Enterprise's Q4'20 adjusted EBITDA rises YOY, beats estimates

Enterprise Products Partners LP on Feb. 3 posted fourth-quarter 2020 adjusted EBITDA of $2.06 billion, up from $2.02 billion a year earlier.

The S&P Capital IQ consensus estimate of adjusted EBITDA for the fourth quarter of 2020 was $1.99 billion.

The partnership's distributable cash flow in the fourth quarter of 2020 was $1.63 billion, compared with $1.63 billion in the year-ago period.

Enterprise reported fourth-quarter 2020 net income of $366 million, a drop from $1.13 billion in the previous year.

For full year 2020, the partnership posted adjusted EBITDA of $8.06 billion, a drop from $8.12 billion the year prior. The S&P Capital IQ consensus estimate for full-year 2020 adjusted EBITDA was $8.00 billion.

Distributable cash flow for full year 2020 was $6.41 billion, down from $6.62 billion in 2019.

Full-year 2020 net income came to $3.89 billion, compared with net income of $4.69 billion in the prior year.

In addition, Enterprise said that it anticipates getting 25% of its power from renewable sources by 2025 as it explores opportunities to boost its use of renewable power and cut emissions.

Enterprise projects its 2021 and 2022 growth capital investments on sanctioned projects to be roughly $1.6 billion and $800 million, respectively. The estimates exclude investments related to the partnership's planned deepwater Seaport Oil Terminal. Sustaining capital expenditures for 2021 are expected to hit $440 million, including $115 million of expenditures related to turnarounds of Enterprise's propane dehydrogenation and octane enhancement facilities.

Enterprise also expects an expansion of its U.S. Gulf Coast ethane pipelines to start up in the first quarter; its Gillis natural gas pipeline serving southwest Louisiana LNG markets to enter commercial service in the fourth quarter; and a hydrotreater in Mont Belvieu for removal of sulfur in natural gasoline to begin operations in the second half of the year.