Enterprise Products Partners LP (EPD)

[OldAIMGuy]

Thanks S7, Re: Presentation...............

One slide jumped out at me as I went through the presentation:



I had no idea what the major sources were!

Tom

[pete807]

Thanks for posting that... A great reminder of why we are here.
EPD leads the pack, period!
Never worry whats going on.... And I look forward to $30 being in the rear view mirror as they continue to outperform and increase our payouts.

[slazenger7]

Great presentation at the Conference - http://www.enterpriseproducts.com/investors/presentations

[WallStreetRocker]

It's payday!!!glta!!!

[pete807]

Enterprise Products Partners: The Growth Story Plays Out
https://seekingalpha.com/article/4259065-enterprise-products-partners-growth-story-plays

[pete807]

Earnings Call Transcript
https://seekingalpha.com/article/4258679-enterprise-products-partners-l-p-epd-ceo-jim-teague-q1-2019-results-earnings-call-transcript

[pete807]

Enterprise Products' crude volumes at terminals rises to quarterly record
https://seekingalpha.com/news/3457344-enterprise-products-crude-volumes-terminals-rises-quarterly-record#email_link

[pete807]

More Permian Demand
https://seekingalpha.com/news/3457672-enterprise-products-sees-demand-permian-pipeline-capacity#email_link

[pete807]

Yes 1.7 X coverage gives EPD a lot of room to work their great growth plans in booming oil patch and export terminals. Self funding is a solid move they made away from secondaries I like a lot. Market wanted more distribution growth but it is hard to argue with this well run giant.

[slazenger7]

Big Earnings News this morning for EPD!

[pete807]

Still lagging the .4375 taken out but headed back above the bar soon, imo. Long term money looking for shelter will arrive at the low points disregarding the missing D for a lower starting CB.

[pete807]

Nice rebound on Ex-day.

Dont understand the race to exit at open unless it is machine automatic, no connection to a brain...

They will play the DRIP on pay date too, I suppose.

[pete807]

A normal exit to use the principal and collect the D game by some...
They will come back in when the dust settles and the middle of the cycle turns attention away till next modest rise in D is announced,... But you can see more money made shorting right before ex and covering here, against the longs like us. Play the players

This stock is one where you either hold it all cuz your basis is so tiny you don't want the tax implications,
or you play it swing trading the channel. It has proven solid which ever way you trade it,... within the cycle.

The company would like to see a better $30 + valuation no doubt because they run a great safe haven cash flow machine. Core holders are content with the yield and non taxed return of capital.
JMO
-pete

[OldAIMGuy]

Hi Pete, Re: Dividend increase..........

Nice to see the $0.4375/share paid today.
Modest share accumulation since the December lows.
I see a little bit of selling this AM on the collected dividend.

[pete807]

Ho hum...
Another in a string of 59 straight quarterly increases in distribution which includes the financial meltdown, market crash of '08, CDS fraud.
What's not to like about EPD?
https://seekingalpha.com/news/3449031-enterprise-products-partners-declares-0_4375-dividend#email_link

[Trueheart]

You're welcome, Pete. Enjoy your excellent investment.

Trueheart

[pete807]

Thanks TH...
Boring is good here,... just a safe harbor, steady and strong.
Forget about it

[Trueheart]

Today on CNBC Pete Najarian gave Enterprise a thumbs up.

Trueheart

[pete807]

Today there was an investor meeting in New Orleans.
Scotia Howard Weil Energy Conference

Normally we would see an uptick from presentations to investors at a conference... but

After yesterday which saw the price of 29.46 with 52 week high of $30.05 in sight I see the increase in shorting. Price on a very stable stock and company is down .78 in two sessions for no reason I can see.

The big institutional holders manipulate the price for short gains, and they play the market knowing their HFT algorithms will win over retail buying and selling. When they want it up they will invest money at the ask price. They have lots of $$.
Long term it works not to pay much attention to the market swings.
JMO
-pete

[pete807]

Nice article. Great pic of terminal expansion...
Fron the conclusion:
I wouldn’t be surprised if EPD pushes toward the $40 mark by the end of 2020, while continuing to increase its dividend. EPD is a dividend seeker's dream.
https://seekingalpha.com/article/4250427-enterprise-products-partners-dividends-growth-gushing-pipes

[pete807]

Moved fast above average volume of 5+ Million. MM's added 2 cents balancing units as usual first couple minutes after so $29.30. Good Day!

[OldAIMGuy]

Did anyone else notice the odd end-of-day price and volume activity today?
Price/Share was $29.28 at the close.

[pete807]

Thanks, yes I don't mind the slower increase in distributions, but I doubt they feel any constraint. They are so well run, and have such wise growth in places and segments they have near monopoly already, this bodes well, IMO.

Their current price is still depressed based on their financial decision to self fund more with a less aggressive distribution growth. Bold because it is still distribution growth and coverage indicates the wisdom, and stability of EPD.

