Enterprise Products Partners (EPD), a top holding in SS&C ALPS Advisors’ energy infrastructure ETFs, continues to demonstrate its value in portfolios. Recent fourth-quarter 2025 results underscore the MLP’s ability to drive growth and return significant value to unitholders.
The partnership’s record $2.7 billion in adjusted EBITDA for the quarter was driven by new assets brought online in 2025. Adjusted EBITDA came in more than 5% above the consensus estimate.
Total pipeline transportation volumes reached an all-time high of 14.1 million barrels per day equivalent. Looking ahead, management anticipates 2026 EBITDA growth at the lower end of its 3% to 5% target range and a 10% increase in 2027 EBITDA compared to 2026 as major projects reach full utilization. The strong earnings beat and a constructive outlook for 2027 drove EPD units up 4.6% on Tuesday, when results were announced.
Sustained Distribution Growth and Buybacks
EPD remains committed to its long-standing track record of returning capital to unitholders. It declared a quarterly distribution of $0.55 per unit ($2.20 annualized) for Q4 2025, payable in February. This represents a 0.9% increase from the prior payout and marks EPD’s 27th consecutive year of distribution growth. Distribution growth is a key focus for MLPs, reflecting the health and profitability of their operations.
Beyond distributions, EPD has maintained an opportunistic buyback strategy. The company allocated $300 million to unit repurchases throughout 2025, up from $219 million in 2024.
For 2026, management indicated that discretionary free cash flow could be around $1 billion, with plans to allocate 50% to 60% to buybacks.
Midstream companies, with their fee-based business models, offer a degree of defensiveness against volatility in energy and equity markets. This structure makes their cash flows less sensitive to commodity price fluctuations, providing a more stable and predictable income stream. This stability, combined with above-average yields and attractive valuations, underscores the midstream sector’s appeal.
Energy Infrastructure ETFs Offer EPD Exposure
Investors seeking exposure to EPD’s stable, fee-based cash flows can do so through energy infrastructure ETFs, specifically the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR). In fact, EPD is a top-three holding of both ETFs.
For instance, AMLP provides exposure to the Alerian MLP Infrastructure Index (AMZI), a capped, float-adjusted, capitalization-weighted composite of energy infrastructure MLPs that generate most of their cash flow from midstream activities. AMLP is the largest MLP ETF and the second-largest energy ETF.
On the other hand, ENFR provides exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American midstream energy infrastructure companies, including C-corps and MLPs, engaged in the pipeline transportation, storage, and processing of energy commodities. Furthermore, ENFR is the lowest-cost ETF in the energy infrastructure segment.
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