Enterprise Products Partners (EPD) PT Lowered to $38 at Goldman Sachs

Goldman Sachs analyst John Mackay lowered the price target on Enterprise Products Partners (NYSE: EPD) to $38.00 (from $39.00) while maintaining a Neutral rating.

The analyst comments "Ahead of 2Q26 earnings, we refresh our estimates for Enterprise Products (EPD, Neutral). For 2Q26 EBITDA, we expect $2,782m vs. our prior $2,709m (+3%), and FactSet consensus of $2,674m (+4%). Tailwinds appear similar to the 1Q26 beat, specifically NGL marketing/exports and Waha differential capture. Other sequential gains should be modestly better Permian volumes and the completion of octane enhancement maintenance (albeit delayed). The focus from here is on the magnitude of incremental marketing gains to capture above the base plan in 2H26, particularly after the oil/NGL price pullback and narrower spot spread environment; we now see $10,925m of 2026 EBITDA vs. $10,797m prior (+1%) and $10,749m consensus (+2%), with our increase largely on the 2Q step-up. We do not expect guidance given with 4Q25 earnings (~3% EBITDA growth for 2026, ~10% for 2027) to be explicitly reiterated, though we believe management will make it clear that their views for both years are nominally higher vs. when that guidance was given. For 2027, we now see ~$11.4b vs. implicit (old) guidance and current consensus of ~$11.3b - and above our prior estimate of $11.2b on the back of our higher Permian gas production forecast that we just published. Elsewhere, we expect a focus on uses of incremental cash flow/balance sheet capacity - specifically potential upside to 2027 capex (new frac projects) and larger-scale M&A. Our PT moves to $38 (from $39 prior) and we remain Neutral rated."

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