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Enterprise Products Partners L.P. Message Board

  • john-carol Mar 8, 2012 5:52 PM Flag

    Split prospect

    I just noticed that EPD split back in 2002 with a stock price pre-split of approximately $50. Anyone hazard a guess that this might be a possibility in the not to distant future. If that ooccurred then it would stand to reason that the yieldwould be abot half of its current rate, right. But then again, they are sitting in the cat bird seat with a partner like Enbridge on part of their pipelines.

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    • I would not expect a split for quite awhile.The company has a larger market cap now and I,may be wrong,but I would not be shocked if it ran up to $100 before it split,as an example look at Kinder morgan,they used to split at 79.but now they are letting it gain.As many others are

      • 1 Reply to marjun2129
      • ok, two things, one the yield would not change if there was a split, you would get less in dollars per year but that would be made up for in the increased units. Also, a market cap does not change when you split the stock. The value of the company is based on the amount per share of outstanding units. The units would increase while the value of each unit's a wash.

        The main reason for a company to split their stock is that it wrongly excites people because they will have twice as many shares and it also makes it more affordable to buy a single share, or more likely, 100 shares. Typically companies do this well north of here as a $50 price is not keeping anyone from buying units that knows what they are doing. That said, they have split at this price before, but I would doubt it until at least 75-80.

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