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Enterprise Products Partners L.P. Message Board

  • debbie08730 debbie08730 Dec 20, 2011 2:50 PM Flag

    Forgive me but WTF is going on with this stock?

    Seriously, what will it take for this stock to go higher into the 60's? I mean sheesss louise, KMP OKS and the rest keep going higher while this thing is stuck...

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    • Seriously, what will it take for this stock to go higher into the 60's? I mean sheesss louise, KMP OKS and the rest keep going higher while this thing is stuck...

      Were I You I would immediatly SELL EPD and search for Greener Pastures. I wish the rest of the companies I hold shares of would get Stuck like EPD, which keeps hitting New All Time Highs.You must own some Dandys if you`re complaining about EPD.

    • I believe that one of the things that holds EPD back is the steady but SLOWING distribution growth.. it has gone up by .0075 every Q for years now and that means the growth rate has slowed considerably

      EPD retained something like $800 million in DCF over the 1st 3 Qs and I believe that many investors are starting to believe that some of this cash should be distributed to the unit holders... and as an MLP I was under the impression that most of the DCF was supposed to go to the unit holders

      IF EPD increases its distribution just 1/4 cent to .01 a Q I think we will see a steady increase in growth of the unit price which I think is better for the company long term because future offering will be less dilutive

      • 2 Replies to Mktplyr517
      • I agree with you. The distribution growth for EPD has been actually steadily slowing from 7% to 5% over the last approx 8 years dispite continuous distribution increases. It is indeed a problem. BUT ...

        EPD is now being shown as having a balance sheet that is as good as it gets for midstream MLPs. They are capable of increasing significantly, but I am guessing after a conversation with them, reading 4 analyist reports, and listening to various conference calls that they will move to .01 in the coming year. Probably this will happen sooner rather than later as when we get our K-1s there is going ot be profits from the sale of the ETE units and Petal storage facility.

        I note that "most of the cash" from EPD has always and is currently being distributed. If you look at continuing operations (with about $150M in a 1 time event from the ETE sale excluded) EPD is distributing a bit over 80% of DCF. This is a good amount that sercures the distribution from downside risk.

        Seems that we forget about things like buying out the GP with a dilution in the short term and the KMP is paying out every penny.

        Sort of pay me later or pay me now.


      • Unlike REITs, MLPs are not required to distribute any fixed portion of their distributable cash flow.

        And, the money for that new reverse flow pipeline has to come from somewhere. Thrift and investment are the religion of capitalism.

    • As of 12-16-11 EPD is up 7.67% year to date while the AMZ is only up 2.89%. So it is doing better than sector average. And the MLP sector is doing better than the market. And that is after having a great 2010 and 2009.

      KMP is up on increased growth expectations after its purchase of EP. And OKS is up because it is growing increased distribution growth expectations.

      IMHO anyone who is holding an expectation of sudden unit price growth into the 60s is not in touch with reality.

      If you have metrics that would justify a $60 price for EPD, why don't you share them with the board?

    • Be patient. It usually takes some time to digest a secondary offering. This has bounced off the offer price a few times now. My guess is that it may stay right around $45 until there is a new catalyst, i.e. when the next distribution is announced. At that point I'd look for it make a run at the all-time highs again (as long as the broader market is cooperating).

    • It just made a new high not long ago, sometimes stocks base for a few weeks before going higher, plus some of the other mlps have a higher 2 cents for what it's worth.

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