Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

A month has gone by since the last earnings report for Enterprise Products Partners (EPD) . Shares have added about 0.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Enterprise Products due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Enterprise Q4 Earnings Top ...

In the latest market close, Enterprise Products Partners (EPD) reached $33.09, with a -0.69% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.12%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.Heading into today, shares of the provider of midstream energy services had gained 1% over the past month, outpacing the Oils-Energy sector's loss of 5.86% and the S&P 500's loss of 4.13% in that time.The investment ...

Enterprise Products Partners (EPD 1.80%) is trading for way less than $100 a share, so even a very modest investment can get you in the door of this midstream master limited partnership (MLP). The big reason to take the leap is the 6.3% distribution yield that you'll collect, which is multiples higher than the tiny 1.2% yield of the S&P 500 index.The good news doesn't stop there. Here are a few more reasons why Enterprise is the best high-yield midstream investment for you right now.What does Enterprise Pro ...

Gas Processing Capacity - The company operates 11,072 MMcf/d of net gas processing capacity and a total gas processing capacity of 12,220 MMcf/d as of February 1, 2025[36]. - Utilization rates for natural gas processing facilities were approximately 68.4%, 69.6%, and 66.5% for the years ended December 31, 2024, 2023, and 2022, respectively[40]. - The company is constructing an eighth natural gas processing train ("Orion") with a capacity of 300 MMcf/d, expected to be operational in Q3 2025[42]. - Two additional natural gas processing trains at Mentone West, each with a capacity of 300 MMcf/d, are expected to be operational in Q3 2025 and H1 2026[44]. NGL Pipeline and Marketing - The company owns and operates a total of 18,613 miles of NGL pipelines, facilitating the transportation of mixed NGLs and purity NGL products[49]. - The Mid-America Pipeline System, which is 7,103 miles long, is one of the key assets in the company's NGL pipeline network[49]. - Transportation fees for NGL pipelines are based on tariffs regulated by governmental agencies or contractual arrangements[47]. - The company’s NGL marketing results depend on the difference between NGL sales prices and associated purchase costs, with market prices subject to fluctuations[34]. - The net throughput volumes for the NGL pipelines were 4,355 MBPD, 4,040 MBPD, and 3,703 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively, indicating a year-over-year increase of 7.8% from 2023 to 2024[55]. - The Bahia NGL Pipeline, with a design capacity of 600 MBPD, is expected to be operational by the fourth quarter of 2025, enhancing transportation capacity from the Permian Basin[59]. - The overall utilization rates for NGL fractionators were 106.4%, 106.0%, and 100.0% for the years ended December 31, 2024, 2023, and 2022, respectively, reflecting consistent operational efficiency[65]. - The Mont Belvieu area NGL fractionators have a total net plant capacity of 1,498 MBPD and a total plant capacity of 1,667 MBPD, supporting significant processing capabilities[63]. - Plans to construct NGL fractionator 14 ("Frac 14") with a design capacity of 150 MBPD are underway, expected to enter service in the third quarter of 2025[66]. Storage Capacity - The company operates a total of 216.7 MMBbls of net usable storage capacity across various locations, with the largest facility in Mont Belvieu having a capacity of 169.5 MMBbls[71]. - The company operates a total of 145 above-ground tanks with a net storage capacity of 44.0 MMBbls across various terminals in Texas and Oklahoma[99]. - The EHT marine terminal can load up to 2.9 MMBPD, equating to 88 MMBbls per month, making it one of the largest facilities on the Gulf Coast[102]. Crude Oil Pipelines - Net throughput volumes for crude oil pipelines were 2,510 MBPD, 2,461 MBPD, and 2,222 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively[86]. - The South Texas Crude Oil Pipeline System has a capacity to transport approximately 450 MBPD of crude oil and condensate[95]. - The Seaway Pipeline has an aggregate transportation capacity of approximately 950 MBPD, depending on the type and mix of crude oil being transported[87]. - The Eagle Ford Crude Oil Pipeline System has a capacity to transport over 600 MBPD of crude oil and condensate[101]. Ethane and Propylene Export - Ethane loading volumes at the Morgan's Point Ethane Export Terminal averaged 213 MBPD, 198 MBPD, and 168 MBPD for the years ended December 31, 2024, 2023, and 2022, respectively[80]. - The Neches River Ethane/Propane Export Facility is expected to be completed during the third quarter of 2025 and first half of 2026 to expand ethane and propane export capabilities[81]. - Propylene production facilities have a total capacity of 117 MBPD, with an overall utilization rate of approximately 74.2% for the year ended December 31, 2024[128]. - Global demand for propylene is increasing, with PDH facilities capable of producing up to 1.65 billion pounds per year, or approximately 25 MBPD, of polymer grade propylene (PGP)[129]. Regulatory Environment - The company is subject to federal and state regulations regarding the disposal of hazardous and non-hazardous wastes, which may impose additional costs and operational restrictions[179]. - Under CERCLA, the company could incur liability for remediation costs related to hazardous substances, potentially affecting financial performance[180]. - The FERC has set the Index Level for pipeline rates at PPI plus 0.78% for the period from July 1, 2021, to June 30, 2026, which may impact future revenue[184]. - The company’s natural gas pipelines are regulated under the NGPA, and the rates charged must be fair and equitable, affecting profitability[188]. - The potential civil penalties for violations of FERC regulations could reach approximately $1.6 million per day per violation as of January 2025, posing a financial risk[190]. Competition - The company faces competition from independent processors and major integrated oil companies in the NGL market, impacting pricing and market share[200]. - Climate change regulations may increase operating costs and compliance burdens, affecting overall profitability and market demand for fossil fuels[197]. - The company’s operations may be impacted by the designation of habitats for endangered species, potentially leading to increased costs or operational restrictions[181]. - The company faces intense competition in the NGL and related product storage business from major integrated oil companies and other storage service providers, focusing on fees, pipeline connections, and operational dependability[201]. - In the natural gas gathering business, competition is based on reputation, efficiency, system reliability, and pricing arrangements, with key competitors including independent gas gatherers and major integrated energy companies[204]. Health and Safety - The company's Total Recordable Incident Rate (TRIR) for 2024 was 0.33, which is favorable compared to the midstream industry average over the last seven years, indicating a strong commitment to health and safety[214]. - Approximately 7,800 EPCO personnel are engaged in the company's business, with 14% being female and 33% being minorities, reflecting a commitment to workforce diversity[213]. Operational Challenges - The company’s operations along the Gulf Coast may be affected by seasonal weather events, impacting throughput volumes and natural gas storage levels during winter and summer months[211]. - The company’s construction of new assets is subject to various risks, including operational, regulatory, and environmental challenges, which may lead to delays and increased costs[221]. - The company’s growth strategy may be impacted by illiquid capital markets or increased competition for investment opportunities, potentially limiting future financial flexibility[221].

