While the perception is that EPD is grossly undervalued..... Its current 6% yield is its historical average
One needs to divorce their thinking that the 4% yield of 2014 is the norm.... Cause its not
I think its going to be extremely difficult for any MLP to be able to sustain a yield lower than 6%...... And those that have lower yields will find themselves up around 6% sooner or later
Broader mkt could still face a significant downside.... S&P 500 currently has a P/E of about 26.... About 100% above historical norms.... US GDP growth is non existant .... Not only is recession probable.... One is over due in historical cycles.... Its not different this time.... The more things change the more they stay the same
Market selloff will take this to its February lows with a possibliity of going below $19
$90 is not rational thought.... That would imply a yield of less than 2%.... And the carnage in the sector would never allow the valuation to go to that level....
I know... 6 thumbs down
90? Most people would be thrilled with 40 in three years. Who knows with oil/natural gas prices. Just keep finding solid projects that fit what we have. Don't over promise, but keep delivering.
Just relax and be patient. I accumulated a lot during the rout, at much lower prices...this is not a get rich quick stock, but rather one for the long game, so to speak...enjoy collecting the distributions and accumulate when market gyrations make it cheap. You'll do just fine.
this has been basing for a long time now around this price, when it moves it could be a long upward movement. i've seen it before many times. in the mean time we collect a great distribution. it very well could be 90 in 3 years or sooner. gl.
I know how you feel. Up 43c today and yet we could have lost money,even though we gained 1 cent today. I think last week Tallgrass went up over $3.25 when they had good earnings. Buckeye Partners and Magellan are premier MLP's.but don't discount the way Nustar and Genesis have performed. Go back and look where these stocks were on Jan 20th and Feb 11. Then look at hour stock at 19 back on Jan 20th.
The problem is not the company. EPD has what it takes to be a $90 in 3 years with all the projects they have coming on board and now exporting to Europe. I blame the EFT's and index funds. The same phonies that tell you to hold long term are the same phonies who buy daily and sell daily. I am a long term holder and I will stay a long term holder. I want to get the last laugh when others will say,I should have stayed. I hope you make a lot of money some day.
About the only one showing a profit and it barely moves but if you are losing a lot of money the other stocks have big moves like ete, wmb, trgp etc. What gives if the company is rated good like this company. Its not the divvy for this stock but must be for the other stocks. Anybodys take on why it is not favorable and I may have answered my own question. Thanks.
Gerry, as a fellow old guy and a holder since 2008 there are many reasons why I
like EPD. Coverage ratio consistently over 1X, steady distribution increases, a
5% discount on reinvested dist, large family position (30+%), and what I believe
is a conservative mgt. team. Are there other good MLP's, certainly, MMP is one
that comes to mind. Many believe it's as good if not better. I think it's more
oil weighted than EPD. As far as picking the wrong horse my guess would be
you may not sprint first over the finish line, but sometimes second pays pretty
Thanks to both heavyphil and arbtrdr for informative explanations about the company. I appreciate your time and expertise.
gerry, I only know what I read and even then I have doubts. I guess the track record of 47 straight quarters of dividends and increases is one reason I like it; lower debt than other MLP's as well. Also, arbtrdr hit on some good points, although he fails to see the significance of the US being able to EXPORT petrochemicals for the first time in 50 years; we've basically neutered any country or regime which would hold our allies hostage either with an embargo or a gigantic price hike. Oil and gas will be KING in energy for the next 50 years no matter what the Greens say and it is currency now for us. Hope that makes you feel a little better - I'm an old guy too and I like things peaceful and quiet....PHIL
Sentiment: Strong Buy
Interesting, but truly wonder what EPD - transporting oil and NG and fractionating/shipping in USA and Canada - has to do with Russia? EPD cannot export any more ethane or propane. So no change there. EPD simply put has no more dockage and thus is not likely to export crude except the very light condensate stuff.
Got to remember EPD was set up as a tortoise not a hare. VERY conservative balance sheet compared to all other MLPs. Why is EPD going sideways? That one is easy. Drilling and production in many of its service areas is flat and going to possibly decline. That would mean lower volumes and profits. This has hit almost all MLPs, not just EPD. EPD has insulated itself from many pricing issues but if production or counterparty risk rears their ugly heads EPD would be hurt. Until prices improve for both NG and oil EPD goes sideways.
As to complaining EPD has not gone up as much recently as other MLPs. Yeah, I agree. It also did not go down as much. Want volatility go elsewhere. Stability is EPD and it has a long history of underpreforming and then quickly moving up before being flat for a couple years.
If the UBTI is over $1000 (possible and 100% not predictable) then your Roth will owe taxes and the custodian must file a return (the IRA pays again). There is no ETF that tracks EPD, but all CEFs have a large exposure to EPD. Simply put, unless this is your only investable money, why would you put a tax shelter (EPD) inside a tax shelter (the ROTH)?
Let me ask the two of you, why do you think this particular MLP is superior to all the others out there? I actually have researched most of them and have my own reasons; however, as a large shareholder in EPD I must say that I'm also beginning to get somewhat concerned that perhaps I picked the wrong horse in the derby. I'm an old guy so go easy on me. I'm merely trying to learn from what sounds like a couple of much younger guys. Thanks in advance.
Whoa, buddy, take it easy! I certainly wasn't singling YOU out for criticism; there are plenty of older post not by you who say that this company is a dud. It should be going UP but it's been going sideways for months - who knows why? I remain confident that it will be a behemoth and an ATM machine when the &!#% hits the fan.
Sentiment: Strong Buy
MlpS in any IRA has been a horror story of late...
See the KMI roll up and the massive UBTI that LINE holders were smacked with...
The possible negatives are just not worth it
All, I am looking to invest in EPD in my ROTH IRA and have a tax question. The broker i use is Merrill Lynch. Will i end up owing taxes on EPD in my ROTH due to the distributions? Is there any way around this? If no, is there any ETF that tracks EPD that is an alternative?