Enterprise Products Partners LP (EPD)

[ranchhand71]

Morningstar $25 target:
Enterprise's first-quarter results broadly met our expectations, and we will hold our $25.50 fair value
estimate and wide moat rating intact while we incorporate these results into our model. Winter storm
Uri contributed an estimated $250 million in net gross operating margin, as similar to peers, Enterprise
was able to benefit from selling natural gas out of storage, but some of these profits were offset by lost
volumes from assets that were shutdown. Stripping out the Uri benefit, which we see as one-time in
nature and not material enough to move our fair value estimate, results were close to flat, as Enterprise
expects more of a recovery in 2022 and 2023 as U.S. volumes pick up with the economy's re-opening. At
this stage, volumes still remain well below last year's levels across Enterprise's portfolio, though Uri
certainly contributed. Overall gross operating margin was $2.3 billion compared with $2 billion last year,
and the partnership generated over $350 million in free cash flow after capital spending and
distributions. Enterprise also disclosed that it has been studying energy "evolution" opportunities across
hydrogen, carbon capture, and plastics recycling for the past two years. The effort is organizationwide--
more specifically, hydrogen transportation and storage, carbon capture, and storing and upgrading the
byproducts of recycled plastics. We agree with this approach as we expect it to yield new investment
opportunities, and as Enterprise also pointed out, leads to a natural extension of its overall value chain

[pete807]

Yes it is a swing traders dream as well as a long core hold for the solid steady distributions.

I think most institutions (1288 at last count) and private investors alike appreciate the fact that
Enterprise plans and execute well without blind side events disrupting the confidence in the yield.

So many dividend payers have to adjust downward when times/things are not perfect. Not EPD, and I am sure that is a part of it and does not go un-noticed.

EPD is a picture of conservative thinking and proper management so I will stay the course and do a little of both,... core hold and swing trading.

I pay short term capital gains higher than long with predictable swing trading, but have the long term core in a shoebox permanent storage.

Best of luck Tom!

-pete

[OldAIMGuy]

Hi Pete, Re: EPD price strength compared to general markets..........

It's holding up quite well, I'm sure partly because of its yield and its quality of business execution.



Even the slight distribution of shares since the January high hasn't really affected the price strength.

Best wishes,
OAG Tom

[pete807]

* Enterprise Products Partners LP : JP Morgan raises target price to $29 from $28

[Invest83838]

OK Thanks

[pete807]

Should see some action with over 1200 institutions holding EPD.

[pete807]

Key word is HOLD....

If you sell any stock in any year and make any money, Uncle Sam wants some. If you lose money on a stock you may deduct it from income.

I took my accountant 288 pages of trading as I was busy in 2020 making money in the stock market...

[Invest83838]

Pete, if I hold the MLP in an IRA

I don't have to report the capital gains do I?

I was thinking (hoping) the only issue if I held it in an IRA was the distribution.

[pete807]

No worries. No fractional income to report via distribution (K1) Just the capital gain on the appreciation WHICH IS HIGHER and taxed... Will be soon taxed more if the tax bill passes.

I use both, swing trade for double return appreciation like you discovered and long holding of free core shares to collect generous distribution, because the position has already returned all the capital.

My accountant loves her job and welcomes K1 reports which are very simple and available she says.

The amount of MLP partner distribution I have to report in the IRA is quite small and is far from any problem. I only have 5700 shares. I could have many times that and still not qualify.

If you make money trading don't worry about taxes, seek the highest tax bracket you can get too!

It will mean you had the best year of your life!

Best of Luck
-pete

[OldAIMGuy]

Thanks Pete,

That's great news. At today's price/share it's still paying in excess of 7.7% per year. It's currently up 34% from 12 months ago, too.

OAG

[Invest83838]

Pete, What if one buys and sells

and MLP before the distribution x-date

and therefore doesn't get any distribution?

I have found that I can make at least double the distribution amount

by buying and selling before the distribution

So if there are no distributions received by an MLP

does just the buying & selling of an MLP within an IRA

require paying annual taxes?

[pete807]

EPD : Enterprise Products Partners EPS beats by $0.17, beats on revenue
https://seekingalpha.com/pr/18297146-enterprise-reports-first-quarter-2021-earnings

[pete807]

Most of my EPD is not in an IRA but I do have another MLP in one...
It depends on how big your portfolio is and how much distribution it generates.

Except in extreme cases, having UBTI in your IRA won't generally jeopardize its tax-preferred status.

Just search for the many articles on the subject...
https://www.fool.com/knowledge-center/tax-issues-for-iras-with-mlps/

[Invest83838]

OldAIMGuy, I keep reading that it is Not Good

to hold an LP like EPD in a retirement account

due to the dividends (and maybe gains?) being taxed by the IRS yearly

even though it is held in an IRA

Is this incorrect?

