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Enterprise Products Partners (NYSE:EPD) +0.7% in choppy trading Thursday after Q4 adjusted earnings of $0.65/unit edged past expectations, and distributable cash totaled $2.03B, which provided 1.9x coverage of the $0.49/unit cash distribution.
Q4 adjusted EBITDA rose to $2.37B, above $2.25B analyst consensus estimate and $2.11B in the year-earlier quarter.
Q4 adjusted cash flow from operations was a record $2.1B vs. $1.8B for the same quarter a year earlier; adjusted free cash flow was $1.4B for both the fourth quarters of 2022 and 2021.
Total capital investments for 2022 were $5.2B, including $3.2B for the acquisition of Navitas Midstream, $1.4B of investments in growth capital projects and and $372M of sustaining capital expense.
For 2023, Enterprise Products (EPD) expects growth capital investments of $2.3B-$2.5B, with sustaining capital expense of ~$400M.
The company said it has $3.6B of assets under construction that are scheduled to be completed in 2023.
Enterprise Products (EPD) has lowered its net debt target to 3x adjusted EBITDA from its prior goal of 3.5x, but it is not actively seeking a credit rating upgrade, Executive VP Christian Nelly on the post-earnings conference call.
Enterprise Products Partners (EPD) units have gained 6.5% so far this year and 8% during the past year.
