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Enterprise Products Partners (EPD)
:EPD

Enterprise Products Partners (EPD) AI Stock Analysis

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EP

Enterprise Products Partners

(NYSE:EPD)

Rating:75Outperform
Price Target:
$35.00
â–²(11.32%Upside)
Enterprise Products Partners receives a strong overall score due to its solid financial performance, reasonable valuation, and positive earnings call sentiment. While technical indicators are neutral, recent corporate events present both opportunities and challenges. The company's strategic growth plans and high dividend yield further enhance its investment appeal.
Positive Factors
Balance Sheet Capacity
EPD's unparalleled balance sheet capacity allows it to consider making natural gas a bigger part of its strategic focus.
Natural Gas Focus
A tilt toward natural gas in the near-term could benefit the partnership via greater exposure to the AI narrative and add depth to its capex backlog.
Stock Buybacks
Stock buybacks were above estimate, with the company repurchasing $60MM of common units.
Negative Factors
Backlog Concerns
It may screen as a negative to investors if EPD cannot outline additional shadow backlog projects that could lead it to raise its FY26 capex.
Project Delays
Commercialization progress of the proposed VLCC project (Sea Port Oil Terminal - or 'SPOT') has been slower than expected.

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

Enterprise Products Partners Business Overview & Revenue Model

Company DescriptionEnterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates 19 natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of 255 tractor-trailer tank trucks that are used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates natural gas pipeline systems to gather, treat, and transport natural gas. It leases underground salt dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related marketing activities; butane isomerization complex and related deisobutanizer operations; and octane enhancement and high purity isobutylene production facilities. It also operates refined products pipelines and terminals; and ethylene export terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.
How the Company Makes MoneyEnterprise Products Partners generates revenue through a diverse range of midstream energy services. Key revenue streams include fees from the transportation of natural gas, NGLs, crude oil, and refined products through its extensive pipeline network. The company also earns money by processing natural gas and NGLs at its facilities, where it extracts valuable components such as ethane and propane. Additionally, Enterprise provides storage services for natural gas and crude oil, offering strategic storage capabilities to manage supply and demand fluctuations. The company's earnings are further supported by long-term contracts and strategic partnerships with major energy producers and consumers, ensuring stable cash flows and reduced exposure to commodity price volatility.

Enterprise Products Partners Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 2.01%|
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 Financial Statement Overview

Summary
Enterprise Products Partners exhibits strong financial performance with robust revenue growth, high profitability margins, and efficient cash flow management. Despite a slight decrease in free cash flow, the company's low debt-to-equity ratio and high return on equity highlight its financial stability.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue56.78B56.22B49.72B58.19B40.81B27.20B
Gross Profit7.05B7.17B6.70B6.68B5.73B4.83B
EBITDA9.58B9.59B9.05B8.96B7.99B7.12B
Net Income5.84B5.90B5.53B5.49B4.64B3.78B
Balance Sheet
Total Assets75.41B77.17B70.98B68.11B67.53B64.11B
Cash, Cash Equivalents and Short-Term Investments220.00M583.00M180.00M76.00M2.82B1.06B
Total Debt31.58B32.26B29.07B28.64B29.87B29.87B
Total Liabilities45.63B47.58B42.22B40.41B41.09B38.73B
Stockholders Equity0.0028.73B27.67B26.62B285.90M-165.20M
Cash Flow
Free Cash Flow3.78B3.57B4.30B6.08B6.29B2.60B
Operating Cash Flow8.34B8.12B7.57B8.04B8.51B5.89B
Investing Cash Flow-5.47B-5.43B-3.20B-4.95B-2.13B-3.12B
Financing Cash Flow-2.81B-2.16B-4.26B-5.84B-4.57B-2.02B

Enterprise Products Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price31.44
Price Trends
50DMA
31.17
Positive
100DMA
31.67
Negative
200DMA
30.81
Positive
Market Momentum
MACD
-0.06
Positive
RSI
52.67
Neutral
STOCH
51.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPD, the sentiment is Positive. The current price of 31.44 is above the 20-day moving average (MA) of 31.34, above the 50-day MA of 31.17, and above the 200-day MA of 30.81, indicating a bullish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 52.67 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPD.

