Enterprise Products Partners (EPD): Evaluating Valuation After Expansion Projects and New Acquisition Boost Growth Outlook

Enterprise Products Partners (NYSE:EPD) has recently completed several major expansion projects and acquired new assets from Occidental Petroleum, prompting renewed interest from investors. These moves signal a new phase of growth for the company.

See our latest analysis for Enterprise Products Partners.

Investors seem to be responding to Enterprise Products Partners’ latest growth push, with positive sentiment reflecting the company’s completed expansion projects and recent acquisition. Although the share price has slipped just over 2% year-to-date, its one-year total shareholder return remains a solid 14.8%, and the five-year total return sits at an impressive 167.5%. This momentum appears to be building longer term as these new assets start contributing to results.

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With analysts setting price targets well above current levels and the company entering a new growth phase, the real question is whether Enterprise Products Partners is undervalued right now or if the market has already priced in its future gains.

Most Popular Narrative: 13.5% Undervalued

With the fair value estimate at $35.89 and the last close at $31.04, the narrative places significant upside potential in view for Enterprise Products Partners. This difference highlights growing optimism among analysts about the company's medium-term prospects as expansion projects come online.

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. This could potentially drive revenue growth from increased volume handling and exports. With no major planned downtimes for the PDH plants after recent maintenance, Enterprise is positioned to capture additional EBITDA that was previously lost to unplanned outages. This suggests potential earnings improvement.

Read the complete narrative.

What makes this estimate stand out? The analysts are factoring in a powerful combination of rising profit margins, new export routes, and tight share management. Curious to see which financial levers could propel the stock even higher? Find out what assumptions really drive this valuation.

Result: Fair Value of $35.89 (UNDERVALUED)

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

However, unplanned downtime at key facilities and shifting global tariffs could quickly undermine these optimistic forecasts 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 want to challenge these perspectives or would rather explore the data and reach your own conclusions, you can easily build your own narrative in just a few minutes. Do it your way

A great starting point for your Enterprise Products Partners research is our analysis highlighting 4 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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