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Enterprise Products Partners L.P.(EPD)
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Enterprise Products Partner Shares Jump as Cash Flows Climb. Is It Time to Buy the High-Yield Stock?
The Motley Fool· 2026-02-08 12:52
Core Viewpoint - The pipeline company, Enterprise Products Partners, is expected to see growth accelerate through 2027 after overcoming challenges related to its LPG business and returning to normalized spreads [1][6]. Financial Performance - In Q4, Enterprise's total gross operating profit increased by 4% to $2.74 billion, with adjusted EBITDA also rising by 4% to $2.71 billion [3]. - Distributable cash flow (DCF) rose by 3% to $2.22 billion, while adjusted free cash flow was reported at $1.17 billion [3]. Business Model and Growth Outlook - Approximately 82% of Enterprise's gross operating profit in 2025 is derived from fee-based activities, returning to historical levels after benefiting from high differentials [2]. - The company forecasts adjusted EBITDA and cash flow growth at the lower end of a 3% to 5% range for 2026, with expectations of double-digit growth in 2027 as new projects commence [6]. Capital Management - Enterprise has reduced its capital expenditure budget for 2026 to a range of $2.5 billion to $2.9 billion from $4.4 billion in 2025, potentially generating around $1 billion in discretionary free cash flow in 2026 [6]. - The company maintained a 1.8x coverage ratio for its distribution in Q4 and ended the year with a leverage ratio of 3.3 times [5]. Stock Performance and Dividend - The current market capitalization of Enterprise is $76 billion, with a dividend yield of 6.23% and a forward yield of 6.4%, making it a consistent high-yield dividend stock [4]. - The company paid a quarterly distribution of $0.55 per unit, reflecting a year-over-year increase of 2.8% [5]. Strategic Positioning - With reduced capital expenditures, Enterprise is positioned to utilize discretionary free cash flow for debt reduction, share buybacks, or strategic acquisitions [8]. - The company is expected to continue increasing its distribution for the 28th consecutive year in 2026 [8]. Investment Timing - Given the projected growth ramp-up in 2027, now is considered an opportune time to invest in the stock [9].
Want $1,000 in Annual Passive Income? Here's How Much to Invest in This High-Yield Energy Stock
The Motley Fool· 2026-02-07 19:45
Core Viewpoint - Enterprise Products Partners (EPD) is a strong income-generating investment with a current yield of 6.3%, significantly higher than the S&P 500's yield of 1.1% [1] Financial Performance - The company has increased its distribution for 27 consecutive years, indicating a strong commitment to returning value to investors [1] - The most recent quarterly distribution payment was set at $0.55 per unit, reflecting a 2.8% increase year-over-year [4] - In 2025, Enterprise Products Partners generated $7.9 billion in operational distributable cash flow, covering its distribution by 1.7 times and allowing for $3.2 billion in retained cash for reinvestment [7] Investment Requirements - To generate $1,000 in annual passive income, an investment of approximately $15,900 is needed at the current unit price of around $35, compared to over $87,700 required for an S&P 500 index fund [5] Growth Initiatives - The company invested $5 billion in expansion initiatives last year, including $4.4 billion on growth capital projects and $632 million on acquisitions, supported by a strong balance sheet [8] - Enterprise Products Partners plans to invest between $2.5 billion and $2.9 billion in growth capital projects this year and between $2 billion and $2.5 billion in 2027, which is expected to enhance free cash flow [9] Financial Stability - The company maintains a low leverage ratio of 3.3 times, contributing to its top-tier credit rating of A-, making it the only pipeline company with such a rating [8] - The strong financial profile allows the company to continue increasing its distribution and repurchasing common units, further strengthening its balance sheet [10]
Enterprise Products Partners L.P. (EPD) Gets Higher Target at Scotiabank as Guidance Tops Consensus
Yahoo Finance· 2026-02-07 13:27
Enterprise Products Partners L.P. (NYSE:EPD) is included among 13 Best Long Term Low Risk Stocks to Buy Now. Enterprise Products Partners L.P. (EPD) Gets Higher Target at Scotiabank as Guidance Tops Consensus On February 5, Scotiabank analyst Brandon Bingham raised his price target on Enterprise Products Partners L.P. (NYSE:EPD) to $37 from $35 and kept a Sector Perform rating. He said the quarter came in solid and that current guidance is running ahead of consensus expectations, though he noted there re ...
