Leading master limited partnership (MLP), Enterprise Products Partners L.P. EPD announced that the partnership’s plants in the Texas Gulf Coast have suffered minor damages from the cumulative effects of the tropical storm, Harvey.
Aftermaths of Tropical Storm Harvey
Currently, Enterprise Products is contemplating possible reduction of natural gas liquid (NGL) fractionation and storage services at its Mont Belvieu complex.
Both Texas and Mont Belvieu facilities have suffered power loss, the absence of third party services, minor damages and rising water level. The partnership efficiently managed to maintain its natural gas, NGL and crude oil pipelines, which serve the Eagle Ford Shale and South Texas.
The interruption of energy demand as a result of Harvey aggravated the impacts on refineries and petrochemical facilities situated in the U.S. Gulf Coast. Moreover, the shutdown of all ports on the Texas Gulf Coast, which limit access to export markets added to troubles.
All these impacts have cumulatively led to brine containment issues and a drop in fractionation capacity at Enterprise Product’s Mont Belvieu complex. Therefore, without any aid to resolve these issues, the company is pondering over the curtailment of NGL fractionation and storage services. A periodic update of the situation will be provided as necessary.
About the Partnership
Enterprise Products, a leading master limited partnership (MLP), is engaged in providing a wide range of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGL) and crude oil. Enterprise Products has an extensive network of pipeline that spreads over almost 50,000 miles and earns stable fee-based revenues.
However, since 2012, long-term debt of Enterprise Products has risen at an exponential rate. As of Mar 31, 2017, the total long-term debt stands at $21.1 billion, while its cash and equivalents came in at only $107 million, reflecting balance sheet weakness.
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Shares of the company have lost 4.8% over the last three months while the industry declined 10.2% in the same time span.
Zacks Rank & Stock Picks
Currently, Enterprise Products Partners carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the energy sector are TransCanada Corporation TRP, Transmontaigne Partners LP TLP and Range Resources Corporation RRC. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here..
Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company delivered an average positive earnings surprise of 4.06% over the last four quarters.
Transmontaigne, headquartered in Denver, CO, involves in transporting and storing refined petroleum products. The firm delivered an average positive earnings surprise of 6.60% over the last four quarters.
Based in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of U.S. oil and gas resources. The company’s 2017 earnings are estimated to grow 1587.17%.
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