Enterprise Plans to Invest Heavily in the Permian

Enterprise's geographical and asset diversity allow it to pursue growth in nearly any environment. It can aggregate supply of every type of hydrocarbon from multiple sources in major producing basins and deliver it to multiple end markets (refiners, petrochemicals, exports). Its robust marketing operations let it clip transaction-fee-like earnings during volatile oil and gas markets like we saw with winter storm Uri in 2021. With marketing spreads narrowing across the gas and petrochemicals markets, we expect Enterprise's marketing performance to be weaker in 2023 than in 2022, though the outlook for the second half of 2023 has improved.