|Bid||25.90 x 800|
|Ask||25.95 x 3000|
|Day's Range||25.70 - 26.18|
|52 Week Range||25.04 - 30.87|
|Beta (5Y Monthly)||0.91|
|PE Ratio (TTM)||12.45|
|Earnings Date||Apr 28, 2020|
|Forward Dividend & Yield||1.78 (6.79%)|
|Ex-Dividend Date||Jan 29, 2020|
|1y Target Est||34.40|
Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. An Enterprise Products Partners L.P. (NYSE: EPD) director returned to purchase 250,000 more shares of this midstream energy services provider via trust last week.
Houston-based Seaway Crude Pipeline Co. — a joint venture between Enterprise Products Partners LP (NYSE: EPD) and Enbridge Inc. (NYSE: ENB), based in Houston and Calgary, respectively — has extended the period in which it will seek commercial support for a capacity expansion. The company is looking for customers to fill space on a 200,000-barrel-per-day capacity expansion project from Cushing, Oklahoma, to the Texas Gulf Coast region, according to a press release. If the company moves forward on the project, the first 100,000 barrels per day of new capacity would come online in the second half of 2020, with the full expansion in service in 2022.
Seaway Crude Pipeline Company LLC ("Seaway") today announced an extension of a binding open season currently under way for committed service on expansion capacity of its system originating in Cushing, Oklahoma and extending to the Texas Gulf Coast. The open season, which began December 16, 2019 with the intent to close on February 14, 2020, is being extended to allow interested shippers to complete internal review processes. Seaway is also considering shipper feedback on the open season terms and may adapt the terms to allow for the inclusion of additional crude types, among other modifications. Seaway will promptly inform all interested shippers with open season documents of any changes, as well as provide notice 30 days prior to the new close.
Putting together a strong portfolio is more an art than a science. You have to balance share appreciation, potential upside, fundamental strength, and dividend yield to find the stock that will meet your needs. Do you want your investments to pay for themselves right away, or do you prefer a steady long-term gain? These are just a few of the factors to consider.It’s complicated by the sheer size of the stock markets. TipRanks tracks data on over 6,500 publicly traded stocks – and that’s just the tip of the iceberg. Fortunately, the Stock Screener tool makes it easy to find the right investment. Set the filters to sort out the stocks with a “Strong Buy” consensus rating, add in ‘very high’ dividend yields, above 5%, and you’ll get the list down to only a handful of names. Here are three of them that may be worth your attention.Enterprise Products Partners LP (EPD)The oil and gas midstream sector – that is, the companies that move the product between the wellheads, storage farms, terminals, and the customers – is a profitable niche. The companies here control pipelines, railroad assets, river barges, terminals, and storage tanks, as well as make it possible to move fossil fuels. Enterprise Products owns and operates 50,000 miles of such pipelines, and controls storage capacity for 160 million barrels of oil and 14 billion cubic feet of natural gas. Enterprise also holds import/export terminal facilities on the Gulf Coast of Texas.Low prices for oil and gas in 2019 hurt the company’s bottom line last year, but EPD appears to be holding up well. Even though the Q3 numbers missed the estimates, Q4, reported last week, was strong. Revenue came in above the forecast, at $8.01 billion, while the EPS of 54 cents was in-line with expectations. Both numbers are down year-over-year but up sequentially.Enterprise is committed to sharing profits with investors, and pays out a regular – and reliable – dividend. With a yield of 7%, the dividend provides a return more than three times higher than the S&P 500 average, while the 81% payout ratio indicates that it is sustainable for the company. EPD’s history of dividend reliability goes back over 10 years.5-star analyst TJ Schultz, of RBC Capital, sees EPD as a solid choice for investors. He writes, “EPD offers investors broad exposure to a full spectrum of the midstream value chains for NGLs and, increasingly, crude and petrochemical products. Furthermore, the partnership's multi-year organic growth backlog helps provide visibility on long-term distribution growth. EPD has grown and should continue to grow its fee-based cash flows as announced projects enter service and ramp.”Schultz puts a $36 price target on EPD, implying an impressive upside potential of 41%, to back up his Buy rating on the stock. (To watch Schultz’s track record, click here)Overall, EPD gets a Strong Buy from the analyst