Enterprise Products Partners L.P.EPD is building a more integrated Permian value chain that captures fees across gathering, processing, transportation, fractionation and exports. Permian gas-processing inlet volumes rose 14% to 4.3 billion cubic feet per day in second-quarter 2026, supporting demand for additional midstream capacity. EPD is adding processing plants with a capacity of 300 million cubic feet per day (MMcf/d) each through 2029, including Athena, Athena 2, Midland Plant 11, Delaware Plant 12 and Delaware Plant 13.
Each new plant will extract roughly 45,000 barrels per day (Bbl/d) of liquids, which can move through EPD’s Shin Oak and Bahia pipelines into its downstream system. With Shin Oak and Bahia operating at about 86% of capacity, higher Y-grade volumes from Plant 11 and Plant 13 are poised to improve utilization of existing infrastructure. EPD is expanding Bahia by 400 thousand barrels per day (MBbls/d) and 92 miles while adding the 150-MBbls/d Frac 15, creating more downstream capacity to handle growing Permian NGL production.
This integrated strategy will allow Enterprise Products to monetize incremental Permian production at multiple stages rather than relying on a single processing fee. Since 2022, gas-processing inlet and equivalent pipeline transportation volumes have witnessed roughly 8% CAGR, while natural gas liquid (NGL) fractionation and marine-terminal volumes increased about 11% and 13%, respectively. With management targeting roughly 10% EBITDA growth from 2025 to 2027, continued Permian growth is expected to boost utilization, improve returns on new and existing assets and strengthen EPD’s long-term cash-flow growth.
KMI & MPLX Focused on Deepening Their Permian Value Chains
Other than Enterprise Products, Kinder Morgan, Inc.KMI and MPLX LPMPLX are investing to deepen their Permian value chains and capture more fee-based revenues as production grows.
Kinder Morgan is expanding its Permian network by increasing natural gas takeaway capacity through projects such as the Gulf Coast Express expansion, which added about 570 MMcf/d of transportation capacity from the Permian to South Texas. The expansion quickly filled after entering service, highlighting strong producer demand and allowing KMI to earn additional pipeline fees while reducing transportation bottlenecks. KMI is advancing its Permian Link project to connect Permian gas with storage and growing power demand, creating another long-term opportunity to monetize basin volumes.
MPLX is strengthening its Permian-to-Gulf Coast integrated value chain by expanding gas processing, sour-gas treating and NGL transportation capacity to meet rising producer demand. The company is increasing Permian sour-gas treating capacity to more than 400 MMcf/d, expanding the BANGL NGL pipeline to 300,000 barrels per day and advancing the 2.5-Bcf/d Blackcomb pipeline, creating greater connectivity from the Permian to Gulf Coast markets. By integrating processing, pipelines, fractionation and export infrastructure, MPLX can capture more value from growing Permian volumes while supporting long-term EBITDA growth and higher utilization across its midstream network.
EPD’s Price Performance, Valuation & Estimates
Enterprise Products shares have gained 23% over the past year compared with the industry’s 24% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, EPD trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 11.02X. This is below the broader industry average of 11.26X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EPD's fourth-quarter 2026 earnings has been unchanged over the past seven days. Meanwhile, estimates for third-quarter 2026 and full-year 2026 earnings have seen upward revisions.
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