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a day ago
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Safe Dividend Stocks Spotlight: The Strength Behind Enterprise Products Partners' (EPD) Payout History
Enterprise Products Partners L.P. (NYSE:EPD) is included among the 10 Best and Safe Dividend Stocks to Buy Now. Aerial view of a refinery tower surrounded by the sprawling landscape of pipelines in an oil & gas midstream facility. Enterprise Products Partners L.P. (NYSE:EPD) is the kind of stable investment investors can rely on for the long haul. It's known for its dependable performance, with about 85% of its cash flow coming from fee-based contracts that often include take-or-pay terms and inflation protections. This setup helps keep earnings steady regardless of energy market fluctuations. Enterprise Products Partners L.P. (NYSE:EPD) maintains a conservative financial approach, finishing the last quarter with a leverage ratio slightly above 3 and a strong distribution coverage of 1.7 times. Thanks to its solid cash flow, Enterprise can fund most of its growth projects internally without needing to frequently raise additional capital. Enterprise Products Partners L.P. (NYSE:EPD) does not overlook potential growth opportunities. This year, the company expects to invest between $4 billion and $4.5 billion in expansion projects, a notable increase from the $1.6 billion spent in 2022. These investments generally yield strong results, with the company earning an average return on invested capital of approximately 13%. On July 9, Enterprise Products Partners L.P. (NYSE:EPD) declared a 2% hike in its quarterly dividend to $0.545 per share. This marked the company's 27th consecutive year of dividend growth. As of July 27, the stock has a dividend yield of 6.91%. While we acknowledge the potential of EPD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
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2 days ago
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This Nearly 7%-Yielding Dividend Stock Is About to Hit a Growth Spurt
Key Points Enterprise Products Partners reported stronger growth in the second quarter. The MLP's growth rate should further accelerate in the coming quarters. It has ample financial flexibility to continue making growth investments as opportunities arise. 10 stocks we like better than Enterprise Products Partners › Enterprise Products Partners (NYSE: EPD) is known for its nearly 7%-yielding distribution, but it's on the verge of a growth acceleration. About $6 billion in organic growth capital projects will enter commercial service in the second half of this year. They will boost the master limited partnership's (MLP) income and support its ability to extend its 26-year streak of distribution increases. Here's a closer look at what the MLP has coming down the pipeline. Starting to hit the accelerator Enterprise Products Partners recently reported its second-quarter financial results. The midstream company generated $1.9 billion of distributable cash flow during the period, representing a 7% increase from the prior year. That's an acceleration from the first quarter when its distributable cash flow increased 5% year over year to $2 billion. The MLP delivered higher year-over-year earnings growth "in a seasonally weaker quarter challenged with macroeconomic, geopolitical, and commodity price headwinds," commented co-CEO Jim Teague in the second-quarter earnings press release. The company's operations performed well as it delivered five new operating records in the period, including record gas processing volumes, gas pipeline volumes, crude oil pipeline volumes, and refined product and petrochemical pipeline volumes. The pipeline company benefited from the strength of its legacy operations. It also got a boost from growth investments it completed last year. The MLP closed its acquisition of Pinon Midstream, acquired assets from Western Midstream, and completed several growth capital projects, including both phases of its TW Products System and two additional gas processing plants. More growth is coming down the pipeline Enterprise Products Partners didn't complete any major growth capital projects or acquisitions in the first half of this year. However, that's about to change. "We are excited for the opportunities the second half of 2025 is poised to present with approximately $6 billion of our organic growth capital projects slated to enter commercial service," stated Teague in the second-quarter earnings press release. The co-CEO highlighted that the MLP is on the cusp of a "significant expansion of our natural gas processing infrastructure in the Permian Basin." Enterprise Products recently commissioned two new natural gas processing plants in