Group 1 - Enterprise Products Partners (EPD) is one of 247 individual stocks in the Oils-Energy sector, currently ranked 5 in the Zacks Sector Rank [2] - EPD has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for EPD's full-year earnings has increased by 0.9% over the past quarter, reflecting stronger analyst sentiment [4] Group 2 - EPD has returned approximately 5.4% year-to-date, outperforming the average gain of 4.7% for Oils-Energy stocks [4] - EPD belongs to the Oil and Gas - Production Pipeline - MLB industry, which is ranked 15 in the Zacks Industry Rank, with an average gain of 4.2% this year [6] - Expand Energy (EXE), another stock in the Oils-Energy sector, has a year-to-date return of 5.6% and a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - Enterprise Products Partners achieved record financial results in 2024, driven by high volumes across its midstream network, allowing for a 5% distribution increase and marking 26 consecutive years of annual hikes [1][3][10] Financial Performance - The company reported a record $7.8 billion in distributable cash flow for 2024, a $200 million increase from 2023, with adjusted cash flow from operations at $8.6 billion, reflecting a 6% year-over-year increase [3] - Distributable cash flow covered the payout by 1.7 times, enabling the retention of $3.2 billion for expansion funding [3] - Capital investments totaled $5.5 billion, including $3.9 billion for growth projects, $949 million for the acquisition of Pinon Midstream, and $667 million for sustaining capital projects [4] Growth Prospects - The company has approximately $7.6 billion in major growth capital projects under construction, expected to service natural gas and NGL businesses in the Permian Basin and related downstream infrastructure [6][7] - Key projects include two natural gas processing plants, the Bahia NGL pipeline, and expansions of marine terminals, with $6 billion of these projects entering commercial service in 2025 [7] - Anticipated capital investment for 2025 is between $4 billion and $4.5 billion, moderating to $2 billion to $2.5 billion in 2026 based on current projects [8] Volume Growth - Natural gas processing inlet volumes reached 7.4 billion cubic feet per day, a 10% increase from 2023, while total equivalent pipeline volumes were 12.9 million barrels per day, a 6% increase [8] - NGL fractionation volumes increased by 3% to 1.6 million barrels per day, and marine terminal volumes rose by 6% to 2.2 million barrels per day [8] Investment Appeal - The company is positioned for continued growth, with expansion projects expected to enhance cash flow and support future distribution increases, making it an attractive option for investors seeking high-yield income streams [10]

Financial Data and Key Metrics Changes - The company reported an EBITDA of $9.9 billion for 2024, with a DCF of $7.8 billion and a coverage ratio of 1.7 times, retaining $3.2 billion of DCF [8][24] - Net income attributable to common unitholders for Q4 2024 was $1.6 billion, or $0.74 per common unit, a 3% increase from $1.6 billion or $0.72 per unit in Q4 2023 [23] - Adjusted cash flow from operations increased by 4% to $2.3 billion for Q4 2024 compared to $2.2 billion in Q4 2023 [24] - The company declared a distribution of $0.535 per common unit for Q4 2024, a 4% increase over the previous year [24] Business Line Data and Key Metrics Changes - The company moved 12.9 million barrels of oil equivalent per day in 2024, with 13.6 million barrels per day in Q4 2024 [9] - The company exported over 70 million barrels of hydrocarbons in December, aiming to exceed 100 million barrels per month by 2027 [19] Market Data and Key Metrics Changes - The company noted that U.S. crude oil exports have shifted towards Europe, with exports doubling to over 2 million barrels per day due to geopolitical factors [16] - The company is actively pursuing contracts in Asia, recently signing with a Vietnamese ethane offtake customer [19] Company Strategy and Development Direction - The company plans to add two gas processing plants in the Permian and expand its NGL export capabilities [10][19] - The company is focused on growing exports and has significant ongoing expansion projects [18][19] - The management emphasized the need for permit reform, particularly regarding the SPOT project, which has faced significant delays [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for mid-single-digit cash flow growth in 2025, driven by upcoming projects [35] - The petrochemical market is currently oversupplied, but there are signs of moderate improvement [48] - Management remains constructive on natural gas long-term due to demand for LNG and power generation [87] Other Important Information - The company completed capital investments of $5.5 billion in 2024, with $3.9 billion allocated for organic growth projects [27] - The total debt principal outstanding was approximately $32.2 billion, with a weighted average cost of debt at 4.7% [29] Q&A Session Summary Question: Outlook for 2025 and growth drivers - Management indicated potential for mid-single-digit cash flow growth in 2025, with larger projects coming online later in the year [35] Question: Status of SPOT project and license expiration - Management confirmed they are not worried about renewing permits and are focused on achieving necessary volumes and terms for the SPOT project [41][42] Question: Recovery path for the petrochemical segment - Management noted that the market is currently oversupplied, but there are signs of moderate improvement [48] Question: Impact of new export projects on LPG economics - Management acknowledged that new capacity could erode dock FOB values but emphasized their competitive position [54][56] Question: M&A landscape and activity expectations - Management expects to see additional asset packages later in the year and will evaluate opportunities that fit well within their system [72] Question: NGL pipeline volume and competition - Management expressed confidence in their platform and growth prospects despite new competition [116] Question: Data center demand and capacity - Management highlighted significant demand for data centers in Texas, with multiple projects in the queue [123] Question: Update on Morgan Point Flex expansion - The expansion is complete and currently serving ethane due to market conditions [139] Question: Haynesville basin growth potential - Management sees potential for growth in the Haynesville basin, although current rig counts do not reflect this [141]

