reached $2.3 billion, providing distribution coverage of 1.9 times and allowing Enterprise to retain $1.1 billion for reinvestment.

During questioning from Wolfe Research, Fowler reaffirmed a capital return framework of 55% to 60% of adjusted operating cash flow through distributions and buybacks.

EPD Focuses on Execution and Leadership Continuity

The call also marked Jim Teague's final quarterly earnings discussion as co-CEO. Fowler will assume the sole CEO position in January 2027.

Management's overarching message emphasized execution, expanding Permian infrastructure and maintaining financial discipline while adapting to evolving commodity markets.

Enterprise's Zacks Rank and Style Scores Show Strength

EPD currently carries a Zacks Rank #2 (Buy), reflecting a favorable near-term earnings estimate revision profile under the Zacks methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score and Growth Score of B indicate attractive characteristics in those categories, while the Momentum Score of C reflects a middle-range assessment.

The VGM Score of A highlights a favorable combined value, growth and momentum profile. Pairing this score with a Zacks Rank #2 aligns with the methodology's preferred screening combinations. However, the Zacks Rank can change as analysts incorporate the latest quarterly results into their earnings estimates.