Earnings Preview: Enterprise Products Partners Reports August 1

Jul.27.12 | About: Enterprise Products (EPD)

Enterprise Products Partners L.P. (EPD) is scheduled to report its Q2 2012 results on August 1, 2012, before the market opens. The street expects EPS and revenue of $0.59 and $11.72B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from EPD and the news from its closest competitors.

Enterprise Products Partners L.P. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.73 EPS, beating analyst estimates of $0.58.

Enterprise Products Partners L.P. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.59 based on 17 analysts' estimates, up from $0.51 a year ago. Revenue estimates are $11.72B, up from $11.22B a year ago. The median target price by analysts for the stock is $57.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 16, 2012, Global Hunter Securities initiated Accumulate rating for the company.
  • On February 15, 2012, Argus upgraded the company from Hold to Buy.

Latest News

  • On July 12, 2012, Enterprise Products Partners LP announced that the board of directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6350 per common unit, or $2.54 per unit on an annualized basis.
  • On April 13, 2012, Enterprise Products Partners LP announced that the Board of Directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6275 per common unit, or $2.51 per unit on an annualized basis.
  • On April 12, 2012, Enterprise Products Partners LP, Anadarko Petroleum Corporation and DCP Midstream, LLC announced an agreement to design and construct a new natural gas liquids (NGL) pipeline that will originate in the Denver-Julesburg Basin (DJ Basin) in Weld County, Colorado and extend approximately 435 miles to Skellytown, Texas in Carson County.
  • On February 13, 2012, Enterprise Products Partners LP announced that it has purchased a 37-acre tract of land adjacent to its Enterprise Crude Houston (ECHO) crude oil terminal, which is currently under construction, in southeast Harris County.
  • On February 8, 2012, Enterprise Products Partners LP announced that its operating subsidiary, Enterprise Products Operating LLC (EPO), has priced a public offering of $750 million of senior unsecured notes due on August 15, 2042 (August 2042 Notes).

Competitors

Enbridge Energy Partners (EEP), Energy Transfer Partners (ETP), Kinder Morgan Energy Partners (KMP), ONEOK Partners (OKS), and Plains All American Pipeline (PAA) are considered major competitors for Enterprise Products Partners and the table below provides the key metrics for these companies and the industry.

Enterprise Products Partners L.P. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

