Enterprise Products Partners LP (EPD)

[pete807]

We are importing the lowest amount of oil in 40 years. In a couple more years we will be a net EXPORTER. EPD has brought a few very large projects live that are having an outsized impact on the bottom line.

What happened with Enterprise Products Partners this quarter?

Total capital spending for the quarter was $1.1 billion. At that pace, the company would drastically outpace its annual capex guidance of $3.2 billion to $3.4 billion. However, it plans to complete construction and commissioning of several assets in the first half of the year that will lower capital requirements later on.

Speaking of those new projects, its propylene dehydrogenation (PDH) plant and its Orla natural gas processing plant are both operational. It also expects another NGL processing facility to start operations this quarter.

That uptick in distributable cash flow gave Enterprise a distribution coverage ratio of 1.5 times. That is way above secure, and gave management more than $450 million in retained cash to pay for capital spending.

Management announced that the recent changes that the Federal Energy Regulatory Commission (FERC) made to how master limited partnerships can recognize revenue will have no material impact on the business.

Compared to prior quarters, this one was noticeable for no major new project announcements.
https://www.fool.com/investing/2018/05/01/enterprise-products-partners-growth-for-2018-could.aspx

Adding units at $24.40 last Fall was one of my better trades!