Enterprise Products Partners (EPD) Q4 will be impacted by lower-than-anticipated activity in the propane dehydrogenation plant, challenges from higher Waha natural gas prices, and weaker octane enhancement spreads, UBS Securities said in an earnings preview.
These headwinds will be "partially offset by stronger natural gas liquids marketing due to increased spot prices," UBS said in a Monday note.
UBS said the company will focus on 2025 growth during the earnings call, including updates on growth projects such as Frac 14, Bahia Pipeline, and Orion/Mentone West 1, which are expected to drive second-half 2025 growth.
Other key topics will include data center opportunities, updates on the sea port oil terminal project, and capital expenditure plans, according to the note.
The firm expects investors to seek details on the integration of Pinon, the ramp-up of the asset, and future mergers and acquisition plans.
UBS has a buy rating on Enterprise Products stock with a price target of $40.
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