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Research Alert: Epd: Permian Growth Remains Strong, But A Slight Miss In Q1

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Enterprise Products Partners (EPD) kicked off 2026 with Q1 earnings per unit of $0.68, missing consensus by $0.05, though adjusted EBITDA of $2.7B rose 10% Y/Y, reflecting strong underlying performance. Volume growth remained robust across key segments, with record natural gas processing inlet volumes of 8.3 bcf/d up 7% Y/Y and NGL pipeline volumes of 4.9 mmb/d up 10% Y/Y. Growth opportunities in natural gas processing look healthy, with plans for two additional processing plants in 2027 to increase total capacity by 12% and capture growing Permian production. Management noted natural gas and NGL production growth is expected to be 1.6x that of crude oil production growth. The company sees 2026 growth capex of $2.3B-$2.6B, down from original plans of $2.5B-$2.9B. With recent projects in service, we see EPD entering "harvesting mode" with meaningful free cash flow expansion ahead. We think demand for midstream services is increasingly fueled by data center expansion requiring more natural gas pipeline capacity.

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