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Can Enterprise Products Maintain Its Consistent Capital Returns?
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Key Takeaways
Enterprise Products returns about $62B to investors through distributions and buybacks since its IPO.
EPD has $4.8B of major projects under construction, with some set for service by 2026.
EPD plans up to $2.9B in growth capex for 2026 and $2.5B for 2027, and $580M in maintenance for 2026.
Enterprise Products Partners L.P. (EPD - Free Report) generates revenues by transporting crude oil, natural gas, NGLs, refined products and petrochemicals across its extensive asset base. The partnership derives stable, fee-based cash flows from long-term contracts under which shippers reserve capacity on its midstream infrastructure.
EPD, a leading midstream operator, has consistently returned capital to unitholders through distributions and unit buybacks. Since its IPO, the partnership has returned approximately $62 billion to equity investors.
To further strengthen its operations and support future cash returns, EPD has a backlog of major capital projects totaling $4.8 billion currently under construction, with several projects expected to enter service by 2026. EPD has allocated growth capital spending of $2.5-$2.9 billion for 2026 and $2-$2.5 billion for 2027, along with a maintenance capital of about $580 million in 2026 to secure an additional cash flow.
KMI & MPLX Also Focus on Returning Capital to Shareholders
Kinder Morgan Inc. (KMI - Free Report) and MPLX LP (MPLX - Free Report) are other midstream players that also generate fee-based revenues. MPLX and KMI, by virtue of their resilient business models, are also focused on returning capital to shareholders.
Total dividend payments of KMI exceeded $2.6 billion in 2025. The company increased its dividend for nine consecutive years.
In 2025, MPLX returned $4.4 billion of capital to unitholders, including $400 million in unit repurchases.
EPD’s Price Performance, Valuation & Estimates
Shares of Enterprise Products have gained 6.9% over the past year against the 3.4% decline registered by 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 11.15X, below the broader industry average of 11.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for the to-be-reported quarter has seen upward revision over the past seven days. Meanwhile, for the second quarter and 2026, EPD's earnings estimates have seen downward revisions.
View the Zacks #1 Rank List
Image: Bigstock
Can Enterprise Products Maintain Its Consistent Capital Returns?
Key Takeaways
Enterprise Products Partners L.P. (EPD - Free Report) generates revenues by transporting crude oil, natural gas, NGLs, refined products and petrochemicals across its extensive asset base. The partnership derives stable, fee-based cash flows from long-term contracts under which shippers reserve capacity on its midstream infrastructure.
EPD, a leading midstream operator, has consistently returned capital to unitholders through distributions and unit buybacks. Since its IPO, the partnership has returned approximately $62 billion to equity investors.
To further strengthen its operations and support future cash returns, EPD has a backlog of major capital projects totaling $4.8 billion currently under construction, with several projects expected to enter service by 2026. EPD has allocated growth capital spending of $2.5-$2.9 billion for 2026 and $2-$2.5 billion for 2027, along with a maintenance capital of about $580 million in 2026 to secure an additional cash flow.
KMI & MPLX Also Focus on Returning Capital to Shareholders
Kinder Morgan Inc. (KMI - Free Report) and MPLX LP (MPLX - Free Report) are other midstream players that also generate fee-based revenues. MPLX and KMI, by virtue of their resilient business models, are also focused on returning capital to shareholders.
Total dividend payments of KMI exceeded $2.6 billion in 2025. The company increased its dividend for nine consecutive years.
In 2025, MPLX returned $4.4 billion of capital to unitholders, including $400 million in unit repurchases.
EPD’s Price Performance, Valuation & Estimates
Shares of Enterprise Products have gained 6.9% over the past year against the 3.4% decline registered by 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 11.15X, below the broader industry average of 11.19X.
The Zacks Consensus Estimate for the to-be-reported quarter has seen upward revision over the past seven days. Meanwhile, for the second quarter and 2026, EPD's earnings estimates have seen downward revisions.
Image Source: Zacks Investment Research
Enterprise Products currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.