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Enterprise Products Partners Q1 earnings preview: What to expect? – Seeking Alpha


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Enterprise Products Partners (NYSE:EPD) is scheduled to announce Q1 earnings results on Monday, May 2nd, before market open.

EPD missed Q4 earnings estimates but revenues surged far above expectations to $11.4B in 2021. The firm posted a strong quarter from the petrochemical services business, higher natural gas processing margins, an increase in natural gas liquids production, record natural gas pipeline volumes, and the continuing recovery in crude oil pipeline volumes.

“Entering 2022, we expect a continuation in the global economic recovery, and growth in crude oil, natural gas and (natural gas liquids) production in the United States driven primarily by the Permian Basin and Haynesville shale,” co-CEO Jim Teague said.

The consensus EPS Estimate is $0.52 (-18.8% Y/Y) and the consensus Revenue Estimate is $10.47B (+14.3% Y/Y).

Earlier this month EPD declared a $0.465/share quarterly dividend, in line with previous. The midstream firm also executed a letter of intent work with Occidental Petroleum’s (OXY) Oxy Low Carbon Ventures toward a potential carbon dioxide transportation and sequestration solution for the Texas Gulf Coast.

EPD will likely benefit from higher oil and natural gas prices, driven by supply concerns of supply constraints amid the Russia-Ukraine crisis.

Favorable commodity prices has benefited upstream investments and production, and will bode well for the midstream sector as well. Wells Fargo expects further gains in oil prices (USO) throughout 2023.

A YTD price return comparison against peers:

EPD

Over the last 2 years, EPD has beaten EPS estimates 63% of the time and has beaten revenue estimates 50% of the time.

Over the last 3 months, EPS estimates have seen 0 upward revisions and 1 downward. Revenue estimates have seen 3 upward revisions and 1 downward.



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