Enterprise Products Partners LP (EPD)

[pete807]

Enterprise Products Partners declares $0.45 dividend

Oct. 12, 2021 6:10 AM ETEnterprise Products Partners L.P. (EPD)By: Deepa Sarvaiya, SA News Editor22 Comments
Enterprise Products Partners (NYSE:EPD) declares $0.45/share quarterly dividend, in line with previous.
Forward yield 7.66%
Payable Nov. 12; for shareholders of record Oct. 29; ex-div Oct. 28.
The company will announce its Q3 earnings on November 2, 2021, before the market opens.

[Uranium]

A very big reason for sure!

Stepped up cost basis for those that inherit is the last best reason and the perfect end game

[pete807]

Good points both. There are not a lot of followers posting here but I suspect a lot read this board. Thanks for posting!

No need to follow as it is not going anywhere, (Yogi Berra would say that, and as you can see by my Default Signature I loved his smarts. But it moves slow precisely because it is very big, safe and "boring". Over 1200 institutions hold it. Stability means well managed growth with conservative management and plenty of cash held back in case of the unforeseen.

K1's -easier than ever with information on line. you or your accountant have no worries
EPD has a great record of increasing distributions.

I think of EPD as a place to park money I hope I will never need, so you have to have lived under your means to get here. And living below your means is the key to happiness in life, IMHO

Stepped up cost basis for those that inherit is the last best reason and the perfect end game.

Best of luck and wishes
-pete

Oh and yes I think oil is headed up again.

[Uranium]

I just think the things I noted are keeping more than a few investors away and impacting price. Ok for me really as it is not a capital gains play for me. I buy the dips and never sell…. so far anyway

What about higher oil? Do you think we’ll see $90-$100?

[OldAIMGuy]

I've always felt the three reasons people invest are:
1) price appreciation over time
2) dividend capture over time
3) profitable volatility capture over time

Each investment is probably a combination of those goals with each having a different emphasis of those three.

My EPD holding is mostly based on #2 with a bit of #3 thrown in.

Best wishes,
OAG

[Uranium]

Great point Pete! EPD is heavily supported by the analysts. However it seems that ESG, K-1 and LP tax rules, Potential elimination of LP's by the current administration, divestment of fossil fuels companies from pension funds, etc., are keeping potential investors at bay. Holding the price down.

I buy EPD as a forever hold income investment. For the reasons above and possibly others, I don't necessarily expect much price appreciation much like we haven't seen in many years. A good "bond" it is. It definitely be interesting to see how EPD reacts if we see $100 oil again which, at this point, wouldn't surprise me.

[pete807]

Enterprise has more articles on Seeking Alpha than any other energy company and most authors have a position.

Nuff said

[pete807]

Protocol required:
EPD Is a company that won't keep you awake at night

[OldAIMGuy]

Ah! Thanks Pete,
I hadn't noticed the pay dates were different from the Ex Div dates before.
OAG Tom

PS: Congratulations on Post Grub #700!!!

[pete807]

Expected ER date:
Third Quarter Earnings Announcement Expected: Earnings will tentatively be announced 10/27/2021. With 17 analysts covering EPD, the consensus EPS estimate is $0.52, and the high and low estimates are $0.56 and $0.49, respectively.
Expected Timing: Before market open

Excellent management and easily cover a generous distribution

GLTA!
-pete

[pete807]

Likely .45 pay Second week NOV with ex date end of Oct.

[OldAIMGuy]

I don't yet see EPD's dividend showing up.
Any News?
OAG Tom

[OldAIMGuy]

From Motley Fool..................

Enterprise Products Partners
Enterprise Products Partners (NYSE:EPD) appears to be one of Wall Street's favorite cheap oil stocks to buy right now. The average analyst's 12-month price target is nearly 30% higher than the midstream energy company's current share price.

Price-to-free-cash-flow stands out as one of the best metrics to use in valuing oil stocks. Enterprise Products Partners' shares trade at roughly 11.7 times free cash flow. That's well below the valuation level for the stock throughout most of the last five years.

The company has a couple of projects near completion that should boost growth. The Gillis natural gas pipeline connecting Haynesville shale production with liquid natural gas markets in Louisiana should be finished in the fourth quarter of this year. Enterprise also expects to complete the construction of a natural gasoline treater in Texas in Q4.

