A Fresh Look at Enterprise Products Partners (EPD) Valuation After Executive Change and ExxonMobil Pipeline Deal

Enterprise Products Partners (EPD) is making headlines following major executive and strategic moves. The company has appointed Michael C. “Tug” Hanley as its new Executive Vice President and Chief Commercial Officer, and has reached an agreement to sell a 40% interest in its Bahia NGL pipeline to ExxonMobil.

See our latest analysis for Enterprise Products Partners.

Enterprise Products Partners has had a busy quarter, from appointing Michael Hanley as chief commercial officer to sealing a major pipeline deal with ExxonMobil. While the company’s latest moves are catching investor attention, its share price has edged up in recent weeks with a 1-month share price return of nearly 5%. Over the longer term, the story is even stronger. Total shareholder return hits an impressive 7.4% for the past year and a remarkable 142% over five years, suggesting steady momentum and resilience despite industry swings.

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With shares close to analyst targets yet trading at a substantial discount to calculated intrinsic value, investors must now ask themselves if this is the moment to buy Enterprise Products Partners before the crowd, or if the market has already accounted for future growth.

Most Popular Narrative: 9% Undervalued

With Enterprise Products Partners closing at $32.44, the most popular narrative estimates fair value is $35.67. This meaningful gap positions shares as attractive compared to current levels. Here’s a glimpse at what’s driving that view.

The completion of two gas processing plants in the Permian, along with several key pipeline and export terminal projects, is expected to enhance Enterprise Products Partners’ infrastructure, potentially driving revenue growth from increased volume handling and exports. With no major planned downtimes for the PDH plants after recent maintenance, Enterprise is poised to capture additional EBITDA that was previously lost to unplanned outages, suggesting potential earnings improvement.

Read the complete narrative.

Where does the growth really come from? There’s a crucial forecast for profit margins and aggressive earnings upgrades, plus a future valuation multiple that could surprise. This narrative hinges on bullish assumptions about operating leverage, big-ticket infrastructure, and sector-leading expansion moves. Want to see the numbers and risks behind this fair value?

Result: Fair Value of $35.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing operational risks and fluctuating export tariffs could quickly challenge the currently bullish outlook for Enterprise Products Partners.

Find out about the key risks to this Enterprise Products Partners narrative.

Build Your Own Enterprise Products Partners Narrative

If you see the story differently or want to dig into the numbers yourself, you can craft your own take in just a few minutes. Do it your way

A great starting point for your Enterprise Products Partners research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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