We did a Special Report last night on the Natural Gas Sector. Â
PSW Special Report (Members Only): Natural Gas – Falling Knife or Energy Opportunity of the Year?
In our recent Watch List Update, we had already noted:Â Â
“EPD ($33.81 when first watched, $30.74 as of Aug 1, 2025 close) —
- Enterprise Products Partners continues to demonstrate why it is considered a blue-chip name in the midstream energy sector. The company’s vast, integrated network—spanning pipelines, processing plants, storage, and export terminals—provides stable, fee-based cash flows that are largely insulated from commodity price volatility. Recent results show ongoing operational strength: Q1 2025 saw record natural gas and NGL volumes, with distributable cash flow up 5% year-over-year and distribution coverage maintained at a robust 1.7x. The company recently raised its quarterly distribution for the 26th consecutive year, now yielding over 6.9% at current prices, and retains ample financial flexibility with a conservative debt-to-EBITDA ratio of 3.0x4614.
- Growth remains a key priority. EPD is investing $6 billion in strategic projects for 2025, including new natural gas processing capacity in the Permian Basin and expansions to its NGL export infrastructure, such as the Bahia pipeline and the Mont Belvieu fractionator. These projects are expected to drive incremental cash flow as they come online and further solidify EPD’s leadership in North American energy logistics1214. Management’s disciplined approach to capital allocation—prioritizing high-return, fee-based projects—positions EPD to benefit from rising U.S. natural gas and NGL production, as well as growing global demand for U.S. energy exports.
- Despite a slight pullback in the share price, EPD’s valuation remains attractive at just over 10x forward earnings and a significant discount to its historical average. The company’s strong balance sheet, consistent distribution growth, and clear path for future cash flow expansion make it a standout for income-focused investors.
