Enterprise Products Partners plans to announce second-quarter financial results before the market opens on Thursday, July 30, and the report could be a major catalyst for the master limited partnership. The MLP reported strong first-quarter earnings on April 28, with adjusted EBITDA jumping 10% to $2.7 billion and adjusted cash flow from operations also surging 10% to $2.3 billion. It produced enough operational distributable cash flow of $2.1 billion, up 5%, to cover its distribution by 1.8 times, enabling it to retain $1.5 billion of cash for expansion projects and unit repurchases. The second quarter should have been another strong period, benefiting from recently completed expansion projects like the Mentone West 2 gas processing plant and the phase 2 flex project of the Neches River Terminal, as well as strong energy markets due to the war with Iran that disrupted global supplies and likely increased volumes on its infrastructure supporting the U.S. Strategic Petroleum Reserve. Despite these dual catalysts, units of Enterprise Products Partners are currently down about 1% since late April, suggesting investors may be underappreciating the impact, and a strong report could send the stock soaring.
Enterprise Products Partners LPStrong Q1 earnings and expected strong Q2 report due to expansion projects and energy market disruptions could boost stock.
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