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Enterprise Products Partners (EPD)
NYSE:EPD

Enterprise Products Partners (EPD) AI Stock Analysis

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EPD

Enterprise Products Partners

(NYSE:EPD)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$36.00
â–²(13.56% Upside)
Enterprise Products Partners' overall stock score reflects its strong valuation and positive earnings call, which highlight strategic growth initiatives and shareholder returns. While financial performance shows stable profitability, challenges in revenue growth and cash flow management are areas to watch. Technical indicators suggest a neutral trend, balancing the overall assessment.
Positive Factors
Strategic Partnerships
The acquisition of a joint interest in the Bahia pipeline with ExxonMobil enhances Enterprise's market position and operational capabilities, potentially leading to increased market share and improved service offerings in the natural gas liquids sector.
Leadership Change
The appointment of a new Chief Commercial Officer with extensive experience is expected to drive future growth and success, leveraging his expertise to strengthen commercial functions and strategic initiatives in the midstream energy sector.
Project Completions
The completion of key projects like Frac 14 and upcoming pipeline conversions adds capacity to Enterprise's systems, supporting long-term growth and enhancing its ability to meet increasing demand in the energy sector.
Negative Factors
Revenue Decline
A decline in revenue suggests potential challenges in maintaining market competitiveness and growth, which could impact the company's ability to sustain profitability and expand its market presence over the long term.
Operational Challenges
Operational issues at the PDH 2 plant, such as coking, could lead to increased maintenance costs and downtime, affecting production efficiency and potentially delaying the company's strategic objectives.
Leverage Ratio Increase
An increased leverage ratio indicates higher financial risk, which may constrain the company's ability to finance new projects or weather economic downturns, impacting its long-term financial stability.

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 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
Any
Gross Operating Margin By Segment
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.
Chart InsightsEnterprise Products Partners' NGL segment shows a recent uptick, reflecting strategic expansions in the Permian Basin and upcoming pipeline projects. However, crude oil margins are under pressure, aligning with reported challenges in LPG export margins. The petrochemical segment faces headwinds from market pressures, as highlighted by the earnings call. Despite these challenges, the company's robust growth projects and strong financial performance suggest resilience and potential for future margin recovery, especially with significant capacity expansions on the horizon.
Data provided by:The Fly

Enterprise Products Partners Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 03, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong performance metrics, including increased EBITDA, expanded buyback programs, and strategic project completions. However, there were notable challenges, including project delays and operational issues with PDH plants. The overall outlook remains positive with expectations for future growth and improved cash flow.
Q3-2025 Updates
Positive Updates
Adjusted EBITDA and Distributable Cash Flow
Reported adjusted EBITDA of $2.4 billion for the third quarter, generating $1.8 billion of distributable cash flow with 1.5x coverage.
Buyback Program Increase
Announced a $3 billion increase to the buyback program, expanding it from $2 billion to $5 billion.
Dividend Increase
Declared a distribution of $0.545 per common unit for the third quarter of 2025, a 3.8% increase over the distribution declared for the third quarter of 2024.
Project Completions
Frac 14 is now in service, and the Bahia pipeline and Seminole pipeline conversion will come online soon, adding capacity to their systems.
Net Income
Net income attributable to common unitholders was $1.3 billion or $0.61 per common unit for the third quarter of 2025.
Growth in Permian and Haynesville Basins
Continued investments position the company for long-term growth from the Haynesville and Permian Basins.
Negative Updates
Delayed Projects
Several projects, including Frac 14 and pipeline conversions, experienced delays but are expected to be completed by the end of 2025.
Leverage Ratio Increase
Consolidated leverage ratio is 3.3x, above the target range, due to capital expenditures on large projects.
PDH Plant Challenges
PDH 2 plant faced operational challenges due to coking in the fourth reactor, although improvements are being implemented.
Company Guidance
During the Enterprise Products Partners L.P. third quarter 2025 earnings call, the company provided guidance on several key metrics and future projects. The company reported an adjusted EBITDA of $2.4 billion and a distributable cash flow of $1.8 billion, with a coverage ratio of 1.5x. They retained $635 million of distributable cash flow. The company announced a $3 billion increase in their buyback program, raising it to $5 billion, reflecting a strong focus on returning capital to unitholders. Enterprise highlighted the completion and commissioning of long-anticipated projects like Frac 14, Bahia pipeline, and Seminole pipeline conversion, which are expected to contribute positively to future results. The company anticipates its organic growth capital expenditures to return to a mid-cycle range of $2 billion to $2.5 billion per year. Additionally, Enterprise has set a net income attributable to common unitholders at $1.3 billion, or $0.61 per common unit for the quarter. They also declared a distribution of $0.545 per common unit, marking a 3.8% increase over the previous year. The company anticipates an inflection point in discretionary free cash flow in 2026 as it concludes a four-year capital deployment cycle, with strategic investments in pipelines and marine terminals enhancing long-term growth prospects.

