Overview
Enterprise Q3 revenue and adjusted EBITDA miss analyst expectations
Net income for Q3 decreased compared to the same period last year
Company increases buyback authorization to $5 bln, indicating focus on capital return
Outlook
Enterprise expects organic growth capital investments of $4.5 bln in 2025
Company anticipates sustaining capital expenditures of $525 mln in 2025
Enterprise foresees an inflection point in free cash flow in 2026
Result Drivers
VOLUME GROWTH - Record natural gas processing and pipeline volumes driven by Permian Basin production, per co-CEO Jim Teague
MARGIN PRESSURE - Lower sales and processing margins, reduced LPG fees, and maintenance downtime affected Q3 results
CONSTRUCTION DELAY - Three-month delay in NGL fractionator construction impacted Q3 financial results
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $12.02 bln | $14.07 bln (5 Analysts) |
Q3 EPS | Miss | $0.61 | $0.69 (14 Analysts) |
Q3 Net Income | $1.35 bln | ||
Q3 Adjusted EBITDA | Miss | $2.40 bln | $2.53 bln (13 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for Enterprise Products Partners LP is $35.00, about 11.1% above its October 29 closing price of $31.12
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBw3hb0HPa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)