Enterprise’s Q4 Results Sidestep More Difficult Markets for Now; Boosts Capital Returns

The diversity of Enterprise's business shielded the firm from more difficult industry conditions for the time being, and we think its fourth-quarter results were strong. We expect to maintain our $27.50 per share fair value estimate and wide-moat rating. Companywide EBITDA improved to $2.4 billion for the quarter, up 14% year over year, mainly due to strength in the natural gas liquids and natural gas business, offset somewhat by weaker results from the oil and petrochemicals units. Full-year EBITDA was $9.3 billion, while 2023 forecasts look to be in the same range.