Enterprise Products Partners (EPD 0.45%) recently completed its 25th year as a public company. The master limited partnership (MLP) did a magnificent job creating value for investors during that period. It increased its cash distribution to investors every year while significantly growing the company's value.

The MLP's management team believes the next 25 years will be just as enriching. Here's a look at what has fueled its returns over the past quarter century and why the company believes it can continue growing shareholder value in the future.

A great quarter-century of growing value for investors

Enterprise Products Partners co-CEO Jim Teague recently reflected on reaching the milestone of 25 years as a publicly traded company. On the fourth-quarter conference call, Teague stated: "2023 marked our 25th anniversary as a public company. It's been a great quarter century."

He noted that it has been a challenging yet great period for the U.S. energy industry. On the one hand, the company's co-CEO pointed out that the sector experienced the downfall of the energy merchants, the great financial crisis, the near-death of the U.S. petrochemical industry, two OPEC price wars, a once-in-a-century pandemic, and the reemergence of geopolitical upheaval. However, it also saw the innovation that has unlocked the vast resources of shale and a revival in the petrochemical sector that now enjoys the lowest costs in the world.

Throughout all this, Enterprise Products Partners stuck to its objectives of "investing capital at reasonable returns, providing reliable value-added services to customers, [and] consistently returning capital to our partners." That strategy enabled the company to grow the value of the partnership over the years. Teague noted that:

During this time, the enterprise value of the partnership has grown from $1.2 billion to almost $90 billion. The value of our partnership units has increased almost 400%. We increased our distribution 25 consecutive years at an approximately 7% compound annual growth rate, and we've returned $52 billion of capital to investors through distributions and buybacks.

Its ability to steadily increase its distribution showed remarkable durability, considering that many of its peers have had to cut their payouts at one point during the past 25 years. Its ability to consistently grow its cash flow and distribution showcases the low-risk nature of its business model and financial profile.

Excited by what's ahead

Teague believes the next 25 years will see its share of opportunities and challenges. However, one thing is clear: Given the projected growth in the world's population and the rise in quality of life, "demand for energy reaches new heights." So he's excited about what he sees for the future of energy.

In the near term, much of that excitement centers around the Permian Basin. Teague stated on the call: "If you want to know where we're going, look at what we're doing." He noted that the Permian is "the cornerstone for much of our growth capital. As we look at 2024 and beyond, we see supply and demand opportunities as the Permian continues to grow and the world continues to have an ever-increasing appetite for U.S. hydrocarbons."

The company currently has $6.8 billion of major expansion projects under construction. Notable projects for this year include its Western Texas products pipeline system and two more natural gas processing plants in the Permian. Meanwhile, the company has two more processing plants under construction in the region that should come online next year. It's also building its Bahia NGL pipeline to support that region's expansion. The MLP has more projects in the pipeline, including developing a major offshore oil port to export crude oil produced in the Permian. The company expects production in the Permian to rise through at least 2030, which should drive additional expansion opportunities.

Meanwhile, despite climate change concerns, most forecasters expect demand for oil and gas to continue growing through 2050 as they help renewables replace dirtier coal. The energy transition trend should open new doors for the company to invest in projects supporting lower carbon energy, like carbon capture and sequestration and hydrogen, which can utilize existing infrastructure. The continued growth in energy demand and new opportunities on the lower-carbon side should enable Enterprise Products Partners to continue growing over the next quarter century.

Well positioned to continue enriching investors

Enterprise Products Partners has been an outstanding investment during the last 25 years. It raised its distribution every year while significantly growing value for shareholders. It's in an excellent position to continue increasing its distribution and shareholder value in the future, given the expectation that energy demand should keep rising. That makes it a great stock to buy and hold for the long haul.