Enterprise Products Partners LP (EPD)

[farrell90]

I put in a bid 20% lower than the previous close and caught some at 12.00. What a panic to drop to 10. Morningstar has a great review of EPD. I glad to add some more to my collection.

[pete807]

Anyone get to grab some at that $10.33 floor yesterday? I sure missed this panic sell off. out of dry powder... $14.90 high today was the the start of the rebound today, imo...

The message is not lost on the older refiners I bet, that have yet to convert to flexibility of handling both Sweet and Sour crude.. Gulf Coast in particular... Big oil is not Exxon and Mobil...

read more:
https://spectator.org/getting-smart-with-the-strategic-petroleum-reserve/

[pete807]

https://seekingalpha.com/article/4329341-dont-miss-this-buy-signal-from-enterprise-product-partners?utm_medium=email&utm_source=seeking_alpha&mail_subject=epd-don-t-miss-this-buy-signal-from-enterprise-product-partners&utm_campaign=rta-stock-article&utm_content=link-0

[Jld3294]

Loaded up at $14 this morning. Feels like a gift from above.

[OldAIMGuy]

I missed a step or two and managed to get more shares at $18.96. A few splinters from the old ladder!
OAG

[pete807]

Yes algos on hedge funds are running wild...

Good to remember this period in a few months...

We know EPD will pay nice, has reserve cash... and the war going on between Aramco and Russia is hurting them more than us. The rebound will lag just like the shale wind down lags on coming upturn... it takes time to ramp back up as the prices rise to decent levels, and meanwhile EPD will still be transporting all the drilled completed wells, and providing the strong infrastructure they built... 300 million combustion engines call for fuel here...

JMO
-pete

[hotel7473]

Guess I should have waited one more day to load up. Oh well, plan on holding this for quite a long time. Today is just insanity though! Algo’s are having a field day.

[hotel7473]

I bet you found that next rung on the buy ladder today???

[pete807]

wow circuit breaker halt... 13.88 low pt.
trading halted @ 16.62

[pete807]

Short term sympathy will take us down to crazy level but it will not stay there... Wish I could buy more at the 18 level here... we wont be seeing that for long.. JMO
Russia and Opec gonna pump all they can... good thing we got our production to independent level... we will weather this better than anywhere on planet earth.

Shale will shut down temporarily and oil will end up much higher by mid summer driving season... hold on and buckle up...

GREAT BUYING OP IMO

-pete

[conelda]

how will $31 oil effect this co?

[pete807]

Great choices and discipline here guys... If I didn't go all in on a couple other safe harbors I would double this position here and now... EPD is 20% of my acct.., and well beyond the total capital returned after decades. Each quarter the D will rise 2-3%,... was 5% but wise management decided to retain $ instead of dilute with secondaries... Of course they took a little heat from the greedy, lol... However the numerous articles we get weekly are very pro EPD.

Just back to the channel is 30%+ in short term appreciation on top of the distribution. Whenever the rebound begins I think it will not go up slow... There is too much respect for management here compared to all the other good MLPs.

GLTA!

-pete

[OldAIMGuy]

Hi H,
I need about another 5% discount to get to my next "add" price. I added 12% more to the holding at $22.64 on the 27th of Feb. I'm watching closely for the next rung on the buy ladder.

OAG

[hotel7473]

As of yesterday, I am in! $22.50 is just too good to resist for a best in class MLP like EPD.

[pete807]

Got a feeling you will be able to sell back there again... rinse and repeat in ihub terms... but on a very solid company.. We can bank on it, imo.
-pete

[OldAIMGuy]

Hi Pete, My program target was low $23s. So, when I flipped on the Ticker this AM I was pleasantly surprised to see it had dropped below target.

This is only my second trade in EPD since starting the position in Nov of 2018. I sold 10% of shares at $29.38 so today's addition was at about a 23% discount to the previous sale.

All's well so far.

OAG Tom

[pete807]

Very good move which will prove your timing was excellent...
Market does swing past its logical in both directions. You called it.
add .45 in May to the buys too
-pete

[OldAIMGuy]

Hi Pete, I'm too impatient for patience!

Bot 12% more shares at $22.65 this AM shortly after the Open.

OAG Tom

[pete807]

Gathered all the patience I can muster as well. Now I wait to get past the outbreak, like everyone else.

I think it means compression and a larger swing reaction when it is sorted out.

Definitely supply disruption with any components from China... Container ships 10% capacity now is a normal... Long run good to diversify the supply side and build our hemisphere back up a bit...

