Enterprise Products Earnings: Petrochemicals Outperforms Amid Softness Elsewhere

Enterprise’s first-quarter results largely met our expectations, as unexpected strength in the petrochemicals unit was offset by weak natural gas liquids marketing contributions. The weaker marketing profits were anticipated as the spreads materially narrowed beginning in late 2022. Overall EBITDA was up slightly to $2.3 billion from $2.26 billion last year. With the partnership still on track to meet our full-year expectations of $9.2 billion in EBITDA, we will leave our $27.50 fair value estimate and wide moat rating unchanged.