Financial Performance - For the quarter ended December 2024, Enterprise Products Partners (EPD) reported revenue of $14.2 billion, down 2.9% year-over-year [1] - EPS for the quarter was $0.74, an increase from $0.72 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $14.31 billion, resulting in a surprise of -0.77% [1] - The company delivered an EPS surprise of +7.25%, with the consensus EPS estimate being $0.69 [1] Key Metrics - NGL Pipelines & Services net - NGL fractionation volumes per day were 1,637 million barrels of oil, exceeding the two-analyst average estimate of 1,617.29 million barrels [4] - NGL Pipelines & Services net - Fee-based natural gas processing per day was 6,994 million barrels of oil, compared to the average estimate of 6,574.51 million barrels [4] - NGL Pipelines & Services net - NGL pipeline transportation volumes per day were 4,768 million barrels of oil, surpassing the estimated 4,265.66 million barrels [4] - Natural Gas Pipelines & Services net - Natural gas transportation volumes per day were 19,925 BBtu/D, exceeding the average estimate of 19,015.39 BBtu/D [4] - Gross operating margin for NGL Pipelines & Services was $1.55 billion, above the average estimate of $1.43 billion [4] - Gross operating margin for Petrochemical & Refined Products Services was $348 million, below the estimated $428.05 million [4] - Gross operating margin for Natural Gas Pipelines & Services was $323 million, exceeding the average estimate of $280.28 million [4] - Gross operating margin for Crude Oil Pipelines & Services was $417 million, slightly above the estimated $406.41 million [4] Stock Performance - Shares of Enterprise Products have returned +3.8% over the past month, compared to the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Qualifying Statements Fourth Quarter 2024 Earnings Support Slides February 4, 2025 NYSE: EPD Forward-Looking Statements This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team (including information published by third parties). When used in this presentation, words such as "anticipate," "project," "expect," "plan," "seek," "goal," "estimate," "forecast," "intend," "could," "should," ...