JMO

-pete

[OldAIMGuy]

My overall market risk indicator is near its median value since 1982. I wish it were a more bullish signal coinciding with all these dropping prices. Maybe next week it will decline with this week's statistics.

I have cash from a 2019 EPD share sale available if/when my trigger price is reached.

Maybe I'll put on Carly Simon's "Anticipation" while I wait!

OAG Tom

[pete807]

I like it for 10% rise minimum this year... 20% doable,... add that to the yield... Better here than in a bank, a fund, or alphabet stock. Forget about it. Sleep well...

I will borrow money or use margin if it goes where you are a buyer... $23s lol

[OldAIMGuy]

Hi Pete,
Another buck discount and I'll open my dusty old wallet.
OAG Tom

[pete807]

I would have added on this rare dip below 25 but I am betting on a few that are way under value and the dry powder is too limited... The core here is bank. Grab if you can.

-pete

[pete807]

No worries Pick, good question.

They are not dividends technically, so they are called distributions, which are considered return of capital invested by us as "limited partners"

EPD is one of the largest MLPs (Master Limited Partnerships). MLP's issue K-1 details each year to all owners of the stock, to be used for your accounting. Also shares are not called shares technically, they are units.

Quarterly distributions from the MLP are not unlike quarterly stock dividends. But they are treated as a return of capital (ROC), as opposed to dividend income. So, the unitholder does not pay income tax on the returns. Most of the earnings are tax-deferred until the unitholder sells their portion. Then, the earnings receive the lower capital gains tax rate rather than at the higher personal income rate. This categorization offers significant additional tax benefits.

Additionally if you hold and never sell the original units, when your heirs inherit them they receive a current "stepped up" basis for the stock at the price of that day of inheritance. This is a key advantage for estate transfers. The capital appreciation you would have paid tax on, even at the reduced capital gains rate if you sold during your ownership, will then reset to 0 for your heirs. Read more:

https://www.investopedia.com/terms/m/mlp.asp

[pick]

Pete - pardon my ignorance, but how are the distributions tax free?

[pete807]

Good Luck to the young folks with their new cars... Dead calm here

[pete807]

Getting into the buy zone here... I see a $5 upside potential, minimum!

GLTA!

-pete

[pete807]

Some in flow of money today with our MLP... is nice to see.
The better it performs the less likely they will be to make structure changes, imo.

-pete

[pete807]

Not liking the hint in CC of unsustainable as structured MLP....
I was one that got Kindered...

2020 will force me to look at EPD as low hanging fruit then... 20 years I have been confident LONG here. .. but change in the young investor thought process says to "listen" to everything this company says carefully, cuz they are the best managed MLP

The Article is a red flag and says to me we need to go back to school on energy as a whole and quit dreaming batteries will run the world. Get real people! Until there is better electric storage technology and safer nuclear production from fusion, we must stay the course with Fuel , especially Nat Gas, imo, abundant in the mean time...

Why would you not be able to sustain a modest dividend? This is not a super high hand out, but I get their lack of respect due them... If this one wont work then the sector is done, IMO. Maybe 2021 will be a rise in energy year from Fracking... hope so.

https://seekingalpha.com/news/3525626-mlp-model-may-not-be-sustainable-enterprise-products-cfo-hints?utm_medium=email&utm_source=seeking_alpha#email_link

[carlson]

Much Appreciated!!!

[OldAIMGuy]

This is a good stock to own for stability and income. I've had it for a while now. Not much of a 'trading stock' but nice for lots of other reasons.
OAG

[carlson]

Target? Good buy?

[OldAIMGuy]

I guess I'll have to change bait...............
Stock's up 2.7% this AM.

[OldAIMGuy]

Hi Pete,

I baited the hook and cast the line for 12% more shares. We'll see if there's any fish swimming by at my price/share target.

Tom

[pete807]

Great move here.... or soon... bottom may be in or near...

Channel trade outside the core, as I did the same... Eventually I will double the position and live nicely on the steadily increasing return.

EPD is one you do not have to watch daily, or much at all.

JMO

-pete

[OldAIMGuy]

Hi Pete, Re: EPD current posture...............

Today's price turns EPD into a +7% yield payer. That's tempting in spite of how the markets are treating the shares lately. I'm sorely tempted to add back shares I sold back in April at $29.38.

Tom

[pete807]

Good plan... you know they play the channel on MLPs especially, both ways, comfortable knowing the accumulated un taxed gains by longs.

I flipped non core units in the past year as well. Buying lower selling higher than we sit here...

GLTus!

