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.
Why Is Enterprise Products (EPD) Up 0.8% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Enterprise Q2 Earnings and Revenues Miss Estimates
Enterprise Products Partners LP’s 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Enterprise Products has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
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
Enterprise Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Enterprise Products (EPD) Up 0.8% Since Last Earnings Report?
It has been about a month 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Enterprise Q2 Earnings and Revenues Miss Estimates
Enterprise Products Partners LP’s 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Enterprise Products has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
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
Enterprise Products has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.