Enterprise Products (EPD) Faces Mixed Analyst Views
Yahoo Finance· 2026-02-06 16:40
Enterprise Products Partners L.P. (NYSE:EPD) is one of the 11 Best Pipeline and MLP Stocks to Buy in 2026. Enterprise Products (EPD) Faces Mixed Analyst Views Mixed sentiment for Enterprise Products Partners L.P. (NYSE:EPD) was noted among analysts. On January 28, 2026, RBC Capital’s Elvira Scotto maintained the Buy rating on the stock, while keeping a price target of $35. Contrary to this rating, Morgan Stanley’s Robert Kad maintained a Sell rating on Enterprise Products Partners L.P. (NYSE:EPD) with a ...
EPD Delivers Strong Q4 Performance, Continues Robust Unitholder Returns
Etftrends· 2026-02-06 14:12
EPD Continues Robust Unitholder ReturnsETF Trends is now VettaFi. Read More --[Enterprise Products Partners (EPD)], a top holding in SS&C ALPS Advisors' energy infrastructure ETFs, continues to demonstrate its value in portfolios. Recent fourth-quarter 2025 [results] underscore the MLP's ability to drive growth and return significant value to unitholders.The partnership's record $2.7 billion in adjusted EBITDA for the quarter was driven by new assets brought online in 2025. Adjusted EBITDA came in more than ...
Enterprise Products Partners' Monster Payout Could Get Even Bigger
The Motley Fool· 2026-02-06 09:44
If you like this midstream leader's ultra-high distribution now, you could soon love it.Quite frankly, there isn't much to dislike about Enterprise Products Partners' (EPD 0.77%) distribution. The midstream energy leader offers a forward distribution yield of 6.3%. It has also increased the distribution for 27 consecutive years. That streak is especially impressive considering the challenges the energy sector has faced at times over the last three decades.Enterprise Products Partners just finished a banner ...
2 Pipeline Stocks to Buy in February
The Motley Fool· 2026-02-06 02:05
Pipeline stocks offer reliable dividends, making them top picks for income investors.For investors seeking income from their portfolios, pipeline stocks are a popular option. Pipeline operators are energy middlemen who get fees for transporting, processing, and storing oil and gas.These companies tend to have stable fee-based income that is independent from spot oil and gas prices and are highly appealing for investors looking to generate income from their portfolios through steady dividends. If this sounds ...
Enterprise Products Partners Has Broken Out After A Record Q4
Seeking Alpha· 2026-02-05 23:23
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Enterprise Products price target raised to $34 from $33 at TD Cowen
Yahoo Finance· 2026-02-05 13:55
Core Viewpoint - TD Cowen has raised the price target on Enterprise Products (EPD) to $34 from $33 while maintaining a Hold rating on the shares, following an update to its model based on quarterly results [1] Group 1: Price Target and Rating - The price target for Enterprise Products has been increased to $34 from $33 [1] - TD Cowen maintains a Hold rating on the shares of Enterprise Products [1] Group 2: Company Outlook - The company has raised its outlook for 2027, indicating positive future expectations [1] - It remains unclear if the updated guidance incorporates normalized marketing [1]
3 High-Yield Energy Stocks to Buy in February
Yahoo Finance· 2026-02-05 08:13
If you're seeking exceptionally juicy dividend yields, the energy sector is a great place to start your search. Here are three high-yield energy stocks to buy in February. 1. Enbridge Enbridge (NYSE: ENB) offers a forward dividend yield of 5.6%. The company has increased its dividend for an impressive 30 consecutive years. It also continues to generate strong free cash flow to keep the dividends flowing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best sto ...