the basin (Orion and Mentone West). It's also building new gas gathering, compression, and treating assets in the region. "Further downstream, we are beginning service at the Neches River Terminal ("NRT") in Orange County, Texas," stated Teague. He commented, "the successful commercialization of the NRT facility reflects the robust growing global demand for U.S. hydrocarbons and highlights Enterprise's ability to quickly and economically expand its footprint to meet the needs of international markets." Finally, the company expects to commission Frac 14 and the Bahia pipeline in the fourth quarter of this year. This expansion project wave gives the MLP lots of momentum heading into 2026, which should continue throughout next year. Enterprise Products Partners has several additional growth capital projects on track to enter commercial service next year, including its Mentone West 2 plant, the second phase of NRT, and an expansion of the Enterprise Hydrocarbons Terminal. Additionally, the company has more than $700 million of incremental projects under development that it could approve over the next two years. Meanwhile, Enterprise Products Partners has ample financial flexibility to approve new growth capital projects and make acquisitions as opportunities arise. The company is currently on track to produce $2 billion of additional free cash flow next year as growth capital spending falls from $4 billion-$4.5 billion this year to $2 billion-$2.5 billion in 2026. It also has the strongest balance sheet in the midstream sector. Securing additional growth investments would further support its long-term growth outlook. Ample fuel to continue increasing the distribution Enterprise Products Partners has increased its high-yielding distribution for 26 straight years, including by 3.8% over the past year. Given the visible earnings growth from new assets and its strong financial position, further distribution increases appear likely. For investors, this adds a layer of growth opportunity to what is already an attractive income investment. It makes the MLP ideally suited for those seeking both income and long-term growth (and who are comfortable with the Schedule K-1 Federal Tax Form it issues). Should you buy stock in Enterprise Products Partners right now? Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Matt DiLallo has positions in Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. This Nearly 7%-Yielding Dividend Stock Is About to Hit a Growth Spurt was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 days ago
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Enterprise Products Partners LP (EPD) Q2 2025 Earnings Call Highlights: Strong Cash Flow and ...
Adjusted EBITDA: $2.4 billion for Q2 2025. Distributable Cash Flow: $1.9 billion, a 7% increase from the previous year. Net Income Attributable to Common Unitholders: $1.4 billion for Q2 2025, consistent with Q2 2024. Net Income Per Common Unit: $0.66, a 3% increase from $0.64 in Q2 2024. Adjusted Cash Flow from Operations: $2.1 billion for Q2 2025, unchanged from Q2 2024. Distribution Declared: $0.545 per common unit, a 3.8% increase over Q2 2024. Common Unit Repurchases: Approximately 3.6 million units for $110 million in Q2 2025. Total Capital Investments: $1.3 billion in Q2 2025, including $1.2 billion for growth projects. Total Debt Principal Outstanding: Approximately $33.1 billion as of June 30, 2025. Consolidated Liquidity: Approximately $5.1 billion as of June 30, 2025. Consolidated Leverage: 3.1 times on a net basis as of June 30, 2025. Warning! GuruFocus has detected 9 Warning Signs with EPD. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Enterprise Products Partners LP (NYSE:EPD) reported adjusted EBITDA of $2.4 billion and distributable cash flow of $1.9 billion, with a coverage ratio of 1.6 times. The company set five volumetric records for the quarter, including processing 7.8 billion cubic feet of natural gas per day and transporting over 1 million barrels per day of refined products and petrochemicals. EPD has nearly $6 billion worth of organic growth projects entering service, including two gas processing plants in the Permian and a third plant expected to start up next year. The Natus River terminal has started operations, initially with the capacity to load 120,000 barrels of ethane per day, with further expansion planned. EPD declared a distribution of $0.545 per common unit for the second quarter of 2025, a 3.8% increase over the previous year, and has a robust buyback program in place. Negative Points The LPG export market has become increasingly competitive, leading to a decline in gross operating margin by $37 million due to recontracting and a 60% drop in spot rates. There are macroeconomic and geopolitical