EPD
Enterprise Products Partners LP
Energy
04/29/2016
Presented
| Date | 04/25/2016 |
| Price | $26.86 |
| Market Cap | $54.10B |
| Ent Value | $74.13B |
| P/E Ratio | 21.63x |
| Book Value | $10.08 |
| Div Yield | 0.06% |
| Shares O/S | 2,014.40M |
| Ave Daily Vol | 6,397,035 |
| Short Int | 0.92% |
Current
| Price | $29.17 |
| Market Cap | $63.31B |
| Enterprise Products Partners LP is a North American midstream energy company that is engaged in providing a wide range of services to producers and consumers of natural gas, natural gas liquids or NGLs, crude oil, refined products and certain petrochemicals. The company operates through following reportable segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment includes natural gas processing plants and related NGL marketing activities; NGL pipelines aggregating; NGL and related product storage and terminal facilities; and NGL fractionation facilities. This segment also includes the company's import and export terminal operations. The Crude Oil Pipelines & Services business segment includes rude oil pipelines, crude oil storage terminals and crude oil marketing activities. The Natural Gas Pipelines & Services business segment includes natural gas pipeline systems that provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. This segment also includes natural gas marketing activities. The Petrochemical & Refined Products Services segment consists of propylene fractionation facilities, pipelines and related marketing activities; a butane isomerization facility and related pipeline system, octane enhancement and high purity isobutylene production facilities; refined products pipelines and related marketing activities and marine transportation and other services. Enterprise Products Partners 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), Kinder Morgan Inc (KMI)
Highlights
The presenter is long shares of Enterprise Products Partners (EPD) stock. At $27, the yield is attractive (~6%) and “they have some of the best NGL assets in the US” underpinning EBITDA growth. He sees the potential for EBITDA to reach a $7 billion annual run rate in the back half of 2018, which puts shares at an attractive 11.5x multiple. With just 10% - 12% downside risk and a high probability of a 25% - 30% total return over the next 12 - 24 months, the risk/ reward is favorable.
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