Enterprise Products Partners is an income-producing machine. Enterprise Products Partners (EPD 0.93%) has a knack for increasing its cash-distribution payments to investors. The master limited partnership (MLP) has given its investors a raise twice already this year and boosted its payout by 5% over the last 12 months. That continues its long history of dividend growth. This year marks its 26th consecutive year of distribution increases. The MLP has ample fuel to continue increasing its distribution, which ...

The stock market's tumble on Monday also spooked even the best oil and gas stocks. Because fears of a recession were the primary reason for the market's implosion, traders were worried about the impact on oil. The energy industry is reliant upon robust demand—and the higher pricing that follows—to fuel future growth. If the economy were faltering, so would oil and gas demand. Brent crude and West Texas Intermediate fell about 1% to their lowest prices since January. However, since the sky hasn't appeared to ...

Enterprise Products Partners (EPD -0.47%) offers investors a lucrative passive income stream. The master limited partnership's (MLP) distribution currently yields around 7%. That's several times higher than the S&P 500's 1.3% dividend yield. The company's rising volumes helped fuel an 11% increase in its adjusted cash flow from operations, which rose to $2.1 billion. That was enough cash to cover the company's high-yielding payout by a comfy 1.6 times, even after increasing it by 5% over the past year (the ...

Financial Data and Key Metrics Changes - The company reported a net income attributable to common unitholders of $1.4 billion, or $0.64 per unit, for Q2 2024, representing a 12% increase compared to Q2 2023 [89] - Adjusted cash flow from operations increased by 11% to $2.1 billion for Q2 2024, compared to $1.9 billion in the same quarter last year [90] - Adjusted EBITDA was $2.4 billion for Q2 2024, up from $2.2 billion in the same quarter last year [44] Business Line Data and Key Metrics Changes - The NGL Pipeline and Services segment reported a 19% increase in gross operating margin compared to Q2 2023, driven by new natural gas processing plants in the Permian [8] - The Natural Gas Pipelines & Services segment saw a 23% increase in gross operating margin, primarily due to higher transportation revenues and marketing margins [9] Market Data and Key Metrics Changes - Exports to China accounted for approximately 43% of total exports, with 21% to the Americas and 13% to Europe, indicating robust demand across various markets [36] - The company handled a near-record 12.6 million barrels per day of crude oil equivalent volumes in Q2 2024 [7] Company Strategy and Development Direction - The company is focused on organic growth opportunities, with $6.7 billion in projects under construction that are expected to enhance future earnings and cash flow [82] - Management emphasized the importance of returns on capital and cash flow growth, indicating a preference for organic growth over acquisitions [64][66] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for LPG, particularly in emerging markets like Africa and India, where LPG serves as a transition fuel [155] - The company anticipates that rich gas volumes from the Permian will exceed previous forecasts, indicating a positive outlook for future production [80][130] Other Important Information - The company declared a distribution of $0.525 per common unit for Q2 2024, a 5% increase from the previous year [21] - Total capital investments for Q2 2024 were $1.3 billion, including $1 billion for growth capital projects [91] Q&A Session Summary Question: What is the current status of LPG export expansions? - Management indicated that the market is calling for additional capacity, with 85% to 90% of existing and expansion capacity contracted [32] Question: How is the company addressing the demand for LPG in China? - Exports to China are currently around 43%, with robust demand observed across various markets [36] Question: What are the company's thoughts on capital allocation for buybacks versus growth? - Management stated that they are targeting buybacks in the $200 million range while focusing on organic growth opportunities [57][58] Question: How does the company view the current state of the ERCOT market? - Management acknowledged the challenges in the ERCOT market and is exploring options for power generation to ensure stability [62][68] Question: Can you provide an update on the PDH plants? - The PDH 2 plant is expected to be operational by mid-August, with full rates anticipated by September [162]

Financial Performance & Capital Allocation - The company's distribution increased to $0.525 per unit for 2Q 2024, a 5% increase over 2Q 2023[39] - Buybacks in 2Q 2024 totaled $40 million, representing 1.4 million common units; for the trailing 12 months ended June 30, 2024, buybacks were $176 million, representing 6.5 million common units[7] - Adjusted CFFO Payout Ratio was 55% for the trailing twelve months ended June 30, 2024[7] - Capital returned to equity investors via LP distributions and common unit buybacks since IPO amounts to $54.4 billion[39] Capital Expenditure & Projects - Sustaining Capital Expenditures are estimated to be approximately $600 million in 2024, including petrochemical turnarounds[7] - Major capital projects under construction total $6.7 billion, supporting future cash flow growth and capital returns to unitholders[9, 43] - Growth Capital Expenditures are projected to be approximately $3.5 billion to $3.75 billion in 2024[7] - Growth Capital Expenditures are projected to be approximately $3.25 billion to $3.75 billion in 2025[39] - Growth Capital Expenditures are projected to be approximately $2.0 billion to $2.5 billion in 2026[15] Liquidity & Leverage - Liquidity stands at $3.4 billion as of June 30, 2024, comprised of available credit capacity and unrestricted cash[15] - Leverage Ratio is 3.0x TTM 2Q 2024, with a target ratio of 3.0 (+/- 0.25x)[15]

Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alte ...

Ample fuel to continue pushing the payout higher Enterprise Products Partners has spent billions of dollars over the years to expand its integrated midstream business through organic expansion projects and acquisitions. The company invested $2.9 billion into growth capital projects last year, which included spending $65 million in the fourth quarter to buy the Wilson natural gas storage facility. Those investments have helped grow its cash flow, which enables it to continue increasing its distribution. The ...

Growth Score Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks. How Style Scores Work with the Zacks Rank This totals more than 800 top-rated stocks, and it can be overwhelming to try ...

Company Performance - Enterprise Products Partners (EPD) closed at $29.12, with a daily gain of +0.48%, outperforming the S&P 500's gain of 0.09% [1] - Over the past month, EPD shares appreciated by 2.73%, while the Oils-Energy sector experienced a loss of 0.69% [2] Financial Estimates - For the fiscal year, Zacks Consensus Estimates predict earnings of $2.73 per share and revenue of $58.34 billion, reflecting increases of +7.91% and +17.35% from the previous year [3] - The upcoming earnings report is projected to show earnings of $0.65 per share, indicating year-over-year growth of 14.04%, with revenue expected to be $14.03 billion, a 31.74% increase compared to the same quarter last year [10] Valuation Metrics - EPD currently has a PEG ratio of 1.35, which is in line with the industry average [5] - The Forward P/E ratio for EPD is 10.62, which is a discount compared to the industry's average Forward P/E of 12.28 [8] Industry Context - The Oil and Gas - Production Pipeline - MLB industry ranks in the bottom 31% of all industries, with a current Zacks Industry Rank of 176 [9] - The Zacks Rank system indicates that stocks rated 1 have historically produced an average annual return of +25% since 1988, with EPD currently holding a Zacks Rank of 3 (Hold) [4]

#1: Enterprise Products Partners Enterprise Products Partners (EPD) issues a Schedule K-1, and is a moat-worthy midstream company with mission-critical assets throughout the hydrocarbon value chain. This includes pipelines, storage, processing facilities, and an export hub for natural gas, NGL, and LNG products along the Houston Ship Channel. Natural gas is an important part of the energy mix, especially considering its reliable nature compared to intermittent sources like solar and wind. This will become e ...