Enterprise Products Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
OKOKE
81
Outperform
$51.31B16.0416.04%5.01%40.55%19.24%
81
Outperform
$51.85B11.7332.54%7.49%5.53%11.29%
ETET
79
Outperform
$61.12B13.4113.73%7.32%1.04%22.31%
EPEPD
75
Outperform
$68.19B11.8120.49%6.81%9.10%4.37%
KMKMI
73
Outperform
$62.95B24.498.43%4.11%2.02%5.40%
WMWMB
71
Outperform
$72.21B31.7318.32%3.38%8.63%-20.98%
52
Neutral
C$2.91B-0.93-3.26%6.13%2.20%-43.43%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EPD
Enterprise Products Partners
31.44
4.38
16.19%
ET
Energy Transfer
17.90
2.87
19.10%
KMI
Kinder Morgan
28.50
9.51
50.08%
OKE
Oneok
82.14
3.54
4.50%
WMB
Williams Co
59.14
18.18
44.38%
MPLX
MPLX
51.05
11.78
30.00%

Enterprise Products Partners Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
BIS Lifts Export Restrictions on Enterprise Products
Positive
Jul 2, 2025

On July 2, 2025, the Bureau of Industry and Security (BIS) rescinded specific license requirements for Enterprise Products Partners concerning the export, reexport, or transfer of ethane involving parties located in China or identified as Chinese military end users. This change, effective immediately, alleviates previous restrictions imposed in June 2025, allowing Enterprise Products to engage in transactions without the need for additional BIS authorization, although other compliance obligations remain.

The most recent analyst rating on (EPD) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Enterprise Products Faces New Export Restrictions
Negative
Jun 25, 2025

On June 25, 2025, Enterprise Products Partners received a letter from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce, which imposed a license requirement on the export, reexport, or transfer of ethane to parties located in China or identified as Chinese military end users. While the company is authorized to load and transport ethane to foreign ports, it cannot complete transactions with these specified parties without further BIS authorization, potentially impacting its operations and market strategies in relation to Chinese entities.

The most recent analyst rating on (EPD) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.

Private Placements and Financing
Enterprise Products Partners Completes $2 Billion Senior Notes Offering
Neutral
Jun 20, 2025

On June 20, 2025, Enterprise Products Partners L.P., along with its subsidiaries, completed a public offering of $2 billion in senior notes with varying maturities and interest rates. The proceeds from this offering are intended for general corporate purposes, including growth investments and debt repayment, potentially impacting the company’s financial flexibility and market position.

The most recent analyst rating on (EPD) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Enterprise Products Faces New Export License Requirement
Negative
May 29, 2025

On May 23, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security notified Enterprise Products Partners that a license is required for exporting ethane and butane to China or Chinese military end users due to concerns about their use in China’s military-civil fusion strategy. This new regulation could impact the company’s operations and export services, as it currently exports a significant portion of U.S. ethane to China. The company is evaluating its procedures and the potential impact on its financial position, as well as the broader implications for U.S. crude oil and natural gas production and prices.

The most recent analyst rating on (EPD) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.

Executive/Board Changes
Enterprise Products Partners Executive Resignation and Agreement
Neutral
May 2, 2025

On April 21, 2025, Brent B. Secrest resigned as Executive Vice President and Chief Commercial Officer of Enterprise Products Holdings LLC, with the resignation taking effect on May 1, 2025. Following his departure, a Separation Agreement was established, providing Mr. Secrest with a substantial financial package contingent on certain employment restrictions within the oil and gas industry for a year, emphasizing confidentiality and non-solicitation commitments.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025