Enterprise Products Partners LP (EPD)

[OldAIMGuy]

EPD tipping the scales at nearer $30/share. Value Line offers an 18 month "Appreciation Potential" of $23 to $32. It's 3-5 Year estimated potential is $45 to $70! Even the lower end of that would make me smile.

From Value Line:

Enterprise’s finances ought to able to manage its large construction program. The partnership reduced spending in 2021 and 2022, but it returned to more normal levels in 2023. The U.S. has become the world’s biggest exporter of LNG and EPD should benefit from this.

MLP investors may want to take a closer look at these neutrally ranked units. The current yield of around 8% is well above the Value Line median and in line with other midstream entities. Moreover, potential returns out to 2027-2029 are attractive. In addition, the partnership size and presence in all the major shale plays and end markets makes it less vulnerable to a specific problem in any sector or territory.

James A. Flood February 23, 2024