I am not interested in the C corp route or care to be Kindered again!

Best of the best imo.

[OldAIMGuy]

Hi Pete,
Value Line's latest page on EPD now gives a 3-5 year price target potential
of $45 o $65. That equates to an annualized 17% to 26% potential over the
next 3-5 years. With the very healthy current yield, I think I can live
with the potential total return.

They note healthy expenditures to continue expanding infrastructure
capability. That said, they say this constrains increasing payouts for the
near term. They do expect annualized double digit growth in revenues and
earnings thru 2024 and an 8% increase in distributions.

This report is dated March 1st.

[OldAIMGuy]

Hi Pete,
"Get Rich Steadily" is just fine with me......

[pete807]

This definitely will not be anyone's 'Get Rich Quick' scheme but rather a stable income generator for years to come.
from the conclusion part of this SA article:
https://seekingalpha.com/account/email_auth?auth_param=i4ud:1e8ni6v:3cdab44edf7ad51774dc9053e6cd288d&ref=%2Farticle%2F4249090-enterprise-products-partners-dependable-income-long-term-security%3Fsource%3D2800%3Aemail_rt_article_readmore%23alt2

[pete807]

EPD will be the mover and shaker for years in my opinion...
We may also see them return to a 5% dividend rise formula as they continue to self fund growth and grow DCF.
https://seekingalpha.com/news/3442822-enterprise-products-ceo-says-gulf-coast-ports-soon-overwhelmed#email_link

[pete807]

Good job capturing yield, and staying green in the end. :o) You can always return to EPD, boring, but so very stabile and well run. A place to park $ when you are not trading much... or want a vacation away from everything.

A good core for me to add a bit when it pulls back. I can take my eyes off it for any amount of time without fear, as I recall how they added each quarter to the D right through the meltdown in' 08 that took so many folks hard earned money, with no heads rolling, and the solution was to print money. Hand it to the biggest banks with no interest.

[catdaddyrt]

Should go up today lol

[catdaddyrt]

I am out of EPD @28.1149 just a quarter above my average but I did get the yield for my time. Pete you are the Super Star here with that cost basis and the splits, well done my friend. I am going to consolidate my holdings for better management under my work constraints.

[pete807]

Yes 3.87 based on a very long time, and adding a bit last year to round it out, when it dipped below $24
It will remain the core only because the current tax law,... a stepped up basis on all MLPs when the heirs get them and the tax goes away based on my purchase $, not the much lower true CB after time. But even that is a double as EPD split twice 2:1.

[catdaddyrt]

Hey gents I am alive in spite of the stories you have heard. I plan on exiting here and some others to bully up on the Jewel of the Nile
N_ _

I am finally green here after a long wait and again I missed some really nice trade opportunities here but alas the past is done. Going to close out some positions that even though the yields have been good I can get more leverage out of a less expensive stock.Pete I still envy the 4 buck cost basis if you still have it.

I have got to be more active this year so here I come.

[pete807]

My dad was born in 1918, passed away in 2001.
Taught me everything I know about these kind of investments.

He did not talk a lot... private in boot camp 1941... Captain by 1944 after recognized for leadership.
D-day 2 purple hearts, liberated Paris, and Dachau. When he spoke up everyone listened...
LOL

I have tried other styles investing, and always conclude they don't reward as well. As long as the socialists don't get power and take away the low hanging fruit Reagan signed into law in 1986, we will be fine. The money invested was already taxed! Thank you.

[OldAIMGuy]

Hi Pete, Re: Best of Breed............
It's up over 8% exclusive of dividends since I first purchased shares at the end of November, 2018. It's been a nice addition to the "sandbox" of 10 company stocks I keep. Only one of the ten is without a dividend. The rest range from 1.66% up to over 10% in yield - so basically a bias toward income with an secondary emphasis on price appreciation over time.

[pete807]

Best Of Breed
EPD is a best of breed operator in the MLP space.
https://seekingalpha.com/article/4241912-mlp-bear-market-one-talking-enterprise-product-partners-strong-buy#alt1

[pete807]

Conservative run Schwab waits till they have the cash in hand, so after close today they will post to my account... I spent some already though... :o)

[WallStreetRocker]

Luv me some payday!!!glta!!!

[pete807]

Yes, gotta love the self funding and credit control displayed by EPD.
CEO Jim Teague implied they are on their way back to the 5% quarterly distribution increase, with the first step buyback saving a bunch.

[pete807]

Beat by .08 earning .59 for quarter.
While the did not reach the analysts estimated 9.44 B they still were up +9.1% Y/Y.
https://seekingalpha.com/news/3427965-enterprise-products-partners-beats-0_08-misses-revenue#email_link

[OldAIMGuy]

Hi Pete, Re-financing efforts..............

That's nicely done. The 12 months saved should translate to 12 months of interest savings if nothing else. It's always nice when a company isn't beholden to the bankers when decisions need to be made.

