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What Awaits Enterprise Products (EPD) This Earnings Season?

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·4 min read
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Enterprise Products Partners LP EPD is set to report fourth-quarter 2021 results on Feb 1, before the opening bell.

In the last reported quarter, the partnership reported adjusted earnings per limited partner unit of 52 cents, in line with the Zacks Consensus Estimate. The results were primarily supported by higher pipeline volumes. Natural Gas Pipelines and Services, and Petrochemical & Refined Products Services businesses buoyed the partnership’s third-quarter results.

The midstream infrastructure provider beat the Zacks Consensus Estimate in three of the prior four quarters and met the same once, the average earnings surprise being 8%. This is depicted in the graph below:

Enterprise Products Partners L.P. Price and EPS Surprise

Enterprise Products Partners L.P. Price and EPS Surprise
Enterprise Products Partners L.P. Price and EPS Surprise

Enterprise Products Partners L.P. price-eps-surprise | Enterprise Products Partners L.P. Quote

Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.

Estimate Trend

The Zacks Consensus Estimate for fourth-quarter earnings of 54 cents per unit has seen one upward revision and three downward movements in the past 30 days. The figure suggests a 6% year-over-year increase.

The Zacks Consensus Estimate for revenues is pegged at $11 billion for the quarter, indicating an increase of 55.6% from the year-ago reported figure.

Factors to Consider

The business model of the partnership — having one of the highest credit ratings in the midstream energy space — is likely to have been relatively less exposed to commodity price volatility in the fourth quarter. However, the rapid-spreading Omicron variant is expected to have affected the company’s bottom line in the reported quarter.

The Zacks Consensus Estimate for fourth-quarter gross operating margin from NGL Pipelines & Services is pegged at $1,093 million, indicating a decline from the year-ago reported figure of $1,144 million. Also, the consensus estimate for fourth-quarter gross operating margin from Onshore Crude Oil Pipelines & Services is pegged at $405 million, suggesting a decrease from $428 million reported a year ago.

The Zacks Consensus Estimate for gross operating margin from Onshore Natural Gas Pipelines & Services is pegged at $244 million, suggesting an increase from $226 million a year ago. Even though improved performance from natural gas pipeline is expected to have positioned the partnership well to generate higher profits, weak crude oil and NGL pipelines performances are anticipated to have impacted its fourth-quarter performance.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Enterprise Products this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Earnings ESP for the partnership is -0.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Enterprise Products currently carries a Zacks Rank #3.

Energy Stocks With Favorable Combination

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Exxon Mobil Corporation XOM has an Earnings ESP of +1.87% and is a Zacks #1 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ExxonMobil is scheduled to release the fourth-quarter results on Feb 1. The Zacks Consensus Estimate for XOM’s quarterly earnings is pegged at $1.96 per share, suggesting a significant increase from the prior-year reported figure.

MPLX LP MPLX has an Earnings ESP of +3.22% and it currently carries a Zacks Rank of 3.

MPLX is scheduled to report the fourth-quarter results on Feb 2. The Zacks Consensus Estimate for MPLX’s earnings is pegged at 75 cents per unit, suggesting an increase of 19.1% from the prior-year reported figure.

Murphy USA MUSA has an Earnings ESP of +28.82% and it carries a Zacks Rank #1 at present.

Murphy USA is scheduled to release its fourth-quarter earnings on Feb 2. The Zacks Consensus Estimate for MUSA’s earnings is pegged at $3.38 per share, suggesting a massive improvement from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report

Murphy USA Inc. (MUSA) : Free Stock Analysis Report

MPLX LP (MPLX) : Free Stock Analysis Report

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