Enterprise Products jumps 4.6% on record Q4, 27th distribution hike
Midstream energy giant beats EPS and revenue estimates while Bahia pipeline drives operational records
Enterprise Products Partners shares surged 4.6% on Tuesday after the midstream energy giant reported record fourth-quarter results that exceeded analyst expectations and marked its 27th consecutive annual distribution increase.
The Houston-based company reported fully diluted earnings of $0.75 per common unit for the fourth quarter of 2025, beating Wall Street estimates of $0.65 by 15.2%. Revenue reached $13.79 billion, surpassing consensus estimates that ranged from $12.36 billion to $12.49 billion, representing a 16.9% upside surprise.
The quarter featured record operational performance across 10 metrics, including natural gas processing inlet volume of 8.1 billion cubic feet per day, NGL fractionation volume of 1.9 million barrels per day, and total pipeline volumes of 14.1 million barrels per day equivalent. The company generated $2.2 billion of operational distributable cash flow, providing a robust 1.8 times coverage of increased quarterly distributions.
"The headline for the fourth quarter is a record $2.7 billion of EBITDA, surpassing the previous record of $2.6 billion set in the fourth quarter of 2024," said A. Jim Teague, co-chief executive officer, on the earnings call. "Naysayers doubted Bahia in the beginning, but that is to be expected when you are first. Bahia and Shin Oak is an integrated system, has 1.2 million barrels a day of capacity and are running at 80%."
The Bahia NGL pipeline, a 550-mile system transporting natural gas liquids from the Permian Basin to Enterprise's Mont Belvieu complex, came online in December 2025. In a strategic move, ExxonMobil acquired a 40% undivided joint interest in the pipeline, with plans to expand capacity to 1 million barrels per day and construct a 92-mile extension to Exxon's Cowboy processing plant in New Mexico, expected completion in the fourth quarter of 2027.
For the full year 2025, Enterprise increased its distributions by 3.6% to $2.175 per unit, extending its record of consecutive annual distribution growth to 27 years. The partnership repurchased approximately $50 million of common units in the fourth quarter, contributing to roughly $300 million in repurchases for the entire year.
Adjusted cash flow from operations grew 5% to $2.4 billion in the fourth quarter, propelling the company to a record $8.7 billion for the full year 2025. Net income attributable to common unitholders reached $1.6 billion in the quarter.
Looking ahead, management expects approximately $1 billion of discretionary free cash flow in 2026, with plans to allocate 55% to 60% toward buybacks. Co-CEO Randy Fowler noted that the company anticipates "modest cash flow and EBITDA growth" in 2026 compared to 2025, followed by approximately 10% EBITDA growth in 2027 as assets ramp up.
Trading volume reached nearly three times the daily average as investors responded to the results. The partnership maintains a market capitalization of approximately $71.7 billion and currently trades with a dividend yield of 6.5%.
"With the people we have, I don't think it makes a difference," Teague said regarding the potential impact of larger exploration and production companies on negotiating power. "Our folks are pretty good at seeing value and doing win-win deals with producers, whether they be large majors or large independents."
The strong performance comes amid continued strength in energy infrastructure demand, as production growth in the Permian Basin and other key basins drives need for additional takeaway capacity. Enterprise's integrated network of pipelines and processing facilities positions it to benefit from ongoing expansion projects and increasing utilization rates across its system.