Enterprise’s Q3 Results Revealed Volume Strength and Petrochemical Weakness

Enterprise’s third-quarter results benefited from healthy volume growth across its natural gas liquids, oil, and gas business, and contributions from the recently completed Navitas deal. The gains were more than enough to boost gross operating margin to $2.3 billion from $2.1 billion last year and offset weaker volumes and margins from its petrochemicals business. After updating our model, we will maintain our $27.50 fair value estimate and wide moat rating.