Enterprise Products Q3 revenue tops estimates on record volumes at Permian Basin

Overview

• U.S. midstream energy firm's Q3 revenue rose and beat analyst expectations

• Adjusted EBITDA for Q3 increased and beat analyst expectations

• Net income for Q3 rose 21% yr/yr, driven by record operating volumes

Outlook

• Enterprise expects 2026 growth capital spending, net of asset sales, at $2.9-$3.4 bln

• Company sees $650 mln in sustaining capital expenditures for 2026

• Enterprise says strong international demand and new assets support future cash flow growth

Result Drivers

• RECORD OPERATING VOLUMES - Co said Q3 results were driven by record volumes at Permian Basin natural gas processing plants, NGL pipelines, natural gas pipelines and ethane marine export terminals

• HIGHER SALES MARGINS - Co attributed increased NGL marketing and natural gas marketing gross operating margin to higher average sales margins and marketing strategies tied to export and processing assets

• NEW ASSETS IN SERVICE - Co said new assets, including Delaware Basin gas plant, Bahia NGL pipeline, Frac 14 and Neches River NGL marine terminal, contributed to higher volumes and gross operating margin

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for Enterprise Products Partners L.P is $41.00, about 7.7% above its October 28 closing price of $38.06

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 27 - ONEOK Q3 results beat estimates on higher product volumes; raises 2026 outlook

• Oct 28 - Antero Midstream Q3 misses estimates

• Oct 28 - Expand says Haynesville output growth needed to meet rising US natgas demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)