Enterprise Products Partners Hits Record $2.7B Q4 EBITDA; Target Raised to $37
Scotiabank raised its price target on Enterprise Products Partners to $37 from $35, citing Q4 guidance outperforming consensus despite some modeling disconnects. The firm reported a record Q4 EBITDA of $2.7 billion and commissioned multiple midstream assets in 2025 while securing full contracts on its ethane and LPG export capacities.
1. Analyst Raises Price Target
Scotiabank increased its price target on Enterprise Products Partners to $37 from $35, maintaining a Sector Perform rating. The analyst highlighted that current guidance is tracking above consensus, though some communicated metrics have not aligned seamlessly with financial models.
2. Record Q4 EBITDA and Asset Additions
Enterprise delivered a fourth-quarter EBITDA of $2.7 billion, surpassing the prior record of $2.6 billion set in Q4 2024. Key assets placed into service during 2025 included Frac 14, Mentone West, Orion, Permian gathering and treating facilities, the Neches River Terminal, an ethane export train, Canadian diluent export capabilities and the Bahia NGL pipeline.
3. Commodity Price Pressure
Average oil prices during the quarter were roughly $12 per barrel below 2024 levels, which narrowed many pricing spreads that had bolstered earnings over the past three years. This pricing environment partially offset gains from new asset contributions.
4. Fully Contracted Export Capacity
All ethane export terminal capacity is now fully contracted, and all 20 expected Permian processing trains are committed by year-end. LPG export capacity is largely booked through the end of the decade, with management noting ongoing strong demand for additional long-term commitments.