Enterprise Products Partners Financial Statement Overview

Summary
Enterprise Products Partners demonstrates strong profitability and efficient operations, as evidenced by healthy margins. However, recent revenue decline and decreasing free cash flow growth pose challenges. The balance sheet reflects moderate leverage but effective equity utilization. Overall, the company maintains a stable financial position with areas for improvement in revenue growth and cash flow management.
Income Statement
Enterprise Products Partners shows a solid gross profit margin and net profit margin, reflecting stable profitability. However, the recent TTM data indicates a revenue decline of 3.2%, which is a concern. The EBIT and EBITDA margins are healthy, suggesting efficient operations despite the revenue drop.
Balance Sheet
The company's debt-to-equity ratio is slightly high, indicating moderate leverage. However, the return on equity is strong, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced asset structure.
Cash Flow
The cash flow analysis reveals a decline in free cash flow growth, which is a potential risk. However, the operating cash flow to net income ratio is reasonable, indicating that the company is generating sufficient cash from operations relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue53.00B56.22B49.72B58.19B40.81B27.20B
Gross Profit7.09B7.22B6.72B6.72B5.95B5.71B
EBITDA9.69B9.59B9.05B8.91B7.98B6.89B
Net Income5.79B5.90B5.53B5.49B4.64B3.78B
Balance Sheet
Total Assets77.82B77.17B70.98B68.11B67.53B64.11B
Cash, Cash Equivalents and Short-Term Investments206.00M583.00M180.00M76.00M2.82B1.06B
Total Debt33.58B32.26B29.07B28.64B29.87B30.19B
Total Liabilities47.77B47.58B42.22B40.41B41.09B38.73B
Stockholders Equity29.21B28.73B27.67B26.62B25.33B24.35B
Cash Flow
Free Cash Flow3.09B3.57B4.30B6.08B6.29B2.60B
Operating Cash Flow8.47B8.12B7.57B8.04B8.51B5.89B
Investing Cash Flow-6.26B-5.43B-3.20B-4.95B-2.13B-3.12B
Financing Cash Flow-3.46B-2.16B-4.26B-5.84B-4.57B-2.02B

Enterprise Products Partners Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price31.70
Price Trends
50DMA
31.82
Negative
100DMA
31.35
Positive
200DMA
30.80
Positive
Market Momentum
MACD
-0.01
Positive
RSI
42.84
Neutral
STOCH
39.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPD, the sentiment is Neutral. The current price of 31.7 is below the 20-day moving average (MA) of 32.04, below the 50-day MA of 31.82, and above the 200-day MA of 30.80, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 39.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EPD.

Enterprise Products Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$44.59B13.0317.14%5.61%58.76%13.74%
81
Outperform
$53.11B11.0734.35%7.31%5.19%11.09%
73
Outperform
$68.64B12.0119.98%6.72%-6.46%-0.87%
71
Outperform
$72.66B30.7819.00%3.35%11.48%-17.82%
68
Neutral
$55.79B13.0113.09%8.04%-4.67%-8.06%
68
Neutral
$59.67B21.998.87%4.27%8.54%7.22%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EPD
Enterprise Products Partners
31.70
1.65
5.49%
ET
Energy Transfer
16.52
-1.52
-8.43%
KMI
Kinder Morgan
27.00
0.03
0.11%
OKE
Oneok
70.72
-25.94
-26.84%
WMB
Williams Co
60.39
6.73
12.54%
MPLX
MPLX
52.34
7.61
17.01%

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.

Executive/Board Changes
Enterprise Products Partners Appoints New Chief Commercial Officer
Positive
Nov 20, 2025

On November 20, 2025, Enterprise Products Partners announced the election of Michael C. “Tug” Hanley as Executive Vice President and Chief Commercial Officer, effective December 1, 2025. Hanley, who has been with the company since 2006, will oversee all commercial functions and report to co-CEO A.J. “Jim” Teague. This leadership change is expected to leverage Hanley’s extensive experience to drive future growth and success in the midstream energy sector.

The most recent analyst rating on (EPD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Enterprise Products Partners Completes $1.65 Billion Notes Offering
Positive
Nov 14, 2025

On November 14, 2025, Enterprise Products Partners L.P. completed a public offering of $1.65 billion in senior notes, which included $300 million of 4.30% notes due 2028, $600 million of 4.60% notes due 2031, and $750 million of 5.20% notes due 2036. This offering represents a reopening of previously issued notes, and the proceeds are intended for general corporate purposes, including growth investments, acquisitions, and debt repayment. The issuance is expected to enhance the company’s financial flexibility and support its strategic initiatives, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (EPD) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Enterprise Products Partners stock, see the EPD Stock Forecast page.

Business Operations and StrategyStock BuybackFinancial Disclosures
Enterprise Products Expands Unit Buyback Program to $5B
Positive
Oct 30, 2025

On October 30, 2025, Enterprise Products Partners announced an increase in its common unit buyback program from $2.0 billion to $5.0 billion, leaving $3.6 billion available for repurchase. This strategic move aims to enhance capital returns to investors. The company reported a net income of $1.3 billion for Q3 2025, a slight decrease from the previous year, with distributable cash flow of $1.8 billion. Despite facing challenges such as lower sales margins and maintenance downtime, Enterprise achieved record natural gas processing volumes, highlighting the strength of its integrated system.

The most recent analyst rating on (EPD) stock is a Buy with a $35.00 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.Date of analysis: Dec 19, 2025