Enterprise Products' $6B Capital Projects Secure Incremental Cash Flows

Enterprise Products Partners LP EPD 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 and Enbridge Inc. ENB 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research