[pete807]

Enterprise Announces $2 Billion Unit Buyback

“It was just fifteen months ago that we announced our plan to transition away from the MLP externally-dependent financing model with a goal of self-funding the equity portion of our growth capital investments,” said A.J. “Jim” Teague, chief executive officer of the general partner of Enterprise. “I am pleased to announce that we accomplished this objective a year early by self-funding over 50 percent of our 2018 growth capital investments and acquisitions of approximately $4 billion. To position Enterprise to return more capital to investors, we believed the first step was to become equity self-funding and to strengthen our credit metrics. We believe the authorization of a new buyback program gives us another ‘tool in the toolbox’ to opportunistically return capital to investors.”

https://finance.yahoo.com/news/enterprise-announces-2-billion-unit-110000853.html

[pete807]

Wells Fargo has a brick and mortar here like a thousand other towns but I write about 1 check a month and utilities are automatically paid... But the FED decided to spend it's way out of trouble/debt since 08 and retired savers were punished!

EPD is my REAL bank as the capital I stuck in over the years keeps paying a wee bit more each quarter, solid as far back as the eye can see. Self funding and paying future notes early is the norm for this company, with all around wise conservative growth and expanding DCF. Contract assured projects.

If you think of EPD as the missing savings account that paid interest in the last century, parking the money here you hope you never need, ...your heirs will get the stepped up basis, while you get the K1 untaxed distributions. Before the internet folks dreaded the slow arrival of the K1's for tax returns, but any accountant can access them now well ahead of filing.

[OldAIMGuy]

Good morning Pete, Re: Dividend capture.............

The volume spike is interesting here. It's nice to see the price/share holding well above its 52 Week Low point. Yield still above 6%. Last 12 months the High/Low ratio has been about 1.27:1. That's reasonable stability. P/E not excessive and Price/Book about average.

In the mean time I'm $0.435/share happier than before the dividend.....

[pete807]

Some huge selling as is common every EX day like today, where distribution is secured and the money can be put to work for 6 weeks or more before capturing the next distribution back here.
Volume about 1.5 million already. This stock works better than a bank for safety of capital and distribution over time. Long since IPO here.
GLTA!

[whytestocks]

News: $EPD Report: Developing Opportunities within Enterprise Products Partners, Antero Midstream Partners LP, Integrated Device Technology, Collegium Pharmaceutical, GAIN Capital, and United Technologies - Future Expectations, Projections Moving into 2019

NEW YORK, Jan. 17, 2019 (GLOBE NEWSWIRE) -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of Enterprise Products Partners L.P. (NYSE:EPD), Antero Midstream Partners L...

Read the whole news https://marketwirenews.com/news-releases/report-developing-opportunities-within-enterprise-products-partners-antero-midstream-partners-lp-integrated-device-technology-collegium-pharmaceutical-gain-capital-and-united-technologies-future-expectations-projections-moving-into-2019-7000732.html

[pete807]

Welcome...
I use high cost accounting so with the wash sale rule I have a 30 day wait on short term improvement to cost basis on a stock.

That has no bearing EPD because it is a place I park money I hope I dont need and never sell a unit. I read a bunch of comments on the article and posted replies to Elliot Miller and others under the asapete alias there. Elliot was not the author and writes for SA also. His perspective is from a strong bank of market knowledge.

Thanks for the reply.
GLTus!

[OldAIMGuy]

Good morning Pete, Re: EPD safety and value considerations...........

Value Line gives EPD a "Financial Strength" rank of B++ currently. They show a 3-5 year potential price target range of $40 to $60 which would seem reasonable and attractive from today's price. They give it a trailing P/E of 16 right now which is on target for their inddustry.

The Price/Book Value is currently around 2.5 which is neither cheap or excessive in today's market. VL seems to indicate no significant expansion through capital expenditures right now. However, they show ~12% annual growth in sales and earnings with slightly less in "free cash flow" and distributions. Their debt structure is about half their market capitalization and Value Line suggests this is better than average for their industry.

Something I look at is the number of stock options along with insider buying and selling of shares. In EPD's case there have been options granted with no sales over the last year. That's usually a healthy sign. Another thing I look for is the 52 week High/Low ratio of share price. I buy with price appreciation over time, dividend capture over time and profitable volatility capture over time as my three goals. The total return of my holdings depends upon all three goals. EPD averages roughly 1.2:1 ratio of high to low annually. That's enough to generate modest trim and back fill trades for me. A portion of my total return is generated by trading some shared around my core position. I look for ~20% LIFO turns on those trading shares so the fit is okay.

Thanks for posting the article.

[pete807]

Few companies are as safe and offer as much upside potential as Enterprise Products Partners currently does.
https://seekingalpha.com/article/4231653-enterprise-products-partners-compelling-case-upside

[pete807]

$1.06 added today.
Maybe some long overdue attention to the midstream giant here going forward...

[OldAIMGuy]

Thanks for spotting this and posting here.