Enterprise Products Partners Shows Strong Financial Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy EPD?
Source: Fool
- Stable Dividend Yield: Enterprise Products Partners offers a 6.2% dividend yield and has increased its distributions for 28 consecutive years, demonstrating robust cash flow and strong financial health, appealing to income-focused investors.
- Strong Cash Flow: In fiscal 2025, the company reported record cash flow from operations of $8.7 billion and returned approximately $5 billion in capital to shareholders, indicating that its distributions are supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investments and Export Plans: Enterprise Products Partners has about $4.8 billion in major projects underway, including natural gas gathering and processing projects in the Permian Basin, and plans to export 1.5 million barrels per day of natural gas liquids by 2026, positioning itself for future growth.
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Analyst Views on EPD
Wall Street analysts forecast EPD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EPD is 35.17 USD with a low forecast of 33.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 35.080
Low
33.00
Averages
35.17
High
38.00
Current: 35.080
Low
33.00
Averages
35.17
High
38.00
About EPD
Enterprise Products Partners L.P. is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities; butane isomerization complex and related deisobutanizer (DIB) operations; octane enhancement, iBDH and HPIB production facilities; refined products pipelines, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Enterprise Products Partners Shows Strong Financial Performance
- Stable Dividend Yield: Enterprise Products Partners offers a 6.2% dividend yield and has increased its distributions for 28 consecutive years, demonstrating robust cash flow and strong financial health, appealing to income-focused investors.
- Strong Cash Flow: In fiscal 2025, the company reported record cash flow from operations of $8.7 billion and returned approximately $5 billion in capital to shareholders, indicating that its distributions are supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investments and Export Plans: Enterprise Products Partners has about $4.8 billion in major projects underway, including natural gas gathering and processing projects in the Permian Basin, and plans to export 1.5 million barrels per day of natural gas liquids by 2026, positioning itself for future growth.
See More
Enterprise Products Partners Achieves 6.2% Distribution Yield
- Stable Distribution Yield: Enterprise Products Partners boasts a 6.2% distribution yield and has increased its distributions for 28 consecutive years, demonstrating strong operating cash flows and a resilient business model that maintains revenue stability even in tough industry conditions.
- Robust Cash Flow: In fiscal 2025, the company reported record operating cash flow of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are fully supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors.
- Project Investment Plans: Enterprise Products has approximately $4.8 billion worth of major projects underway, including natural gas gathering and compression projects, with planned investments of $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027 to support future cash flow growth.
See More
Enterprise Products Partners: An Underrated Energy Stock
- Stable Dividend Yield: Enterprise Products Partners (EPD) has increased its distributions for 28 consecutive years, currently offering a 6.2% yield, reflecting strong cash flow and financial stability that appeals to income-focused investors.
- Robust Cash Flow: In fiscal 2025, EPD reported record cash flow from operations of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are funded by operational performance rather than debt, which boosts investor confidence.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investment Plans: EPD is undertaking $4.8 billion worth of major projects, including natural gas gathering and processing, with plans to invest $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027, supporting future cash flow growth.
See More
Enterprise Products Partners Returns to Growth in Q4
- Financial Recovery: Enterprise Products Partners reported a 4% increase in total gross operating profit to $2.74 billion in Q4, with adjusted EBITDA also rising by 4% to $2.71 billion, indicating a recovery in financial health after facing challenges in 2025, which boosts investor confidence.
- Strong Cash Flow: Distributable cash flow (DCF) rose by 3% to $2.22 billion, and despite a lackluster 2025, the company maintained a solid distribution coverage ratio, demonstrating its robust business model and commitment to shareholder returns.
- Capital Expenditure Adjustment: The company has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, providing more flexibility for future discretionary free cash flow, with an estimated $1 billion expected in 2026.
- Future Growth Outlook: Enterprise forecasts adjusted EBITDA and cash flow growth at the lower end of 3% to 5% for 2026, but anticipates double-digit growth in 2027 as new projects come online, indicating significant performance improvement potential in the coming years.
See More
Enterprise Products Partners Projects Growth Acceleration
- Q4 Performance Recovery: Despite challenges from the roll-off of favorable contracts in its LPG business in 2025, Enterprise Products Partners reported a 4% year-over-year increase in total gross operating profit to $2.74 billion in Q4, demonstrating its robust business model and strong market visibility.
- Strong Cash Flow: The company's distributable cash flow (DCF) rose by 3% to $2.22 billion in Q4, with a coverage ratio of 1.8x indicating that distributions remain well-supported, thereby enhancing investor confidence.
- Capital Expenditure Adjustment: Enterprise has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, a strategic move that will provide more room for future free cash flow growth, with an expected generation of around $1 billion in discretionary free cash flow in 2026.
- Future Growth Outlook: The company anticipates that its adjusted EBITDA and cash flow will grow at the lower end of the 3% to 5% range in 2026, but expects double-digit growth in 2027 as new projects come online, showcasing strong growth potential.
See More
Enterprise Products Partners: A High-Yield Income Powerhouse
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
See More
Enterprise Products Partners Shows Strong Financial Performance
- Stable Dividend Yield: Enterprise Products Partners offers a 6.2% dividend yield and has increased its distributions for 28 consecutive years, demonstrating robust cash flow and strong financial health, appealing to income-focused investors.
