Back to top

Analyst Blog

Enterprise Products Partners L.P. (EPD - Analyst Report) announced an increase in the quarterly cash distribution to 67 cents per common unit, or $2.68 per unit on an annualized basis. The quarterly distribution will be paid on May 7, 2013, to unitholders of record as of the close of business on Apr 30, 2013.

This distribution, which represents a 6.8% increase over the $0.6275 per unit distribution declared for the first quarter of 2012, is the 44th hike since EPD’s initial public offering in 1998 and the 35th consecutive quarterly increase.

EPD is a leading master limited partnership (MLP) engaged in providing a wide range of midstream energy services to the producers and consumers of natural gas, natural gas liquids (NGL) and crude oil.

We believe EPD remains a core holding in the master limited partnership portfolio with a focus on projects that generate stable cash flow and contribute to its integrated value chain. While EPD increased its cash flow distribution by 6.5% in the fourth quarter, it also deployed cash in various fee-based development projects that will likely generate operating cash flow to support its future distribution growth.

Over the last one year, the partnership has commissioned several projects worth around $3 billion. The projects completed during the fourth quarter include the sixth NGL fractionator at Mont Belvieu and the expansion of the natural gas and NGL pipeline systems serving the Eagle Ford shale. The Eagle Ford natural gas, NGL and crude oil pipelines are expected to increase volumes over the coming years. Recently, the partnership commissioned the third processing train at its Yoakum natural gas plant. These projects are likely to boost cash flow in the coming years.

Seaway Crude Oil Pipeline Company LLC – a 50/50 joint venture between the affiliates of EPD and Enbridge Inc. (ENB - Snapshot Report) – manages the Seaway crude oil pipeline.

However, EPD remains vulnerable to macro conditions and unstable oil and gas prices, which in turn could hurt margins in NGL, natural gas and other businesses. Hence, the partnership, which recently entered into a 50/50 joint venture with Plains All American Pipeline, L.P. (PAA - Analyst Report) for a crude oil pipeline in South Texas, carries a Zacks Rank #3 (Hold). NuStar Energy L.P. (NS - Analyst Report) is another MLP in the oil and gas production pipeline sector, which holds a Zacks Rank #2 (Buy) and is expected to perform better.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%