West Texas Intermediate (WTI) oil prices are below $60 per barrel, causing uncertainty in the energy business. However, Enterprise Products Partners LP (EPD) is less vulnerable due to stable fee-based revenues from its midstream assets. EPD’s business model is predictable and stable, similar to Kinder Morgan Inc. (KMI) and Enbridge Inc. (ENB).

EPD’s fee-based earnings consistently contribute a significant portion to its gross operating margin each year. KMI and ENB also generate stable cash flows from their midstream assets, with KMI having a project backlog of $9.3 billion and ENB securing a capital program of C$35 billion. This ensures additional cash flows for both companies.

EPD’s units have gained 4.7% in the past year, outperforming the industry average. With a trailing EV/EBITDA below the industry average, EPD’s valuation is favorable. Despite recent downward revisions in earnings estimates, EPD maintains a Zacks Rank #3 (Hold). These factors indicate stability and growth potential for EPD.

Zacks Investment Research highlights a satellite-based communications firm as a top stock with the potential to double in value. This company operates in the trillion-dollar space industry, with analysts forecasting a major revenue breakout in 2025. While not all picks are winners, this stock could surpass previous successes like Hims & Hers Health.

Read more at Nasdaq: Can Enterprise Products Withstand the Pressure of Soft Crude Prices?