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Here's Why Enterprise (EPD) is an Attractive Investment Bet
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Enterprise Products Partners LP (EPD - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. In the past six months, the stock, carrying a Zacks Rank #2 (Buy), has gained 20.9%, outpacing the 16.2% rise of the composite stocks belonging to the industry.
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What’s Favoring the Stock?
Enterprise Products has a stable business model and is not significantly exposed to the volatility in oil and gas prices. Enterprise Products generates stable fee-based revenues from its extensive pipeline network across nearly 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The midstream infrastructure provider also has storage assets that can store roughly 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $4.6 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.
The partnership’s balance sheet has lower debt exposure than the composite stocks belonging to the industry. Its debt-to-capitalization ratio of 0.53 is lower than the industry’s 0.55. In fact, the ratio has persistently been lower than the stocks in the industry in the past few years. The liquidity profile of Enterprise Products is impressive, as EPD reported its consolidated liquidity at $3.9 billion, which incorporates available borrowing capacity under its revolving credit facilities and unrestricted cash.
Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.
The substantial exposure to improving commodity price is a huge positive for Antero Resources.
Comstock is a well-known name in the upstream space, with operations across the gas-rich Haynesville shale in North Louisiana and East Texas. The substantial exposure to improving commodity price is a huge positive for Comstock.
In the past 30 days, Comstock has witnessed upward earnings estimate revisions for 2022 and 2023.
Favorable commodity prices are also a huge positive for Southwestern Energy as it is a leading natural gas producer in the United States. In the past 30 days, SWN has witnessed upward earnings estimate revisions for 2022 and 2023.
For this year, Southwestern Energy is likely to see earnings growth of 46.7%.
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Here's Why Enterprise (EPD) is an Attractive Investment Bet
Enterprise Products Partners LP (EPD - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. In the past six months, the stock, carrying a Zacks Rank #2 (Buy), has gained 20.9%, outpacing the 16.2% rise of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
What’s Favoring the Stock?
Enterprise Products has a stable business model and is not significantly exposed to the volatility in oil and gas prices. Enterprise Products generates stable fee-based revenues from its extensive pipeline network across nearly 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.
The midstream infrastructure provider also has storage assets that can store roughly 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $4.6 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.
The partnership’s balance sheet has lower debt exposure than the composite stocks belonging to the industry. Its debt-to-capitalization ratio of 0.53 is lower than the industry’s 0.55. In fact, the ratio has persistently been lower than the stocks in the industry in the past few years. The liquidity profile of Enterprise Products is impressive, as EPD reported its consolidated liquidity at $3.9 billion, which incorporates available borrowing capacity under its revolving credit facilities and unrestricted cash.
Other Stocks to Consider
Some other prospective players in the energy space are Antero Resources (AR - Free Report) , Comstock Resources (CRK - Free Report) and Southwestern Energy (SWN - Free Report) . While Antero Resources and Comstock Resources sport a Zacks Rank #1 (Strong Buy), Southwestern carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.
The substantial exposure to improving commodity price is a huge positive for Antero Resources.
Comstock is a well-known name in the upstream space, with operations across the gas-rich Haynesville shale in North Louisiana and East Texas. The substantial exposure to improving commodity price is a huge positive for Comstock.
In the past 30 days, Comstock has witnessed upward earnings estimate revisions for 2022 and 2023.
Favorable commodity prices are also a huge positive for Southwestern Energy as it is a leading natural gas producer in the United States. In the past 30 days, SWN has witnessed upward earnings estimate revisions for 2022 and 2023.
For this year, Southwestern Energy is likely to see earnings growth of 46.7%.