GICS Sector : Energy
Enterprise 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.
Enterprise Products Partners L.P. reported a record $2.7 billion of EBITDA in the fourth quarter 2025, surpassing the previous record of $2.6 billion set in 2024. The company's strong performance was driven by the successful startup of several new assets. Net income attributable to common unitholders came in at $1.6 billion or 75¢ per common unit on a fully diluted basis for 2025, beating analyst estimates of 69¢. Adjusted cash flow from operations grew 5% to $2.4 billion in the fourth quarter.
Publication Date: Feb -04
The company's adjusted EBITDA increased 4% to $2.7 billion in the fourth quarter compared to $2.6 billion in 2024. As Jim Teague stated, "the company's fourth quarter exit rate is more ratable than not," indicating a strong start to 2026. The company's leverage ratio is currently 3.3x but is expected to return to its target range of 2.75 to 3.25 by 2026.
For 2026, the company expects moderate adjusted EBITDA and cash flow growth, driven by the ramp-up of assets completed in 2025 and new projects that will come online throughout the year. The company expects to return to its mid-cycle range for organic growth capital expenditures in 2026, with a range of $2.5 billion to $2.9 billion. The company is also expecting 10% growth in adjusted EBITDA and cash flow in 2027, driven by the LPG expansion and Neches River terminal.
With a P/E Ratio of 13.09 and an EV/EBITDA of 11.19, the company's valuation appears reasonable considering its growth prospects. The Dividend Yield of 6.28% is also attractive, indicating a stable return for investors. The Net Debt / EBITDA ratio of 3.45 is slightly above the target range, but is expected to improve by 2026.
The company's producer customers are seeing strong growth in the Permian, with an estimated 500 wells turning to production in 2026 and more in 2027. The company's Midland volumes are outperforming expectations, and the company is well-positioned to meet the growing demand. Analysts estimate next year's revenue growth at 7.9%, indicating a positive outlook for the company.
Enterprise Products Partners L.P. (NYSE:EPD) Receives Average Rating of “Hold” from Brokerages
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The crude oil pipelines segment is expected to grow due to increasing demand for crude oil transportation, driven by rising US shale production. Additionally, Enterprise Products Partners L.P.'s strategic expansions and investments in new pipeline projects will likely contribute to growth.
The NGL pipelines segment is expected to experience robust growth due to increasing demand for NGLs, driven by the growing use of NGLs as a feedstock for petrochemical production. The segment's extensive network and strategic expansions will likely drive growth.
The petrochemical and refined products segment is expected to grow due to increasing demand for petrochemicals and refined products, driven by a strong US economy and growing industrial production. The segment's diversified services and strategic investments will likely contribute to growth.
The natural gas pipelines segment is expected to experience moderate growth due to increasing demand for natural gas, driven by growing power generation demand and industrial consumption. The segment's extensive network and strategic investments in new pipeline projects will likely drive growth.
Enterprise Products Partners L.P. benefits from its diversified asset portfolio, strategic partnerships, and increasing demand for midstream services, driving growth in the energy infrastructure sector.
Enterprise Products Partners L.P. operates a network of natural gas pipelines that transport natural gas from production areas to consumption areas.
Enterprise Products Partners L.P. provides natural gas processing services to separate natural gas liquids (NGLs) from natural gas.
Enterprise Products Partners L.P. operates a network of NGL pipelines that transport NGLs from processing facilities to fractionation facilities.
Enterprise Products Partners L.P. provides fractionation services to separate NGLs into individual components such as ethane, propane, and butane.
Enterprise Products Partners L.P. operates a fleet of vessels that transport NGLs, crude oil, and other petroleum products.
Enterprise Products Partners L.P. provides petrochemical services, including storage, transportation, and marketing of petrochemical products.
Enterprise Products Partners L.P. operates a network of crude oil pipelines that transport crude oil from production areas to refineries.
The threat of substitutes for Enterprise Products Partners L.P. is medium due to the availability of alternative energy sources and transportation methods.
The bargaining power of customers is low due to the company's diverse customer base and lack of concentration.
The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for certain materials and services.
The threat of new entrants is low due to the high barriers to entry in the energy transportation and storage industry.
The intensity of rivalry is high due to the competitive nature of the energy transportation and storage industry, with many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 51.23% |
| Debt Cost | 4.40% |
| Equity Weight | 48.77% |
| Equity Cost | 8.90% |
| WACC | 6.59% |
| Leverage | 105.05% |
Value: 7.2
Growth: 6.8
Quality: 7.1
Yield: 10.0
Momentum: 4.0
Volatility: 7.7
1-Year Total Return ->
Value: 5.8
Growth: 5.1
Quality: 6.4
Yield: 10.0
Momentum: 5.0
Volatility: 10.0
1-Year Total Return ->
Value: 7.3
Growth: 3.6
Quality: 3.9
Yield: 10.0
Momentum: 4.0
Volatility: 9.7
1-Year Total Return ->
Value: 3.9
Growth: 3.6
Quality: 5.3
Yield: 9.0
Momentum: 6.0
Volatility: 9.7
1-Year Total Return ->
Value: 2.0
Growth: 4.3
Quality: 5.7
Yield: 9.0
Momentum: 7.0
Volatility: 9.0
1-Year Total Return ->
Value: 6.5
Growth: 5.2
Quality: 5.2
Yield: 10.0
Momentum: 1.0
Volatility: 8.7
1-Year Total Return ->