Enterprise (EPD) on Macro Landscape, ‘27 EBITDA Growth

Plugged In is a short-form video series from the Energy Infrastructure Council and VettaFi, featuring candid one-on-one interviews with energy infrastructure executives. Each week will feature a new conversation, leading up to the 23rd Annual Energy Infrastructure CEO & Investor Conference on May 18–20 in Aventura, Florida.

The note below includes key takeaways from a recent conversation with Randy Fowler, Co-Chief Executive Officer of Enterprise Products Partners (EPD). The discussion covered EPD’s macro views on the Permian and natural gas liquids (NGLs), the MLP’s anticipated step-up in EBITDA for 2027, and its capital allocation priorities.

Enterprise’s asset base and extensive Permian footprint provides valuable insights into market fundamentals. Fowler noted that the market seems to underappreciate the growing ratio of gas and NGLs for each barrel of new crude production in the Permian. In 2022, the ratio was roughly 1:1. Now, however, for each barrel of crude, producers get 1.3 barrel-equivalents of natural gas and NGLs. This changing production profile will require the industry to add natural gas treating and processing, pipeline capacity, and fractionation capacity to process the NGLs into their components (ethane, propane, butane, etc.).

More broadly, the U.S. production of natural gas and NGLs continues to overwhelm domestic end-use markets, requiring exports. Among NGLs, ethane and propane especially need to move to international markets where demand is growing, according to Fowler. With the conflict in Iran, Middle Eastern exports of NGLs have been interrupted. As a result, the affordable and reliable NGL exports from the U.S. should be more valued in the global market and could support a higher premium. On April 14, EPD hosted a fundamentals update, providing their team’s insights and forecasts for U.S. energy production and the Permian. The team also covered global fundamentals for liquefied petroleum gas (LPG, or propane and butane), noting the U.S. accounts for ~47% of the global waterborne LPG market.

EPD has pointed to modest EBITDA and cash flow growth from 2025 to 2026, but up to 10% EBITDA and cash flow growth for 2027 compared to 2026 expectations. Fowler attributed the 2027 growth to greater contributions from Permian acquisitions and organic growth projects. Specific to acquisitions, volumes for the Piñon assets in the Delaware acquired in 2024 should start to ramp in mid-2026 and into next year. The Midland assets acquired from Occidental (OXY) should also see volumes pick up into 2027.

In terms of organic growth projects, Fowler highlighted a handful of projects that came into service at the end of 2025 or that will come online during 2026. The Bahia NGL pipeline started up in December 2025 with 600 thousand barrels per day (MBpd) of capacity and is being expanded and extended with partner ExxonMobil (XOM) for 4Q27. EPD has two Permian gas processing plants coming online this year. Finally, two export expansions are on deck. The Netches River ethane and propane export terminal expansion is slated to start up in mid-2026, while the 300-MBpd expansion at the Enterprise terminal on the Houston ship channel is targeted for year end.

As cash flows grow, EPD’s capital allocation priorities have been consistent over time, with buybacks a relatively more recent development. The top priority is growing the business through projects or acquisitions. Relatedly, EPD prioritizes a strong balance sheet and financial flexibility. Balance sheet strength allows EPD to grow the business through different cycles and also supports the durability of EPD’s cash distribution.

Distribution growth is the third priority, with an impressive track record behind it. This year marks EPD’s 28th consecutive year of distribution growth, putting it firmly in the league of dividend aristocrats. Distribution growth tends to be commensurate with cash flow growth. When cash flow exceeds growth capital needs and distribution payments, the discretionary cash flow remaining can be used for buybacks or debt retirement with a 50-50 or 60-40 split, depending on the market environment. In October 2025, EPD raised its buyback authorization from $2 billion to $5 billion and had $3.6 billion remaining under the program at year-end 2025.

To view the full interview, click here.

Enterprise Products Partners (EPD) is a key constituent in Alerian MLP and Midstream Indexes, which underlie ETFs and exchange-traded notes. As of April 17, EPD was the third-largest holding in the Alerian MLP ETF (AMLP A-) and the Alerian Energy Infrastructure ETF (ENFR ).

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