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Enterprise Products Partners (EPD)
NYSE:EPD

Enterprise Products Partners (EPD) AI Stock Analysis

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Enterprise Products Partners

(NYSE:EPD)

75Outperform
Enterprise Products Partners shows robust financial health, with strong revenue growth and profitability. The stock is attractively valued and offers a high dividend yield. However, bearish technical indicators and recent executive changes present near-term headwinds, balancing the overall positive outlook.
Positive Factors
Natural Gas Performance
Fee based Natural Gas Processing Volumes surpassed consensus expectations by 4.3%.
Project Backlog
EPD disclosed it added +$700mn to its '25/26 project backlog, focusing on Permian gathering, processing, and treating footprint, indicating a robust opportunity set.
Stock Buyback
Stock buybacks were above estimate, with the company repurchasing $60MM of common units.
Negative Factors
Earnings Performance
EBITDA of $2,444MM was below Consensus of $2,549MM but in line with our estimate of $2,476MM.
Investment Sentiment
Investors appear more willing to credit growth, a departure from the former emphasis placed on capital return.
Project Delays
Commercialization progress of the proposed VLCC project (Sea Port Oil Terminal - or 'SPOT') has been slower than expected, and discussions suggest EPD might abandon the project.

Enterprise Products Partners (EPD) vs. S&P 500 (SPY)

Enterprise Products Partners Business Overview & Revenue Model

Company DescriptionEnterprise Products Partners L.P. is a leading North American provider of midstream energy services, primarily involved in the transportation, storage, and processing of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. As a publicly traded partnership, Enterprise operates an extensive network of pipelines and storage facilities, serving as a critical link in the energy supply chain. The company is headquartered in Houston, Texas, and plays a significant role in the energy infrastructure sector, catering to a diverse customer base including major energy producers and consumers.
How the Company Makes MoneyEnterprise Products Partners generates revenue through a diverse range of midstream services. The company's primary revenue streams include fees collected for transporting volumes of natural gas, NGLs, crude oil, and petrochemicals through its extensive pipeline networks. Additionally, Enterprise earns income from storage services offered at its facilities, where customers store their energy products for future use or distribution. The company also processes natural gas and NGLs, extracting valuable components that are sold to industrial and commercial customers. Strategic partnerships and long-term contracts with energy producers and consumers further bolster its income, providing stable and predictable cash flows. Moreover, Enterprise benefits from its involvement in the export of liquefied petroleum gas (LPG) and other hydrocarbons, capitalizing on global energy demands.

Enterprise Products Partners Financial Statement Overview

Summary
Enterprise Products Partners exhibits strong financial performance across all verticals, with robust revenue growth, high profitability margins, and efficient cash flow management. The company's low debt-to-equity ratio and high return on equity underscore its financial stability and effective use of capital. While the decrease in free cash flow growth is a point of concern, the overall financial health of the company remains solid, positioning it well in the fossil fuels industry.
Income Statement
82
Very Positive
Enterprise Products Partners shows strong financial performance with consistent revenue growth, evident from the 13.07% increase in revenue from 2023 to 2024. The company maintains healthy profitability margins with a gross profit margin of 100% and a net profit margin of 10.49% for 2024. EBIT margin and EBITDA margin are also robust at 13.05% and 13.05% respectively. These metrics highlight the company's efficient cost management and high profitability, contributing to a strong income statement score.
Balance Sheet
75
Positive
The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.04, indicating low leverage. The return on equity (ROE) is impressive at 20.51%, showcasing effective use of equity to generate profits. An equity ratio of 37.23% suggests a stable capital structure. However, the high level of total liabilities relative to equity might pose a potential risk if not managed properly.
Cash Flow
78
Positive
Enterprise Products Partners demonstrates strong cash flow management with a positive free cash flow of $3.57 billion in 2024. The free cash flow to net income ratio is 0.61, indicating that the company effectively converts its net income into free cash flow. Operating cash flow to net income ratio stands at 1.38, suggesting efficient cash generation from operations. However, the decrease in free cash flow from 2023 to 2024 indicates slight pressure on cash generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
56.22B49.72B58.19B40.81B27.20B
Gross Profit
7.17B6.70B6.68B5.73B4.83B
EBIT
7.34B6.93B4.97B4.23B2.98B
EBITDA
9.59B9.05B8.96B7.99B7.12B
Net Income Common Stockholders
5.90B5.53B5.49B4.64B3.78B
Balance SheetCash, Cash Equivalents and Short-Term Investments
583.00M180.00M76.00M2.82B1.06B
Total Assets
77.17B70.98B68.11B67.53B64.11B
Total Debt
32.26B29.07B28.64B29.87B29.87B
Net Debt
31.68B28.89B28.56B27.05B28.81B
Total Liabilities
47.58B42.22B40.41B41.09B38.73B
Stockholders Equity
28.73B27.67B26.62B285.90M-165.20M
Cash FlowFree Cash Flow
3.57B4.30B6.08B6.29B2.60B
Operating Cash Flow
8.12B7.57B8.04B8.51B5.89B
Investing Cash Flow
-5.43B-3.20B-4.95B-2.13B-3.12B
Financing Cash Flow
-2.16B-4.26B-5.84B-4.57B-2.02B

Enterprise Products Partners Technical Analysis

Technical Analysis Sentiment
Negative
Last Price29.90
Price Trends
50DMA
31.87
Negative
100DMA
31.74
Negative
200DMA
30.01
Negative
Market Momentum
MACD
-0.47
Negative
RSI
42.29
Neutral
STOCH
28.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPD, the sentiment is Negative. The current price of 29.9 is below the 20-day moving average (MA) of 30.21, below the 50-day MA of 31.87, and below the 200-day MA of 30.01, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 42.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPD.