[OldAIMGuy]

Thanks Pete, I'm still holding and clipping coupons here. This dip wasn't quite enough to hit my "accumulate" target.

[pete807]

EPD at the lower end of it's channel here post ex date. EPD consistently raised distributions every quarter, even right through the market crash of 08, and quick recovery from ex date mandatory drop will remain the norm here, IMHO.

This boring bank like MLP stock pays 6.74% and will rise with oil also on the rise. Spend or re-invest the tax free distributions!

Announce Date Ex- Date Pay Date Amount
Jan 15, 2019 Jan 30, 2019 Feb 08, 2019 $0.435
Apr 08, 2019 Apr 29, 2019 May 13, 2019 $0.4375
Jul 09, 2019 Jul 30, 2019 Aug 13, 2019 $0.44
Upcoming D .4425 Nov 12
-pete

[whytestocks]

News: $EPD 3 Top Oil Stocks to Buy Now

After an attack on Saudi Arabian oil sites destroyed 5% of the world's supply of crude, the price of oil registered its biggest one-day spike in more than a decade. Shares of independent oil producers rose in response as investors predicted that higher crude prices would benefit the compani...

Find out more EPD - 3 Top Oil Stocks to Buy Now

[pete807]

I think I will do the same this Fall if I can... I flipped a few at $30 for a new play that has been doing well, thinking the price will swing like it has... Want them back for winter.

Robot machines and their algos have made due diligence almost obsolete. Energy is still out of favor, but will survive all the nay sayers attacks, imo. Just like it has for decades and our position is better than ever.

The big picture favors EPD, the best run giant in the MLP sector, imo.

GLTus!

-pete

[OldAIMGuy]

Thanks Pete,
If EPD slips another 8%-10% I'll be adding more shares to my current
position. I don't mind accumulating shares with the company's fundamentals
still being solid. The 6+% yield doesn't hurt either. P/E is modest and
Price/Book is live-able at around 2.5.
Tom

[pete807]

Hardly a day goes by without a positive story here.

21 years of consecutive distribution growth with 60 quarterly increases.

https://seekingalpha.com/article/4287964-enterprise-products-partners-record-pipeline-volumes-ignite-profits-distributable-cash-flow

The daily price, politics, recessions, headlines... can all be ignored if you are a long term holder here.
JMO
-pete

[pete807]

Good rebound today.
I guess there is attraction to a well run company that raises the distribution every quarter and covers their debt and expansion very well with good management.

Long term core position here from the Dan Duncan founding.

-pete

[pete807]

EPD has broken out looking at the 5 yr chart, ... seems we are in a gap to $33, for the chartist types...

I think it may be a flip zone already for the short term profit players in the market.

.44 is great but it will now buy double shares of NGL paying .39. for example. So .78 on the same money is tempting....

Just saying dont be surprised at anything the market does to a break out.... The trading schools are not teaching buy and hold anymore.

[pete807]

Glad you found EPD and have already gained confidence from the mid twenties... I liken it to boring for the impatient gamblers but very stable over the long haul and will pay you everything back you put in.

I am one of the very old confidence folks here. My father would have been 101 July 3rd and told me about this company and the founder Dan Duncan a long time ago. The previous millennium.

Fast forward to these days, I am still very happy with the BOD of this company as Dan passed away and his daughter is actively involved. Their decision to grow the dividend a little slower to self fund was a very wise one. They have a ton of reserve to build their company bigger without secondary share offerings, which dilute.

GLTus!

-pete

[OldAIMGuy]

Thanks Pete, Re: EPD Core Holding................

I'm really pleased with this holding and the consistent dividend. I started my position at $26.25, so both dividends and modest capital appreciation with no surprises makes me smile.
Tom

[pete807]

EPD marches on....
.44 rewards per share handed to the faithful in August which is mostly free of taxation... Nearly always the top pick for stability in long term dividend investing among the MLPs.

Keep the core and buy and sell a few trading shares here on the swings.

JMO
-pete

[pete807]

4 straight beats of over 10% in quarterly earnings, and hardly a day goes by without an article about EPD on SA. always positive on this gem of MLP's.

The latest one related to another MLP and the idea that EPD could acquire it cheap...
I agree but may a Judge will correct the attempted theft of AMID by Arclight.
https://seekingalpha.com/article/4269838-american-midstream-partners-project-harpoon-chinese-2-step?ifp=0&app=1

[slazenger7]

5 Top Oil Stocks To Buy As Middle East Tensions Escalate

https://talkmarkets.com/content/stocks--equities/5-top-oil-stocks-to-buy-as-middle-east-tensions-escalate?post=221112

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