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Enterprise (EPD) Rewards Unitholders With Distribution Hike

Zacks Equity Research

Enterprise Products Partners LP EPD has announced an approval from the board of directors to raise the quarterly cash distribution.

The third-quarter 2019 cash distribution for the limited partners has been recorded at 44.25 cents per common unit, reflecting a sequential increase of 0.6% and a year-over-year hike of 2.3%. The raised distribution is likely be paid on Nov 12, to unitholders of record as of Oct 31.

With the latest hike, the partnership has managed to raise distributions for 61 quarters in a row. This reflects Enterprise Products’ diversified and stable business model, generating steady fee-based revenues. Being a leading midstream energy player in North America, the partnership has pipeline networks, storage assets and export facilities. The partnership’s pipeline network spreads over roughly 50,000 miles to transport natural gas, natural gas liquids (NGL), oil, petrochemicals and refined products. Notably, the partnership’s pipelines are connected to all the key shale plays in the United States.

Importantly, Enterprise Products is well placed to continue to hike quarterly distributions since it has growth capital projects worth $6 billion under construction.

The partnership is scheduled to report third-quarter 2019 earnings on Oct 28, before the opening bell. Notably, the Zacks Consensus Estimate for the partnership’s earnings for the September quarter is pegged at 53 cents.

Headquartered in Houston, TX, Enterprise Products currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked stocks in the energy space are Matrix Service Company MTRX, Shell Midstream Partners LP SHLX and Dril-Quip Inc DRQ. While Matrix Service and Shell Midstream sport a Zacks Rank #1 (Strong Buy), Dril-Quip carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

Matrix Service has managed to beat the Zacks Consensus Estimate for earnings in three of the past four quarters.

Shell Midstream has posted an average positive earnings surprise of 3.8% for the past four quarters.

Dril-Quip beat the Zacks Consensus Estimate in three of the trailing four quarters, the average earnings surprise being 49%.

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Shell Midstream Partners, L.P. (SHLX) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
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