If so, do you have any link where I can rea it?

TIA

[ranchhand71]

Glad to hear.

[Uranium]

Thanks! I just got off the phone with Ed Jones corporate and they will provide the info! There may be semantics involved here. I originally asked for my cost basis of all purchases. My advisor told me he could not provide that information. And that's likely true. What I actually wanted was original lot purchase prices which, obviously with an LP (K-1), is not the same.

[ranchhand71]

Write to CEO Penny P and copy Chris Lewis on the letter
https://www.edwardjones.com/us-en/why-edward-jones/news-media/thought-leadership/firm-leadership

[ranchhand71]

They are required to keep them for 7 years. Just contact their corporate CFO or attorney with a polite letter asking for copies within 30 days.

[Uranium]

I also have a request in with Enterprise IR. We'll see what they come back with

[Uranium]

That's really the crux of my problem. I don't have the old statements, can no longer access them on Ed Jones, and they said they can't help. I was looking for an alternative source. I may just have to raise hell with Ed Jones to get them off the dime. Thanks!

[ranchhand71]

Should be on your older monthly statements

[Uranium]

Question for the board. I recently transferred all my units in-kind from one brokerage to another. My cost basis for several lots was lost and my former brokerage, Edward Jones, claims they are unable to provide that information. Does anyone know where I can find this?

[OldAIMGuy]

Thanks U,

Dividends are always welcome.

I think investors look for three things:
1) Price appreciation over time
2) Dividend capture over time
3) Profitable volatility capture over time

They're not mutually exclusive, either. I use #3 to capture some profitable trades around the EPD core position while happily enjoying #2.

#1 has been a bit of a wait, but lowering my average cost per share with #3 has made my holding profitable even though the price/share is down over 11% since I made my initial share purchase in 2018.

Best wishes,
OAG

[Uranium]

May 12th. $0.45 cent per share

[OldAIMGuy]

It would appear it's time for another bit of cash flow from EPD. I've not looked at when the company plans to distribute but it's usually around the end of the month.

I hold EPD in my retirement account, so I don't even have to think about Uncle Sam.

Best wishes,
OAG Tom

[conix]

EPD has been a great addition to my dividend portfolio over the past year.

Between the capital appreciation and the ongoing dividends, EPD will be a great contributor to my overall portfolio retun.

[artfulife]

Thanks, Pete. I agree.

[artfulife]

Hi OAG,

Got your PM but I'm too cheap to pay for a subscription (hah).

Still sad about jugs' passing. So many of us miss him.

[pete807]

The canal block event has already had an effect on the trend toward the raised PT by Morgan Stanley.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=162717364
Morgan Stanley Reassigns Coverage of Enterprise Products Partners With Overweight Rating, $33 Price Target

April will be a catalyst month as the 1288 institutions that hold EPD get back all in or increase holdings for the distribution.

In between the current payout cycle Feb - May, as in most every every quarter the MLP's dip and become strong buys leading back to the ex-date for May, August , Nov, etc. . Normally the peak is a week before the ex date.

EPD is also buying back shares...
https://seekingalpha.com/article/4416178-top-10-undervalued-income-stocks-for-2021-value-beats-growth?app=1&mail_subject=weekend-summary-on-your-portfolio-portfolio-1&utm_campaign=nl-portfolio&utm_content=link-6&utm_medium=email&utm_source=seeking_alpha

EPD is a great anchor to your portfolio IMHO.

GLTA
-pete

[artfulife]

Started buying EPD six months ago at insistance of a dear friend. Now holding nearly 7K units at a cb of $17.57. Thank you and RIP, brother Len (aka jugs).

[OldAIMGuy]

Hi C, Re: viewing EPD history................

Here's a slightly different view going back three years:



EPD seems to have been returning to its longer term price range. With a yield near 8% currently, it offers very nice total return for holders. I also collect some rent by trading small amounts around my core position.

While it shows just 'break even' currently, it is still below my starting price/share ($26.24). Further, I own 43% more shares now than at the start. This histogram doesn't show dividend accumulation either.



Best wishes,
OAG

[conix]

EPD Chart

[pete807]

Like your siggy

Rocket Science requires fuel!

uranium is great for producing electricity and the metal will be key! Fission, AND fusion

[Uranium]

Love my $EPD!

