EPD Stock Today (December 7, 2025): Enterprise Products Partners’ 6.7% Yield, JPMorgan Downgrade and Bahia Pipeline Deal Shape 2026 Outlook

Enterprise Products Partners L.P. (NYSE: EPD) remains one of the most closely watched high-yield income plays in the energy sector as of December 7, 2025. Its units are trading a little above $32, offering investors a distribution yield of roughly 6.7–6.8%, supported by long-lived midstream infrastructure and a multi‑billion‑dollar growth pipeline. ^[1]

At the same time, fresh developments – including a JPMorgan downgrade, a major pipeline joint venture with ExxonMobil, ongoing buybacks and a recent acquisition in the Permian Basin – are reshaping how analysts and algorithms are valuing EPD stock heading into 2026. ^[2]

Where EPD Stock Stands Now

EPD units most recently opened around $32.61, with a 12‑month trading range of approximately $27.77 to $34.53. The 50‑day and 200‑day simple moving averages both sit near $31.5, underscoring how tightly the units have traded this year. ^[3]

Key current valuation metrics reported by MarketBeat include: ^[4]

Market cap: about $70.5 billion
Trailing P/E: ~12.3×
PEG ratio: ~2.5
Beta: ~0.6, reflecting relatively low volatility versus the broader market

On a total‑return basis, Enterprise Products’ units have gained about 6.5% over the past year, even as a composite group of midstream peers declined roughly 7.1%. ^[5] However, another recent note highlights that the units are still down nearly 12% from their 2025 peak in April, one reason the current yield remains elevated. ^[6]

A 6.7%–6.8% Distribution Yield Backed by Long-Term Contracts

Enterprise Products is one of North America’s largest midstream energy partnerships, with more than 50,000 miles of pipelines, extensive natural gas liquids (NGL) and crude storage, and related processing and export facilities. ^[7] Much of its cash flow is generated from fee‑based, long‑term contracts, making the business model more “toll road” than commodity speculation.

Latest distribution increase

On October 7, 2025, the board declared a third‑quarter 2025 cash distribution of $0.545 per common unit, or $2.18 annualized, payable November 14 to unitholders of record as of October 31. That payout represents a 3.8% increase versus the year‑earlier quarter. ^[8]

At the recent unit price around $32.61, that works out to a forward yield of roughly 6.7%–6.8%, in line with Zacks’ estimate of a 6.79% distribution yield. ^[9]

Zacks also notes that EPD’s three‑year median yield of about 7.2% is above the midstream industry’s 6.9% level, suggesting that even this high yield is not unusual historically for the partnership. ^[10]

Coverage and payout

Third‑quarter 2025 distributable cash flow (DCF) came in around $1.8 billion, down from $2.0 billion a year earlier, but still comfortably above the cash needed to fund distributions. ^[11] Multiple sources – including rating agencies and independent analysts – put distribution coverage at roughly 1.7×, leaving a meaningful buffer for reinvestment and downturns. ^[12]

MarketBeat’s summary pegs the dividend payout ratio at about 82% of earnings, which is higher than coverage measured against cash flow but still typical for a mature, income‑oriented partnership. ^[13]

Zacks (via Finviz) points out that Enterprise has raised its distribution for 27 consecutive years, while an April 2025 investor letter framed the company as entering 2025 with more than a quarter‑century of distribution growth and $7.6 billion of major projects under construction. ^[14]

Q3 2025 Earnings: Mixed Headline, Strong Volumes, Bigger Buybacks

Enterprise’s third‑quarter 2025 results, released on October 30, were widely characterized as “mixed.”

Earnings and cash flow

A detailed summary from ChartMill and company filings highlights: ^[15]

Non‑GAAP EPS of $0.61, below the $0.68 consensus and down from $0.65 a year earlier
Net income attributable to common unitholders of $1.3 billion, versus $1.4 billion in Q3 2024
DCF of $1.8 billion, compared with $2.0 billion the prior‑year quarter
Adjusted cash flow from operations of about $2.1 billion, roughly flat year‑on‑year

Despite these softer earnings, operational metrics were robust. Enterprise reported nine new operational records, including natural gas processing plant inlet volumes of 8.1 Bcf/d and total natural gas pipeline volumes of around 21 TBtus/d. ^[16]

Buyback expansion

The most eye‑catching capital‑allocation move was the expansion of EPD’s unit repurchase program by $3 billion, taking total authorization to $5 billion – roughly 7.4% of outstanding units. ^[17]

The company had already repurchased about $80 million of units in Q3 and $250 million year‑to‑date, or around 69% of its previous $2 billion authorization. ^[18]

Management has hinted that 2026 could be an inflection point for free cash flow, with more growth projects entering service and capital spending moderating, giving the enlarged buyback more room to operate. ^[19]

Strategic Projects: Bahia NGL Pipeline and Permian Expansion

Alongside quarterly results, Enterprise Products is reshaping its asset base through acquisitions and joint ventures that matter directly to the EPD stock story.

