Enterprise Earnings: Second Half of 2023 Shaping Up To Be Better Than First

Enterprise’s second-quarter earnings were somewhat weak compared with last year’s results, with EBITDA of $2.2 billion compared with $2.4 billion. While system volumes have increased noticeably, earnings have been affected by a nearly 50% decline in natural gas liquids pricing, as well as lower pricing at its petrochemicals unit. The pricing primarily would have an impact on marketing spreads. After updating our model for second-quarter results, we are leaving our $27.50 per unit fair value estimate intact, as well as our wide moat rating.