Meanwhile, Enterprise Products Partners' dividend is especially juicy. Its dividend yield currently tops 8.2%. Although the company has only increased its dividend by 4% over the last three years, few investors will complain about the income that Enterprise provides.

P/E of 12.5
Yield of 8.2%
Price/Book Value 1.92
BETA of 1.36
Short Interest = 2.3% of float
52 week high/low range - $15.35 to $25.69

Best wishes,
OAG Tom

[OldAIMGuy]

EPD is down a bit today as Dividend should be arriving soon.
Yield at the current price is 8.26%/Yr.
OAG

[OldAIMGuy]

Effective yield at today's price is 8 1/4%. Not bad compared to Money Market Funds.

OAG Tom

[CanItBThisEZ2Make]

Any comments on the 10Q?

[OldAIMGuy]

Hi Pete and other EPD investors..........,

As the price/share has been drifting lower, the effective yield has been creeping upward. Now again over 8%/Yr it should attract some attention from conservative investors.

Best wishes,
OAG Tom

[pete807]

If there is any dry powder it is a good time to park money as it is Ex Day... 7/29/21 Those that captured can sell now and collect the .45. You just gotta wait 90 days for the next distribution, so use it like a savings account.

You know the drill. (drill baby drill)

GLTA!
-pete

[catdaddyrt]

That's some incredible numbers considering the State of the Union

[pete807]

No worries Tom.

Even though these days you can rely on the new channel traders to sell the news... Folks like us are long ago free shareholders. The fundamentals of EPD are rock solid. Today here there is no sun with dark cloudy skies and very little wind. But the lights still work... Just sayin.
Sense of humor is important these days...

[OldAIMGuy]

Thanks Pete,
Looks like good news for those of us LONG EPD.
Best wishes,
OAG Tom

[pete807]

EPD made .50/share beating est... rev up 64+%

Revenue of $9.45B (+64.3% Y/Y) beats by $1.54B.

https://seekingalpha.com/pr/18411242-enterprise-reports-results-for-second-quarter-2021

[catdaddyrt]

I guess you are not aware of the GCR
Global Currency Reset that is almost finished

Will have QFS Quantum Financial System

95% of crypto will be gone only regulated coins backed by precious metals survive. Bitcoin is a black hat operation from day one -its done very soon.

If you own it I would sell it

buy something on the Stellar Platform

[chessmaster315]

Im still long on EPD, Chase predicts it to go to 30.

If the major BTC miners lose power, that means the supply goes down, and the price goes up, similar to new Chevy pickup trucks. (Miners are producers of bitcoin).

Have you tried to buy a Chevy truck lately? This shortage, caused by a chip shortage, has driven both new trucks and nice used ones prices up.

By market Cap, Bitcoin (644 billion) is larger than both Tesla (641 billion) and Berkshire Hathaway (588 billion). Its ranked "in the top 10 in the world, by market cap.

Bring on the China 3 Gorges dam closing! Bitcoin has reached "critical mass" and can not be easily stopped.
https://medium.com/the-capital/when-will-bitcoin-reach-critical-mass-4feafc2798cc

More recently, Goldman Sachs says bitcoin has reached critial mass:
https://www.goldmansachs.com/insights/pages/crypto-a-new-asset-class-f/report.pdf

[pete807]

EPD will be around and covering their great partner distributions for along while in my opinion... Wind and Sun will still be a small part,... even in 20 years.

Oil and Metals are a good hedge against the Private Bank Owned Corporation called "The Fed" and it's runaway printing of money based on air.

Inflation is real! In Venezuela a trillion Bolivars won't even buy a happy meal! it's equal to about $3.75

Bitcoin?
Make your own choices after you read these articles..

https://wallstreetonparade.com/2021/07/after-jpmorgan-chase-admits-to-its-4th-and-5th-felony-charge-its-board-gives-a-50-million-bonus-to-its-ceo-jamie-dimon/

As Bitcoin Crashes 34 Percent in a Week, U.S. Congressman Ted Budd Pushes Bank Regulator to Approve More Crypto National Bank Charters
https://wallstreetonparade.com/2021/05/crypto-craze-treasury-federal-reserve-and-senate-banking-each-release-strong-statements-on-thursday/

https://wallstreetonparade.com/2021/06/crypto-congress-dawdles-as-1-7-trillion-con-game-goes-unregulated-threatening-reputation-of-u-s-markets/

You might be alright trading Bitcoin if you don't leave the screen, like many of the penny stocks.