Bahia NGL pipeline and ExxonMobil joint interest

In November, Enterprise announced that ExxonMobil will acquire a 40% undivided joint interest in the Bahia NGL pipeline, a 550‑mile system that transports up to 600,000 barrels per day of NGLs from the Midland and Delaware basins to the Mont Belvieu fractionation hub. ^[20]

Key details from the company’s press release: ^[21]

The Bahia line has begun commissioning and will enter commercial service shortly.
Enterprise and Exxon plan to expand capacity to 1 million barrels per day by adding pumping stations and building a 92‑mile extension to Exxon’s Cowboy gas processing plant in New Mexico.
The expansion, dubbed the “Cowboy Connector,” should be completed by Q4 2027, with Enterprise remaining the operator.
Management expects Permian NGL output to grow more than 30% between 2024 and 2030, with Bahia positioned as a key artery for that growth.

Local coverage also notes that overall Permian NGL takeaway capacity is approaching 5.5 million barrels per day, with utilization slipping below 80%, raising the risk of overcapacity and potential pressure on tariffs if drilling slows. ^[22]

Occidental gas gathering acquisition and the Athena plant

In August 2025, Enterprise completed a $580 million cash acquisition of Occidental Petroleum’s Midland Basin natural gas gathering affiliate. ^[23]

The deal includes:

Roughly 200 miles of natural gas gathering pipelines
Gathering systems supporting Occidental’s production in the Midland Basin
Long‑term agreements that immediately expand Enterprise’s gas footprint and drilling visibility

Reporting from regional outlets adds that Enterprise plans to build the Athena gas processing plant in Midland County – a facility expected to process up to 300 million cubic feet of gas per day and extract 40,000 barrels per day of NGLs by late 2026. This will lift the partnership’s Permian processing capacity to around 2.2 Bcf/d and 310,000 bpd of NGLs, as part of a $7 billion 2025–2026 capex program. ^[24]

Together, Bahia and the Occidental gathering assets deepen Enterprise’s already extensive Permian footprint and support the view that 2026–2027 cash flows could benefit from both higher volumes and incremental fees.

New debt issuance

To help fund projects and refinance upcoming maturities, Enterprise’s operating subsidiary recently priced $1.65 billion of senior notes, split across three tranches maturing in 2028, 2031 and 2036, with coupons between 4.30% and 5.20%. ^[25]

Rating agencies remain comfortable with the balance sheet. Fitch has affirmed Enterprise Products Operating’s rating at A‑ with a stable outlook, while S&P and others highlight investment‑grade ratings around Baa1/BBB+ and expected leverage near 3× debt/EBITDA with distribution coverage above 1.6×. ^[26]

Analyst Views and Price Targets for EPD Stock

Street consensus: moderate buy, mid‑$30s price targets

Across several data providers, EPD stock carries a “Moderate Buy” or “Buy” consensus rating:

MarketBeat reports one Strong Buy, seven Buy and six Hold ratings, with an average price target of about $35.82, implying roughly 10% upside from current prices. ^[27]
Other aggregators show a similar picture: 11–15 analysts, average targets clustering between $35.8 and $36, with lows around $33–34 and highs at $40, translating to expected upside of roughly 9–11% before distributions. ^[28]

Zacks, by contrast, currently assigns EPD a Rank #3 (Hold), noting a recent downward revision in 2025 earnings estimates even as it emphasizes the partnership’s stable fee‑based model and above‑industry yield. ^[29]

JPMorgan downgrade: from Overweight to Neutral

The most notable analyst move in early December came from JPMorgan, which downgraded EPD from Overweight to Neutral with a $35 price target. ^[30]

In a detailed note summarized by Investing.com, JPMorgan: ^[31]

Cites expectations for no EBITDA growth in 2025 and only about 3% compound annual EBITDA growth through 2028
Points to a 6.4% revenue decline over the last twelve months and forecasts an 8% revenue contraction for full‑year 2025
Flags industry‑wide overcapacity in hydrocarbon logistics, aggressive competition and ongoing issues in EPD’s PDH (propane dehydrogenation) operations
Still acknowledges Enterprise’s “peer‑leading balance sheet strength” and consistent capital‑return track record

The downgrade is noteworthy because it contrasts with the broadly bullish tone of many other commentators, even as JPMorgan’s $35 target is not far from the wider Street consensus.

