EPD's Balance Sheet Sets it Apart in the Midstream Space: Here's Why

Core Insights - Enterprise Products Partners LP (EPD) is a leading player in the midstream energy sector, characterized by high capital intensity and significant debt exposure, with a debt-to-capitalization ratio of 52.3% [1][2] Debt and Financial Stability - EPD holds the highest credit rating in the midstream sector, with a debt-to-capitalization ratio lower than the industry average of 55.7% [2] - As of Q2 2025, EPD's total outstanding debt is $33.1 billion, with an average lifespan of approximately 18 years and an average cost of debt at 4.7%, with 98% of the debt tied to fixed rates, mitigating vulnerability to rising borrowing costs [3][6] - EPD has no significant debt principal repayments due in the near future, enhancing its financial stability [3] Comparison with Peers - Competitors Williams (WMB) and Enbridge Inc. (ENB) exhibit higher debt exposure, with WMB's debt-to-capitalization at 65.87% and ENB's at 59.65% [4] Market Performance and Valuation - EPD's units have increased by 14.8% over the past year, outperforming the industry average of 5.8% [5][6] - The partnership trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.23X, which is below the broader industry average of 10.65X [7] Earnings Estimates - The Zacks Consensus Estimate for EPD's 2025 earnings has not seen any revisions in the past week, indicating stable expectations [9]