We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 (EPD) Misses on Q2 Earnings, Revises Capex Outlook
Read MoreHide Full Article
Enterprise Products Partners LP’s (EPD - Free Report) second-quarter 2024 adjusted earnings per limited partner unit of 64 cents missed the Zacks Consensus Estimate by a penny. However, the bottom line increased from the year-ago quarter’s 57 cents.
Total quarterly revenues of $13.5 billion missed the Zacks Consensus Estimate of $13.8 billion. The top line improved from the $10.7 billion reported in the prior-year quarter.
Weaker-than-expected quarterly results can be attributed to lower contributions from the Crude Oil Pipelines & Services segment. The negatives were partially offset by higher transportation volumes.
Enterprise Products Partners L.P. Price, Consensus and EPS Surprise
Pipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 7.7 million barrels per day (bpd), higher than the year-ago quarter’s 7.1 million bpd. Natural gas pipeline volumes amounted to 18.3 trillion British thermal units per day (TBtus/d), unchanged from the year-ago quarter. Also, NGL, crude oil, refined products and petrochemical marine terminal volumes increased to 2.2 million bpd from 1.9 million in the year-ago period.
The gross operating margin at NGL Pipelines & Services increased from $1.1 billion in the year-ago quarter to $1.3 billion. This was primarily due to increased fee-based natural gas processing volumes and transportation volumes.
Natural Gas Pipelines and Services’ gross operating margin increased to $293 million from $238 million in the year-ago quarter. The upside primarily resulted from higher capacity reservation and transportation revenues, and increased Permian natural gas gathering volumes.
Crude Oil Pipelines & Services recorded a gross operating margin of $417 million, down from $422 million in the prior-year quarter. This was mostly due to lower average sales margins and transportation fees.
The gross operating margin at Petrochemical & Refined Products Services was $392 million, up from $383 million recorded a year ago. The year-over-year increase was driven by higher total segment pipeline transportation volumes.
Cash Flow
The distributable cash flow totaled $1.81 billion compared with $1.74 billion in the year-ago period. The same provided a coverage of 1.6X. Enterprise retained $661 million of distributable cash flow in the second quarter. It generated an adjusted free cash flow of $0.8 billion compared with $1.1 billion in the year-ago quarter.
Financials
In the reported quarter, Enterprise’s total capital investment was $1.3 billion.
As of Jun 30, 2024, the outstanding total debt principal was $30.6 billion, and consolidated liquidity amounted to $3.4 billion.
Outlook
For 2024, EPD revised its projection upward for growth capital expenditure to $3.5-$3.75 billion from the previously mentioned $3.25-$3.75 billion.
The company also expects sustaining capital expenditure of $600 million for 2024, which includes planned petrochemical turnarounds.
For 2025, EPD reiterated its projection for growth capital expenditure of $3.25-$3.75 billion.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes above 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value and Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 60 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09 and $8.66, respectively. The company has a Zacks Style Score of A for Value and B for Growth. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger will likely result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’s 2024 EPS is pegged at $11.08 and $12.78, respectively. The company has a Zacks Style Score of A for Growth and B for Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Enterprise (EPD) Misses on Q2 Earnings, Revises Capex Outlook
Enterprise Products Partners LP’s (EPD - Free Report) second-quarter 2024 adjusted earnings per limited partner unit of 64 cents missed the Zacks Consensus Estimate by a penny. However, the bottom line increased from the year-ago quarter’s 57 cents.
Total quarterly revenues of $13.5 billion missed the Zacks Consensus Estimate of $13.8 billion. The top line improved from the $10.7 billion reported in the prior-year quarter.
Weaker-than-expected quarterly results can be attributed to lower contributions from the Crude Oil Pipelines & Services segment. The negatives were partially offset by higher transportation volumes.
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 7.7 million barrels per day (bpd), higher than the year-ago quarter’s 7.1 million bpd. Natural gas pipeline volumes amounted to 18.3 trillion British thermal units per day (TBtus/d), unchanged from the year-ago quarter. Also, NGL, crude oil, refined products and petrochemical marine terminal volumes increased to 2.2 million bpd from 1.9 million in the year-ago period.
The gross operating margin at NGL Pipelines & Services increased from $1.1 billion in the year-ago quarter to $1.3 billion. This was primarily due to increased fee-based natural gas processing volumes and transportation volumes.
Natural Gas Pipelines and Services’ gross operating margin increased to $293 million from $238 million in the year-ago quarter. The upside primarily resulted from higher capacity reservation and transportation revenues, and increased Permian natural gas gathering volumes.
Crude Oil Pipelines & Services recorded a gross operating margin of $417 million, down from $422 million in the prior-year quarter. This was mostly due to lower average sales margins and transportation fees.
The gross operating margin at Petrochemical & Refined Products Services was $392 million, up from $383 million recorded a year ago. The year-over-year increase was driven by higher total segment pipeline transportation volumes.
Cash Flow
The distributable cash flow totaled $1.81 billion compared with $1.74 billion in the year-ago period. The same provided a coverage of 1.6X. Enterprise retained $661 million of distributable cash flow in the second quarter. It generated an adjusted free cash flow of $0.8 billion compared with $1.1 billion in the year-ago quarter.
Financials
In the reported quarter, Enterprise’s total capital investment was $1.3 billion.
As of Jun 30, 2024, the outstanding total debt principal was $30.6 billion, and consolidated liquidity amounted to $3.4 billion.
Outlook
For 2024, EPD revised its projection upward for growth capital expenditure to $3.5-$3.75 billion from the previously mentioned $3.25-$3.75 billion.
The company also expects sustaining capital expenditure of $600 million for 2024, which includes planned petrochemical turnarounds.
For 2025, EPD reiterated its projection for growth capital expenditure of $3.25-$3.75 billion.
Zacks Rank & Key Picks
Currently, EPD carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Sunoco LP (SUN - Free Report) , SM Energy Company (SM - Free Report) and Hess Corporation (HES - Free Report) . Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, and Hess carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes above 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value and Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 60 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09 and $8.66, respectively. The company has a Zacks Style Score of A for Value and B for Growth. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger will likely result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’s 2024 EPS is pegged at $11.08 and $12.78, respectively. The company has a Zacks Style Score of A for Growth and B for Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.