EPD

Enterprise Products Partners LP

Industrial/Transportation, Energy


Presented:05/10/2018
Price:$27.39
Cap:$59.63B
Current Price:$29.17
Cap:$63.31B

Presented

Date05/10/2018
Price$27.39
Market Cap$59.63B
Ent Value$78.61B
P/E Ratio20.29x
Book Value$10.48
Div Yield6.24%
Shares O/S2,177.00M
Ave Daily Vol6,258,073
Short Int2.09%

Current

Price$29.17
Market Cap$63.31B
Enterprise Products Partners LP is a 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: Andeavor (ANDV), Andeavor Logistics LP (ANDX), Enterprise Products Partners LP (EPD), Marathon Petroleum Corp (MPC)

Highlights

The presenter is long shares of Enterprise Products Partners (EPD), as part of a bullish view on the broader MLP space that also includes Andeavor Logistics (ANDX). He sees attractive valuation across the sector, with EPD as a stand-out due to its high percentage of contracted volume and good trading liquidity. The presenter sees EPD and peers benefitting from cracker expansion in the Gulf Coast as well as propane export from the United States, and ANDX stands to generate strong, covered dividends, with the possibility for strategic takeover in the near future. He sees EPD appreciating ~10% a year, in line with EBITDA, with a 6.5% dividend yield, and ANDX generating 9% dividend with 10% - 20% upside in a deal scenario.

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Idea Discussion

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