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Here's How EPD's Midstream Network Supports Durable Cash Flow Growth
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Key Takeaways
EPD runs a vast midstream network: 50,000 miles of pipe, 300M barrels of storage, 27 fractionators and more.
EPD sees U.S. output rising to 14.5M bpd of oil, 9.1M bpd of NGLs and 130.8 Bcf/d of gas by 2030.
Enterprise Products says crude, ethane and LPG export demand is strong and expected through 2026-2027.
Enterprise Products Partners LP (EPD - Free Report) operates an extensive midstream network for the transportation and storage of crude oil, natural gas, natural gas liquids (NGLs), petrochemicals and refined products. The asset network includes more than 50,000 miles of pipeline, 300 million barrels of liquids storage and 27 fractionators. The partnership is well-positioned for long-term growth, supported by its extensive infrastructure network, and liquids and natural gas production growth across the United States.
EPD expects U.S. oil production to reach 14.5 million barrels per day (BPD), while NGLs and natural gas production are anticipated to grow to 9.1 million BPD and 130.8 billion cubic feet per day (Bcf/d) by 2030.
Management highlights that the Permian Basin is expected to become one of the largest drivers of volume growth. The partnership has been investing in major growth projects to capture this trend, including the Mentone West 2 processing plant and gas processing plants in Midland and Delaware. This increase in hydrocarbon production in the Permian is anticipated to create sustained demand for EPD’s midstream services and generate durable cash flow growth through the end of this decade.
In addition, reduced hydrocarbon supply from the Middle East is driving increased demand for U.S. feedstocks in international markets, particularly Asia. Enterprise Products has highlighted that this demand pull is already benefiting its marine export business, with robust demand for crude oil, ethane and LPG exports. The partnership expects to see the strong international demand for U.S. feedstock throughout 2026 and 2027.
KMI & WMB to Benefit From Rising Energy Demand
Kinder Morgan Inc. (KMI - Free Report) is a leading midstream energy company that operates the biggest natural gas pipeline system in the United States. It has about 58,500 miles of major pipelines, 7,500 miles of gathering lines and more than 700 bcf of gas storage.
The Williams Companies, Inc. (WMB - Free Report) is another leading player in the midstream energy sector, which operates a widespread pipeline system of more than 33,000 miles, including the Transco and Northwest Pipeline systems. These pipeline systems are among the largest natural gas transportation networks in the United States.
Rising energy demand in domestic and international markets is expected to support sustained demand for Kinder Morgan and Williams Companies’ midstream services.
EPD’s Price Performance, Valuation & Estimates
Enterprise Products units have jumped 18.2% over the past year compared with the 11.5% 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 11.37X. This is below the broader industry average of 11.72X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD’s 2026 earnings has seen upward revisions over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Here's How EPD's Midstream Network Supports Durable Cash Flow Growth
Key Takeaways
Enterprise Products Partners LP (EPD - Free Report) operates an extensive midstream network for the transportation and storage of crude oil, natural gas, natural gas liquids (NGLs), petrochemicals and refined products. The asset network includes more than 50,000 miles of pipeline, 300 million barrels of liquids storage and 27 fractionators. The partnership is well-positioned for long-term growth, supported by its extensive infrastructure network, and liquids and natural gas production growth across the United States.
EPD expects U.S. oil production to reach 14.5 million barrels per day (BPD), while NGLs and natural gas production are anticipated to grow to 9.1 million BPD and 130.8 billion cubic feet per day (Bcf/d) by 2030.
Management highlights that the Permian Basin is expected to become one of the largest drivers of volume growth. The partnership has been investing in major growth projects to capture this trend, including the Mentone West 2 processing plant and gas processing plants in Midland and Delaware. This increase in hydrocarbon production in the Permian is anticipated to create sustained demand for EPD’s midstream services and generate durable cash flow growth through the end of this decade.
In addition, reduced hydrocarbon supply from the Middle East is driving increased demand for U.S. feedstocks in international markets, particularly Asia. Enterprise Products has highlighted that this demand pull is already benefiting its marine export business, with robust demand for crude oil, ethane and LPG exports. The partnership expects to see the strong international demand for U.S. feedstock throughout 2026 and 2027.
KMI & WMB to Benefit From Rising Energy Demand
Kinder Morgan Inc. (KMI - Free Report) is a leading midstream energy company that operates the biggest natural gas pipeline system in the United States. It has about 58,500 miles of major pipelines, 7,500 miles of gathering lines and more than 700 bcf of gas storage.
The Williams Companies, Inc. (WMB - Free Report) is another leading player in the midstream energy sector, which operates a widespread pipeline system of more than 33,000 miles, including the Transco and Northwest Pipeline systems. These pipeline systems are among the largest natural gas transportation networks in the United States.
Rising energy demand in domestic and international markets is expected to support sustained demand for Kinder Morgan and Williams Companies’ midstream services.
EPD’s Price Performance, Valuation & Estimates
Enterprise Products units have jumped 18.2% over the past year compared with the 11.5% 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 11.37X. This is below the broader industry average of 11.72X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD’s 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
EPD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.