Zinger Key Points
- Enterprise’s Q4 revenue declined 2.9% YoY to $14.201B but surpassed estimates, with EPS rising to $0.74.
- The company has $7.6B in major projects under construction, with $6B expected to generate cash flow in 2025.
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Enterprise Products Partners L.P. EPD reported a fourth-quarter 2024 sales decline of 2.9% year over year to $14.201 billion, beating the consensus of $14.161 billion.
Adjusted EBITDA rose to $2.59 billion from $2.49 billion a year ago, and the margin expanded by 121 bps to 18.3%.
EPS was 74 cents, up from 72 cents in the fourth quarter of 2023, beating the consensus of 70 cents.
Non-GAAP Distributable Cash Flow was $2.16 billion for the quarter compared to $2.06 billion a year ago. Adjusted cash flow provided by operating activities was $2.301 billion compared to $2.215 billion a year ago.
Adjusted total gross operating margin expanded by 108 bps to 18.5%. The NGL Pipelines & Services segment’s gross operating margin increased by 12% YoY to a record $1.5 billion.
Natural Gas Pipelines & Services’ gross margin rose 13% to $323 million, with record transportation volumes of 19.9 TBtus/d, up 5% YoY.
Petrochemical & Refined Products Q4 2024 gross margin fell to $348M from $439M in Q4 2023. Pipeline volumes rose to 947 MBPD from 899 MBPD, while marine terminal volumes dropped to 296 MBPD from 352 MBPD.
Total 2024 capital investments reached $5.5 billion, including $3.9 billion for growth projects, $949 million for Pinon Midstream acquisition, and $667 million for sustaining expenses.
As of Dec. 31, 2024, total debt was $32.2 billion, including $2.3 billion in junior subordinated notes. Consolidated liquidity stood at ~$4.8 billion, combining available credit facility capacity and unrestricted cash.
In the fourth quarter of 2024, the company repurchased approximately 2.1 million of its common units on the open market for $63 million.
2025 Outlook: Organic growth investments are projected at $4.0–$4.5 billion in 2025, with sustaining expenditures estimated at $525 million.
“We currently have approximately $7.6 billion of major growth capital projects under construction. These projects will go into service over the next three years. Substantially all of these projects are related to our natural gas and NGL businesses serving the Permian Basin and related expansions to our downstream infrastructure to support growing domestic and international demand,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner.
“These projects are supported by long-term contracts and provide visibility to continuing net income and cash flow per unit growth,” commented A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner,” he added.
“In 2025, $6 billion of major organic growth projects are expected to be completed and begin generating cash flow. These include two natural gas processing plants in the Permian Basin, our Bahia NGL pipeline, Fractionator 14, the first phase of our NGL export facility on the Neches River and expansions of our ethane and ethylene marine terminals on the Houston Ship Channel. This growth in cash flow will support future distribution increases and returns of capital,” Teague noted.
Price Action: EPD shares were down 2.1% at $32.54 during early trading Tuesday.
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