EPD's Inflation-Protected Contracts: Key Takeaways for Investors
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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks EPD's Inflation-Protected Contracts: Key Takeaways for Investors December 12, 2025 — 07:19 am EST Written by Nilanjan Banerjee for Zacks-> Enterprise Products Partners LP’s EPD pipeline network spans more than 50,000 miles, transporting oil, natural gas and other commodities. The partnership also has more than 300 million barrels of liquid storage capacity, thereby generating stable cash flows.Importantly, the business model of Enterprise Productsis inflation-protected because almost 90% of its long-term contracts include a provision for increasing fees when the business environment becomes inflationary. This is how the midstream energy player is able to safeguard its cash flow generation in all business scenarios. EPD also expects incremental cash flows from its $5.1 billion worth of key capital projects, comprising the Bahia pipeline, fractionator 14 and others, which are either in service or set to come online. Thus, with the partnership’s business model being mostly inflation-protected and likely to generate incremental cash flows from project backlogs, the stock could be attractive for income seekers.KMI & ENB Also Have Stable Business ModelsKinder Morgan Inc. KMI and Enbridge Inc. ENB are two other midstream energy majors. By the very nature of their businesses, both KMI and ENB also have predictable cash flows. This is because KMI and ENB generate stable fee-based earnings from their respective midstream assets.EPD’s Price Performance, Valuation & EstimatesUnits of Enterprise Products have jumped 7.2% over the past year against the 5.6% decline of the composite stocks belonging to the industry. Image Source: Zacks Investment ResearchFrom a valuation standpoint, EPD trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.52X. This is below the broader industry average of 10.56X. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for EPD’s 2025 earnings has seen downward revisions over the past 30 days. Image Source: Zacks Investment ResearchEnterprise Products currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>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 reportEnterprise Products Partners L.P. (EPD) : Free Stock Analysis ReportEnbridge Inc (ENB) : Free Stock Analysis ReportKinder Morgan, Inc. (KMI) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags StocksInvesting Zacks Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com. More articles by this source-> Stocks mentioned EPD ENB KMI More Related Articles This data feed is not available at this time. Data is currently not available • Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.