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EPD's Balance Sheet Sets it Apart in the Midstream Space: Here's Why
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Key Takeaways
EPD holds the highest credit rating in midstream, with debt-to-capitalization below the industry.
The partnership's $33.1B debt has an 18-year life, 4.7% cost and is 98% fixed rate.
EPD units rose 14.8% in a year, outpacing the industry's 5.8%, while trading below average EV/EBITDA.
Enterprise ProductsPartners LP (EPD - Free Report) is a leading midstream energy player. The midstream business by itself is highly capital-intensive and requires debt capital to fund oil and gas pipeline and storage projects. The partnership is not an exception here and has significant exposure to debt capital as reflected in its debt-to-capitalization of 52.3%.
However, Enterprise Products mentioned that in the midstream energy space, it has the highest credit rating. This reflects the fact that lenders and investors consider this partnership a reliable and safe midstream player. In fact, EPD’s debt-to-capitalization is lower than the industry’s 55.7%.
As of the second quarter of 2025, Enterprise Products had an outstanding total debt principal of $33.1 billion, with an average life span of roughly 18 years. With the average cost of debt at 4.7% and 98% is tied to a fixed rate, the partnership’s debt portfolio is not vulnerable to rising borrowing costs. Also, there is no large repayment of debt principal due in the immediate future.
WMB & ENB Have Higher Debt Exposure
Williams (WMB - Free Report) and Enbridge Inc. (ENB - Free Report) are two leading midstream companies. Like EPD, the operations of Williams and Enbridge are also capital-intensive.
Both WMB and ENB have higher debt exposure than EPD. While WMB has a debt-to-capitalization of 65.87%, ENB’s debt-to-capitalization is 59.65%.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have soared 14.8% over the past year compared with the 5.8% 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 10.23X. This is below the broader industry average of 10.65X.
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
EPD's Balance Sheet Sets it Apart in the Midstream Space: Here's Why
Key Takeaways
Enterprise ProductsPartners LP (EPD - Free Report) is a leading midstream energy player. The midstream business by itself is highly capital-intensive and requires debt capital to fund oil and gas pipeline and storage projects. The partnership is not an exception here and has significant exposure to debt capital as reflected in its debt-to-capitalization of 52.3%.
However, Enterprise Products mentioned that in the midstream energy space, it has the highest credit rating. This reflects the fact that lenders and investors consider this partnership a reliable and safe midstream player. In fact, EPD’s debt-to-capitalization is lower than the industry’s 55.7%.
As of the second quarter of 2025, Enterprise Products had an outstanding total debt principal of $33.1 billion, with an average life span of roughly 18 years. With the average cost of debt at 4.7% and 98% is tied to a fixed rate, the partnership’s debt portfolio is not vulnerable to rising borrowing costs. Also, there is no large repayment of debt principal due in the immediate future.
WMB & ENB Have Higher Debt Exposure
Williams (WMB - Free Report) and Enbridge Inc. (ENB - Free Report) are two leading midstream companies. Like EPD, the operations of Williams and Enbridge are also capital-intensive.
Both WMB and ENB have higher debt exposure than EPD. While WMB has a debt-to-capitalization of 65.87%, ENB’s debt-to-capitalization is 59.65%.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have soared 14.8% over the past year compared with the 5.8% 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 10.23X. This is below the broader industry average of 10.65X.
The Zacks Consensus Estimate for EPD’s 2025 earnings hasn't seen any revisions over the past seven 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.