Favorable oil prices are supporting exploration and production activities, leading to increased upstream operations. This is expected to drive higher demand for pipeline and storage assets, enhancing the outlook for the Zacks Oil and Gas - Pipeline MLP industry.These partnerships benefit from stable, fee-based revenues secured through long-term contracts with shippers. With a strong pipeline of growth projects, midstream companies are well-positioned to generate additional cash flows, reinforcing their stab ...

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Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Enterprise Products Partners (EPD), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4][12]. Group 1: Brokerage Recommendations - Enterprise Products has an average brokerage recommendation (ABR) of 1.69, indicating a consensus between Strong Buy and Buy, based on 16 brokerage firms [2]. - Out of the 16 recommendations, 10 are classified as Strong Buy, accounting for 62.5%, while one is a Buy, making up 6.3% of the total recommendations [2]. - Despite the positive ABR, the article cautions against relying solely on this metric for investment decisions, citing studies that show limited success of brokerage recommendations in predicting stock price increases [4][9]. Group 2: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more effective indicators of near-term stock price performance [7][10]. - The Zacks Consensus Estimate for EPD has increased by 1.9% over the past month to $2.90, reflecting analysts' growing optimism about the company's earnings prospects [12]. - EPD currently holds a Zacks Rank 2 (Buy), suggesting that the positive ABR can serve as a useful guide for investors when combined with the Zacks Rank [13].

Group 1 - The focus of iREIT+HOYA Capital is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Energy is highlighted as a favorable investment sector due to scale advantages leading to strong cash flows for shareholder returns [2] - Energy stock valuations have recently stabilized, presenting potential investment opportunities [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4] - It is noted that past performance does not guarantee future results, and no specific investment recommendations are provided [5]

Core Viewpoint - High dividend yields can indicate potential risks, but Enterprise Products Partners (EPD) has demonstrated a stable and sustainable high yield of 6.5% over the years, making it a safe investment for passive income seekers [2][5]. Company Performance - Enterprise Products Partners generated a record $7.8 billion in distributable cash flow last year, covering its cash distribution to investors by a ratio of 1.7 times, allowing the company to retain $3.2 billion for expansion and maintain a strong balance sheet [4]. - The company ended the year with a leverage ratio of 3.1 times, within its target range of 2.75 to 3.25, supporting its investment-grade balance sheet with the highest credit rating in the midstream sector at A-/A3 [5]. Growth Potential - The company increased its distribution by 5% last year, marking 26 consecutive years of growth, and has already raised its payout by 3.9% this year [6]. - Enterprise Products Partners plans to invest $4 billion to $4.5 billion in growth capital projects this year, following $3.9 billion spent last year, which is expected to fuel significant growth in cash flow and distribution [7]. - Major organic growth projects worth $6 billion are anticipated to be completed in 2025, including new natural gas processing plants and expansions of existing facilities, which will further enhance cash flow [7]. Future Outlook - The company has additional projects scheduled to enter service in 2026, with capital spending projected at $2 billion to $2.5 billion next year to complete these projects [8]. - With an increase in cash flow expected from new projects and a decline in capital spending in 2026, Enterprise Products Partners is poised to generate significantly more excess free cash flow, allowing for continued distribution increases and potential debt repayment or unit repurchases [9]. Investment Appeal - The company is characterized as a cash-producing machine, with a portion of its cash flow allocated to cover high-yield distributions while retaining sufficient funds for expansion projects, making it an attractive option for investors seeking secure income streams [11].