challenges affecting the company's operations, including tariffs and trade disruptions. The market for octane enhancement has seen margins normalize after a few years of outsized earnings, indicating a return to historic levels. The company faces potential challenges from new midstream companies entering the LPG export market, increasing competition. EPD's net income attributable to common unitholders remained flat at $1.4 billion compared to the previous year, indicating limited growth in net income. Q & A Highlights Q: How should we think about the ramp-up of the $6 billion worth of assets coming online in the second half of 2025? A: (A. James Teague, Co-CEO) The 514 plant will come up completely full, and the Natus River Terminal (NRT) will see a ramp-up as Very Large Ethane Carriers (VLECs) are ordered. The processing plants are expected to have a quick ramp-up, with Delaware and Midland combined at around 90% utilization today. By the end of the year, both should be full. Q: With LPG export fees falling and potential overbuilding in pipeline and frac, how will Enterprise balance defending market share with maintaining returns? A: (Tug C. Hanley, Senior VP, Hydrocarbon Marketing) We remain 85% to 90% contracted through the decade, using brownfield expansions to stay competitive. Our export facility acts as a magnet for our pipelines, fractionators, and storage, helping us maintain market share and returns. Q: Given the potential slowing oil growth in the Permian, how do you see the gas-to-oil ratio evolving? A: (Anthony C. Chovanec, Executive VP, Fundamentals & Commodity Risk Assessment) The Permian Basin will continue to get gassier as producers drill gassier benches. Oil naturally declines faster than gas, and with a large PDP base, the trend towards gassier production will persist for years. Q: What are the lessons learned from the BIS ethane incident, and has it changed views on US ethane exports to China? A: (Tug C. Hanley, Senior VP, Hydrocarbon Marketing) The BIS requirement for export licenses was disruptive but manageable due to our diverse contract mix. It has, however, compromised the US brand for reliable supply, leading some companies to choose naphtha over US ethane. Q: With 85% to 90% of LPG exports contracted through the decade, are the recontracting headwinds on margins over? A: (Tug C. Hanley, Senior VP, Hydrocarbon Marketing) Yes, the significant recontracting headwinds are now over, and we are focused on maintaining full capacity and executing additional contracts to offset any margin compression with volume. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 days ago
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Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan
Enterprise Products Partners L.P. (NYSE:EPD) on Monday reported second-quarter 2025 earnings that beat analyst expectations on earnings per share but missed on revenue, while setting multiple operating volume records across its midstream network. Enterprise posted earnings of 66 cents per unit, up 3% from 64 cents in the same quarter a year earlier and beating the consensus estimate of 64 cents. However, revenue came in at $11.36 billion, missing analysts' expectations of $14.19 billion. Distributable cash flow (DCF) rose 7% year over year to $1.9 billion, providing 1.6 times coverage of the company's declared $0.545 per-unit distribution, up 3.8% from a year ago. Enterprise retained $748 million of DCF to reinvest in growth. Also Read: Adjusted cash flow from operations remained steady at $2.1 billion, and for the 12 months ended June 30, stood at $8.6 billion. Enterprise repurchased $110 million worth of common units during the quarter and reported a 12-month payout ratio of 57%. View more earnings on EPD 'In a seasonally weaker quarter challenged by macroeconomic and commodity headwinds, Enterprise reported solid earnings and cash flow,' said A. J. 'Jim' Teague, co-chief executive officer of Enterprise's general partner. Operating Records and Segment Highlights Despite broader market challenges, the company set five new operating records: Natural gas processing inlet volumes: 7.8 billion cubic feet per day (Bcf/d), up 3% year over year Natural gas pipeline volumes: 20.4 trillion Btus per day (TBtus/d), up 9% Crude oil pipeline volumes: 2.6 million barrels per day (BPD), a new high Refined products and petrochemical pipelines: 1.0 million BPD Total NGL pipeline volumes: 4.6 million BPD, up 5% Gross operating margin rose to $2.5 billion, up from $2.4 billion in the prior year's quarter. NGL Pipelines & Services held flat at $1.3 billion, with higher pipeline and terminal volumes offsetting lower NGL marketing and Rockies processing margins. Natural Gas Pipelines & Services surged 42% to $417 million, driven by stronger marketing margins, increased Permian volumes, and higher throughput on the Texas Intrastate System. Crude Oil Pipelines & Services fell to $403 million from $417 million, with lower marine terminal volumes and marketing activity partially offset by lower costs and storage revenues. Petrochemical & Refined Products slipped to $354 million from $392 million due to weaker octane enhancement margins, though pipeline volumes hit a record. Enterprise reaffirmed that approximately $6 billion in organic growth projects will enter service in the second half of 2025. These include: Two new Permian gas processing plants, Mentone West 1 and Orion, boosting processing capacity across the Delaware and Midland Basins to over 4.4 Bcf/d. Commissioning of the Neches River Terminal in mid-July, with a 120,000 BPD ethane refrigeration train now operational. Frac 14 and the Bahia NGL pipeline, scheduled to come online in Q4. Enterprise invested $1.3 billion in the second quarter of 2025, including $1.2 billion in growth capital and $117 million in sustaining capex. The company reaffirmed full-year 2025 organic growth capex guidance of $4.0 billion to $4.5 billion and $525 million in sustaining expenditures. As of June 30, the company had total debt of $33.1 billion and consolidated liquidity of $5.1 billion, including credit capacity and unrestricted cash. Price Action: EPD shares are trading lower by 1.38% to $31.12 at last check Monday. Read Next:Photo by sdf_qwe via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? ENTERPRISE PRODS PARTNERS (EPD): Free Stock Analysis Report This article Enterprise Products Partners Posts Strong Cash Flow, Reaffirms Capex Plan originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 days ago
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Compared to Estimates, Enterprise Products (EPD) Q2 Earnings: A Look at Key Metrics
For the quarter ended June 2025, Enterprise Products Partners (EPD) reported revenue of $11.36 billion, down 15.7% over the same period last year. EPS came in at $0.66, compared to $0.64 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $14.21 billion, representing a surprise of -20.03%. The company delivered an EPS surprise of +1.54%, with the consensus EPS estimate being $0.65. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Enterprise Products performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: NGL Pipelines & Services net - NGL fractionation volumes per day: 1667 millions of barrels of oil per day versus 1643.35 millions of barrels of oil per day estimated by two analysts on average. NGL Pipelines & Services net - Fee-based natural gas processing per day: 7266 millions of barrels of oil per day versus the two-analyst average estimate of 7193.4 millions of barrels of oil per day. NGL Pipelines & Services net - NGL pipeline transportation volumes per day: 4562 millions of barrels of oil per day versus 4655.69 millions of barrels of oil per day estimated by two analysts on average. Natural Gas Pipelines & Services net - Natural gas transportation volumes per day: 20,405.00 BBtu/D versus 20,257.19 BBtu/D estimated by two analysts on average. Petrochemical Services net - Butane isomerization volumes per day: 122 millions of barrels of oil per day versus the two-analyst average estimate of 117.36 millions of barrels of oil per day. Petrochemical Services net - Propylene fractionation volumes per day: 118 millions of barrels of oil per day versus 111.91 millions of barrels of oil per day estimated by two analysts on average. Petrochemical Services net - Octane enhancement and related plant sales volumes per day: 39 millions of barrels of oil per day versus the two-analyst average estimate of 39.09 millions of barrels of oil per day. NGL Pipelines & Services net - Equity NGL production per day: 214 millions of barrels of oil per day versus 228.53 millions of barrels of oil per day estimated by two analysts on average. Gross operating margin- NGL Pipelines & Services: $1.3 billion versus $1.42 billion estimated by two analysts on average. Gross operating margin- Petrochemical & Refined Products Services: $354 million versus $371.52 million estimated by two analysts on average. Gross operating margin- Natural Gas Pipelines & Services: $417 million versus $335.23 million estimated by two analysts on average. Gross operating margin- Crude Oil Pipelines & Services: $403 million versus $384.81 million estimated by two analysts on average. View all Key Company Metrics for Enterprise Products here>>> Shares of Enterprise Products have returned +1.6% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. 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 Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