consensus, and that rating is unanimous. The stock has received 7 buy ratings in recent weeks. Shares are a bargain considering the high yield, priced at $25.56. The average price target of $34.50 suggests room for an upside of 35%. (See Enterprise Products stock analysis on TipRanks) Kimbell Royalty Partners LP (KRP)Kimbell Royalty is another player in the Texas oil boom, operating at the source. Kimbell owns oil and gas operations in 28 states, with major exploration, drilling, and extraction activity in the Permian Basin and Eagle Ford areas of Texas, North Dakota’s Bakken formation, and across Appalachia. Kimbell’s largest area of activity, which includes 43% of the company’s active wells, is in the Permian Basin of Texas.Where Enterprise, above, saw a tough time in 2H19, Kimbell posted record high revenue in Q3 of that year. The top line came in with a 79% year-over-year gain, to $33 million. In addition to high revenues, KRP was able to acquire two competing companies, Haymaker and Phillips, during the reporting period.Even better for investors, KRP has been using its positive cash flow generation to maintain a strong dividend. The company’s quarterly payment, 38 cents, annualizes to $1.52, for an impressive yield of 11.1%. That’s more than five times the average yield among S&P listed companies, and is powerful incentive for investors.Looking at Kimbell for KeyBanc, analyst Leo Mariani was impressed enough by the company’s performance to initiate coverage with a Buy rating. He cites, “…anticipated dividend increases in 2020 and the recent pullback in the shares…” as reasons to enter this stock.Mariani gives KRP an $18 price target to back the Buy rating, seeing room for 31% share growth here. (To watch Mariani’s track record, click here)The Strong Buy consensus view on KRP shares is bolstered by 8 recent reviews, including 7 Buys and 1 Hold. The stock sells for just $13.70, and the average price target of $20.14 suggests an upside potential of 47%. (See Kimbell stock analysis on TipRanks) New Mountain Finance Corporation (NMFC)The energy industry isn’t the only place to find great dividend yields. Investment management companies, which control and administer private and corporate investment portfolios for profit, by nature generate a high cash flow. New Mountain uses its cash flow to maintain a dividend, returning profits to investors.The dividend here is definitely worth talking about. NMFC pays out 34 cents per quarter, and has done so consistently since 2013. This gives a yield of 9.6% and an annualized payment of $1.36. The payout ratio is 98%, indicating that New Mountain returns all of its profits to investors – as expected, in an investment management company.Like Kimbell, above, New Mountain has attracted a new analyst thanks to its solid financial performance. Derek Hewett, from Merrill Lynch, writes in support of his Buy rating, “We see an attractive dividend yield, and believe New Mountain is well positioned to capitalize on a supply/demand imbalance in the unrated middle market.”Hewett’s price target, $14.50, suggests a modest upside of 2% in a stock that has already shown 4% appreciation so far this year. (To watch Hewett’s track record, click here)With 3 recent Buy reviews, NMFC’s Strong Buy analyst consensus rating is unanimous. The stock offers a low cost of entry, at $14.23, and the average price target of $14.58 implies room for another 2.5% growth. The real benefit here is the dividend return. (See New Mountain stock analysis on TipRanks)
Over the past three years, Enterprise Products Partners L.P. (NYSE:EPD) stock has dropped by 8.2%. Including dividends, EPD has eked out an 11% total return. And that's the good news, even if it doesn't seem like it.Source: Shutterstock After all, that period has been brutal for energy stocks more broadly. The Invesco S&P 500 Equal Weight Energy ETF (NYSEARCA:RYE) has declined 30%. Integrated majors like BP (NYSE:BP) and Chevron (NYSE:CVX) have held up, but even Exxon Mobil (NYSE:XOM) has lost nearly a quarter of its value, falling to a 10-year low last week.For producers, the news has been even worse, unless investors were fortunate enough to own Anadarko Petroleum before it was acquired by Occidental Petroleum (NYSE:OXY). OXY touched a 14-year low months after that deal was announced. For instance, Apache (NYSE:APA) is down by half. Small-cap names have seen absolute carnage: the Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE) is down a stunning 71%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn that ugly environment, Enterprise Products has done its job. It's delivered solid income: the dividend yield currently sits above 6%, and has stayed above at least 5.5% for the last three years. And it's avoided significant principal