Enterprise Products Partners LP EPD is a leading midstream player that generates stable cash flows and is not highly vulnerable to the volatility in oil and natural gas prices. The partnership has a pipeline network that covers more than 50,000 miles, transporting natural gas, crude, petrochemicals, NGLs and refined products.
EPD is also well-positioned to generate additional cash flows from its major capital projects worth $5.1 billion that are under construction, as mentioned in its recent investor deck. Some of the notable projects that are not yet in service are Mentone West 2 and Athena, among others.
The Mentone West 2 project signifies the partnership’s natural gas processing plant in Delaware with a daily capacity of 300 MMcf/d. Enterprise Products expects the development to come into service by the first half of 2026. The Athena project reflects gas processing in Midland with a capacity of 300 MMcf/d.
KMI & ENB Also Have Huge Capital Backlogs
Like EPD, both Kinder Morgan, Inc. KMI and Enbridge Inc. ENB have a handsome backlog of capital projects.
KMI highlighted that it had a growth capital backlog of $9.3 billion as of Sept. 30, 2025. ENB stated that its total secured capital project is worth C$35 billion. Hence, KMI and ENB are also well-poised to generate additional cash flows in the coming days.
EPD’s Price Performance, Valuation & Estimates
Units of Enterprise Products have gained 4.1% over the past year against the 10.8% decline of the composite stocks belonging to the industry.
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From a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.45X. This is below the broader industry average of 10.47X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD’s 2025 earnings has seen downward revisions over the past seven days.
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.
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Enbridge Inc (ENB) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
