Enterprise Products Partners Targets AI Linked Gas Growth And 2027 Payout Power

Simply Wall St

Tue, February 24, 2026 at 2:09 PM GMT+9 4 min read

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Enterprise Products Partners (NYSE:EPD) is highlighting its exposure to rising natural gas demand linked to AI data center growth.

The partnership expects newly developed assets to come online in 2027, supporting its outlook for double digit growth that year.

Management is pointing to the company’s record of consistent dividend growth and a resilient integrated midstream model as key supports for this plan.

Enterprise Products Partners sits at the center of US energy infrastructure, with an integrated midstream network that connects producers to end users. For you as an income focused investor, the combination of fee based assets and a history of reliable dividend growth is central to the story. The added angle now is how rising natural gas use from AI data centers could affect long term demand for its pipelines and processing facilities.

Looking ahead, the company is framing 2027 as an important year, when its new projects are expected to reach full utilization and support projected double digit growth. For investors tracking NYSE:EPD, the key questions will be how quickly AI driven demand for power and natural gas materializes and how efficiently these new assets are brought into service.

Stay updated on the most important news stories for Enterprise Products Partners by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Enterprise Products Partners.

NYSE:EPD Earnings & Revenue Growth as at Feb 2026

Is Enterprise Products Partners’s dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis.

For income-focused investors, the key takeaway from this update is how Enterprise Products Partners links its growth projects and AI-driven natural gas demand to distribution resilience. The partnership currently offers a yield of about 6% and has raised its payout for 27 consecutive years, which signals that management prioritizes a steady and growing income stream. Around 82% of gross operating margin is fee based, so cash flow depends more on volumes and contracted capacity than on commodity prices, which can help support distributions through industry cycles. At the same time, analysts have flagged that the dividend is not well covered by free cash flow and that Enterprise carries a high level of debt, so the planned 2027 ramp in new assets will matter for payout sustainability.

How This Fits Into The Enterprise Products Partners Narrative

The focus on new gas processing plants, pipelines, and export capacity fits the narrative that infrastructure additions and higher handling volumes could support earnings and keep distributions growing.

Reliance on continued AI-driven natural gas demand and producer activity in regions like the Permian challenges the narrative if volumes or tariffs on exports do not track expectations.

The specific link between AI data centers and power demand is only partly reflected in the existing narrative, which focuses more broadly on export growth and brownfield expansions.

 






Story Continues  

Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Enterprise Products Partners to help decide what it is worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Dividend of around 6% is not well covered by free cash flows, which could limit flexibility if growth projects underperform or financing costs rise.

⚠️ Enterprise carries a high level of debt, so interest rate moves or tighter credit conditions could pressure cash available for distributions and buybacks.

🎁 Earnings are forecast to grow 5.61% per year, which, if achieved, could support ongoing distribution growth over time.

🎁 The units are described as trading at good value compared to peers and industry, and at a large discount to one fair value estimate, which some investors may view as a margin of safety.

What To Watch Going Forward

From here, you may want to watch how Enterprise executes on its build out of gas processing plants, pipelines, and export terminals, and whether these projects meet the 2027 double digit growth expectations. Keep an eye on distribution coverage based on free cash flow, not just earnings, and on any changes to the A credit rating that reflects balance sheet strength. It is also worth tracking how AI-related data center demand for natural gas actually feeds into transported volumes, especially compared with other midstream operators like Energy Transfer, Kinder Morgan, and Williams.

To ensure you are always in the loop on how the latest news impacts the investment narrative for Enterprise Products Partners, head to the community page for Enterprise Products Partners to never miss an update on the top community narratives.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include EPD.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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