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Enterprise Products Partners (EPD)
NYSE:EPD
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Enterprise Products Partners
(NYSE:EPD)
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Rating:70Outperform
Price Target:
$40.00
▲(10.04% Upside)
Action:ReiteratedDate:02/23/26
The score is driven primarily by steady profitability and strong operating cash generation, supported by a favorable income valuation (high dividend yield with a moderate P/E). Technicals are constructive but somewhat overextended, while the earnings call was positive on multi-year growth visibility and capital returns but flagged near-term pressures (margin compression, 2025 negative discretionary free cash flow, and leverage slightly above target).
Positive Factors
Operating Cash Generation
Consistently robust operating cash flow (record $8.7B in 2025) underpins durable funding for distributions, sustaining and growth capex, and buybacks. Strong CFO provides a stable cash base that supports midstream fee-based earnings through commodity cycles and funds multi-year projects.
Integrated Export & Processing Network
A broad, integrated asset footprint (pipelines, fractionators, export docks, Permian processing) plus long-term contracts and fully contracted export capacity create structural volume capture and fee-based revenue. This reduces single-asset risk and supports sustained throughput-driven cash flows.
Long‑dated, Fixed‑rate Debt & Liquidity
Dominantly fixed-rate, long-maturity debt and sizable liquidity limit near-term refinancing and interest-rate pressure. This financing profile increases resilience through cycles, enabling the partnership to fund growth capex and distributions without immediate refinancing stress.
Negative Factors
Weakening Free Cash Flow
Negative discretionary free cash flow after distributions in 2025 reflects elevated growth capex and heavy cash returns. Persistently weak discretionary FCF constrains reinvestment flexibility and may force greater reliance on debt, asset sales, or reduced buybacks if trend persists.
Leverage Modestly Above Target
Net leverage sitting above stated target increases vulnerability to EBITDA shocks from commodity or seasonal volatility. Even with long-dated debt, elevated leverage reduces financial flexibility for opportunistic investment or distribution support if cash flows soften.
Margin & Contract Risk from Commodity Spreads
Compression of commodity spreads and a re-priced long-term LPG contract structurally reduce fee-related margin potential on commodity-sensitive services. Persistent narrower spreads or lower contract terms would depress throughput-driven margins and marketing income over multiple quarters.
Enterprise Products Partners (EPD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.12B
Dividend Yield6.72%
Average Volume (3M)5.01M
Price to Earnings (P/E)13.6
Beta (1Y)0.39
Revenue Growth-6.46%
EPS Growth-0.87%
CountryUS
Employees7,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.75
Shares Outstanding2,163,321,000
10 Day Avg. Volume4,520,648
30 Day Avg. Volume5,013,920
Financial Highlights & Ratios
PEG Ratio-10.82
Price to Book (P/B)2.33
Price to Sales (P/S)1.33
P/FCF Ratio0.00
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit10.98
Enterprise Value/Ebitda7.93
Forecast
1Y Price Target
$36.00Price Target Upside-0.96% Downside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 several key streams, primarily from the transportation and storage of hydrocarbons. The company operates an extensive pipeline network that facilitates the movement of natural gas, NGLs, and crude oil, charging fees based on the volume transported. Additionally, it earns revenue from the processing of natural gas and NGLs, where it separates valuable components and sells them to customers. Enterprise also generates income from its vast storage capacity, charging fees for holding various hydrocarbons. Significant partnerships, including long-term contracts with major oil and gas producers, provide stable and predictable cash flows, while its integrated services model allows it to capture value at multiple points in the energy supply chain, enhancing its overall earnings potential.
Enterprise Products Partners Key Performance Indicators (KPIs)
Any
Gross Operating Margin By Segment
Measures profitability across different segments, revealing how efficiently each part of the business operates and where the company might improve cost management or expand margins.
Measures profitability across different segments, revealing how efficiently each part of the business operates and where the company might improve cost management or expand margins.
