Enterprise Products Partners Starts 2026 Strong with 20% Stock Gain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy EPD?
Source: Fool
- Stock Performance: Enterprise Products Partners has seen its stock price rise over 20% in 2026, indicating strong market performance, and with a nearly 6% dividend yield, it is poised for an excellent year ahead.
- Financial Growth: In Q1, operating income increased by 8% to $1.9 billion, while adjusted EBITDA rose by 10% to $2.7 billion, demonstrating a robust recovery after facing multiple challenges in 2025.
- Cash Flow Status: Operational distributable cash flow (DCF) rose by 5% to $2.11 billion, and adjusted free cash flow surged by 83% to $1.93 billion, indicating ample cash flow post-capex and solid dividend coverage.
- Future Outlook: Enterprise raised its growth capex budget for 2026 by $300 million to a range of $2.9 billion to $3.2 billion, although still below last year's $4.4 billion, it expects to generate around $1 billion in discretionary free cash flow, reflecting confidence in future growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy EPD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on EPD
Wall Street analysts forecast EPD stock price to fall
12 Analyst Rating
6 Buy
5 Hold
1 Sell
Moderate Buy
Current: 38.700
Low
33.00
Averages
35.17
High
38.00
Current: 38.700
Low
33.00
Averages
35.17
High
38.00
About EPD
Enterprise Products Partners L.P. is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities; butane isomerization complex and related deisobutanizer (DIB) operations; octane enhancement, iBDH and HPIB production facilities; refined products pipelines, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Enterprise Products Partners Starts 2026 Strong with 20% Stock Gain
- Stock Performance: Enterprise Products Partners has seen its stock price rise over 20% in 2026, indicating strong market performance, and with a nearly 6% dividend yield, it is poised for an excellent year ahead.
- Financial Growth: In Q1, operating income increased by 8% to $1.9 billion, while adjusted EBITDA rose by 10% to $2.7 billion, demonstrating a robust recovery after facing multiple challenges in 2025.
- Cash Flow Status: Operational distributable cash flow (DCF) rose by 5% to $2.11 billion, and adjusted free cash flow surged by 83% to $1.93 billion, indicating ample cash flow post-capex and solid dividend coverage.
- Future Outlook: Enterprise raised its growth capex budget for 2026 by $300 million to a range of $2.9 billion to $3.2 billion, although still below last year's $4.4 billion, it expects to generate around $1 billion in discretionary free cash flow, reflecting confidence in future growth.
See More
Reliable Passive Income Sources: EPD and SO
- Stability of Enterprise Products: Enterprise Products Partners (EPD) mitigates commodity price volatility by charging energy companies fees for using its infrastructure, ensuring stable income in the energy sector, with a remarkable 27-year history of distribution increases demonstrating strong financial resilience.
- Strong Distribution Coverage: EPD's distribution is covered by distributable cash flow at a solid 1.7x ratio in 2025, indicating the ability to maintain dividends even in adversity, making its 5.6% yield attractive to conservative investors.
- Reliability of Southern Company: Southern Company (SO) has consistently increased or maintained its dividend for 78 years, with increases in the last 24 years, and its current dividend yield of 3.2% is notably higher than the utility sector average, showcasing its stability amid economic uncertainty.
- Future Growth Potential: Southern Company is expected to achieve approximately 8% earnings growth annually through 2030, and with its strong dividend history, future dividend growth seems highly likely, further solidifying its position as a foundation for passive income investments.
See More
Middle East Conflict Drives Oil and Gas Price Volatility
- Oil Price Forecast Upgrade: Goldman Sachs has recently raised its oil price targets, expecting elevated prices to persist for an extended period, which will positively impact energy producers like Diamondback Energy, although investors should remain cautious of revenue risks from potential price declines.
- Diamondback Energy Revenue Growth: With rising oil prices, Diamondback Energy's stock has surged over 33% in 2026, reflecting market expectations for strong revenues and earnings; however, investors must be aware that future price volatility could affect its financial performance.
- Midstream Investment Advantage: Companies like Enterprise Products Partners and Energy Transfer utilize fee-based models that mitigate exposure to commodity price fluctuations, making them suitable for risk-averse investors, particularly as Enterprise has increased its distribution for 27 consecutive years, showcasing solid financial management.
- Long-Term Investment Perspective: Goldman’s oil price forecast primarily targets 2026, which may attract short-term investor interest, but long-term dividend investors should focus on the stable yields of Enterprise Products and Energy Transfer, avoiding distractions from short-term volatility to achieve wealth accumulation goals.