Best of luck! You may find the 1 in a thousand that is a winner. Don't believe anything you have not confirmed for yourself. Till then do all your own DD and invest in real success stories.

-pete

[catdaddyrt]

Bitcoin will go to zero you have been warned -the servers under the China 3 Gorges damn will be destroyed
Pick a lane

[chessmaster315]

While Im bullish on EPD, your account of bitcoin has lots of company:

At least 30 people have incorrectly predicted (bitcoins) fall.
https://news.bitcoin.com/30-people-really-wrong-bitcoin/

At least one predicted it would go to a dollar in 2016.

Former Bitcoin naysayer, Jamie Dimon, has changed his tune:
https://www.cnbc.com/2018/01/09/jamie-dimon-says-he-regrets-calling-bitcoin-a-fraud.html

Even the IRS has gotten into the act, wanting to tax bitcoin profits. Hmmm..I wonder why they would want to tax the profits if there WERE no profits?

[Uranium]

Solid! Great post Pete! $EPD

[catdaddyrt]

Wow only stock I am holding is a silver mining stock and 3 new crypto s on the Stellar Platform most crypto will be gone after reset. BITCOIN will be destroyed.Crypto will have to be regulated and backed by precious metals or its gone. 95% gone

[pete807]

Solid as a rock.
Just look at cash flow and balance sheet

5 year figures:
Net Change in Cash yr end (Millions)

2020-748
2019 - 0
2018 - 340
2017 - (347)
2016 - 383

Cash & Equivalents yr end (Millions)
2020 1,060
2019 335
2018 345
2017 5
2016 63

yes that is 1.06 billion!

Coverage? ... forget about it.

[chessmaster315]

Yes. Ex dividend date is July 29, and the dividend will be 45 cents.

EPD often posts "the dividend" before they post earnings.

EPD earnings will be posted July 27. Estimates range between 44 cents to 53 cents, with a consensus of 49.9 cents per share.

"Somebody" posted that EPD wont be able to maintain their 22 year span of dividend increases, as they pointed out one quarter had dividends more than earnings. While this was true, it was only one quarter, at the height of the pandemic covid 19.

But, if you reaad the president (of EPD) report, EPD "bought up" some of that real cheap oil, as they had storage for it when the price went ridiculiously low for a short period, in April, 2020.

EPD could easily then pay a 45 cent dividend when the earnings were only 40 cents or less, because they were sitting on a whole bunch of oil in their tanks they bought for darned near nothing, and were waiting for the price rebound to maximize their gain.

That is, They didnt "really" lose money that quarter, they made money, but the profits were sitting in giant oil tanks.

THE BIG DEAL, tho, is that EPD shares are owned (about 1/3) by employees. So, they want the shares to go up, and dividends, just like we do!

Unlike many employees, these employees "have a dog in the fight" on earnings, dividends, and pps.

Many of these EPD execs "have their own retirement" in EPD shares.
And, they are not selling.

[CanItBThisEZ2Make]

Wow, what happens in the after hours on EPD!

[RubyMartin]

Has it been stated that it will be $.45?

[chessmaster315]

EPD has increased dividend for a quarter century, even during the covid 19 meltdown. While some quarters did not justify such a large dividend, the strengh of EPD's balance sheet and quality of its management for "looking ahead", enabled consistent dividend increases.

"Smart Score" has given EPD the highest score of 10, for months, and for good reasons, some of which are addressed above.

EPD has produced a total capital gain plus dividend, of 43.5% during the most recent 12 months. It would have been higher had I purchesed ALL my shares 12 months ago, this figure reflects more recent purchases also, all of which were at a higher share price than it was 12 months ago.

[chessmaster315]

With new dividend announcement that July 29 will be x dividend date,
people can buy EPD for 45 cents under market from now till July 29.

Yes, of course, the share price drops the amount of the dividend, but in the past it has quickly recovered this drop.

[winchem21]

This is such a great fit for ongoing initiatives!

[pete807]

EPD acquires storage business and trading hub.

I like this vertical integration.

https://www.businesswire.com/news/home/20210701005652/en/

[artfulife]

Amen. And thank you again, Len, wherever you are...

[OldAIMGuy]

EPD crests $25/share for the first time since pre-pandemic.

OAG Tom

[artfulife]

EPD is a mainstay for me as well. Watching for opportunities to add more and snagged a few more shares at $24.33 yesterday. Opened a small NGL position based on tdeck's musings. Nothing major, just testing the waters for now.

