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Enterprise Products (EPD) Announces 66th Distribution Hike

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Enterprise Products Partners L.P. (EPD - Free Report) recently got an approval from the board of directors for third-quarter 2018 quarterly distribution of 43.25 cents per unit, representing a year-over-year hike of 2.4%. The new distribution also marks a sequential increase of 0.6%. 

The distribution of Enterprise Products now stands at $1.73 per unit on an annualized basis, which will be paid on Nov 8 to its unitholders on record as of Oct 31, 2018. Based on the closing price of $29.13 as of Oct 4, the third-quarter 2018 distribution translates to a yield of 5.9%, lower than the industry’s 7.1%.

This marks the company’s 66th distribution hike since 1998's initial public offering. The Houston, TX-based midstream energy partnership remains focused on boosting its unitholders’ value through distribution hikes, which shows strength in its operations. Notably, the latest hike marks the 57th consecutive quarterly distribution increase effectuated by the partnership.

 

 

The partnership announced that it will report third-quarter 2018 earnings on Oct 31, 2018, before the opening bell. Its earnings for the to-be-reported quarter are estimated to soar 43.3% from the year-ago level. 

Enterprise Products is a leading master limited partnership, engaged in providing a wide range of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGL), and crude oil. It owns pipelines of around 49,000 miles, having a storage capacity of 260 million barrels of liquids and 14 billion cubic feet of natural gas. 

Price Performance

Enterprise Products has gained 10.8% in the past year compared with 2% collective growth recorded by the industry it belongs to.

 

 

Zacks Rank and Other Stocks to Consider

Currently, Enterprise Products has a Zacks Rank #2 (Buy). Investors interested in the oil and gas sector can also opt for other top-ranked stocks like Petroleo Brasileiro S.A. (PBR - Free Report) or Petrobras, Shell Midstream Partners, L.P. and CNX Resources Corporation (CNX - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.

Shell Midstream Partners is involved in owning, operating, developing and acquiring pipelines, and other midstream assets. The partnership delivered an average positive earnings surprise of 7.9% in the trailing four quarters.

CNX Resources is an independent oil and gas exploration and production company. The company delivered a positive earnings surprise of 250.0% in the last reported quarter.

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