EPD

Enterprise Products Partners LP

Energy


Presented:04/27/2020
Price:$16.74
Cap:$36.65B
Current Price:$29.17
Cap:$63.31B

Presented

Date04/27/2020
Price$16.74
Market Cap$36.65B
Ent Value$90.38B
P/E Ratio8.07x
Book Value$11.31
Div Yield10.54%
Shares O/S2,189.23M
Ave Daily Vol12,545,617
Short Int2.01%

Current

Price$29.17
Market Cap$63.31B
Enterprise Products Partners LP operates as holding company, which engages in the production and trade of natural gas and petrochemicals. It operates through the following segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment manages natural gas processing plants. The Crude Oil Pipelines & Services segment stores and markets crude oil products. The Natural Gas Pipelines & Services segment stores and transports natural gas. The Petrochemical & Refined Products Services segment offers propylene fractionation, butane isomerization complex, octane enhancement, and refined products. The company was founded by Dan L. Duncan in April 1998 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Enterprise Products Partners LP (EPD)

Highlights

The presenter is long shares of Enterprise Products Partners LP (EPD), which he considers attractive within the midstream sector given its interconnected value chain and strong balance sheet. Shares are currently trading at ~8.5x 2021 EBITDA estimates (both his and consensus) but were trading at ~10x consensus estimates prior to COVID-19. While the presenter doesn’t differ from the Street, given where interest rates are and EPD’s best-in-class position, the presenter feels that a 10x multiple on his $7.5B 2021 EBITDA estimate is appropriate. He therefore targets ~$22 per share, up from the current ~$16 per share, with additional returns from the strong dividend yield (>10% at current prices).

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.