Enterprise Products Partners LP (EPD)

[pete807]

EPD CC clip: Jim Teague: "We've been very outspoken about the potential for significant price appreciation as soon as the second half of this year and we're not alone in that analysis, with most energy banks and consultants seeing the same thing."
https://seekingalpha.com/article/4403195-enterprise-products-partners-l-p-s-epd-ceo-james-teague-on-q4-2020-results-earnings-call

Many will, on their own, or with institutions, automatically reinvest their payout upon receiving it. That will be the 11th or 12th this month

EPD has IMHO one of the safest payouts in the market.

A very liquid stock which just received a PT upped by RBC Capital $2 to $28 from $26 and they remain Outperform. Very highly followed Infrastructure giant.

EPD co-founder Dan Duncan (1933-2010) built the co from 1968. Dan's daughter Randa Duncan Williams is now Chairman.

Market Capitalization
(Large Cap)
$45.9B
Enterprise Value $75.3B
Shares Outstanding 2.183B
Shares Held By Institutions 28%

Pick from many articles with all the reasons It will return to its pre-pandemic channel:

https://seekingalpha.com/article/4403308-enterprise-products-partners-results-solid-overall-company-sports-growth-potential-2021

https://seekingalpha.com/article/4399247-7_9-yielding-enterprise-products-partners-checks-all-of-boxes

GLTA!
-pete

[Uranium]

Maybe Biden and the shadow administration is an obstacle, can't argue that, but at worst EPD may be bond-like in its distributions even if the pps is relatively flat which it has been since about 2014. Oh, wait. Bond distributions don't increase every year. EPD does and the distribution coverage is quite good and tax-free as an MLP

[oxnous]

EPD has really come a long way since last year this time. But now the Biden obstacle is a threat.

[Uranium]

Hey Pete, I'm a free member so I can't PM you but I no longer hold those stocks that you mentioned. Where did you see that info? I need to clean that up but can't find it

[mte1955]

Thanks Pete. We all need a bit of reassurance once in a while.

[pete807]

Held to high standards and will come back. We need the dip to grab some cheaper shares. They had a drop in earnings but are covering well as they held over a billion in cash last year. Cut the cap ex and in no danger of us being "Kindered"

JMO.

-pete

[mte1955]

Good Afternoon Everyone. I am a mid to long term investor and have been pleased with EPD. It is perplexing to me how a such a stable company can fall the day a positive earning report comes out. Any ideas?

[pete807]

Np worries,

Just put them in the shoebox under your bed and forget about it...

Got a nice donation to our causes coming's in a week, and there are always the auto re-invest set.

Company is well run and of course optimistic on the CC for the bear future.

-pete

[Uranium]

Hi moderator pete807. I just discovered this board. I'm very long $EPD for over 7 years. My 6th largest holding. Solid company, solid management, solid distribution.

Earnings in the morning. I'm guessing on par with prior Q's.

$EPD is just above support so I'm going to buy more but wouldn't mind a little dip to $20.50 or so in the morning. GLTA

[OldAIMGuy]

It appears the dividend rose slightly to $0.45 a share from $0.445/sh.
Thanks EPD, I appreciate it.

OAG Tom

[conix]

I have EPD and ET with dividend reinvestment in a retirement account. And I bought after the pandemic hit.

Expecting a total return of 30% plus (cap appreciation and dividends) over this year.

[OldAIMGuy]

Next dividend distribution is coming soon.

OAG

[OldAIMGuy]

Hi Grant,

My EPD holding is in an IRA, so other than awaiting a K-1 I've not had tax events with the position.

OAG

[conix]

EPD Chart

[Grant Lee]

Hey everybody,

Just curious about how bad the tax implications are for owning and MLP. Any information would be great.

Thanks
GL

[OldAIMGuy]

Another happy day today for EPD.

OAG Tom

[pete807]

No Problem.
Great move this morning!

You will never be stuck because the volume is alway very good. .45 distribution in 30 days!

GLTA!

-pete

[NWDR]

Thank you. I shall read up. Cheers

[pete807]

KMP is mentioned in the second link, but article is 10 years old, and I was a holder when KMP was swallowed by their GP, KMI, an S Corporation... It spawned the new verb "Kindered" as the founder Richard Kinder, caused all the investors a ton of money with the change at that time.

That next year the value of the investment was taxed from $1 as KMI... KMI lost value with many angry investors from KMP sold when it became KMI... but other MLPs, were very well managed like EPD and have thrived and paid back their investors for all the capital over time... called "return of capital".

