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Enterprise Products Partners LP EPD reported fourth-quarter 2025 adjusted earnings per limited partner unit of 75 cents, which beat the Zacks Consensus Estimate of 70 cents. The bottom line also increased from the year-ago level of 74 cents.
Total quarterly revenues of $13.8 billion surpassed the Zacks Consensus Estimate of $13.1 billion. However, the top line declined from $14.2 billion in the prior-year quarter.
Strong quarterly earnings are primarily attributable to higher natural gas pipeline volumes. Lower sales margins from marketing activities within Texas crude oil pipelines, related terminals and other marketing activities partially offset the positives.
Enterprise Products Partners L.P. price-consensus-eps-surprise-chart | Enterprise Products Partners L.P. Quote
Pipeline volumes in NGL, crude oil, refined products and petrochemicals totaled 8.6 million barrels per day (bpd), higher than the year-ago quarter’s 8.4 million bpd. Natural gas pipeline volumes amounted to 21.1 trillion British thermal units per day (TBtus/d), higher than 19.9 TBtus/d in the year-ago quarter. Marine terminal volumes totaled 2.2 million bpd, flat with the year-ago period.
The gross operating margin at NGL Pipelines & Services remained unchanged at $1.5 billion. The gross operating margin from the NGL Pipelines & Services segment was unchanged year over year, reflecting consistent performance in the fourth quarter of both periods.
The gross operating margin from the natural gas processing business and related NGL marketing activities declined from the prior year. This was driven by changes in margins despite higher natural gas processing plant inlet volumes, increased fee-based processing volumes and higher equity NGL-equivalent production volumes in the fourth quarter of 2025 relative to the fourth quarter of 2024.
Natural Gas Pipelines and Services’ gross operating margin increased to $445 million from $323 million in the fourth quarter of 2024. The upside can be primarily attributed to the total higher natural gas pipeline volumes.
Crude Oil Pipelines & Services recorded a gross operating margin of $353 million, down from $417 million in the prior-year quarter. The decrease was mainly due to lower sales margins from marketing activities within Texas crude oil pipelines, related terminals and other marketing activities. Crude oil marine terminal volumes experienced a decline.
The gross operating margin at Petrochemical & Refined Products Services was $397 million, compared with $348 million in the fourth quarter of 2024. The increase was aided by higher pipeline volumes and marine terminal volumes in the segment.
The distributable cash flow totaled $2.22 billion compared with $2.16 billion in the year-ago period, providing a coverage of 1.8X. Enterprise retained $1 billion of distributable cash flow in the fourth quarter. It generated an adjusted free cash flow of $1.17 billion, up from $336 million in the year-ago quarter.
In the reported quarter, Enterprise’s total capital investment was $1.31 billion.
As of Dec. 31, 2025, the outstanding total debt principal was $34.7 billion, and consolidated liquidity amounted to $5.2 billion.
Enterprise’s growth capital expenditure for 2026 is expected to be $2.5-$2.9 billion.
The company expects to sustain a capital expenditure of $580 million for 2026.
EPD currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Oceaneering International OII, Subsea7 S.A. SUBCY and W&T Offshore WTI, each carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and business opportunities, ensuring steady revenue growth.
OII’s earnings beat estimates in three of the trailing four quarters and missed in the other, delivering an average surprise of 12.3%. OII has a Zacks Style Score of B for Value and Growth.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
SUBCY is expected to witness year-over-year earnings growth of 37.7% in 2026. The company has a Zacks Style Score of A for Value and Growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.
WTI’s earnings beat estimates in three of the trailing four quarters, met in the other, delivering an average surprise of 27.1%. The company has a Zacks Style Score of A for Value, and B for Growth and Momentum.
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This article originally published on Zacks Investment Research (zacks.com).
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