losses even with unfavorable energy price movements. * 7 Utility Stocks to Buy That Offer Juicy Dividends Again, that's good news. The bad news, at least for oil bulls, is what that means for EPD stock going forward. Why EPD Stock Has Held UpAs a midstream operator, Enterprise Products Partners has far less sensitivity to oil prices. It's volume through the company's nearly 50,000 miles of pipelines that matters, along with demand for the company's storage, terminal and natural gas processing operations.Lower prices do lead to lower revenue, as was the case in 2019: revenue declined 10% for the full year and 13% in the fourth quarter. But Enterprise Products profits are based mostly on volumes, which mostly rose in Q4. Natural gas volumes did fall year-over-year, which is a modest concern. As another author has pointed out, rivals Kinder Morgan (NYSE:KMI) and MPLX (NYSE:MPLX) both saw increased natural gas volumes in Q4.From a broad standpoint however, prices aren't that material to EPD stock. It matters how much oil is running through an Enterprise pipeline. It doesn't matter how much that oil cost. That's for the upstream producers and the downstream refiners to worry about.And so despite falling energy prices, Enterprise profits actually rose nicely in 2019. So did cash flow, which backs an expected 2.3% increase in per-unit distributions this year. With nearly $8 billion worth of capital projects coming online in the next few years, according to the fourth quarter presentation, those distributions should continue to rise.That makes EPD, which yields 6.86% based on expected 2020 distributions, an attractive income play. As long as volumes hold up, so will distributions. And income investors will do far better in EPD stock than they would in 10-year Treasury bonds currently yielding less than 2%. What Goes WrongThe model certainly has worked so far. According to data from YCharts, total returns in EPD including dividends total 1,830% since the company's 1998 initial public offering. That's a 15% annualized return, one of the best in the market over that stretch.But there are risks. To begin with, EPD has significantly lagged the market more recently. Even with dividends, investors have essentially broke even over the past five years. Here, too, that's better performance than the sector as a whole, but it's certainly disappointing relative to the roaring broad market.Meanwhile, lower prices can impact EPD stock, even if somewhat indirectly. Again, at its core Enterprise Products is a volume play. If oil prices, in particular, keep falling, production in the Permian Basin and elsewhere may dry up. Kinder Morgan somewhat infamously proved the downside risk back in 2015, when it slashed its dividend by 75%. Shares plunged, and even with a recent recovery are down about half from 2014 levels.The company's MLP (Master Limited Partnership) structure also adds another layer of difficulty, as my InvestorPlace colleague Josh Enomoto detailed on this site. EPD unitholders are responsible for taxes passed through by EPD, which lowers after-tax returns and also requires additional work at tax time. Enterprise may eventually convert to a more traditional C-corporation, as have other MLPs in recent years. In the meantime, however, some income investors may see simpler options elsewhere in the sector. Not for Oil BullsIt's important to remember, too, that EPD stock isn't necessarily a great choice for long-term bulls. To be sure, higher prices no doubt will help, as they should stoke further production and higher volumes. Indeed, EPD benefited in the first half of the last decade from the shale boom and crude prices that at times cleared $100. But it's far from the best play.After all, there's no free lunch in the markets. Enterprise's model has allowed EPD stock to hold up even in an unfavorable price environment. But that model also limits upside should crude move to higher levels.For investors who see that scenario, producers are the play. Natural gas-heavy names like Cabot Oil & Gas (NYSE:COG) or EQT Corporation (NYSE:EQT) would benefit if gas prices can bounce from historically low levels. Levered shale plays like Diamondback Energy (NASDAQ:FANG) are good choices for oil bulls, with OXY stock and Chesapeake Energy (NYSE:CHK) in the highest-risk, highest-reward bracket.EPD stock is not the right play for those theses. But it is a stock that can provide steady income well above bond yields, as long as U.S. energy production stays reasonably stable. That's an attractive thesis -- but not one that changes all that much if crude is at $90 or at $50.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post Enterprise Products Partners Stock Is For Income Investors, Not Oil Bulls appeared first on InvestorPlace.
With a 6.80% cash distribution yield, Enterprise Products Partners (NYSE:EPD) will catch the eyes of income investors. The L.P. unit has remained sideways for the last year, but that's acceptable if cash distribution continues to grow. I further believe that in the next 12-24 months EPD stock is likely to trend higher along with cash distribution growth. This makes the limited partnership unit worth considering at current levels.Source: Shutterstock Starting with the trend in cash distribution, the midstream natural gas and crude oil pipeline company paid $1.755 in 2019, $1.715 in 2018 and $1.6675 in 2017. Based on first quarter 2020 cash distribution, the annualized distribution is likely to be $1.78. Therefore, the L.P. unit has a track record of increasing cash distributions.A quick mention that since Enterprise Products is an L.P. unit, cash distribution and cash distribution yield is more appropriate than dividend or dividend yield.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Bullish on Cash Distribution GrowthTo understand the reason to believe that cash distribution will grow, it is important to look at the investment plan.In 2019, EPD completed new expansion projects worth $5.4 billion. These projects commenced operations at different quarters in 2019. Therefore, 2020 will be the first full year of operation for these new projects. This provides visibility for revenue and cash flow upside. * 7 Stocks to Buy for February Contrarians In addition, the firm still has $7.7 billion in major projects that are underway. These projects will be completed through 2023. Projects include natural gas pipeline, Permian gathering & condensate projects, among others.The bottom line is that Enterprise Products Partners is investing for growth and the results will be visible not just in 2020, but in the next few years. This is likely to ensure that the positive trend in cash distribution growth sustains.Another important point to note is that the L.P. has secured long-term contracts for the new projects. There is clear revenue and cash flow growth visibility. I also want to add that according to the company, 77% of the contracted volumes are from investment grade companies. Therefore, even with challenging macro-economic conditions, I believe that cash flows are secure.These growth factors are likely to take EPD stock higher. Ample Financial Flexibility for GrowthSince Enterprise Products Partners has a significant capital expenditure plan, it is important to discuss financial headroom. In particular, since the company reported total debt of $27.9 billion as of September 2019. * 7 Large-Cap Stocks to Buy For Insulation From Volatility Even with high debt, I believe that financing growth and increasing cash distribution is not a concern. The reasons are as follows: * As of September 2019, Enterprise Products Partners reported debt-to-capitalization of 53.30%, which gives the company ample headroom to leverage for growth. * For the first three quarters of 2019, the L.P. reported interest expense of $950 million. This implies an annualized interest expense of nearly $1.3 billion. However, with an annualized EBITDA of $8.2 billion, the company's EBITDA interest coverage is 6.30. With smooth debt servicing capability, further leverage is not a concern. * On an annualized basis, Enterprise Products Partners is likely to report operating cash flow in the range of $6 billion-$7 billion. With healthy cash flows, the unit can invest in growth projects through internal cash. As a matter of fact, Enterprise Products Partners is targeting 50% self funding of growth capital expenditure.With these factors in consideration, it is not surprising that Enterprise Products Partners is rated BBB+. A quality credit rating does give confidence on financial headroom and ability to pay healthy cash distribution. Final Thoughts on EPD StockWith 50,000 miles of natural gas, NGL, crude oil, petrochemicals and refined products pipelines, EPD is a part of the backbone of the U.S. energy industry. In addition, the EPD has a robust storage, natural gas processing and exports facility. This makes the revenue diversified.As the L.P. invests in growth projects in the coming years, cash flows will swell and investors will be rewarded through higher cash distribution.Analysts at Crude Value Insights say that with shares near their low point and cash flows up, now might be a great time for investors to consider taking a stake in the firm.With these factors in consideration, EPD stock is worth considering for the core portfolio.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post EPD Stock has Upside Potential and Cash Distribution Growth Visibility appeared first on InvestorPlace.
