Enterprise Products Partners L.P. EPD announced an increase in its quarterly cash distribution to $0.375 per common unit, or $1.50 per unit on an annualized basis. The quarterly distribution will be paid on May 7, to unitholders of record as of the close of business on Apr 30.
This distribution, which represents a 5.6% increase from the distribution declared in the first quarter of 2014, is the 52nd distribution increase since Enterprise’s initial public offering in 1998 and the 43rd consecutive quarterly increase.
Enterprise Products Partners is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership’s assets include approximately 51,000 miles of onshore and offshore pipelines; 225 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
We continue to view Enterprise Products Partners as a core holding in the master limited partnership 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 position itself to capitalize on the NGL market dynamics by increasing its Eagle Ford shale exposure. Eagle Ford continues to be a growth driver for the partnership by offsetting 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 are Alon USA Partners, LP ALDW, CNOOC Ltd. CEO and Marathon Petroleum Corporation MPC. All these stocks sport a Zacks Rank #1 (Strong Buy).
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