Enterprise Products Partners (NYSE:EPD) Shares Down 1.5% - What's Next?

Key Points

• EPD shares fell 1.5% to about $38.09 despite a strong second-quarter report, suggesting investors may have already priced in the favorable results.
• Second-quarter earnings reached $0.84 per unit, beating the $0.75 consensus, while revenue surged 60.8% year over year to $18.27 billion. Record adjusted EBITDA of $2.8 billion and $2.31 billion in distributable cash flow provided 1.9x distribution coverage.
• The partnership raised its quarterly distribution to $0.56 per unit, equivalent to a 5.9% annualized yield, and announced new NGL fractionation and Permian Basin processing projects. Analysts remain mixed, with a consensus “Hold” rating and an average price target of $39.93.

Shares of Enterprise Products Partners L.P. (NYSE:EPD - Get Free Report) traded down 1.5% on Thursday . The stock traded as low as $37.95 and last traded at $38.0880. Approximately 6,152,018 shares were traded during mid-day trading, an increase of 47% from the average session volume of 4,177,333 shares. The stock had previously closed at $38.67.

More Enterprise Products Partners News

Here are the key news stories impacting Enterprise Products Partners this week:

• Positive Sentiment: Record quarterly results: EPD reported $0.84 in earnings per diluted common unit, exceeding the $0.75 consensus estimate, while revenue rose 60.8% year over year to $18.27 billion versus expectations of $13.69 billion. Net income attributable to common unitholders increased 28% to $1.84 billion. Enterprise Reports Second Quarter 2026 Earnings
• Positive Sentiment: Strong operating momentum: Equivalent pipeline volumes increased 8% to 14.7 million barrels per day, while marine terminal volumes climbed 33% to 2.8 million barrels per day. Adjusted EBITDA reached a record $2.8 billion, and operational distributable cash flow of $2.31 billion provided 1.9x coverage of distributions. Enterprise Products Partners Q2 Net Income Climbs
• Positive Sentiment: Growth and income support: The partnership declared a $0.56-per-unit distribution and announced plans for a 150,000-barrel-per-day NGL fractionator at Mont Belvieu and two 300 MMcf-per-day Permian Basin gas-processing plants. Analysts also anticipated higher throughput across several business lines, reinforcing the growth outlook. How Rising Volume and Earnings Forecasts Will Impact Enterprise Products Partners Investors
• Neutral Sentiment: Expectations were already favorable: Pre-report forecasts called for approximately $0.74 in quarterly earnings and $13.60 billion in revenue. The results beat those estimates, but the stock’s reaction indicates that the strong performance may have been substantially anticipated by the market.
• Negative Sentiment: Some forward estimates softened: US Capital Advisors raised its second-quarter EPS estimate before the release but subsequently lowered its fourth-quarter 2027 forecast to $0.84 from $0.86. That modest reduction may temper enthusiasm about longer-term earnings growth. Enterprise Products Partners analyst estimates

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. The Goldman Sachs Group reiterated a "neutral" rating and issued a $38.00 price objective on shares of Enterprise Products Partners in a research report on Wednesday, June 17th. Citigroup reaffirmed a "buy" rating and set a $44.00 price target (up from $39.00) on shares of Enterprise Products Partners in a research note on Friday, May 1st. Weiss Ratings cut Enterprise Products Partners from a "buy (b+)" rating to a "buy (b)" rating in a report on Thursday, July 2nd. TD Cowen reiterated a "hold" rating and issued a $38.00 price objective (up from $34.00) on shares of Enterprise Products Partners in a research report on Thursday, April 16th. Finally, Truist Financial boosted their price objective on Enterprise Products Partners from $36.00 to $40.00 and gave the stock a "hold" rating in a report on Monday, May 4th. Eight investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $39.93.

Enterprise Products Partners Stock Down 1.5%

The business's fifty day simple moving average is $37.61 and its 200 day simple moving average is $36.92. The stock has a market cap of $82.34 billion, a price-to-earnings ratio of 14.11, a price-to-earnings-growth ratio of 1.40 and a beta of 0.49. The company has a current ratio of 0.91, a quick ratio of 0.61 and a debt-to-equity ratio of 1.03.

Enterprise Products Partners (NYSE:EPD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The oil and gas producer reported $0.84 earnings per share for the quarter, beating analysts' consensus estimates of $0.75 by $0.09. Enterprise Products Partners had a return on equity of 19.53% and a net margin of 11.45%.The company had revenue of $18.27 billion for the quarter, compared to the consensus estimate of $13.69 billion. During the same quarter in the prior year, the business posted $0.66 EPS. The firm's quarterly revenue was up 60.8% on a year-over-year basis. Equities analysts forecast that Enterprise Products Partners L.P. will post 2.93 earnings per share for the current fiscal year.

Enterprise Products Partners Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be paid a $0.56 dividend. The ex-dividend date of this dividend is Friday, July 31st. This is a positive change from Enterprise Products Partners's previous quarterly dividend of $0.55. This represents a $2.24 annualized dividend and a yield of 5.9%. Enterprise Products Partners's payout ratio is currently 81.48%.

Hedge Funds Weigh In On Enterprise Products Partners

Several institutional investors have recently modified their holdings of EPD. Miller Howard Investments Inc. NY increased its position in shares of Enterprise Products Partners by 1.0% in the 4th quarter. Miller Howard Investments Inc. NY now owns 3,112,119 shares of the oil and gas producer's stock valued at $99,775,000 after buying an additional 31,733 shares in the last quarter. Royal Palms Capital LLC acquired a new stake in Enterprise Products Partners during the 4th quarter worth $1,830,000. Texas Yale Capital Corp. lifted its holdings in Enterprise Products Partners by 4.9% during the fourth quarter. Texas Yale Capital Corp. now owns 1,905,939 shares of the oil and gas producer's stock worth $61,104,000 after acquiring an additional 88,475 shares in the last quarter. Oxbow Advisors LLC lifted its holdings in Enterprise Products Partners by 3.0% during the fourth quarter. Oxbow Advisors LLC now owns 1,329,085 shares of the oil and gas producer's stock worth $42,610,000 after acquiring an additional 39,052 shares in the last quarter. Finally, Thrivent Financial for Lutherans grew its stake in Enterprise Products Partners by 7.8% in the fourth quarter. Thrivent Financial for Lutherans now owns 4,510,036 shares of the oil and gas producer's stock valued at $144,592,000 after acquiring an additional 327,807 shares during the period. 26.07% of the stock is currently owned by institutional investors and hedge funds.

Enterprise Products Partners Company Profile

Enterprise Products Partners L.P. NYSE: EPD is a Houston-based master limited partnership that provides midstream energy services across North America. The company owns and operates an extensive network of pipelines, storage facilities, processing plants and export terminals that transport and handle natural gas, natural gas liquids (NGLs), crude oil and refined and petrochemical products. Its core activities include gathering and transportation, fractionation of NGLs, natural gas processing, crude oil and condensate pipelines, and marine and terminal services that enable domestic distribution and exports.

Enterprise serves a diverse set of customers including producers, refiners, petrochemical companies, marketers and end users.

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