EPD Chart

EPD data by YCharts

Competitors' Latest Development

  • On July 26, 2012, Energy Transfer Partners LP announced that the Board of Directors has approved a quarterly distribution of $0.89375 per unit ($3.575 annualized) on ETP's outstanding common units for the quarter ended June 30, 2012.
  • On July 19, 2012, Kinder Morgan Energy Partners and BP North America announced the execution of long-term commercial agreements to provide BP condensate processing services and storage at Kinder Morgan's terminals located on the Houston Ship Channel.
  • On July 18, 2012, Kinder Morgan Energy Partners increased its quarterly cash distribution per common unit to $1.23 ($4.92 annualized) payable on Aug. 14, 2012, to unitholders of record as of July 31, 2012.
  • On July 17, 2012, Dow Jones reported that Peabody Energy Corp. has entered an agreement with Kinder Morgan Energy Partners to expand the Gulf Coast coal-export platform for Peabody's Colorado, Powder River Basin and Illinois Basin coal products.
  • On July 9, 2012, Plains All American Pipeline, L.P. announced a quarterly cash distribution of $1.065 per unit ($4.26 per unit on an annualized basis) on all of its outstanding limited partner units.
  • On July 3, 2012, Energy Transfer Partners LP announced public offering of 15,525,000 common units representing limited partner interests at $44.57 per common unit, which includes 2,025,000 common units purchased pursuant to the full exercise of the underwriters` option to purchase additional common units, has closed.
  • On June 28, 2012, Energy Transfer Partners LP announced that it has priced a public offering of 13,500,000 common units representing limited partner interests at $44.57 per common unit.
  • On June 27, 2012, Energy Transfer Partners LP announced it has commenced a public offering of 13,500,000 common units representing limited partner interests, with a 30-day option for the underwriters to purchase up to an additional 2,025,000 common units.
  • On June 19, 2012, Swift Energy Company announced that it has entered into a long term agreement for natural gas gathering and processing services for its LaSalle County, TX natural gas production with Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. and Copano Energy, L.L.C. This agreement is effective as of June 1, 2012.
  • On June 5, 2012, Kinder Morgan Energy Partners announced that it has completed its acquisition of a 50% interest in a joint venture that owns the Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford Shale in Texas from Kohlberg Kravis Roberts & Co. L.P. for $300 million in Kinder Morgan Energy Partners units.
  • On May 8, 2012, Plains All American Pipeline, L.P. announced that for the second quarter of 2012, it expects adjusted EBITDA to range from $440 million to $480 million with adjusted net income ranging from $263 million to $312 million, or $1.17 to $1.46 per diluted unit.
  • On May 1, 2012, Oneok Partners LP reaffirmed fiscal 2012 net income guidance range of $810 million to $870 million.
  • On April 30, 2012, Energy Transfer Partners LP and Sunoco Inc announced that they have entered into a definitive merger agreement whereby ETP will acquire Sunoco in a unit and cash transaction valued at $50.13 per share, or a total consideration of approximately $5.3 billion, based on ETP's closing price on April 27, 2012.
  • On April 25, 2012, Energy Transfer Partners LP announced that its Board of Directors has approved a quarterly distribution of $0.89375 per unit ($3.575 annualized) on ETP common units for the quarter ended March 31, 2012.
  • On April 17, 2012, Plains All American Pipeline, L.P. announced that it has communicated to the management and Board of Semgroup Corp that Plains All American Pipeline, L.P. has withdrawn its October 2011. proposal to acquire 100% of the issued and outstanding shares of Class A and Class B common stock of SemGroup Corp for $24.00 per share in cash.
  • On April 10, 2012, Plains All American Pipeline, L.P. announced a quarterly cash distribution of $1.045 per unit ($4.18 per unit on an annualized basis) on all of its outstanding limited partner units.
  • On March 22, 2012, Plains All American Pipeline, L.P. announced that it has completed an underwritten public offering of two series of senior notes $750 million aggregate principal amount of 3.65% senior unsecured notes due June 1, 2022, at a public offering price of 99.823% with a yield to maturity of 3.67%; and $500 million aggregate principal amount of 5.15% senior unsecured notes due June 1, 2042, at a public offering price of 99.755% with a yield to maturity of 5.165%. J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, Wells Fargo Securities, LLC, DNB Markets, Inc., and Mizuho Securities USA Inc. acted as joint book running managers of the offering.
  • On March 13, 2012, Plains All American Pipeline, L.P. announced that it has commenced, subject to market conditions, an underwritten public offering of two series of senior notes (the Notes).The Partnership intends to use the net proceeds of the offering to fund a portion of the consideration for the acquisition of all outstanding shares of BP Canada Energy Company, a wholly owned subsidiary of BP Corporation North America Inc. (the BP NGL Acquisition).
  • On March 9, 2012, Plains All American Pipeline, L.P. announced that it has completed its previously announced underwritten public offering of common units representing limited partner interests.
  • On March 7, 2012, Enbridge Energy Partners LP announced that for fiscal 2012, it expects the earnings to be between $510-$550 million.
  • On March 6, 2012, Plains All American Pipeline, L.P. announced that it has priced an underwritten public offering of 5,000,000 of its common units representing limited partner interests at $80.03 per common unit.
  • On March 5, 2012, Plains All American Pipeline, L.P. announced that it has commenced, subject to market conditions, an underwritten public offering of 5,000,000 of its common units representing limited partner interests.
  • On February 27, 2012, Kinder Morgan Energy Partners And Martin Midstream Partners LP announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas.
  • On February 27, 2012, Oneok Partners LP announced a public offering of 7.0 million of its common units, representing limited partner interests, subject to market and other conditions.
  • On February 20, 2012, Oneok Partners LP announced that for fiscal 2012, it increased its net income guidance by more than 9% to a range of $810 million to $870 million, compared with the previous guidance range of $740 million to $800 million.
  • On February 16, 2012, Energy Transfer Partners, L.P. and Regency Energy Partners LP announced that their joint venture, Lone Star NGL LLC, will construct a second 100,000 barrel per day natural gas liquids fractionation facility at Mont Belvieu, Texas.
  • On February 16, 2012, Energy Transfer Partners, L.P. announced that it has entered into new multiple long-term, fee-based agreements with producers to provide natural gas gathering, processing, and liquids services from the Eagle Ford Shale in South Texas.
  • On January 31, 2012, Enbridge Energy Partners LP announced that for fiscal 2012, it expects adjusted net income will be between $510-$550 million, adjusted EBITDA will be between $1.19-$1.25 billion and operating income (EBIT) to be between $870-$910 million.

Technical Overview


The stock has a market capitalization of $47.88B and is currently trading at $53.90 with a 52 week range of $36.36 - $54.98. The stock's year-to-date performance has been 19.14%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.