Enterprise Sees Immediate Benefits From Navitas Deal in Q2

Enterprise Products Partners’ second-quarter results were healthy, as the full benefits of the Navitas deal flowed through to drive earnings improvements. Distributable cash flow was up 30% year over year to $2 billion. With Navitas and other earnings drivers, 2022 EBITDA is now expected to top $9 billion, an incremental $300 million-$400 million improvement. While we had initially modeled in Navitas' contributions, the difference looks to be better-than-expected fees across gathering and processing operations due to the high oil and gas price environment. After updating our model, our fair value estimate of $27.50 remains unchanged, as does our wide-moat rating.