Is the stock of Enterprise Products Partners when the company increases growth?

Enterprise Product Partner (EPD 0.18%)) When I reported the results of the fourth quarter on Tuesday, I continued to show a consistent personality. Meanwhile, pipeline operators continue to increase growth capital expenditures (CAPEX) as strong opportunities grow.

Mid Stream Players have long been the favorite among income investors and are currently 6.6%.

But is it a good time to buy stocks now?

Consistent actor

In terms of import reports, Enterprise Products Partners are generally stable and are not surprised by the sleeve because they operate a fee -based midstream business. The company can see the company in the fourth quarter when the total operating profit is 3%to $ 26.3 billion. Interest, tax, depreciation, depreciation and depreciation and relocation of the EBITDA increased 4% to $ 2.6 billion, up 4%.

It has increased $ 21.6 billion, 5% by generating distribution of cash flows (subtracted from operating cash flows). The adjusted free cash flow was $ 336 million. As the company moved to growth mode, the adjusted free cash flow has fallen year by year.

Enterprise Products Partners have a distribution range of 1.8 in the quarter, depending on the cash flows that can be distributed. It ended in 2024 with the leverage ratio of 3.1 (this metrics are defined as the net debt divided into EBITDA for the stock credit of the Junior Dependent Notes (Hybrid).) Will be. 3.5 and 4.5 are common.

It paid a quarterly distribution of $ 0.535 per unit, an increase of 3.9% year -on -year. Meanwhile, the distribution range indicates that the company has room for hiking payment for the next few years. Enterprise Products Partners have been distributed for 26 consecutive years. It also spent $ 63 million, which returns 2.1 million units in the quarter.

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Growth project and map

In the future, management plans to spend $ 4 billion to $ 4.5 billion in growth capital expenditures this year (excluding acquisition). This increased from $ 3.9 billion in 2024, and in 2022, it increased significantly from $ 1.6 billion spent in 2022 after reducing growth cappes in the first few years of infectious diseases.

Enterprise Products Partners have $ 7.6 billion in major growth projects under construction. Most of this project will be released online between the second half of 2025 and the end of 2026. A project worth $ 6 billion is scheduled this year. In general, the company has generated an annual return of 13%annually for projects in recent years, so as the project increased in 2026, it has increased about $ 770 million in EBITDA.

According to the latest import telephone, Texas’s queue has 20 data centers with 15 potential power plant projects with natural gas demand of 2 billion cubic feet per day and about 1.2 billion cubic feet a day. There is a project. I think that 15%of the data center project and half of the power plant opportunities are showing good signs of progress.

However, given the long delay that the company has been approved, the company is having difficulty using the long -standing SEA port oil terminal (SPOT) project. As the environment changes, it is unknown to reach the final investment decision this year.

Enterprise predicts the cash flow growth rate of the middle digit in 2025. However, it seems to be a greater growth year depending on the project completion of the project, which is expected in 2026.

Attractive evaluation

Enterprise Products Partners traded at the 9.8 drainage company value -to -EBITDA (EV/EBITDA) based on the analyst’s 2025 estimates. EV/EBITDA is the most common indicator used to cherish the midstream company because it consumes a lot of money to build long -term assets such as pipelines. The company’s value is considered by the company’s debts to build these projects, and EBITDA eliminates the expiration of non -cash depreciation that spreads throughout the life of these assets. This is because these costs have already been captured in EV Metrics.

EPD EV ~ YCHITDA data.

The current EV/EBITDA drainage of the Enterprise Products Partners is lower than the historically traded range before the infectious disease, and the average midstream master restriction partners (MLP) traded between 2011 and 2016 is much lower than the 13.7 drainage. In general, consistency and strong loan controls are traded as a premium in the midstream space.

As the company will increase the company to strengthen its growth and 2026 will be a big year for EBITDA growth, I will buy stocks at the current level. Investors can historically get stocks at attractive prices and have a strong yield while waiting for growth to increase.