[pete807]

Always on the lookout for more EPD and holding for at least a year. Uncle Sam seems to be my new best friend, but the shift in thinking has me seeking the HIGHEST tax bracket. Two straight years of 10 yrs retired but actively trading now rival my best career years.

MLPs remain important to me but they must be able to cover the generous payouts and be spending less than they earn... EPD is going to stay, and increase in the core part. I have free shares also of NGL and was trading it, selling before the ex date as they overpromise and under deliver... They may return to a distribution but I do not intend to get any. I kept about 15%...

Looking for a dip in ET to start a position. Sold EEP before it was bought up by the GP and got Kindered with KMP. Both are gone from too liberal spending of capital.

Others I will consider are MPLX and AM. Please do your own DD folks.

Best of luck Tom and everyone!

Active beats passive in the fast changing world.

[OldAIMGuy]

Hi U, Re: Talking while GTC order is trading................

See, we chatted long enough that my GTC Limit filled!



Trading has gained a 10% position profit here even with the price/share down about 5% from my starting point. The 8 trades haven't exactly taxed my efforts much either. I should work out what the hourly profit would be for those trades.

Best wishes,
OAG Tom

PS: The above doesn't include Dividend distributions..........

[Uranium]

“I like to average down in share price (while averaging up in effective yield) and then harvesting some profits to refund cash for future buying.” Amen brother!

I hold EPD in a taxable account so that makes for a different dynamic than your retirement IRA or 401. It is my last LP with a K-1.

[OldAIMGuy]

Hi U, re: EPD Long haul...................

It's been good to me so far. I only started with EPD in December of 2018 at a price of $26.24. Maybe not my best entry but certainly not my worst. I've had one sale early on (10% of shares sold at $29.38). There have been several purchases ($22.65, $13.47, $17.60 and $16.79) since that sale. I also captured a quick turn on the cheapest shares selling 10% of inventory at $19.25.

The band width for my trading is pretty wide. My "next buy" target is currently $14.42 and the sell target is 24.93. Excluding dividends the holding is profitable even though the share price is still under my original 2018 buy.

Call it 'trading around the core' for lack of a simpler explanation. I like to average down in share price (while averaging up in effective yield) and then harvesting some profits to refund cash for future buying. The sale, should my GTC Limit fill, will be at a FIFO loss but a LIFO gain of ~48%. None of that really matters as EPD is held in my retirement account.

Best wishes,
OAG Tom

[Uranium]

Best of luck and no one can fault that logic. Unlike everything else in my portfolio, I have no sell targets for EPD. Long and accumulating since 2013.

[OldAIMGuy]

EPD is flirting with my first sell price since the Sept lows of last year. I'll let 10% of my inventory go at just under $25/share.

OAG

[CanItBThisEZ2Make]

Nice! I would love just $28

[pete807]

JP Morgan again!... now $30 from 29

[pete807]

JP Morgan went to $29 PT on 5/4/2021 as noted in earlier post...

These three are just 3 of the 1288 institutions that have a stake in EPD...

No small group of obscure institutions. More like all of them on both sides of the street

There are those that short EPD too or do both because it is huge and if you are good at swing trading you can make money on the short side too..

I don't but remember there is a buyer for every seller in the market. Always put your shares up for sale or they can be borrowed increasing dilution because they are in two places at once.

GLTA!

-pete

[ranchhand71]

Argus $24 target

• Raising price target to $24
• On February 3, EPD reported adjusted 4Q20 net income attributable to limited partners of $967
million or $0.43 per diluted unit, down from $1.125 billion or $0.50 per unit in 4Q19.
• The lower earnings reflected lower gross margins in natural gas gathering, processing and
marketing, and weakness in refined products-related businesses.
• We are raising our 2021 EPS estimate to $2.00 from $1.98 based on our expectations for slightly
higher volume growth as the pandemic recedes. The current consensus is $2.00.
INVESTMENT THESIS
We are reiterating our BUY rating on Enterprise Products Partners LP (NYSE: EPD)
and raising our price target to $24 from $20. We believe that the company will continue to
benefit from its substantial asset base along the Gulf Coast as well as from projects slated
to enter service over the next three years. We expect these projects and existing assets to
support future distribution growth. The stock also carries an attractive dividend with a
yield of about 8.6%