Enterprise Products Partners (EPD) AI Stock Analysis

• Market Cap: $70.60B
• Dividend Yield: 6.59%
• Average Volume (3M): 5.53M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.34
• Revenue Growth: 9.10%
• EPS Growth: 4.37%
• Country: US
• Employees: 7,300
• Sector: Energy
• Sector Strength: 40
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.64
• Shares Outstanding: 2,168,902,600
• 10 Day Avg. Volume: 4,714,797
• 30 Day Avg. Volume: 5,530,600
• PEG Ratio: -15.77
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.66
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 13.95
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $36.50
• Price Target Upside: 14.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $34.00 ▲( 6.95% Upside)

Enterprise Products Partners has a strong financial foundation and attractive valuation, bolstered by a high dividend yield. However, bearish technical indicators and potential risks from recent corporate events slightly dampen the overall outlook. The mixed sentiment from the earnings call adds to the cautious but optimistic stance.

Positive Factors

Natural Gas Opportunities

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

Earnings Miss

EBITDA of $2,444MM was below Consensus of $2,549MM but in line with our estimate of $2,476MM.

Project Delays

Commercialization progress of the proposed VLCC project (Sea Port Oil Terminal - or 'SPOT') has been slower than expected.

Enterprise Products Partners Business Overview & Revenue Model

Company Description

Enterprise 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 Money

Enterprise 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. The decrease in free cash flow growth is a point of concern, but overall, the financial health is solid.

Income Statement

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.22B	49.72B	58.19B	40.81B	27.20B
	Gross Profit
7.17B	6.70B	6.68B	5.73B	4.83B
	EBIT
7.34B	6.93B	4.97B	4.23B	2.98B
	EBITDA
9.59B	9.05B	8.96B	7.99B	7.12B
	Net Income Common Stockholders
5.90B	5.53B	5.49B	4.64B	3.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
583.00M	180.00M	76.00M	2.82B	1.06B
	Total Assets
77.17B	70.98B	68.11B	67.53B	64.11B
	Total Debt
32.26B	29.07B	28.64B	29.87B	29.87B
	Net Debt
31.68B	28.89B	28.56B	27.05B	28.81B
	Total Liabilities
47.58B	42.22B	40.41B	41.09B	38.73B
	Stockholders Equity
28.73B	27.67B	26.62B	285.90M	-165.20M
Cash Flow		Free Cash Flow
3.57B	4.30B	6.08B	6.29B	2.60B
	Operating Cash Flow
8.12B	7.57B	8.04B	8.51B	5.89B
	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: Positive
• Last Price: 31.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 31.79 is above the 20-day moving average (MA) of 31.06, above the 50-day MA of 31.41, and above the 200-day MA of 30.28, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 77.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$52.92B	11.97	32.54%	7.03%	5.53%	11.29%
ET	75 Outperform	$61.77B	13.56	13.73%	7.14%	1.04%	22.31%
OKE	74 Outperform	$52.93B	16.54	16.04%	4.78%	40.55%	19.24%
EPD	73 Outperform	$70.60B	12.23	20.49%	6.59%	9.10%	4.37%
WMB	73 Outperform	$71.76B	31.53	18.32%	3.28%	8.63%	-20.98%
KMI	73 Outperform	$62.17B	24.19	8.43%	4.13%	2.02%	5.40%
Sector *	57 Neutral	$7.14B	3.33	-3.45%	5.75%	0.66%	-50.76%

Enterprise Products Partners Corporate Events

Enterprise Products Partners Executive Resignation and Agreement

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.

Enterprise Products Partners EVP Resignation Announced

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.