The first link from Motley Fool continues talking about MLPs in several following good videos... I have an accountant that finds it very easy to deal with the K1 information and approves of the great yield which is mosty tax free income.

I used that income to add to salary and now social security and have many years of experience holding and living off the auxiliary income from a tax free perspective.

Good luck with your questions but there are lots of answers and opinions available..

-pete

[pete807]

Your search was flawed... They are MLPs not MLCs. The P is what we are PARTNERS... Master limited partners.

Yes you can hold them in 401s or other IRAs , ie Roth.

https://seekingalpha.com/instablog/847469-the-mlp-investor/136742-should-you-hold-mlps-in-iras-or-401-k-s

[NWDR]

Anyone have a good link about the implications of owning EPD or other MLC, LLCs that use K9s in a 401K? Someone told me that you couldn't own the MLC or LLCs in 401Ks. Trying to get to the truth. I'm willing to do the reading but a Google search didn't turn up anything special.

Thanks

[OldAIMGuy]

Thanks Pete, Re: Dividend increase..............

That's excellent news.
OAG Tom

[pete807]

Enterprise has increased its cash distribution rate for 22 consecutive years.

https://ih.advfn.com/stock-market/NYSE/enterprise-products-part-EPD/stock-news/84045779/enterprise-declares-quarterly-distribution

[pete807]

Distribution raised to .45

Confirms the best managed energy infrastructure giant, IMHO...

Natural Gas, the clean electricity producer, powering your life in the dark and when winds are calm is spiking up 40% over last years high and will help EPD return to their
$25-35 channel and higher.

-pete

[OldAIMGuy]

Another dividend is due around the end of the month. That certainly won't hurt things any.

Best wishes for the New Year,
OAG Tom

[Spicknspan]

I agree. EPD is a 12 month total return of 40%.

[OldAIMGuy]

EPD ship about to sail.......................

https://finance.yahoo.com/news/enterprise-loads-industry-first-lpg-133000087.html

This was interesting. Not your usual Bunker C fueled tanker.

OAG Tom

[pete807]

Thanks for your take, I agree.

These days an investment like this at this price is rare, IMO.

I will begin again to swing trade this easy mover after new year, but till then do not need to pay the extra tax...

-pete

[chessmaster315]

EPD 27 dollar share price is realistic, even conservative.

Even if the dividend stays the same (and EPD has a long history of increasing the dividend!) a 27 dollar share price would still yield the investor a safe 6.5 percent yield. (2.78 annual dividend divided by 27 projected share price = 6.5% dividend yield).

[jugs]

Been adding units voraciously here and very pleased for having done so. The appreciation has been as good as ever and I'm looking forward to a bunch of bucks coming in as distributions.

So all is looking great here in EPD-Land. I hope others are recognizing the vast opportunity here. I know I see it!

[pete807]

Speculating here but a vaccine will make the market go wild and it is being baked in now... It is already approved for use in the UK.

EPD then will be returning to the steady long term plan... raise their D each Quarter and that will bring a whole lot of money back in... This will be looked back on as a good opportunity.

I read on another board that someone said the distributions would be taxed when you sell. We know that is not correct.

The gain from your initial cost of shares will be taxed when you sell, (never if you hold and let the heirs get a stepped up basis) but not the distributions you earned while you held. They do not book your return of capital distribution as a cost basis event reported to the IRS...

Many are confused by the K-1 forms that are required and come in the Spring,... but my accountant is NOT.

GLTA!

-pete

[OldAIMGuy]

I won't mind a bit!

[pete807]

New analyst starting at outperform and $27 PT.

Initiated SMBC Nikko: to Outperform

[jugs]

JP Morgan just announced they've raised their target valuation for EPD from $27 to $28.

I can live with that, I suppose.

lol

Up nearly $8 from here.

[pete807]

$20 reached

Premarket 20.23 as I type. high 20.48

Very liquid stock, buyers and sellers will get their ops so make your own decisions.

Swing trade it between the quarterly payouts.

Watching it move up and down this Fall I am not going to be surprised by more upgrades,... nearly all analysts say positive things here.. The company is very solid management-wise and institutions are always moving with the up and down flow too. We can increase our yield by doing that too.

JMO
-pete

[pete807]

I had a thought of flipping a few for profit (2% of my position), but I don't need the cash now and feel it will go over $20 so....

