EPD

Midstream giant Enterprise Products Partners (EPD) has attracted significant investor interest because of its simplified structure, 51 consecutive quarters of dividend growth and strong coverage — $2.7 billion in retained cash in the past three years. The company, with a market capitalization of $58 billion, has also quietly continued to build out its large integrated midstream network despite the plunge in commodity prices, investing almost $18 billion in organic growth projects and acquisitions in 2014-16. The end result is impressive: Enterprise is now connected to every major U.S. shale basin, every U.S. ethylene cracker and 90% of the refineries east of the Rocky Mountains. As a result, the company is well positioned to benefit from the recovery in oil and gas production, especially in the Permian Basin and Eagle Ford Shale; the surge in hydrocarbon exports; and the rapid growth of the U.S. petrochemical industry. Today we discuss highlights from the second part of our new Spotlight analysis of EPD, which focuses on the company’s Crude Oil Pipelines & Services, Natural Gas Pipelines & Services and Petrochemical & Refined Products Services segments.

Midstream giant Enterprise Products Partners, with a market capitalization of $57 billion, has attracted significant investor interest because of its simplified structure, 51 consecutive quarters of dividend growth and strong distribution coverage — $2.7 billion in retained cash in the last three years. The company has continued to build out its large integrated midstream network despite the plunge in commodity prices, investing almost $18 billion in organic growth projects and acquisitions in 2014-16. Enterprise (NYSE: EPD) is now connected to every major U.S. shale basin, every U.S. ethylene cracker and 90% of the refineries east of the Rocky Mountains. As a result, it is well positioned to benefit from the recovery in crude oil and natural gas production, especially in the Permian and the Eagle Ford; continuing NGL and crude oil exports; and the impending growth of the U.S. petrochemical industry. Today we discuss highlights from the first part of our new Spotlight analysis of EPD, which focuses on the company’s NGL Pipelines & Services segment.