Enterprise Products Partners L.P. EPD recently announced that its chief executive officer (CEO) Michael A. Creel would retire as of Dec 31, 2015. A.J. “Jim” Teague, Enterprise Products Partners’ chief operating officer, has been elected to succeed Creel as CEO.
Teague has served as a director since 2008 and as chief operating officer since 2010. Mr. Teague joined Enterprise Products Partners in 1999. He is a retiree of The Dow Chemical Company DOW following a 23-year career. Teague has 40 years of experience in the midstream and petrochemical industries.
Teague’s expertise should help Enterprise Products Partners, which is engaged in a broad range of midstream energy services to the producers and consumers of natural gas, natural gas liquids (NGL) and crude oil. The partnership's assets include 51,000 miles of onshore and offshore pipelines, approximately 200 million barrels of storage capacity for NGLs, refined products and crude oil, and 14 billion cubic feet of natural gas storage capacity.
We continue to view Enterprise Products Partners as a core holding in the MLP portfolio, given its string of organic growth projects, potential acquisitions, strong balance sheet and solid liquidity position. The partnership is one of the major fully integrated midstream service providers with a positive long-term outlook, and has significant geographic and business diversity.
Enterprise Products Partners continues to capitalize on the NGL market dynamics by increasing its Eagle Ford shale exposure. Eagle Ford remains its growth driver by compensating for volume weakness in other regions of the Mid-continent.
We believe that Enterprise Products Partners has solid cash flow stability based on its quality pipeline, storage assets and geographic diversity. Yet, volume risk and commodity price exposure could weigh on its near-term results. We also remain apprehensive of a volatile NGL pricing environment.
At present, Enterprise Products Partners carries a Zacks Rank #3 (Hold). Better-ranked players in the energy sector include Sprague Resources LP SRLP and Western Gas Equity Partners LP WGP. Both these stocks sport a Zacks Rank #1 (Strong Buy).
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