We extend a recent three-loop calculation of nuclear matter in chiral perturbation theory by including the effects from two-pion exchange with single and double virtual ∆(1232)-isobar excitation. Regularization dependent short-range contributions from pionloops are encoded in a few NN-contact coupling constants. The empirical saturation point of isospin-symmetric nuclear matter,Ē 0 = −16 MeV, ρ 0 = 0.16 fm −3 , can be well reproduced by adjusting the strength of a two-body term linear in density (and tuning an emerging three-body term quadratic in density). The nuclear matter compressibility comes out as K = 304 MeV. The real single-particle potential U (p, k f 0 ) is substantially improved by the inclusion of the chiral πN ∆-dynamics: it grows now monotonically with the nucleon momentum p. The effective nucleon mass at the Fermi surface takes on a realistic value of M * (k f 0 ) = 0.88M . As a consequence of these features, the critical temperature of the liquid-gas phase transition gets lowered to the value T c ≃ 15 MeV. In this work we continue the complex-valued single-particle potential U (p, k f ) + i W (p, k f ) into the region above the Fermi surface p > k f . The effects of 2π-exchange with virtual ∆-excitation on the nuclear energy density functional are also investigated. The effective nucleon mass associated with the kinetic energy density is M * (ρ 0 ) = 0.64M . Furthermore, we find that the isospin properties of nuclear matter get significantly improved by including the chiral πN ∆-dynamics. Instead of bending downward above ρ 0 as in previous calculations, the energy per particle of pure neutron matterĒ n (k n ) and the asymmetry energy A(k f ) now grow monotonically with density. In the density regime ρ = 2ρ n < 0.2 fm −3 relevant for conventional nuclear physics our results agree well with sophisticated many-body calculations and (semi)-empirical values.