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Enterprise Products Rewards Unitholders With Distribution Hike

Zacks Equity Research

Enterprise Products Partners LP EPD announced approvals from the board of directors for a hike in quarterly cash distribution.

The fourth-quarter 2019 distribution of 44.5 cents per common unit reflects a sequential hike of 0.6% and a year-over-year increment of 2.3%. The new distribution also reflects the partnership’s quarterly distribution hike for 62 quarters in a row.

Enterprise Products has been consistently returning cash distribution to unit holders, thanks to a stable business model. The partnership generates steady fee-based revenues from its diversified midstream infrastructures that comprise pipeline networks, spreading across 50,000 miles, transporting natural gas, natural gas liquids, crude oil, petrochemicals and refined petroleum products. The midstream properties also comprise storage and export facilities.

In a separate release, Enterprise Products announced the start-up of a isobutane dehydrogenation plant in Mont Belvieu, TX. The unit is gaining from long-term contracts of investment grade clients that will provide additional fee-based revenues. The partnership expects the new unit to be able to process roughly 25,000 barrels of butane every day to produce 1 billion pounds of isobutylene every year.  

Headquartered in Houston, TX, Enterprise Products is a leading provider of midstream energy services in North America. The partnership is scheduled to report fourth-quarter earnings on Jan 30. Notably, the Zacks Consensus Estimate for the company’s to-be-reported-quarter earnings is pinned at 54 cents per unit.

The partnership currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Ecopetrol SA EC, California Resources Corporation CRC and CNX Resources Corporation CNX. While Ecopetrol sports a Zacks Rank #1 (Strong Buy), California Resources and CNX Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ecopetrol is likely to have witnessed earnings growth of 7% in 2019.

California Resources’ earnings beat the Zacks Consensus Estimate in three of the past four quarters.

CNX Resources’ earnings surpassed the Zacks Consensus Estimate in two of the prior four quarters. It has a positive earnings surprise of 34.8%, on average, for the trailing four quarters.

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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
 
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
 
Ecopetrol S.A. (EC) : Free Stock Analysis Report
 
California Resources Corporation (CRC) : Free Stock Analysis Report
 
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