Data provided by:
The Fly
The FlyEnterprise Products Partners Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call reported multiple strong operational and financial achievements (record quarterly and annual adjusted EBITDA, record adjusted cash flow from operations, significant asset commissioning, highly contracted export capacity, and active capital-return programs). However, these positives were tempered by market-driven margin compression, a renegotiated LPG contract at lower fees, negative discretionary free cash flow in 2025, and leverage modestly above target. Management provided a constructive outlook with modest 2026 growth and an expected ~10% step-up in 2027 as assets fully ramp and discretionary free cash flow turns positive, while emphasizing prudent capital allocation (50–60% of projected discretionary free cash flow into buybacks/debt reduction).Q4-2025 Updates
Positive Updates
Record Quarterly and Annual Adjusted EBITDA
Adjusted EBITDA reached a record $2.7 billion in Q4 2025, up 4% from $2.6 billion in 2024; adjusted EBITDA for full-year 2025 was a record just shy of $10 billion.
Strong Cash Flow from Operations
Adjusted cash flow from operations (before working capital) grew 5% in Q4 to $2.4 billion and totaled a record $8.7 billion for full-year 2025.
Net Income and Unit-level Results
Net income attributable to common unitholders for 2025 was $1.6 billion, or $0.75 per common unit (fully diluted).
Distribution Increase and Capital Returned to Unitholders
Declared distribution of $0.55 per common unit for 2025, a 2.8% increase vs. 2024; Enterprise returned approximately $5 billion to equity investors in 2025 (≈$4.47 billion in distributions and $300 million in buybacks), representing a 58% payout ratio of adjusted cash flow from operations.
Share Repurchase Progress
Partnership repurchased roughly $50 million of common units in Q4 and approximately $300 million in total for 2025, using about 29% of the authorized $5 billion buyback program.
Major Asset Additions and Commercial Wins
Brought numerous assets online in 2025 (Neches River ethane export train, NGL pipeline in December, multiple Permian gathering/treating projects, Mendon West, Orion); fully contracted ethane export terminals and 20 Permian processing trains online by year-end. Secured long-term downstream agreements, including ExxonMobil UJI and Bahia expansion to 1.0 million barrels/day.
NGL Export Growth and Contracting
Loaded approximately 350–360 million barrels across 744 ships in 2025; LPG exports highly contracted through the end of the decade. Company expects to quote near 1.5 million barrels/day of NGL capacity (≈550 million barrels/year) as expansions complete.
Balance Sheet and Liquidity Positioning
Total debt principal outstanding of $34.7 billion as of 12/31/2025; weighted average cost of debt ~4.7% with ~98% fixed-rate debt and weighted average life of ~17 years. Consolidated liquidity was about $5.2 billion.
Forward Growth Visibility (2026–2027)
Expected modest adjusted EBITDA and cash flow growth in 2026 with a targeted ~10% adjusted EBITDA/cash flow growth in 2027 vs. 2026 as newly commissioned assets ramp to full utilization.
CapEx Guidance and Near-term Spending
2026 growth capital guidance of $2.5–$2.9 billion gross (net $1.9–$2.3 billion after ~$600 million asset-sale proceeds); sustaining capex ~ $580 million for 2026. Management expects to be at the higher end of 2026 range.
Negative Updates
Compressed Commodity Spreads and Weaker Paying Margins
Market-driven headwinds: crude averaged about $12/barrel lower in 2025 vs. 2024, reducing price spreads; RGP/PGP spreads narrowed from ~14¢/lb in 2024 to ~3¢/lb in 2025, weakening commodity-sensitive businesses and marketing spreads.
Renegotiated Long-term LPG Contract at Lower Fees
A large ten-year LPG export contract originally tied to double-digit fees was renegotiated at lower market rates, reducing expected long-term fee income from that contract.
