Enterprise Products Partners Shares New Details on SPOT at Analyst Day

One of the more interesting and material projects Enterprise Products Partners has been engaged in over the past few years is the Sea Port Oil Terminal. SPOT is an offshore oil export terminal that could move up to 2 million barrels per day and materially change the demand-pull dynamics of oil toward the Gulf Coast if approved. SPOT has been a work in progress since 2019 and is not included in our model. If approved by Enterprise, we estimate it could contribute about $500 million in annual EBITDA based on a full cost of $3 billion-$4 billion. Enterprise has obtained several approvals already, and another license from the U.S. Maritime Administration could arrive this summer. As Enterprise has yet to make a final investment decision on SPOT, our $27.50 fair value estimate and wide moat rating are unchanged.