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Enterprise Products' $6B Capital Projects Secure Incremental Cash Flows
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Key Takeaways
Enterprise Products is building $6B in midstream projects to boost future cash flows.
The partnership's 50,000-mile pipeline network supports fee-based income stability.
EPD has raised distributions for 27 straight years, rewarding unitholders consistently.
Enterprise Products Partners LP (EPD - Free Report) is a leading midstream player that earns consistent fee-based income from its extensive portfolio of pipeline and storage assets. Additionally, the partnership has likely secured extra cash flows from its $6 billion worth of key capital midstream projects that are currently under construction.
EPD has a pipeline network across more than 50,000 miles, transporting crude oil, natural gas, natural gas liquids and refined products. The partnership also has a storage capacity of more than 300 million barrels (MMBbls). The asset portfolio generating steady cash flows indicates a stable business model, which is less vulnerable to volatility in commodity prices. This is because the pipelines are booked by shippers for a long term, providing stability from volume and price risks.
On top of that, the under-construction, $6 billion worth of capital midstream projects will ensure further stability in generating incremental cash flows for unit holders. EPD, which already hiked distribution for 27 consecutive years, will thus be able to reward unitholders with additional distributions.
KMI & ENB Also Have Huge Project Backlog
Kinder Morgan Inc. (KMI - Free Report) and Enbridge Inc. (ENB - Free Report) also have strong project backlogs to support their incremental future cash flows.
As of June 30, 2025, Kinder Morgan had a project backlog of $9.3 billion. KMI boasted that it has been successfully increasing its backlog while confirming the projects will generate handsome returns.
Enbridge stated that its secured capital program totals C$32 billion. ENB mentioned that its capital program comprises projects associated with liquid pipelines, gas transmission, renewables and gas distribution & storage activities.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have soared 16.4% over the past year compared with the 8.2% 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 10.26X. This is below the broader industry average of 10.67X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD’s 2025 earnings hasn’t seen any revisions over the past seven days.
Image: Bigstock
Enterprise Products' $6B Capital Projects Secure Incremental Cash Flows
Key Takeaways
Enterprise Products Partners LP (EPD - Free Report) is a leading midstream player that earns consistent fee-based income from its extensive portfolio of pipeline and storage assets. Additionally, the partnership has likely secured extra cash flows from its $6 billion worth of key capital midstream projects that are currently under construction.
EPD has a pipeline network across more than 50,000 miles, transporting crude oil, natural gas, natural gas liquids and refined products. The partnership also has a storage capacity of more than 300 million barrels (MMBbls). The asset portfolio generating steady cash flows indicates a stable business model, which is less vulnerable to volatility in commodity prices. This is because the pipelines are booked by shippers for a long term, providing stability from volume and price risks.
On top of that, the under-construction, $6 billion worth of capital midstream projects will ensure further stability in generating incremental cash flows for unit holders. EPD, which already hiked distribution for 27 consecutive years, will thus be able to reward unitholders with additional distributions.
KMI & ENB Also Have Huge Project Backlog
Kinder Morgan Inc. (KMI - Free Report) and Enbridge Inc. (ENB - Free Report) also have strong project backlogs to support their incremental future cash flows.
As of June 30, 2025, Kinder Morgan had a project backlog of $9.3 billion. KMI boasted that it has been successfully increasing its backlog while confirming the projects will generate handsome returns.
Enbridge stated that its secured capital program totals C$32 billion. ENB mentioned that its capital program comprises projects associated with liquid pipelines, gas transmission, renewables and gas distribution & storage activities.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have soared 16.4% over the past year compared with the 8.2% 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 10.26X. This is below the broader industry average of 10.67X.
The Zacks Consensus Estimate for EPD’s 2025 earnings hasn’t seen any revisions 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.