Enterprise Products Partners LP (EPD): 2Q26 Preview: Higher Spread Gains, For Now, Suggest Upside to Consensus

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Enterprise Products Partners LP (EPD): 2Q26 Preview: Higher Spread Gains, For Now, Suggest Upside to Consensus

Goldman Sachs Enterprise Products Partners LP (EPD)

processing, we expect higher POP margin on stronger NGL prices. Pipeline and frac

volumes should be stronger QoQ as Permian G&P volumes continue to grow.

Elsewhere, marketing strength should be supported by incremental spot cargo

opportunities driven by the Middle East conflict. Our estimates increase vs. prior on

stronger POP assumptions and stronger marketing and NGL export volumes.

n Crude likely up QoQ. We expect gross margin to increase to $378m vs. 1Q26 of

$329m, largely consistent with our prior estimate. We expect QoQ tailwinds from

steady volume growth, higher crude terminal volumes, and the absence of

mark-to-market downside from 1Q26.

n Natural Gas likely up QoQ. We expect gross margin of $530m, above 1Q26 of

$496m and above our prior estimate. We expect margin to increase QoQ from

ongoing differential margin strength (stronger Waha weakness). We increase our

estimate vs. prior following our commodity price mark-to-market on a wider implied

differential.

n Petchems and Refined Products likely up QoQ. We expect segment gross margin

of $376m for 2Q26 vs. 1Q26 of $314m, though below our prior estimate.

Sequentially, we expect higher octane enhancement, ethylene export margin, and

refined products, with modestly flat EBITDA elsewhere. For refined products, we see

upside QoQ from marketing headwinds in 1Q26. Octane enhancement margin

should be higher on the completion of maintenance which occurred from 1Q26 to

mid-2Q26 in addition to modest spread benefits (higher non-fee margin). Ethylene

margin should be higher on continued demand strength and export volume upside.

We lower our estimate vs.