Financial Performance - Enterprise reported record net income of $5.9 billion for 2024, a 7% increase from $5.5 billion in 2023, translating to $2.69 per common unit on a fully diluted basis[6]. - Total revenues for the year ended December 31, 2024, were $56.219 billion, compared to $49.715 billion for 2023, reflecting a significant increase[35]. - Net income attributable to common unitholders for Q4 2024 was $1,619 million, up from $1,568 million in Q4 2023, representing a growth of 3.3%[55]. - Fourth quarter 2024 net income was $1.6 billion, a 3% increase from $1.6 billion in the same quarter of 2023, resulting in $0.74 per common unit on a fully diluted basis[18]. - Non-GAAP Adjusted EBITDA for Q4 2024 was $2.599 billion, up from $2.499 billion in Q4 2023, indicating a positive trend in operational performance[35]. - Adjusted EBITDA for Q4 2024 was $2,599 million, an increase from $2,499 million in Q4 2023, marking a growth of 4.0%[61]. - Total Gross Operating Margin for Q4 2024 was $2,628 million, compared to $2,548 million in Q4 2023, showing an increase of 3.1%[65]. - Total segment gross operating margin for Q4 2024 was $2.636 billion, compared to $2.561 billion in Q4 2023, showing an increase of 2.9%[35]. Cash Flow and Distributions - Distributable Cash Flow (DCF) reached a record $7.8 billion for 2024, compared to $7.6 billion in 2023, with a coverage ratio of 1.7 times the declared distributions[7]. - Free Cash Flow (FCF) for Q4 2024 was $393 million, compared to $1,369 million in Q4 2023, reflecting a decrease of 71%[51]. - Adjusted Free Cash Flow (Adjusted FCF) for Q4 2024 was $336 million, down from $1,218 million in Q4 2023, a decline of 72%[51]. - Distributable Cash Flow (DCF) for Q4 2024 was $2,155 million, compared to $2,059 million in Q4 2023, reflecting a decrease of 4.7%[55]. - Operational DCF for the year 2024 reached $7,858 million, up from $7,538 million in 2023, indicating a growth of 4.2%[55]. Capital Investments - Total capital investments for 2024 were $5.5 billion, including $3.9 billion for growth capital projects and $949 million for the acquisition of Pinon Midstream[9]. - The company expects organic growth capital investments to be in the range of $4.0 billion to $4.5 billion in 2025[9]. - Major organic growth projects worth $6 billion are expected to be completed in 2025, including two natural gas processing plants in the Permian Basin[16]. - Sustaining capital expenditures for the year 2024 totaled $667 million, compared to $413 million in 2023, indicating a significant increase of 61.7%[55]. - Capital expenditures for Q4 2024 were $1,059 million, an increase from $1,012 million in Q4 2023, while total capital investments for the year reached $5,524 million, up from $3,281 million in 2023[69]. Operational Metrics - Equivalent pipeline transportation volumes for the fourth quarter of 2024 were a record 13.6 million BPD, a 6% increase compared to the same quarter in 2023[13]. - NGL pipeline transportation volumes reached 4.8 million BPD in the fourth quarter of 2024, a 12% increase from the fourth quarter of 2023[25]. - Gross operating margin for the fourth quarter of 2024 was $2.6 billion, compared to $2.5 billion in the fourth quarter of 2023[22]. - Gross operating margin from the NGL fractionation business increased 6% to $243 million for Q4 2024 compared to Q4 2023, with total NGL fractionation volumes reaching a record 1.6 million BPD, up 39 MBPD[27]. - Gross operating margin from the Crude Oil Pipelines & Services segment was $417 million for Q4 2024, down from $456 million in Q4 2023, with total crude oil pipeline transportation volumes decreasing to 2.6 million BPD, a 15 MBPD decline[27]. - Natural Gas Pipelines & Services segment gross operating margin increased 13% to $323 million for Q4 2024, with total natural gas transportation volumes at a record 19.9 TBtus/d, up 5% from Q4 2023[28]. - The Permian natural gas gathering reported a $21 million increase in gross operating margin due to a 1.1 TBtus/d increase in gathering volumes[28]. - Petrochemical & Refined Products Services segment gross operating margin decreased to $348 million for Q4 2024 from $439 million in Q4 2023, with total segment pipeline transportation volumes increasing to 947 MBPD[29]. Debt and Financial Position - Total debt principal outstanding at the end of the period was $32.207 billion, an increase from $29.021 billion at the end of Q4 2023[35]. - The net cash flow provided by operating activities for the year 2024 was $8,115 million, an increase from $7,569 million in 2023, reflecting a growth of 7.2%[61]. - The net effect of changes in operating accounts for the year 2024 was $(506) million, compared to $(555) million in 2023, showing an improvement[55]. Market Prices - The weighted-average indicative market price for NGLs was $0.62 per gallon in Q4 2024, compared to $0.57 per gallon in Q4 2023, an increase of 9%[50]. - Natural gas prices averaged $2.74 per MMBtu in 2023, with a projected average of $2.27 per MMBtu in 2024[46]. - The average price for WTI crude oil was $77.62 per barrel in 2023, with a forecasted average of $75.73 per barrel in 2024[48].

Core Viewpoint - The comparison between Enterprise Products Partners (EPD) and Oneok Inc. (OKE) indicates that EPD presents a better value opportunity for investors at this time [1]. Valuation Metrics - EPD has a forward P/E ratio of 11.77, while OKE has a forward P/E of 16.70, suggesting EPD is more attractively priced [5]. - The PEG ratio for EPD is 1.58, indicating a favorable earnings growth outlook compared to OKE's PEG ratio of 3.80, which suggests OKE may be overvalued relative to its growth [5]. - EPD's P/B ratio stands at 2.49, compared to OKE's P/B of 3.47, further supporting EPD's position as the superior value option [6]. Earnings Outlook - Both EPD and OKE have a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - Despite both companies having solid earnings prospects, EPD's valuation metrics suggest it is the more compelling investment choice [6].

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Enterprise Products Partners (EPD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this provider of midstream energy services have returned +8.1% over the past month versus the Zacks S&P 500 composite's +1.1% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, to which Enterprise Products belongs, has gained 6.5% over this period. Now the ...