MarketBeat
30 Oct 2026, 05:14 UTC · 2h ago
What Enterprise Products Partners (EPD) Said on Its Q3 Earnings Call
Impact · against what's priced in
EPD is a buy candidate as management's upward revision of Permian gas production growth (34% vs 23%) provides the fundamental catalyst the market previously declined to price in. This shift justifies a steady build rate of two plants per year, directly supporting the revenue acceleration required to reach the bullish valuation targets the price currently ignores.
- EPD+0.50
Challenges what's priced in
- The price assumes
The UBS bull case valuing the stock at $45, which requires the $6.5 billion capital plan and surging NGL exports to accelerate revenue growth well beyond the 14.7% the reverse-DCF already demands.
By increasing the Permian wet natural gas and NGL growth forecast to 34% (from 23%) and committing to a steady build rate of two plants per year, EPD is providing the specific volume growth necessary to exceed the 14.7% CAGR the market currently declines to pay for.