I can wait, cuz I use EPD as a bank for my grand kids educations..

GLTA!

-pete

[OldAIMGuy]

Hi Pete,

EPD back above $19 for the first time since around June.

Best wishes,
OAG Tom

[pete807]

Outperform PT $24
11:08 AM EST, 11/13/2020 Evercore ISI Upgrades Enterprise Products Partners to Outperform From In-Line; Price Target is $24(MT Newswires) -- Enterprise Products Partners (EPD) has an average rating of buy and price targets ranging from $19 to $29, according to analysts polled by Capital IQ.

Price: 18.5316 at the moment...

[jugs]

You are well worthy of your proud heritage.

Beautiful to read your sharings.

[OldAIMGuy]

Hi Pete, Re: Veteran's day............

Both my parents were WWII vets but neither left the mainland during their time in service (Navy and Waves). My uncle had lost a lung to pneumonia as a youngster and was turned down by the military three times when he attempted to enlist. Then in the last year of WWII he was "drafted", did Boot Camp and then was shipped to England for the Normandy invasion. I guess one lung and 36 years old was good enough for the beaches of Normandy! I don't know anything about his remaining time in Europe. He lived to 90, however.

My brother was in the Marines ('68 to '74). I was not drafted even though my lottery number would have guaranteed it. The Draft Bill was re-written in 1971 while I awaited my winning number being called. Passed my physical and all. Then, the legislature took 3-4 months to pass the new bill. It was too late for them to crowd me in before my 12 months of eligibility timed out.

We had a lot of rain and pretty strong winds last evening here in SE Wisconsin. Breezy again to day. Two big eagles were sitting in our northern pine this AM looking over the Elkhart Lake breakfast menu. Chilly at 33°F when I got up.

Best wishes,
OAG Tom

[pete807]

GM Tom

We got 6 inches of snow overnight and there will be lots of EPD energy needed here. Down your way it may have been ETA rain?

Our buy thresholds may be gone till Mach now. Natural gas demand is way above supply here.

Remember your veterans from past conflicts. My dad was 25yrs old on Utah beach, liberated Paris and Dachau with the 4th division. Two Purple Hearts, bronze star. Captain of field artillery. Second cousin survived 25 missions in a B17. He was 24 yrs old then... Lived to be 98 yrs old and gave my dad a ride in the B17 around England for a couple hours before he transferred home.

Fuel was cheap then, lol.

-pete

[OldAIMGuy]

Hi Pete,
That was a nice day for EPD. I'll be willing to take more of the same!

OAG Tom

[pete807]

No Worries!

I love mysteries..... outside of the stock market.

No mystery here at EPD and is why I love it.

-pete

No tricks.... just treats

[jugs]

This is extraordinary for certain.

Beautiful structure in several ways from the outside, has me craving to see the inside. I will have to investigate.

Thank you for a fascinating experience.

[pete807]

Happy Halloween Longs!


Maybe the source of this Druid Holiday?
https://thewildgeese.irish/profiles/blogs/mystical-newgrange-is-a-5-000-year-old-irish-gem

[jugs]

Right on, pete.

I added 53.8% this week after adding last week as well.

Loading up on this extremely high quality portfolio anchor for me is a no-brainer. Of course it presumes I have a brain, I suppose.

Oh, and some cash never hurts either, I am told.
.
Maybe it wasn't a pretty week but it sure motivated me to make substantive moves as acknowledged above.

Thanks pete,, for all your wise counsel.

[pete807]

Did the Royal Bank of Canada dropping it's price target $2 to 26 (I mistakenly read it backwards) cause us to change our plans? Nope... buy the dips (from the scared)

I added 5 1/2% more @ 16.11 this week.

Good Luck longs!

-pete

[Travis Crider]

hope this is known to be fake and their PT was lowered from 28 to 26. easy fact.

[Travis Crider]

I don't own et

[pete807]

Why not ET you said?

A quick look at the distribution history comparing these two gains in the sector will explain why.

Kelsey Warren or the Duncan family tradition of management would be a good thing to explore while you do your due diligence also.

Sorry about the 50% haircut to the payout... btw. I played ET before it combined three MLP's and did a stealth cut to overall D's a couple years ago as well.

I was also a victim of the new verb in the sector... "Kindered"

Once upon a time there was a pipeline MLP called KMP. If you followed Richard Kinder who was Jim Cramer's hero until he wasn't... lol.