Enterprise Q4 Earnings Beat on Higher Gas Pipeline Volumes

Core Insights - Enterprise Products Partners LP (EPD) reported fourth-quarter 2025 adjusted earnings per limited partner unit of 75 cents, exceeding the Zacks Consensus Estimate of 70 cents, and increased from 74 cents in the prior year [1] - Total quarterly revenues reached $13.8 billion, surpassing the Zacks Consensus Estimate of $13.1 billion, although it declined from $14.2 billion in the same quarter last year [1] Financial Performance - Strong quarterly earnings were primarily driven by higher natural gas pipeline volumes, while lower sales margins from marketing activities in Texas crude oil pipelines partially offset these gains [2] - The distributable cash flow totaled $2.22 billion, up from $2.16 billion in the year-ago period, providing a coverage ratio of 1.8X [9] - Adjusted free cash flow increased significantly to $1.17 billion from $336 million in the prior year [9] - Total capital investment for the reported quarter was $1.31 billion [10] Segmental Performance - Pipeline volumes in NGL, crude oil, refined products, and petrochemicals totaled 8.6 million barrels per day (bpd), an increase from 8.4 million bpd in the year-ago quarter [3] - Natural gas pipeline volumes rose to 21.1 trillion British thermal units per day (TBtus/d), compared to 19.9 TBtus/d in the previous year [3] - The gross operating margin for NGL Pipelines & Services remained stable at $1.5 billion year over year [4] - The gross operating margin from natural gas processing and related NGL marketing activities declined despite higher processing plant inlet volumes [5] - Natural Gas Pipelines and Services' gross operating margin increased to $445 million from $323 million in the fourth quarter of 2024, attributed to higher natural gas pipeline volumes [6] - Crude Oil Pipelines & Services reported a gross operating margin of $353 million, down from $417 million in the prior-year quarter due to lower sales margins [7] - The gross operating margin for Petrochemical & Refined Products Services rose to $397 million from $348 million in the fourth quarter of 2024, supported by higher pipeline and marine terminal volumes [8] Outlook - The company anticipates growth capital expenditure for 2026 to be between $2.5 billion and $2.9 billion, with a sustained capital expenditure of $580 million for the same year [13]