Enterprise Products Partners (EPD) is expected to see a higher total operating margin in Q3 versus Q2, while investors are likely to focus on 2024 guidance, insights on Permian growth following the Pinon Midstream acquisition and progress on the Sea Port Oil Terminal project during the Q3 earnings call, UBS Securities said in a note emailed Tuesday.

UBS estimates Q3 operating margin at NGL Pipeline & Services to be at $1.37 billion, Crude Pipeline & Services at $433 million and Petrochemical & Refined Products at $436 million, up from $1.33 billion, $417 million and $392 million, respectively, from the previous quarter. These increases were partially offset by Natural Gas Pipeline & Services' operating margin likely falling to $246 million from $293 million, according to the note.

Additionally, announcements on the status of the propane dehydrogenation plants after operational issues, growth project updates, capital expenditure plans, and capital return strategies like distributions and buybacks are also expected to be the focus during the call, UBS said.

The firm said it expects Enterprise Products to provide further clarity on capital spending, including outer-year projections and potential large projects during the call.

UBS reiterated its buy rating on the company's stock and kept the price target at $37.

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