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Is Enterprise Products on a Strong Footing to Keep Rewarding Unitholders?
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Key Takeaways
Enterprise Products has raised distributions for 27 straight years, totaling $59B returned.
EPD rewarded unitholders $4.9B over the past year, with a payout ratio of 57%.
The partnership's $6B of growth projects under construction are set to drive future cash flow generation.
Enterprise ProductsPartners LP (EPD - Free Report) is a midstream energy giant that derives stable fee-based revenues and rewards its unitholders handsomely. But the real question lies, can the partnership continue to reward its unitholders handsomely in the coming years?
Looking to the past, Enterprise Products has successfully raised distributions for 27 consecutive years. The partnership’s strong focus on returning capital to unitholders is rooted in the fact that, since its IPO, it has returned a massive $59 billion to unitholders through both repurchases and distributions. This strictly represents EPD’s strong and stable business model and its resilience even during any market turmoil.
During the second quarter of 2025 earnings call, Enterprise Products stated that over the 12 months ending June 30, 2025, it had rewarded unitholders a total of $4.9 billion, comprising both distributions and buybacks. With the payout ratio of 57%, as the partnership mentioned in the call, it clearly highlighted that the midstream player has sufficient cash to back its future growth projects even after returning capital.
Notably, with Enterprise Products having $6 billion of key growth projects under construction, the partnership is on a strong footing to generate incremental cash flows in the coming days. This, in turn, will possibly aid the partnership to continue returning capital.
ENB & ET Also Reward Handsomely
Investors seeking consistent capital return should also keep an eye on Energy Transfer LP (ET - Free Report) and Enbridge Inc. (ENB - Free Report) .
Energy Transfer also operates a huge network of pipeline assets and has a strong focus on returning capital. Notably, ET is aiming for a distribution growth rate of 3% to 5% annually.
Enbridge also has a strong business model that supports its dividend growth story. Over the past 30 years, ENB has successfully increased its dividend payments consecutively.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have rallied 16% over the past year compared with the 7.6% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.18X. This is below the broader industry average of 10.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD’s 2025 earnings has seen downward revisions over the past 30 days.
Image: Bigstock
Is Enterprise Products on a Strong Footing to Keep Rewarding Unitholders?
Key Takeaways
Enterprise ProductsPartners LP (EPD - Free Report) is a midstream energy giant that derives stable fee-based revenues and rewards its unitholders handsomely. But the real question lies, can the partnership continue to reward its unitholders handsomely in the coming years?
Looking to the past, Enterprise Products has successfully raised distributions for 27 consecutive years. The partnership’s strong focus on returning capital to unitholders is rooted in the fact that, since its IPO, it has returned a massive $59 billion to unitholders through both repurchases and distributions. This strictly represents EPD’s strong and stable business model and its resilience even during any market turmoil.
During the second quarter of 2025 earnings call, Enterprise Products stated that over the 12 months ending June 30, 2025, it had rewarded unitholders a total of $4.9 billion, comprising both distributions and buybacks. With the payout ratio of 57%, as the partnership mentioned in the call, it clearly highlighted that the midstream player has sufficient cash to back its future growth projects even after returning capital.
Notably, with Enterprise Products having $6 billion of key growth projects under construction, the partnership is on a strong footing to generate incremental cash flows in the coming days. This, in turn, will possibly aid the partnership to continue returning capital.
ENB & ET Also Reward Handsomely
Investors seeking consistent capital return should also keep an eye on Energy Transfer LP (ET - Free Report) and Enbridge Inc. (ENB - Free Report) .
Energy Transfer also operates a huge network of pipeline assets and has a strong focus on returning capital. Notably, ET is aiming for a distribution growth rate of 3% to 5% annually.
Enbridge also has a strong business model that supports its dividend growth story. Over the past 30 years, ENB has successfully increased its dividend payments consecutively.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have rallied 16% over the past year compared with the 7.6% improvement of the composite stocks belonging to the industry.
From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.18X. This is below the broader industry average of 10.59X.
The Zacks Consensus Estimate for EPD’s 2025 earnings has seen downward revisions over the past 30 days.
Enterprise Products stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.