Enterprise Q4 Earnings Top Estimates, Revenues Decrease Y/Y

Enterprise Products Partners LP’s EPD fourth-quarter 2024 adjusted earnings per limited partner unit of 74 cents beat the Zacks Consensus Estimate of 69 cents. The bottom line also increased from the year-ago level of 72 cents.However, total quarterly revenues of $14.2 billion missed the Zacks Consensus Estimate of $14.3 billion. The top line declined from $14.6 billion reported in the prior-year quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The strong quarterly earnings can be primarily attributed to record natural gas and NGL volumes, driven by Permian Basin production and rising demand.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. QuoteSegmental PerformancePipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 8.3 million barrels per day (bpd), higher than the year-ago quarter’s 7.8 million bpd. Natural gas pipeline volumes amounted to 19.9 trillion British thermal units per day (TBtus/d), higher than 18.9 TBtus/d recorded in the year-ago quarter. Also, NGL, crude oil, refined products and petrochemical marine terminal volumes totaled 2.1 million bpd, lower than 2.3 million bpd in the year-ago period.The gross operating margin at NGL Pipelines & Services increased from $1.38 billion in the year-ago quarter to $1.55 billion. This can be primarily attributed to higher inlet volumes at its natural gas processing plant and increased total fee-based natural gas processing volumes.Natural Gas Pipelines and Services’ gross operating margin increased to $323 million from $286 million in the year-ago quarter. The upside was primarily due to increased transportation revenues and higher average sales margins from its natural gas marketing business, partially offset by higher operating costs.Crude Oil Pipelines & Services recorded a gross operating margin of $417 million, down from $456 million in the prior-year quarter. The decrease can be attributed to lower sales volumes, lower non-cash MTM earnings and higher operating costs.The gross operating margin at Petrochemical & Refined Products Services was $348 million, down from $439 million in the fourth quarter of 2023. The segment was affected by lower average sales margins.Cash FlowThe distributable cash flow totaled $2.16 billion compared with $2.06 billion in the year-ago period and the same provided a coverage of 1.7X. Enterprise retained $3.2 billion of distributable cash flow in the fourth quarter. It generated an adjusted free cash flow of $0.3 billion compared with $1.2 billion in the year-ago quarter.FinancialsIn the reported quarter, Enterprise’s total capital investment was $2 billion.As of Dec. 31, 2024, the outstanding total debt principal was $32.2 billion, and consolidated liquidity amounted to approximately $4.8 billion.OutlookFor 2025, EPD expects its growth capital expenditure to be in the range of $4.0-$4.5 billion.The company expects sustaining capital expenditure to be approximately $525 million in 2025.EPD’s Zacks Rank and Key PicksCurrently, EPD carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resourcescarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.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.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 over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Range Resources Corporation (RRC): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks