28.50 -0.10 (-0.35%)
After hours: 6:40PM EDT
|Bid||0.00 x 3200|
|Ask||0.00 x 900|
|Day's Range||28.45 - 28.84|
|52 Week Range||23.10 - 30.05|
|PE Ratio (TTM)||21.03|
|Earnings Date||Oct 31, 2018 - Nov 5, 2018|
|Forward Dividend & Yield||1.72 (5.94%)|
|1y Target Est||33.14|
All of the four companies—Enterprise Products Partners (EPD), Kinder Morgan (KMI), Williams Companies (WMB), and MPLX (MPLX)—are trading at lower forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples than their respective five-year average multiples. Kinder Morgan’s forward EV-to-EBITDA multiple is the lowest among the four peers.
MPLX (MPLX) has shown consistent distribution growth over the last several years. Since its IPO in 2012, MPLX has increased distributions for 22 consecutive quarters. MPLX’s coverage ratio has remained well above one over the last several years. The company intends to maintain a coverage ratio of 1.2x or higher while growing distributions 10% for 2018. Currently, MPLX is trading at an attractive yield of 6.6%.
So far, Enterprise Products Partners (EPD) has risen ~9% in 2018. The company has outperformed its peers in the midstream sector. Other top midstream players by market capitalization, Kinder Morgan (KMI) and Williams Companies (WMB) have fallen ~5% and ~1%, respectively, during the same period. MPLX (MPLX) has risen ~4% YTD (year-to-date). The Alerian MLP ETF (AMLP) is relatively flat, while the Energy Select Sector SPDR ETF (XLE) has risen ~3%.
Enterprise Products Partners LP is well-positioned to capitalize on a huge under-the-radar opportunity in American energy, which could grow the 5.9% yield in the near future.
Enterprise Products Partners L.P. announced today that it will participate in investor meetings at the Citi One-on-One MLP / Midstream Infrastructure Conference Wednesday, August 15 and Thursday, August 16, 2018 in Las Vegas, Nevada.
Magellan Midstream Partners (MMP), one of the largest US transporters of refined products, posted a 4.5% YoY rise in EBITDA in the second quarter. MMP saw an 8.3% rise in EBITDA in the first six months of 2018 compared to the same period last year, implying a slowdown in earnings growth in the remaining two quarters of the year. Magellan Midstream Partners’ second-quarter earnings growth was driven by the strong performance of its Crude Oil segment resulting from higher Permian volumes and expansion projects placed into service.
MLPs’ strong earnings growth continued in the second quarter after a solid first quarter. Of the top 15 limited partnerships by market cap, 13 reported YoY (year-over-year) rises in their quarterly revenues and earnings. Cheniere Energy Partners (CQP) reported the highest YoY EBITDA growth among the MLPs under review. Fourteen of the top 15 MLPs are constituents of the Alerian MLP ETF (AMLP).
The partnership expects to complete the restoration activities this month, resulting in full placement of the project. On the Mariner East 2 and 2x, the partnership doesn’t expect further delays due to the blockages from the Pennsylvania DEP (Department of Environmental Protection). The partnership expects to use the existing pipeline in the affected areas and bring the ME2 project online by the end of the third quarter.
Targa Resources (TRGP) reported its second-quarter earnings on August 9. The company’s adjusted EBITDA for the quarter was $326 million—26% higher than the second quarter of 2017. Targa Resources’ distributable cash flow rose to $225.1 million from $196 million in the second quarter of 2017.
IRAs are meant to help shield income from taxation, but buying Enterprise Products Partners could mess that up. Consider this stock instead
TransCanada’s (TRP) second-quarter earnings were driven by increased earnings from its US Natural Gas Pipelines segment. Earnings from new projects, improved commodity prices, and higher throughput contributed to the segment’s earnings growth. New projects, including the Grand Rapids and Northern Courier pipelines, contributed to higher earnings for TransCanada’s Liquids Pipelines segment.
Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) announced their second-quarter earnings on August 8 after the market closed. Energy Transfer Partners beat analysts’ estimates by a huge margin. The company posted an EBITDA of 28.2% YoY during the second quarter. Energy Transfer Partners posted an adjusted EBITDA of $2.051 billion in the second quarter, while the market called for $1.911 billion—a 7.3% beat. The partnership beat analysts’ estimate for the fifth consecutive quarter.
As renewed Iran-focused, energy-related sanctions come into place in November, the major question for investors is how the energy sector stands to win. This week Swiss-based Trafigura Pte, one of the largest crude oil traders in the world, submitted plans to build the first deep water crude oil export terminal in Corpus Christi, Texas, to allow crude oil super tankers, Very Large Crude Carriers (VLCC), to load crude at the port reducing costs and inefficiencies.
Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) reported their second-quarter results on August 7 after the markets closed. Plains All American Pipeline reported an adjusted EBITDA of $506 million for the quarter, which was 12% higher than its adjusted EBITDA in the second quarter of 2017. Plains All American Pipeline’s results were ahead of its expectations for the quarter.
Enterprise Products Partners L.P. announced today that it will participate in investor meetings at the Goldman Sachs Power, Utilities, MLPs and Pipeline Conference Thursday, August 9, 2018 in New York City.
The WTI Cushing-WTI Midland spread, a key indicator to watch for Permian producers and pipeline MLPs operating in the region, moved closer to four-year highs of $18 per barrel last week. The spread rose to $17.3 per barrel by the end of last week—significantly higher than this year’s average of $3.5 per barrel.
MLPs’ strong positive momentum continued. The Alerian MLP Index (^AMZ), which includes 44 energy MLPs, ended in the green for five consecutive weeks. AMZ rose 4.0% last week and ended at 285.5—the highest weekly gains in the last seven months. Out of the total 93 MLPs, 55 ended in the green, seven remained unchanged, and 31 ended in the red last week.
High-yielding limited partnerships can be great investments, but it's important to understand the complexity of the structure before you buy
Kinder Morgan (KMI) stock fell 1.6% in the week ending August 3. In comparison, ONEOK (OKE) fell 3.7% and Enterprise Products Partners (EPD) fell 0.5% during the week. The Energy Select Sector SPDR ETF (XLE) fell 1.8% for the week. Crude oil prices fell 0.3%. Read Fed and Trade Wars: What Else Could Impact Crude Oil Prices? to learn more.
has submitted plans to build the first deepwater US oil export terminal capable of loading some of the world’s largest supertankers, with crude shipments expected to soar in coming years. The plan would see the commodity house build an offshore deepwater port facility in Corpus Christi, Texas, on the Gulf of Mexico, with a view to accommodate very large crude carriers capable of carrying more than 2m barrels of crude. Trafigura has already established itself as one of the largest exporters of US crude since decades-old restrictions on shipments of oil from the country were lifted in 2015, with the shale oil boom more than doubling production to close to 11m barrels a day.
Enterprise Products Partners (EPD) saw a string of target price increases after its strong second-quarter results. UBS raised its target price from $36 to $39. Barclays and Stifel both raised their target prices for the stock to $34. SunTrust Robinson raised its target price for Enterprise Products Partners from $33 to $34. RBC raised its target price from $34 to $37.
Enterprise Products Partners’ (EPD) total capital spending in the second quarter was $983 million. The company spent $2.1 billion on capital projects in the first half of 2018. Enterprise Products Partners expects to invest ~$3.8 billion–$4.0 billion on growth projects in 2018. Enterprise Products Partners’ propane dehydrogenation plant, which was completed in 2017, was put in service in April.
A subsidiary of Houston-based Enterprise Products Partners LP (NYSE: EPD) has applied for a Texas Chapter 313 tax incentive on a nearly $560 million project in Mont Belvieu, Texas. The project would construct a natural gas liquid fractionator adjacent to Enterprise’s existing Mont Belvieu facilities, according to an application filed with the Texas Comptroller on July 23. If completed as described in the application, the asset would employ 25 full-time workers being paid at least $65,000 a year each, according to the application.