EPD to Generate Additional Cash Flows From $5B Project Backlog

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.

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.

The Zacks Consensus Estimate for EPD’s 2025 earnings has seen downward revisions over the past seven days.

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

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