With some of the biggest dividends of the stock market MLP partnerships are tempting, but you have to know how to get paid without getting burned.Partnerships are all about paying stockholders to own them. The whole structure of a partnership is set up to pass through profits right to their owners without imposing corporate income tax costs. Investors are already paying regular income taxes on their dividend income.Partnerships come in a variety of structures that include limited partnerships (LPs), master limited partnerships (MLPs), general partnerships (GPs) and limited liability companies (LLCs). For my purposes I tend to refer to all of them as publicly traded partnerships (PTPs) or just good old partnerships.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPartnerships have been around in various forms for many years and exist not just in the U.S. market, but in an increasing number of other nations and tax jurisdictions. But it's been the U.S. that's been the biggest market for these companies thanks to a massive tax reformation that took place in 1986.Prior to 1986, partnerships were operating wildly in the U.S. That was thanks to out-of-this-world effective income tax rates for individuals that topped 70% and a loophole in the U.S. tax code. This loophole meant that partnerships could be structured to generate large amounts of tax losses which could then be used not just to offset current dividend income, but also offset active income including salaries and bonuses.Tax reform legislation changed the code for partnerships and all other pass-through investments. As a result, losses can offset passive investment income.This brought carnage for those gaming the system prior to the tax reforms. And on top of that, the petrol industry further soured investors that weren't prepared for the changes. A Real PartnershipLet's move forward to our current market. Partnerships have continued to mature and expand, resulting in a great opportunity for investors seeking high dividends from solid cash-generating assets.The industries that fit the bill for partnerships include a variety of businesses involved in energy production, processing and distribution as well as other major capital asset businesses including infrastructure and transportation.Energy of course continues to be the biggest part of the U.S. partnership market. This means that you need to be careful not to be too invested -- and thus exposed to a potential fall in crude oil, natural gas or coal. Such falls can have quite dire consequences for cash flows, dividends and stock prices.Partnerships have devastated too many investors, tempting them with super high dividends and then succumbing to market woes. How bad can it be? When a partnership goes under it results in suspended or eliminated dividends, or even worse, bankruptcy.Partnerships are just like any other stocks that pay you to own them. Each of them has to prove how they're going to continue to be profitable with market downturns including the current downdraft of lower crude oil prices.And then they have to prove how each will be able to continue to finance their debt. Taxes Get Paid One Way or AnotherBefore I get to some of my favored partnerships, I need to go through how the taxes work on these partnerships.As noted above, partnerships are structured as pass-through investments. Partnerships earn profits and then pass them through to pay shareholders. That process happens before the partnership pays federal or state taxes.This helps avoid the dreaded double taxation challenge that impacts dividends paid by ordinary common stocks. But it comes with some additional benefits as well as some pitfalls.To start, let's look at the benefits. Not only do you as an investor in a PTP get paid more by not having the PTP pay taxes before you get your cut, but the PTP gets to also pass through depreciation and other costs which is listed as return of capital.The result is that for the dividends paid by PTPs, much of the cash is actually deemed as return of capital and not actual earned income. This means that investors aren't liable for income taxes on much -- or in some cases all -- of the dividend income.But the return of capital then must be used to reduce your cost basis for your investment in the PTPs. So, when you sell, you'll pay taxes on the capital gains that you've had. But you won't have to pay until you sell. So, at worst, you'll defer your tax bills and perhaps, just maybe, you might pay at a lower tax rate for the gains.However, there is a hidden benefit here. If you die before selling, the shares' cost basis is reset to the current market, so the tax bill goes to nill. But of course you have to die to get this benefit, so there is some cost. Partnerships and Retirement AccountsOne more limitation concerns qualified retirement accounts that hold partnerships. IRAs, SEPs and other plans can hold PTPs, but these are not the most tax-efficient accounts to get the full tax benefits of the partnership structure.And if you own too many of these PTPs inside a qualified account you could owe taxes as unrelated business taxable income (UBTI). The tax code establishes that somebody will eventually have to pay taxes on income, even income generated by partnerships.This means that since most income paid by a PTP is return of capital, UBTI limits won't kick in for the vast majority of the dividend income paid by partnerships. K-1s Are OKPTPs don't pay any tax at the corporate level on qualified activities. Instead, quarterly distributions are passed directly to unitholders. (If you're unfamiliar, a unitholder is an investor who owns one or more units in an MLP or investment trust). Investors pay individual taxes on their distributions. But PTP distributions are highly tax-advantaged and offer a significant tax shield.Because many PTP distributions aren't dividends, unitholders don't get a 1099 form at tax time. Unitholders receive a K-1, a standard form typically mailed in February.There are some big tax benefits to owning PTPs. Specifically, due to depreciation allowance, 80%-90% of the distribution you receive from a typical MLP is considered a return of capital by the IRS. You don't pay taxes immediately on this portion of the distribution. Instead, return of capital payments reduce your cost basis in the particular PTP. You're not taxed on the return of capital until you sell the units, which means, at worst, that you get to defer taxes for years to come.And there are other ways to invest in PTPs while completely avoiding these tax considerations. There are exchange-traded funds and closed-end funds which invest in PTPs. The benefit of buying these funds is that all of the K-1 forms and cost basis calculations are handled by the fund manager, and fund holders simply receive a 1099 at tax time.In other words, all the income passed through from the PTPs held in the fund is considered dividend income. You pay taxes on these distributions as you would for any other dividends. And funds help avoid a rare potential additional tax on some qualified investment accounts and plans, unrelated business tax income (UBTI). 3 MLPs and an ETF AlternativeMLPs in the U.S. are largely focused on the petroleum market. And the market for crude and natural gas has been facing challenges since summer 2019. After a bit of a respite in December and early January, the market has taken it on the chin again thanks to the fallout from the coronavirus (2019 n-CoV).The argument goes that as the virus leads to less production of goods and services as well as restricted travel in Asia, that demand for crude oil and natural gas will drop, depressing demand and resulting in lower prices.That said, China only buys 200,000 barrels per day (bpd) of crude from the U.S. -- but it does make up 13% of global consumption of crude.But the key to remember is that MLPs in the U.S. petroleum market are largely focused not on production, but on pipes, terminals and storage facilities. These are less at risk for oil and gas pricing than producers or refiners.But pipeline MLPs do have to deal with counterparty risks. This means that they have to manage the risks that their contracted producers and contracted consumers of petroleum will be able to stand up to their contracts. Because if they don't, then pipes go idle and so too shall cash flows for revenues.The three MLP pipelines below each have been in the markets through thick and thin. So, they have proven their ability to deal with counterparty risk. MLPs to Buy: Enterprise Products Partners (EPD)Source: Chart by Bloomberg Enterprise Products Partners (NYSE:EPD) has a vast network of natural gas, crude oil and other petroleum-related pipelines. Despite the challenges in the markets, revenues are still ample. EPD brought in $8 billion for the recent quarter.It is efficient in its operations, with operating margins running at a fat 18.5% which in turn works to deliver a return on equity of 20.1%. With ample cash and debts manageable at 46.2% of assets, Enterprise is a capable company.And it is a value as the shares are at a mere 2.4 times book value and only 1.8 times trailing revenues.The dividend distribution is running at 44.5 cents for a yield of 6.8%. And those distributions continue to rise by an average annual rate of 4% over the past five years.Investing in quality MLPs is all about buying and owning for the longer term for income and gradual gains. And Enterprise has proven to be a longer-term performer.Source: Chart by Bloomberg The shares have returned 197.7% over the past trailing ten years for an average annual equivalent return of 11.5% per year. Plains GP Holdings (PAGP)Source: Chart by Bloomberg Plains GP Holdings (NYSE:PAGP) is the general partner of Plains All American Pipeline (NYSE:PAA). As the general partner it has the controlling interest and ownership in Plains All American. And PAA has a massive collection of terminals, storage and pipe for crude oil, natural gas and refined products.Plus it is one of the primary pipelines for core U.S. shale production in the Permian Basin.Revenue is strong with the most recent quarter showing over $9 billion. And that revenue has been gaining over the past five year by a compound annual growth rate (CAGR) of 9.5%.The operating margin for the general partner is more modest at 5.9%, but the return on shareholder's equity is ample at 16.5%. And cash is on hand and debts are low at only 31.9% of assets.What's more, the stock is a big bargain as it is valued at a 90% discount to the trailing revenues of the company.Source: Chart by Bloomberg Given the focus on crude oil from the Permian, the stock market hasn't been too keen to provide a better valuation for the share. This shows in the price-to-revenue ratio of 0.1.And the shares are newer to the public market, so the trailing four years have only resulted in a return of 13.1%.The distributions are running at 36 cents per share for a yield of 8.3%. And the distributions are up by 20% over the past year. All of the distributions are fully shielded from current income tax liability, making them worth even more. Magellan Midstream Partners (MMP)Source: Chart by Bloomberg Refined products are where there are better stories. Marine fuel standard changes are providing opportunities for pipes, storage and marine terminals.And that also extends to diesel, gasoline and jet fuels.This is why Magellan Midstream Partners (NYSE:MMP) is a prime pick for me. MMP calls Tulsa, Oklahoma home, and it deals with refined products. Revenues continue to climb with the compound annual growth rate over the past five years running at 7.3%. And operating margins are a whopping 44.1%, which in turn delivers a return on equity of 40.2%.Source: Chart by Bloomberg Dividends provide a yield of 6.8% and the distributions are rising, with the five-year annual average running at 9.1%. And MMP has returned a positive 373.3% over the past ten years for an average annual equivalent return of 16.8%. ETF Alternative: Alerian MLP (AMLP)Source: Chart by Bloomberg For investors wanting to gain the income and longer-term growth of MLPs without K-1 tax forms, there is the Alerian MLP ETF (NYSEARCA:AMLP). This ETF has the three MLPs as primary synthetic holdings in the fund.The ETF hasn't been gaining investor attention because the MLP space has been challenged. This means AMLP is a bit of a bargain.But for those that do like to buy a bargain, you'll be well paid. The dividend is running at 19.5 cents for a yield of 9.5%. And this ETF works for those seeking to avoid K-1s.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post 3 MLPs and a Rich ETF to Buy for Excellent Portfolio Padding appeared first on InvestorPlace.
Enterprise Products Partners' (EPD) fourth-quarter 2019 earnings are supported by higher sales volumes, and margins from the NGL Pipelines & Services business.
The Texas Supreme Court on Friday ended an eight-year legal battle between two midstream competitors, Energy Transfer Partners and Enterprise Products Partners, over whether they had legally formed a partnership that was not acknowledged as such in writing. In a 15-page opinion, the court handed Houston-based Enterprise (NYSE: EPD) a unanimous win, reiterating its 2009 holding in Ingram v. Deere, that the Legislature did not intend to “spring surprise or accidental partnerships” on parties. The hard-fought legal battle dates back to 2011, when Enterprise and Dallas-based Energy Transfer (NYSE: ET) entered an agreement to explore pursuing a joint venture project together to build a pipeline from Cushing, Okla., to the Gulf Coast.
Enterprise Products Partners L.P. (NYSE:EPD) today announced that it has prevailed in its appeal against Energy Transfer Partners in the Supreme Court of Texas. This appeal stems from a 2014 Dallas jury verdict against Enterprise in a lawsuit filed by Energy Transfer over a proposed pipeline project that was cancelled due to a lack of customer support. A panel of the Dallas Court of Appeals issued a unanimous opinion reversing the trial court’s judgment as to all of ETP’s claims against Enterprise, and today the Supreme Court of Texas unanimously affirmed this ruling.
In retirement, investors must figure out how to generate enough income without a job while also ensuring that they don't outlive their income stream. The best retirement stocks to buy in 2020 (or any other year), then, assuredly must be dividend-paying ones.Receiving regular dividends reduces an investor's dependence on the market's fickle price swings to make ends meet. Whether or not the market rises or falls in 2020, a portfolio of quality businesses can continue delivering predictable, growing dividend income.Compared to many fixed-income investments, dividend stocks also can generate higher current income in today's low-interest-rate environment, growing their payouts each year to help preserve one's purchasing power. Dividend stocks, like other equities, provide meaningful long-term price appreciation potential as well.Research firm Simply Safe Dividends published an in-depth guide about living on dividends in retirement here. However, a key component to this strategy is finding the best retirement stocks that can deliver safe dividends and grow in value over time.On that note, these are the 20 best retirement stocks to buy in 2020. The 20 stocks on this list appear to have safe dividends, yield between 3.5% and 6.9%, and have solid potential to continue growing their payouts in the long term. SEE ALSO: Kiplinger's 20 Best Stocks for 2020
Enterprise Products Partners LP said on Thursday it will own a 29% undivided joint interest in the Wink-to-Webster crude pipeline system and construction on the segment to Webster, Texas, is expected to be completed by the end of 2020. The company said its Midland‐to‐ECHO 3 crude pipeline, which will be a part of the Wink-to-Webster system, is expected to be in service in the third quarter of this year. "I don't expect more than 200,000 to 300,000 barrels a day to flow until the Webster leg is complete," Jim Teague, co-chief executive officer, said on its quarterly earnings call.
