Enterprise Products Partners L.P. EPD has announced authorizations from the board of directors of its general partner to increase quarterly cash distribution.
The quarterly cash distributions to be paid to common unitholders for the second quarter of 2022 is 47.5 cents per unit, representing an increase from 46.5 cents in the prior quarter. The distribution will be paid on Aug 12 to common unitholders on record as of the close of business on Jul 29.
Per Enterprise Products, since the initial public offering in 1998, this will be the 74th distribution hike. Also, for a consecutive 24 years, the company has increased its distribution. This reflects EPD’s stable business model, which is not significantly exposed to the volatility in oil and gas prices. It generates stable fee-based revenues from its extensive pipeline network across nearly 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
Along with the distribution hike, EPD is also employing unit repurchases for returning capital to shareholders. In the open market, the company has repurchased $35 million of its common units in the June quarter.
Currently, Enterprise Products carries a Zacks Rank #2 (Buy). Other prospective players in the energy space include Antero Resources AR, BP plc BP and Continental Resources, Inc. CLR. While Antero and BP sport a Zacks Rank #1 (Strong Buy), Continental Resources carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.
The substantial exposure to improving commodity price is a huge positive for Antero Resources.
High oil prices are aiding BP’s upstream operations. The sizable refining and marketing operations of BP will protect it if crude pricing scenario turns unfavorable again. For 2022, it is likely to witness earnings growth of almost 77%. Over the past few quarters, BP has successfully been reducing long-term debt.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. It has gained 73.2% in the past year, outpacing the 26.4% rise of the composite stocks belonging to the sector.
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