Enterprise Products Partners Q1 Beats Earnings By A Whisker, Despite Increased Volumes: What's Next?

Enterprise Products Partners LP EPD reported first-quarter 2023 revenues of $12.4 billion, missing the consensus of $14.1 billion.
EPS of $0.63 beat the consensus estimate of $0.62.
Gross operating margin remained broadly flat year-over-year at $2.3 billion in the first quarter, with NGL Pipelines & Services segment gross operating margin stable year-over-year at $1.2 billion.
Total fee-based natural gas processing volumes increased 647 MMcf/d year-over-year to a record 5.5 Bcf/d in the first quarter, with Delaware Basin, Midland Basin, Louisiana and Mississippi gas processing plants being the most significant contributors.
Total crude oil pipeline transportation volumes rose to 2.3 million BPD (vs 2.2 million BPD a year ago), and total crude oil marine terminal volumes grew to 841 MBPD (vs 796 MBPD in the prior-year quarter).
Total natural gas transportation volumes rose to a record level of 18.0 TBtus/d in the first quarter compared to 16.4 TBtus/d a year ago.
Distributable Cash Flow rose 5.5% year-over-year to $1.9 billion.
Capital investments stood at $654 million in the first quarter of 2023, including $570 million for growth capital projects.
Outlook: EPD expects 2023 organic growth capital investments to be within $2.4 billion to $2.8 billion.
“The partnership is on schedule to put approximately $3.8 billion of assets in service in 2023. In the second quarter, construction of our PDH 2 facility and expansion of the Acadian Gas Pipeline system are scheduled to be completed and begin commissioning activities," said CEO A. J. “Jim” Teague.
"In the second half of the year, we are scheduled to complete construction of our twelfth NGL fractionator in Chambers County, two natural gas processing plants in the Permian Basin (Poseidon in the Midland Basin and Mentone II in the Delaware Basin), and the first phase of the Texas Western products pipeline. These projects will provide new sources of fee-based cash flow for the partnership and support future distribution growth,” the CEO added.
EPD Price Action: EPD shares are down 2.43% at $25.66 on Tuesday at publication.
Photo: Shutterstock

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