We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Enterprise Products Partners, Kinder Morgan and Energy Transfer
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 4, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Enterprise Products Partners LP (EPD - Free Report) , Kinder Morgan Inc. (KMI - Free Report) and Energy Transfer (ET - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Why Permian Well Connections Could Brighten Enterprise Products' 2H25
Enterprise Products Partners LP has a strong presence in the Permian Basin, the most prolific basin in the United States, as its customers are primarily large upstream and integrated oil and gas companies.
On its recent earnings call, the partnership stated that last year, it connected more than 1,000 new oil and gas wells, most likely primarily from the Permian, although this was not explicitly confirmed, to its pipelines and processing plants, and expects a similar number this year. However, most of these new connections are planned for the second half, which means the largest increase in activity and earnings from these wells is likely to come later in 2025.
To explore this further, the Permian Basin, known for its extensive oil and natural gas reserves, attracts numerous major energy companies for exploration and production. Due to its low commodity production costs, the Permian generally experiences significant drilling and development activity. Since Enterprise Products’ midstream assets are connected to wells in the Permian, the expected increase in well connections will likely lead to higher volumes of oil and gas transported through its network in the second half of 2025. This, in turn, could generate additional cash flows for EPD.
Other Two Midstream Stocks With Permian Presence: KMI, ET
Like EPD, Kinder Morgan Inc. and Energy Transfer are two other midstream players, having a strong Permian presence.
Having a vast network of natural gas pipelines, Kinder Morgan’s midstream assets are also connected to the Permian basin area of West Texas. Notably, the construction work on KMI’s Gulf Coast Express Pipeline expansion project is ongoing, likely to be operational by the mid of next year.
In the Permian, Energy Transfer’s diversified midstream business comprises activities related to gathering and processing. Increasing volumes in the Permian have consistently been aiding ET’s earnings. This reinforces that the Permian remains central to Energy Transfer’s growth strategy.
EPD’s Price Performance, Valuation, & Estimates
Units of EPD gained 18% over the past year, outpacing the 16.9% improvement of the composite stocks belonging to the industry.
One-Year Price Chart
From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.07x. This is below the broader industry average of 11.07x.
The Zacks Consensus Estimate for EPD’s 2025 earnings hasn’t been revised over the past seven days.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Enterprise Products Partners, Kinder Morgan and Energy Transfer
For Immediate Release
Chicago, IL – June 4, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Enterprise Products Partners LP (EPD - Free Report) , Kinder Morgan Inc. (KMI - Free Report) and Energy Transfer (ET - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Why Permian Well Connections Could Brighten Enterprise Products' 2H25
Enterprise Products Partners LP has a strong presence in the Permian Basin, the most prolific basin in the United States, as its customers are primarily large upstream and integrated oil and gas companies.
On its recent earnings call, the partnership stated that last year, it connected more than 1,000 new oil and gas wells, most likely primarily from the Permian, although this was not explicitly confirmed, to its pipelines and processing plants, and expects a similar number this year. However, most of these new connections are planned for the second half, which means the largest increase in activity and earnings from these wells is likely to come later in 2025.
To explore this further, the Permian Basin, known for its extensive oil and natural gas reserves, attracts numerous major energy companies for exploration and production. Due to its low commodity production costs, the Permian generally experiences significant drilling and development activity. Since Enterprise Products’ midstream assets are connected to wells in the Permian, the expected increase in well connections will likely lead to higher volumes of oil and gas transported through its network in the second half of 2025. This, in turn, could generate additional cash flows for EPD.
Other Two Midstream Stocks With Permian Presence: KMI, ET
Like EPD, Kinder Morgan Inc. and Energy Transfer are two other midstream players, having a strong Permian presence.
Having a vast network of natural gas pipelines, Kinder Morgan’s midstream assets are also connected to the Permian basin area of West Texas. Notably, the construction work on KMI’s Gulf Coast Express Pipeline expansion project is ongoing, likely to be operational by the mid of next year.
In the Permian, Energy Transfer’s diversified midstream business comprises activities related to gathering and processing. Increasing volumes in the Permian have consistently been aiding ET’s earnings. This reinforces that the Permian remains central to Energy Transfer’s growth strategy.
EPD’s Price Performance, Valuation, & Estimates
Units of EPD gained 18% over the past year, outpacing the 16.9% improvement of the composite stocks belonging to the industry.
One-Year Price Chart
From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.07x. This is below the broader industry average of 11.07x.
The Zacks Consensus Estimate for EPD’s 2025 earnings hasn’t been revised over the past seven days.
EPD stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.