- Strong Cash Flow: In fiscal 2025, the company reported record cash flow from operations of $8.7 billion and returned approximately $5 billion in capital to shareholders, indicating that its distributions are supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investments and Export Plans: Enterprise Products Partners has about $4.8 billion in major projects underway, including natural gas gathering and processing projects in the Permian Basin, and plans to export 1.5 million barrels per day of natural gas liquids by 2026, positioning itself for future growth.
See More
Enterprise Products Partners Achieves 6.2% Distribution Yield
- Stable Distribution Yield: Enterprise Products Partners boasts a 6.2% distribution yield and has increased its distributions for 28 consecutive years, demonstrating strong operating cash flows and a resilient business model that maintains revenue stability even in tough industry conditions.
- Robust Cash Flow: In fiscal 2025, the company reported record operating cash flow of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are fully supported by operational performance rather than debt or accounting adjustments.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors.
- Project Investment Plans: Enterprise Products has approximately $4.8 billion worth of major projects underway, including natural gas gathering and compression projects, with planned investments of $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027 to support future cash flow growth.
See More
Enterprise Products Partners: An Underrated Energy Stock
- Stable Dividend Yield: Enterprise Products Partners (EPD) has increased its distributions for 28 consecutive years, currently offering a 6.2% yield, reflecting strong cash flow and financial stability that appeals to income-focused investors.
- Robust Cash Flow: In fiscal 2025, EPD reported record cash flow from operations of $8.7 billion and returned approximately $5 billion to shareholders, indicating that its distributions are funded by operational performance rather than debt, which boosts investor confidence.
- Future Growth Potential: The company expects to generate $1 billion in discretionary free cash flow in 2026, with 50% to 60% earmarked for unit repurchases, which could further enhance distribution per unit for remaining investors and increase shareholder value.
- Project Investment Plans: EPD is undertaking $4.8 billion worth of major projects, including natural gas gathering and processing, with plans to invest $2.5 billion to $2.9 billion in 2026 and $2 billion to $2.5 billion in 2027, supporting future cash flow growth.
See More
Enterprise Products Partners Returns to Growth in Q4
- Financial Recovery: Enterprise Products Partners reported a 4% increase in total gross operating profit to $2.74 billion in Q4, with adjusted EBITDA also rising by 4% to $2.71 billion, indicating a recovery in financial health after facing challenges in 2025, which boosts investor confidence.
- Strong Cash Flow: Distributable cash flow (DCF) rose by 3% to $2.22 billion, and despite a lackluster 2025, the company maintained a solid distribution coverage ratio, demonstrating its robust business model and commitment to shareholder returns.
- Capital Expenditure Adjustment: The company has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, providing more flexibility for future discretionary free cash flow, with an estimated $1 billion expected in 2026.
- Future Growth Outlook: Enterprise forecasts adjusted EBITDA and cash flow growth at the lower end of 3% to 5% for 2026, but anticipates double-digit growth in 2027 as new projects come online, indicating significant performance improvement potential in the coming years.
See More
Enterprise Products Partners Projects Growth Acceleration
- Q4 Performance Recovery: Despite challenges from the roll-off of favorable contracts in its LPG business in 2025, Enterprise Products Partners reported a 4% year-over-year increase in total gross operating profit to $2.74 billion in Q4, demonstrating its robust business model and strong market visibility.
- Strong Cash Flow: The company's distributable cash flow (DCF) rose by 3% to $2.22 billion in Q4, with a coverage ratio of 1.8x indicating that distributions remain well-supported, thereby enhancing investor confidence.
- Capital Expenditure Adjustment: Enterprise has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, a strategic move that will provide more room for future free cash flow growth, with an expected generation of around $1 billion in discretionary free cash flow in 2026.
- Future Growth Outlook: The company anticipates that its adjusted EBITDA and cash flow will grow at the lower end of the 3% to 5% range in 2026, but expects double-digit growth in 2027 as new projects come online, showcasing strong growth potential.
See More
Enterprise Products Partners: A High-Yield Income Powerhouse
- Stable Dividend Yield: Enterprise Products Partners (EPD) boasts a current yield of 6.3%, significantly higher than the S&P 500's 1.1%, making it an ideal choice for high-yield investors, with a track record of increasing distributions for 27 consecutive years, reflecting its robust cash flow and profitability.
- Passive Income Calculation: To generate $1,000 in annual passive income, investors would need to own 454.5 units, translating to an investment of approximately $15,900 at the current unit price of $35, which is substantially lower than the $87,700 required for an S&P 500 investment, highlighting EPD's attractiveness.
- Strong Cash Flow: In 2025, EPD generated $7.9 billion in distributable cash flow, covering its high-yield distribution by a factor of 1.7, allowing the company to retain $3.2 billion for reinvestment, thereby enhancing its financial stability.
- Future Investment Plans: EPD plans to invest between $2.5 billion and $2.9 billion in growth capital projects by 2027, which, alongside declining capital expenditures and new projects entering commercial service, will increase its free cash flow, supporting ongoing distribution growth and stock buybacks while further strengthening its elite balance sheet.
See More