See More
Energy Transfer's Unit Price Poised for Significant Upside
- Price Surge Potential: Energy Transfer's unit price has already increased over 20% this year, nearing $20, and is expected to rise further due to higher oil prices, with a target of $25 representing a more than 25% increase.
- Earnings Growth Drivers: Although Energy Transfer does not produce oil, approximately 10% of its earnings are commodity price-linked, which are expected to rise with oil prices, while increased volumes through its liquids pipelines and marine export terminals will further boost revenue.
- LNG Project Restart Possibility: The closure of the Strait of Hormuz has disrupted global LNG supplies, prompting Energy Transfer to reconsider its Lake Charles LNG project, with potential discussions with partners that could add long-term value to its gas pipeline business.
- Valuation Upside Potential: Despite the price surge, Energy Transfer still trades at a low valuation, and as its financial position improves and expansion projects come online, the market is likely to reassess its valuation, driving it closer to peer averages.
See More
Energy Transfer's Optimistic Outlook Amid Rising Oil Prices
- Oil Price Growth Catalyst: Energy Transfer (ET) is projected to achieve earnings growth of 9% to 11.5% this year, driven by rising oil prices, particularly as potential U.S. military actions against Iran could lead to significant price spikes, enhancing the company's profitability.
- LNG Project Restart Potential: Although the Lake Charles LNG project was suspended last year, the closure of the Strait of Hormuz, disrupting 20% of global LNG supplies, may prompt Energy Transfer to find a new partner to restart the project, adding long-term value to its gas pipeline business.
- Increased Pipeline Volumes: With U.S. energy exports surging due to geopolitical tensions, Energy Transfer expects significant increases in volumes across its liquids pipelines and marine export terminals, which will drive higher fee-based income and further boost unit prices.
- Valuation Upside Anticipation: Despite a more than 20% rise in unit price this year, Energy Transfer still trades at a discount compared to large-scale energy midstream companies, suggesting that the market may soon recognize its strong financial position and growth prospects, potentially driving unit prices towards the $25 target.
See More
Enterprise Products Partners Reports Record-Breaking Q1 Performance
- Operational Records Set: Enterprise Products Partners achieved 12 new operational records in Q1, including marine terminal volumes averaging 2.3 million barrels per day, a 15% increase year-over-year, indicating the company's robust capacity to meet U.S. energy export demands.
- Strong Financial Performance: The company generated $2.7 billion in adjusted EBITDA for the quarter, reflecting a 10% year-over-year increase, while adjusted free cash flow also rose 10% to $2.3 billion, showcasing its strong cash flow generation capabilities.
- Expansion Projects Advancing: Enterprise Products completed the Mentone West 2 Gas Processing Plant expansion during the quarter and expects to finish Neches River Phase 2 in Q2, further enhancing its ability to meet energy demand and anticipated additional income from these projects.
- Growth Outlook: The company anticipates continued project approvals due to rising natural gas and NGL production in the Permian Basin, supporting sustainable growth of its high-yield distribution, which has been increased for 27 consecutive years, highlighting its strong long-term investment potential.
See More
Enterprise Products Partners Starts 2026 Strong with 20% Stock Gain
- Stock Performance: Enterprise Products Partners has seen its stock price rise over 20% in 2026, indicating strong market performance, and with a nearly 6% dividend yield, it is poised for an excellent year ahead.
- Financial Growth: In Q1, operating income increased by 8% to $1.9 billion, while adjusted EBITDA rose by 10% to $2.7 billion, demonstrating a robust recovery after facing multiple challenges in 2025.
- Cash Flow Status: Operational distributable cash flow (DCF) rose by 5% to $2.11 billion, and adjusted free cash flow surged by 83% to $1.93 billion, indicating ample cash flow post-capex and solid dividend coverage.
- Future Outlook: Enterprise raised its growth capex budget for 2026 by $300 million to a range of $2.9 billion to $3.2 billion, although still below last year's $4.4 billion, it expects to generate around $1 billion in discretionary free cash flow, reflecting confidence in future growth.
See More
Reliable Passive Income Sources: EPD and SO
- Stability of Enterprise Products: Enterprise Products Partners (EPD) mitigates commodity price volatility by charging energy companies fees for using its infrastructure, ensuring stable income in the energy sector, with a remarkable 27-year history of distribution increases demonstrating strong financial resilience.
- Strong Distribution Coverage: EPD's distribution is covered by distributable cash flow at a solid 1.7x ratio in 2025, indicating the ability to maintain dividends even in adversity, making its 5.6% yield attractive to conservative investors.