Negative Discretionary Free Cash Flow in 2025
After distributions, discretionary free cash flow for 2025 was negative $1.6 billion (adjusted free cash flow before distributions was stated as ~$3.1 billion), reflecting heavier capital deployment and distributions in the year.
Leverage Above Target Range at Year-End
Consolidated net leverage was 3.3x (after hybrid adjustments and cash), modestly above the stated target range (2.75x–3.25x); management expects leverage to return to target in 2026 as project EBITDA flows through.
Sensitivity to Commodity and Seasonal Volatility
Management noted that revenue and spreads remain sensitive to commodity price moves and seasonal events (e.g., Waha volatility, winter storms), which can materially affect near-term results; some businesses are commodity sensitive (e.g., octane enhancement, splitters historically).
High Near-term Capital Commitments
Significant growth capital placed in 2025 (organic growth capex cited at ~$4.4 billion for the year) and continued multi-year projects mean elevated capital needs near-term, though management expects capex to normalize toward mid-cycle levels.
Company Guidance
Enterprise guided to growth capital expenditures of $2.5–$2.9 billion in 2026 (netting to $1.9–$2.3 billion after roughly $600 million of asset-sale proceeds) and sustaining capex of about $580 million (including ~ $80 million for an octane turnaround), expects modest adjusted EBITDA and cash‑flow growth in 2026 (likely at the low end of a 3–5% range) and roughly 10% adjusted EBITDA and cash‑flow growth in 2027 versus 2026. Management said discretionary free cash flow could be near $1.0 billion in 2026 and that ~50–60% (management commentary centered on 55–60%) of that would be allocated to buybacks (a mix of opportunistic and programmatic purchases); in 2025 the partnership returned about $5.0 billion to equity investors (~$4.47 billion in distributions and $300 million in buybacks), declared a $0.55/unit distribution (up 2.8% year‑over‑year), repurchased ~ $300 million of common units in 2025 (including ~$50 million in Q4) and has used ~29% of a $5.0 billion buyback authorization while DRIP/EUP purchases totaled 4.7 million units for $150 million. Financial and operating baselines cited include record 2025 adjusted EBITDA just shy of $10.0 billion (Q4 adjusted EBITDA $2.7 billion, +4% YoY), adjusted cash flow from operations of $8.7 billion for 2025 (Q4 adjusted CFO $2.4 billion, +5% YoY), total 2025 capital investments of $1.3 billion (≈$1.0 billion growth, $230 million sustaining) with 2025 organic growth capex of $4.4 billion (≈$100 million slipped into 2026), total debt principal of $34.7 billion (weighted‑average life ~17 years, weighted‑average cost ~4.7%, ~98% fixed), consolidated liquidity of ~ $5.2 billion, and net leverage of 3.3x with a target of 2.75–3.25x that management expects to return to by 2026.Enterprise Products Partners Financial Statement Overview
Summary
Solid and steady profitability for a midstream operator (net margins ~9%–11% and strong ROE), plus consistently robust operating cash flow. Offsetting this are volatile revenue trends, weakening/uncertain free-cash-flow picture into 2024–2025, and noted data-quality inconsistencies in 2025 balance sheet/cash flow fields that reduce confidence in the latest-year read-through.Income Statement
Profitability is solid and fairly steady for a midstream operator, with net margins consistently around ~9%–11% from 2021–2025 and operating profitability holding up well. Revenue has been volatile (strong growth in 2021–2022 followed by declines in 2023 and 2025), but earnings have remained comparatively resilient, suggesting a more stable underlying business mix. The key weakness is the uneven top-line trajectory, which raises questions about growth durability even as margins remain healthy.73
Positive
Balance Sheet