[pete807]

Enterprise Product Partners Has Strong DCF And Focused Management

https://seekingalpha.com/article/4415376-enterprise-product-partners-strong-dcf-and-focused-management?mail_subject=epd-enterprise-product-partners-has-strong-dcf-and-focused-management&utm_campaign=rta-stock-article&utm_content=link-2&utm_medium=email&utm_source=seeking_alpha

[pete807]

Analyst Actions: Morgan Stanley Reassigns Coverage of Enterprise Products Partners With Overweight Rating, $33 Price Target
1:23 PM ET, 03/22/2021 - MT Newswires
01:23 PM EDT, 03/22/2021 (MT Newswires) -- Enterprise Products Partners L.P (EPD) has an average buy rating and price target range of $24 to $33, according to analysts polled by Capital IQ.

[OldAIMGuy]

Thanks Pete,

I'm busy collecting everything for 2020 Tax Season, so this will be helpful.

Best wishes,
OAG Tom

[pete807]

Enterprise Products Partners L.P. (NYSE:EPD) today announced that its 2020 tax packages, including schedule K-1’s are now available online.
https://www.enterpriseproducts.com/home

[Uranium]

I have never filed any state return other than the state I’m living in and working in. Personally not been an issue but if you own enough units, maybe that might get tricky.

[mactoon]

My first time buying a MLP, so I will have to deal with the K-1 next year. How many states did you have to file in this year for EPD?

[pete807]

No worries,

I don't get that. Folks also don't like them because they're usually the last tax doc's that become available but I've never had a problem with this.

I agree and you wonder if they know about internet documents?. Old school was wait for snail mail, which are even in my hands before I visit my accountant. I have enough ordinary income from dividends and trading with a plan that says set the sell goal and take the profit.

And going up a bracket proved I am doing something right. My uncle seems to like me more.

[Uranium]

Yes, K-1's are easy but many stay away from them not because of the underlying LP structure but simply, the K-1 is too hard to handle. I don't get that. Folks also don't like them because they're usually the last tax doc's that become available but I've never had a problem with this.

Your EPD trading strategy looks interesting. I'll study that one. Thanks

And, like you, I plan to pass my units on at stepped up cost basis

Thanks pete807!

[pete807]

And thank you Tom,

I often use your signature...

Buy from the Scared; Sell to the Greedy.....

-pete

[pete807]

I have also been doing what the big institutes do,... and that is buy at the right time... sell at the mid Q to work the money on other plays and get back in well ahead of the rush to distribution. Keep a long term core. Mine is about 30% of the position. EPD is very liquid and predictable to a bit better degree than most stocks in all the sectors I am in for diversity.

I use a very good accountant who has no trouble sorting the K-1 information and advising me on what I need to send Uncle Sam ahead of the year end to comply with the IRS. as I do not pay quarterly like I did in my career as an independent sales rep. I have been doing well these last few years by sticking to a working plan, without emotion or greed.

Long MLP holder so most of the return of capital is done on the core here. Book listed price is way above the actual money per share invested over the 22 years I have been here. Long term will give the heirs a stepped up cost basis.

There are no shenanigans with this management and top shelf operation. Please do your own research as these are just my honest opinions. Thank you Ronald Reagan for signing the 1986 law creating MLPs and encouraging domestic energy.

GLTA!

-pete

[Uranium]

Also EPD is self funding now. Not an expert here but basically they pay for capital projects out of cash flow rather than new debt. That’s why the distribution is not increased as rapidly as it used to be.

I love EPD and have been accumulating more lately. Note: Everyone should make themselves aware of the unique tax implications of an LP prior to investing

[OldAIMGuy]

Thanks Pete,

Great news. Now if we can just get the GameStoppers to pay attention to EPD!

OAG Tom

[pete807]

Increased the distribution 22 years in a row.

Top tier energy infrastructure partnership returning our investment in sustainable distributions.

https://seekingalpha.com/article/4407570-enterprise-products-partners-attractively-priced-top-tier-midstream-play?mail_subject=epd-enterprise-products-partners-8-2-yield-attractively-priced-top-tier-midstream-play&utm_campaign=rta-stock-article&utm_content=link-2&utm_medium=email&utm_source=seeking_alpha

GLTA!

-pete

[Wolfe64]

Picked up 1,700 $EPD today. Hoping for a great 2021.

[pete807]

Thanks for posting.
Hold at least a year and until changed the tax is only 15% on the gain.

(That would be low hanging fruit?)

-pete

[conix]

The shadow of the Biden Administration's "Climate Change" policies will keep these stocks in the high yeild category. Not because they cannot afford to pay the distributioin. But because investors will not bid up the prices (an lower the yield) until their is more clarity on whether or not other pipelines are going to be shut down.

With the fallout from the Keystone XL pipeline being shut down, I would be surprised if Biden wants more heat from the unions and their pipeline workers--and the towns near the pipeline.

JMO