Other broker perspectives

MarketBeat’s analyst roundup highlights that: ^[32]

Morgan Stanley has an “Equal Weight” rating with a $34 price target.
Scotiabank rates the units “sector perform” with a $34 target.
Stifel Nicolaus maintains a “Buy” rating and recently boosted its target to $38.
Other brokers, including UBS in connection with the Bahia pipeline transaction, remain constructive, with targets in the high‑$30s. ^[33]

Quant Models and Technical Signals: A Bearish Short-Term View

Not all models are impressed. Quant‑driven service Intellectia.ai currently rates EPD as a “Strong Sell” on technical grounds, citing: ^[34]

0 buy and 8 sell signals across indicators such as MACD, momentum and multiple moving‑average crossovers
A bearish overall trend despite the unit price drifting only modestly over recent weeks
A one‑month forecast calling for about a –0.9% move, based on pattern matching to similar historical charts

The same analysis notes: ^[35]

EPD’s price ended Friday, December 5 at $32.61, with low intraday volatility and volume of roughly 2.4 million units
Over the past three years, unit price returns were +8.75% in 2023, +17.72% in 2024, and a more modest +2.71% so far in 2025

Interestingly, Intellectia’s longer‑term 2026 scenario bands show EPD trading in a wide range between about $24 and $48, with some months implying more than 30% potential upside from current levels and others modest downside, underscoring how uncertain long‑dated price modeling really is. ^[36]

These algorithmic calls are best seen as short‑term sentiment gauges, not substitutes for fundamental analysis.

Institutional Flows and Ownership

A fresh 13F‑based report from MarketBeat shows that Epoch Investment Partners trimmed its EPD stake by 7.5% in Q2, selling 111,368 units and ending the quarter with about 1.36 million units worth $42.3 million, or roughly 0.06% of the partnership. ^[37]

The same filing review notes that: ^[38]

Several other institutional investors, including Annandale Capital and Crescent Grove Advisors, increased their positions modestly.
Hedge funds and other institutions collectively hold around 26% of total units.

While single‑fund moves rarely change the fundamental story, they do reflect how professional investors are balancing EPD’s high yield against its comparatively modest expected growth.

Business Quality: Balance Sheet and Coverage

Across multiple research notes and rating‑agency reports, a few themes recur:

Investment‑grade balance sheet: Enterprise’s operating entity carries ratings around A‑/BBB+, among the strongest in the midstream space. ^[39]
Moderate leverage: Net debt‑to‑EBITDA is widely described as being around 3×, versus 4× or higher at some peers. ^[40]
Sturdy coverage: As noted, distributions are generally covered about 1.7× by DCF, and agencies expect coverage to remain above 1.6× even after recent capital spending. ^[41]

Those metrics help explain why, despite a slower growth trajectory than some competitors, Enterprise is often described as a “top‑tier income play” in midstream commentary.

Key Risks for EPD Stock

Even with solid fundamentals, there are meaningful risks that current and prospective unitholders should consider:

Slowing growth – JPMorgan’s downgrade emphasizes limited EBITDA growth expectations and declining revenues in 2025, reflecting both macro conditions and some segment‑specific headwinds. ^[42]
Midstream overcapacity – New pipelines across the Permian, including Bahia and rival systems, risk pushing utilization below optimal levels, which could pressure tariffs if drilling slows. ^[43]
Operational issues – Ongoing challenges at the PDH unit and the complexity of integrating new assets (like Occidental’s gathering system) could weigh on margins if not resolved efficiently. ^[44]
Interest‑rate and refinancing risk – While much of EPD’s debt is long‑dated and fixed rate, the partnership is a regular issuer in the bond market. Higher rates can raise its cost of capital over time, though the new notes priced in November appear consistent with investment‑grade spreads. ^[45]
Regulatory and energy‑transition uncertainty – Midstream assets are long‑lived; shifts in U.S. energy policy, permitting rules, or the long‑term trajectory of fossil‑fuel demand could affect asset values and future volumes over a multidecade horizon. ^[46]

Bottom Line: How EPD Stock Looks Heading Into 2026

As of December 7, 2025, the EPD stock setup is a study in contrasts:

Supportive factors
- A 6.7–6.8% distribution yield with more than 25 consecutive years of growth
- Strong investment‑grade balance sheet and ~3× leverage
- Coverage around 1.7× DCF, leaving room for both reinvestment and buybacks
- Visible growth projects – including the Bahia NGL pipeline, the Occidental gathering acquisition and the Athena plant – aligned with multi‑year Permian volume growth expectations ^[47]
Offsetting concerns
- A JPMorgan downgrade to Neutral on concerns about slow EBITDA growth, revenue pressure and industry overcapacity
- Quant and technical models flashing near‑term bearish signals
- A distribution yield and valuation that, while attractive, are no longer the bargain they looked like a few years ago ^[48]

For income‑focused investors comfortable with MLP structures and K‑1 tax reporting, many analysts still see EPD as a cornerstone holding: a large, diversified midstream operator with ample scale, conservative financing and a long record of rewarding unitholders. For investors seeking faster growth or more cyclical upside, JPMorgan’s caution and the possibility of midstream overcapacity may carry more weight.

Either way, the next major catalysts for EPD stock – fourth‑quarter results, updated 2026 guidance, and progress on Bahia, Athena and the Oxy gathering assets – will help clarify whether the story in the coming years leans more toward steady income, renewed growth, or some blend of the two. This overview is for informational purposes only and should not be taken as personalized investment advice; individual decisions should be based on your own research, objectives and risk tolerance.