Leverage looks meaningful: debt has generally run above equity (debt-to-equity ~1.05–1.24 in 2020–2024), which is common in the sector but still increases risk in weaker commodity/backdrop periods. Return on equity is strong (~15%–21% across 2020–2025), indicating efficient use of capital. One notable red flag is the 2025 balance sheet showing zero total debt and zero total assets, which appears inconsistent with prior years and suggests data quality/missing-item risk that limits confidence in the latest leverage picture.66
Positive
Cash Flow
Operating cash flow is consistently robust (roughly $7.6B–$8.6B from 2021–2025), supporting the earnings quality. However, free cash flow has weakened over time: after strong levels in 2021–2022, it declined in 2023–2024, and 2025 shows free cash flow at 0 with a -100% growth rate, which likely reflects either heavy investment, working-capital timing, or missing/abnormal data. The proportion of free cash flow relative to net income also compressed in 2024 versus earlier years, reducing financial flexibility.60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 52.60B | 56.22B | 49.72B | 58.19B | 40.81B |
| Gross Profit | 7.16B | 7.22B | 6.72B | 6.72B | 5.95B |
| EBITDA | 9.92B | 9.59B | 9.05B | 8.91B | 7.98B |
| Net Income | 5.81B | 5.90B | 5.53B | 5.49B | 4.64B |
Balance Sheet | |||||
| Total Assets | 0.00 | 77.17B | 70.98B | 68.11B | 67.53B |
| Cash, Cash Equivalents and Short-Term Investments | 206.00M | 583.00M | 180.00M | 76.00M | 2.82B |
| Total Debt | 0.00 | 32.26B | 29.07B | 28.64B | 29.87B |
| Total Liabilities | -30.10B | 47.58B | 42.22B | 40.41B | 41.09B |
| Stockholders Equity | 30.10B | 28.73B | 27.67B | 26.62B | 25.33B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 3.57B | 4.30B | 6.08B | 6.29B |
| Operating Cash Flow | 8.59B | 8.12B | 7.57B | 8.04B | 8.51B |
| Investing Cash Flow | 5.49B | -5.43B | -3.20B | -4.95B | -2.13B |
| Financing Cash Flow | 2.69B | -2.16B | -4.26B | -5.84B | -4.57B |
Enterprise Products Partners Technical Analysis
Positive
36.35
Price Trends
32.89
Positive
31.80
Positive
30.97
Positive
Market Momentum
1.10
Negative
70.62
Negative
58.05
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 36.35 is above the 20-day moving average (MA) of 34.70, above the 50-day MA of 32.89, and above the 200-day MA of 30.97, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 70.62 is Negative, neither overbought nor oversold. The STOCH value of 58.05 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $54.61B | 15.96 | 17.14% | 5.61% | 58.76% | 13.74% | |
80 Outperform | $57.67B | 11.76 | 34.70% | 7.31% | 5.19% | 11.09% | |
70 Outperform | $78.12B | 13.60 | ― | 6.72% | -6.46% | -0.87% | |
70 Outperform | $71.84B | 23.61 | 9.85% | 4.27% | 8.54% | 7.22% | |
70 Outperform | $88.10B | 33.71 | 20.74% | 3.35% | 11.48% | -17.82% | |
67 Neutral | $64.75B | 15.59 | 12.75% | 8.04% | -4.67% | -8.06% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
EPD
Enterprise Products Partners
36.35
4.94
15.74%
ET
Energy Transfer
18.98
1.41
8.00%
KMI
Kinder Morgan
32.73
7.35
28.98%
OKE
Oneok
87.33
-5.61
-6.04%
WMB
Williams Co
72.98
17.57
31.70%
MPLX
MPLX
58.19
9.06
18.45%
Enterprise Products Partners Corporate Events
Business Operations and StrategyM&A Transactions
Enterprise Completes ExxonMobil Joint Interest Acquisition
Positive
Dec 15, 2025
On December 15, 2025, Enterprise Products Partners L.P. announced the completion of ExxonMobil’s acquisition of a 40-percent joint interest in its Bahia natural gas liquids pipeline. This transaction marks a significant development in Enterprise’s operations, potentially enhancing its market position and operational capabilities within the natural gas liquids sector.
The most recent analyst rating on (EPD) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.
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.