Enterprise Products Partners L.P. (EPD): A Bull Case Theory

We came across a bullish thesis connected Enterprise Products Partners L.P. connected X.com by @MoneyShow. In this article, we volition summarize the bulls’ thesis on EPD. Enterprise Products Partners L.P.'s share was trading astatine $35.98 as of February 26th. EPD’s trailing and forward P/E were 11.77 and 10.68  respectively according to Yahoo Finance.

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Enterprise Products Partners (EPD) stands retired arsenic a premier antiaircraft income play heading into 2026, offering a uncommon operation of precocious yield, fiscal strength, and durable currency flows wrong the indispensable North American midstream vigor infrastructure network. EPD operates 1 of the astir extended and diversified systems of pipelines, retention facilities, and processing assets spanning earthy gas, earthy state liquids (NGLs), and crude oil, efficaciously serving arsenic a toll-road relation for the continent’s astir captious vigor resources.

The halfway of the concern thesis rests connected stableness and disciplined superior management. EPD presently offers an charismatic organisation output of roughly 7.5%, supported by a singular 27 consecutive years of organisation growth, demonstrating resilience done aggregate commodity downturns, including the 2014 lipid illness and the COVID-19 shock.

Unlike galore high-yield plays, this payout is not speculative; it is backed by astir 1.7x distributable currency travel coverage, providing a important borderline of information and enabling the retention of billions annually to self-fund superior expenditures.

Financial subject further differentiates EPD, arsenic reflected successful its uncommon A- recognition rating—the strongest among large midstream peers—underscoring debased leverage and prudent superior allocation. Importantly, revenues are predominantly fee-based and volume-driven alternatively than commodity price-sensitive, resulting successful predictable, inflation-resistant currency flows with constricted nonstop vulnerability to vigor terms volatility. For investors seeking dependable, high-cash-flow income with antiaircraft characteristics successful a structurally increasing vigor request environment, EPD represents a blue-chip compounding vehicle with recommended action of buying EPD.

Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke successful October 2024, which highlighted the 38% surge successful task backlog driven by AI-led concern request and U.S. reshoring trends, alongside regulatory tailwinds. KMI’s banal terms has appreciated by astir 33.25% since our coverage. @MoneyShow shares a akin presumption but emphasizes connected Enterprise Products Partners L.P. (EPD)’s antiaircraft income illustration and fee-based currency travel stability.