Enterprise Products Partners LP (EPD)

[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%

[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