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By Brian Nelson, CFA
Enterprise Products Partners (EPD) recently reported fourth quarter results that came in better than expected on both the top and bottom lines. In the fourth quarter, Enterprise reported net income attributable to common unitholders of $1.6 billion, similar to levels in the same period a year ago. On a fully diluted basis, net income was $0.75 per common unit for the fourth quarter of 2025, compared to $0.74 per common unit in last year’s period. Operational DCF was $2.2 billion for the fourth quarters of 2025 and 2024, the most recent measure providing 1.8 times coverage of the distribution. Enterprise retained $1.0 billion of DCF and repurchased $50 million of its common units during the fourth quarter of 2025. Adjusted free cash flow was $1.17 billion in the quarter.
Management had the following to say about the results:
Enterprise completed 2025 with a record fourth quarter. Record natural gas processing inlet volume of 8.1 Bcf/d, record NGL fractionation volume of 1.9 million BPD, record ethane marine terminal volume of 334 MBPD and record total pipeline volume of 14.1 million BPD-equivalent were some of the ten operational records for the quarter. This volume growth led to increases in gross operating margin in our NGL, refined products and natural gas pipeline businesses that resulted in record gross operating margin, record net income attributable to common unitholders and record cash flow performance for the quarter, which were slightly better than our record performance in the fourth quarter of 2024. Operational DCF for the fourth quarter of 2025 provided 1.8 times coverage of our increased cash distribution to partners of $0.55 per unit, and we retained $1.0 billion to reinvest in the growth of the partnership.
Total capital investments, net of proceeds from asset sales, were $5.6 billion in 2025, which considered $4.4 billion in growth capital projects and $620 million of sustaining capital expenditures. Organic growth capital investments, net of proceeds from asset sales, are expected to be in the range of $1.9-$2.3 billion in 2025, which includes estimated growth capital expenditures of roughly $2.5-$2.9 billion less roughly $600 million of proceeds from asset sales. Sustaining capital spending is expected to be approximately $580 million in 2026. At the end of the year, total debt principal outstanding was $34.7 billion, and Enterprise had consolidated liquidity of approximately $5.2 billion as of December 31, 2025. Shares yield 5.9%, and we continue to like them in the portfolio of the High Yield Dividend Newsletter.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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