Enterprise Products Partners L.P.(US:EPD) ZACKS·2025-12-31 16:46Core Insights - Enterprise Products Partners L.P. (EPD) is a leading midstream energy service provider with diversified assets for transporting and storing oil, natural gas, and energy products, generating stable fee-based revenues [1][2] Group 1: Asset Overview - EPD's diversified assets include over 50,000 miles of pipeline networks and liquids storage terminals with a capacity exceeding 300 million barrels, crucial for generating predictable income from long-term contracts [2][7] - The partnership's revenue model relies on shippers reserving capacity in pipelines and storage facilities, ensuring payment regardless of utilization [2][7] Group 2: Financial Position - EPD has $3.6 billion in liquidity available for asset expansion, maintenance, and returning cash to unitholders without the need for urgent borrowing [3] - The company has a low weighted average interest rate of 4.7% on its debt, providing a competitive advantage [3] - EPD's debt-to-capitalization ratio is 52.77%, which is lower than the industry average of 57.15% [3] Group 3: Comparison with Peers - Kinder Morgan Inc. (KMI) has a debt-to-capitalization ratio of 50.42%, while The Williams Companies, Inc. (WMB) has a higher ratio of 65.18% [4] Group 4: Market Performance - EPD's shares have increased by 2.4% over the past year, outperforming the industry composite return of 0.7% [5] Group 5: Valuation Metrics - EPD trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 10.50X, below the broader industry average of 12.29X [8] Group 6: Earnings Estimates - The Zacks Consensus Estimate for EPD's 2025 earnings remains unchanged at $2.62 per share over the past week [10]