Houston-based Enterprise Products Partners LP (NYSE: EPD) has promoted its president and CFO to a co-CEO position, the midstream giant announced Jan. 30. Both Teague and Fowler will continue to serve as directors on the board of Enterprise’s general partner and members of the four-person Office of the Chairman. The other two members are Randa Duncan Williams, chairman of Enterprise’s general partner and chairman of Enterprise Products Co., and Richard H. Bachmann, vice chairman of the board of Enterprise’s general partner and president and CEO of Enterprise Products Co. "Jim and Randy have been constants in Enterprise’s leadership and success since 1999," Williams said in a press release.
(Bloomberg) -- Enterprise Products Partners LP’s 74-year-old boss Jim Teague played down expectations of his retirement after the pipeline company named a co-chief executive officer.The Houston-based company on Thursday elevated Chief Financial Officer Randy Fowler, 63, to serve as co-CEO alongside Teague, a move that appeared to indicate a succession plan is in place.But Teague said on the company’s fourth-quarter earnings call that thereshuffle wasn’t a transition toward his retirement.“As far as I’m concerned, I’m not going anywhere,” Teague said. “I’m really not convinced that my runway isn’t as long as Randy’s.”The leadership rejig comes as Enterprise faces questions over its structure as a master limited partnership. Many of its peers in the pipeline industry have converted to corporations, and Fowler said last year that such a move may be “inevitable” for the company. Pipeline partnerships began to lose their appeal after the slide in oil prices that began in 2014 sparked cuts to cash distributions. The investor exodus accelerated in 2018 after a series of changes in U.S. tax policy.Fowler will continue in his role as CFO, and he and Teague will remain on the company’s board. “We complement each other,” Teague said.“While they will jointly be responsible for all aspects of the partnership, Jim’s principal focus areas will continue to be the commercial, operations and engineering functions, while Randy’s will be the finance, accounting, information technology and risk management functions,” Randa Duncan Williams, chairman of Enterprise’s general partner, said in a statement.It’s “logical” for Teague to have a reduced role over time, Hinds Howard, a portfolio manager at CBRE Clarion Securities LLC, which owns Enterprise shares, said prior to the call. It’s “not a surprise Randy is the guy,” he said.Enterprise fell 4.3% to $26.13 at 10:53 a.m. in New York. The company reported adjusted earnings for the fourth quarter that met analysts’ estimates, and said it will spend 2% of its cash flow from operations to buy back stock in 2020.Teague was named CEO in December 2015. He joined the company in 1999 after a 23-year career at Dow Chemical Co. and had previously worked for companies formed by Dan Duncan, the founder of Enterprise and one of the richest people in Texas when he died in 2010. Randa Duncan Williams is Dan’s daughter.Teague was notably absent from the company’s analyst event in April of last year after breaking three ribs while “acting as a chauffeur for his two tween stepkids, enthusiastically cheering at both middle school baseball and softball tournaments,” Duncan Williams said at the time. It was the first time Teague missed an investor day since taking the reins at the end of 2015.“Enterprise has never been a job for me,” Teague said on Thursday’s call. “It’s a calling.”Fowler was named president and CFO in August 2018 after previously serving as a director of the company’s general partner and the co-chairman of its capital projects committee.\--With assistance from Christine Buurma.To contact the reporters on this story: Rachel Adams-Heard in Houston at email@example.com;David Wethe in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Christine BuurmaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Enterprise Products' (EPD) adjusted distributable cash flow was recorded at $1.6 billion, up 12% year over year and provided coverage of 1.7x.
Enterprise Products Partners L.P. (NYSE:EPD) today announced that the board of directors of its general partner has elected its officers, which are effective immediately. A. J. "Jim" Teague and W. Randall Fowler have each been elected to the role of co-chief executive officer ("co-CEO"). Mr. Teague and Mr. Fowler will continue to serve as directors on the board of Enterprise’s general partner and members of the four-person Office of the Chairman, which also includes Randa Duncan Williams, chairman of Enterprise’s general partner and chairman of privately-held Enterprise Products Company, and Richard H. Bachmann, vice chairman of the board of Enterprise’s general partner and president and chief executive officer of Enterprise Products Company. Mr. Fowler will continue his role as chief financial officer.