- Reliability of Southern Company: Southern Company (SO) has consistently increased or maintained its dividend for 78 years, with increases in the last 24 years, and its current dividend yield of 3.2% is notably higher than the utility sector average, showcasing its stability amid economic uncertainty.
- Future Growth Potential: Southern Company is expected to achieve approximately 8% earnings growth annually through 2030, and with its strong dividend history, future dividend growth seems highly likely, further solidifying its position as a foundation for passive income investments.
See More
Middle East Conflict Drives Oil and Gas Price Volatility
- Oil Price Forecast Upgrade: Goldman Sachs has recently raised its oil price targets, expecting elevated prices to persist for an extended period, which will positively impact energy producers like Diamondback Energy, although investors should remain cautious of revenue risks from potential price declines.
- Diamondback Energy Revenue Growth: With rising oil prices, Diamondback Energy's stock has surged over 33% in 2026, reflecting market expectations for strong revenues and earnings; however, investors must be aware that future price volatility could affect its financial performance.
- Midstream Investment Advantage: Companies like Enterprise Products Partners and Energy Transfer utilize fee-based models that mitigate exposure to commodity price fluctuations, making them suitable for risk-averse investors, particularly as Enterprise has increased its distribution for 27 consecutive years, showcasing solid financial management.
- Long-Term Investment Perspective: Goldman’s oil price forecast primarily targets 2026, which may attract short-term investor interest, but long-term dividend investors should focus on the stable yields of Enterprise Products and Energy Transfer, avoiding distractions from short-term volatility to achieve wealth accumulation goals.
See More
Energy Transfer's Unit Price Poised for Significant Upside
- Price Surge Potential: Energy Transfer's unit price has already increased over 20% this year, nearing $20, and is expected to rise further due to higher oil prices, with a target of $25 representing a more than 25% increase.
- Earnings Growth Drivers: Although Energy Transfer does not produce oil, approximately 10% of its earnings are commodity price-linked, which are expected to rise with oil prices, while increased volumes through its liquids pipelines and marine export terminals will further boost revenue.
- LNG Project Restart Possibility: The closure of the Strait of Hormuz has disrupted global LNG supplies, prompting Energy Transfer to reconsider its Lake Charles LNG project, with potential discussions with partners that could add long-term value to its gas pipeline business.
- Valuation Upside Potential: Despite the price surge, Energy Transfer still trades at a low valuation, and as its financial position improves and expansion projects come online, the market is likely to reassess its valuation, driving it closer to peer averages.
See More
Energy Transfer's Optimistic Outlook Amid Rising Oil Prices
- Oil Price Growth Catalyst: Energy Transfer (ET) is projected to achieve earnings growth of 9% to 11.5% this year, driven by rising oil prices, particularly as potential U.S. military actions against Iran could lead to significant price spikes, enhancing the company's profitability.
- LNG Project Restart Potential: Although the Lake Charles LNG project was suspended last year, the closure of the Strait of Hormuz, disrupting 20% of global LNG supplies, may prompt Energy Transfer to find a new partner to restart the project, adding long-term value to its gas pipeline business.
- Increased Pipeline Volumes: With U.S. energy exports surging due to geopolitical tensions, Energy Transfer expects significant increases in volumes across its liquids pipelines and marine export terminals, which will drive higher fee-based income and further boost unit prices.
- Valuation Upside Anticipation: Despite a more than 20% rise in unit price this year, Energy Transfer still trades at a discount compared to large-scale energy midstream companies, suggesting that the market may soon recognize its strong financial position and growth prospects, potentially driving unit prices towards the $25 target.
See More
Enterprise Products Partners Reports Record-Breaking Q1 Performance
- Operational Records Set: Enterprise Products Partners achieved 12 new operational records in Q1, including marine terminal volumes averaging 2.3 million barrels per day, a 15% increase year-over-year, indicating the company's robust capacity to meet U.S. energy export demands.
- Strong Financial Performance: The company generated $2.7 billion in adjusted EBITDA for the quarter, reflecting a 10% year-over-year increase, while adjusted free cash flow also rose 10% to $2.3 billion, showcasing its strong cash flow generation capabilities.
- Expansion Projects Advancing: Enterprise Products completed the Mentone West 2 Gas Processing Plant expansion during the quarter and expects to finish Neches River Phase 2 in Q2, further enhancing its ability to meet energy demand and anticipated additional income from these projects.
- Growth Outlook: The company anticipates continued project approvals due to rising natural gas and NGL production in the Permian Basin, supporting sustainable growth of its high-yield distribution, which has been increased for 27 consecutive years, highlighting its strong long-term investment potential.
See More