Enterprise Products Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$53.61B12.4631.78%6.94%4.30%10.45%
ETET
79
Outperform
$56.75B12.8813.40%7.54%5.20%18.35%
EPEPD
75
Outperform
$67.94B11.7720.78%6.82%9.03%
WMWMB
72
Outperform
$72.83B32.8417.92%3.23%8.06%-30.11%
KMKMI
72
Outperform
$60.15B23.408.43%4.23%2.02%5.40%
OKOKE
62
Neutral
$54.89B16.9918.11%4.55%40.55%19.24%
56
Neutral
$6.93B3.27-3.99%5.91%-0.52%-47.74%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EPD
Enterprise Products Partners
29.90
4.02
15.53%
ET
Energy Transfer
16.54
2.17
15.10%
KMI
Kinder Morgan
26.30
8.90
51.15%
OKE
Oneok
82.16
7.73
10.39%
WMB
Williams Co
58.57
22.16
60.86%
MPLX
MPLX
50.93
12.54
32.66%

Enterprise Products Partners Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -2.99%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and operational achievements, including increased distributions and contracts for future exports. However, challenges such as unplanned maintenance downtime and uncertainties with Chinese tariffs were noted. The overall sentiment is mixed but leans slightly towards a positive outlook due to the strong financial metrics and strategic growth plans.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA for Q1 2025 was $2.4 billion, with a net income attributable to common unitholders of $1.4 billion.
Record Operational Achievements
Enterprise moved 13.2 million barrels of oil equivalent per day and achieved two financial records and five operational records.
Increased Distribution
Declared a distribution of $0.535 per common unit, a 3.9% increase over Q1 2024.
Permian Basin Growth
Growing production in the Permian Basin continues to benefit Enterprise, with two gas processing plants expected to come online in Q3 2025.
LPG and Ethane Export Contracts
85%-90% of LPG exports are contracted, and ethane exports are fully contracted, ensuring stable future revenue.
Negative Updates
Unplanned Maintenance Downtime
PDH 1 facility was down for 63 days during Q1 2025, affecting potential EBITDA by approximately $100 million.
Lower Earnings Per Common Unit
Earnings per common unit decreased to $0.64 in Q1 2025 compared to $0.66 in Q1 2024.
Challenges with Chinese Tariffs
Uncertainty regarding Chinese tariffs on LPG, although ethane and ethylene have been excluded from these tariffs.
Lower Sales Volumes and Margins in Crude Segment
The crude segment experienced lower sales volumes and margins, particularly affecting the Midland to ECHO 2 pipeline.
Company Guidance
During the Enterprise Products Partners L.P.'s first quarter 2025 earnings call, the company provided several key financial and operational metrics. They reported an adjusted EBITDA of $2.4 billion, a net income attributable to common unitholders of $1.4 billion, and adjusted cash flow from operations of $2.1 billion. The company declared a distribution of $0.535 per common unit for the quarter, marking a 3.9% increase over the previous year. They achieved two financial and five operational records, moving 13.2 million barrels of oil equivalent per day and 2 million barrels per day of liquid hydrocarbon exports. The call also highlighted future growth, with plans to bring on two gas processing plants and the Bahia NGL pipeline later in the year. Additionally, the company has $7.6 billion in major capital projects under construction. The management reiterated confidence in their assets and investments despite market volatility, emphasizing their strategic focus on expanding domestic energy production and exports.

Enterprise Products Partners Corporate Events

Executive/Board Changes
Enterprise Products Partners EVP Resignation Announced
Negative
Apr 22, 2025

On April 21, 2025, Brent B. Secrest resigned from his position as Executive Vice President and Chief Commercial Officer of Enterprise Products Holdings LLC, effective May 1, 2025. The company and Secrest are in discussions regarding the terms of his departure, which could impact the company’s leadership dynamics and stakeholder relations.

Spark’s Take on EPD Stock

According to Spark, TipRanks’ AI Analyst, EPD is a Outperform.

Enterprise Products Partners exhibits strong financial performance and solid earnings, contributing positively to its stock score. However, technical indicators suggest bearish momentum, which is a concern. The company is attractively valued with a high dividend yield, but operational challenges highlighted in the earnings call could weigh on future performance. Overall, the stock is well-positioned in its industry but faces near-term headwinds.

To see Spark’s full report on EPD stock, click here.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.