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Enterprise Products (EPD) Announces 65th Distribution Hike

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Enterprise Products Partners L.P. (EPD - Free Report) recently got an approval from the board of directors for second-quarter 2018 quarterly distribution of 43 cents per unit, representing a year-over-year hike of 2.4%. The new distribution also marks a sequential increase of 0.6%. 

The quarterly distribution now stands at $1.72 per unit on an annualized basis, which will be paid on Aug 8 to its unitholders on record as of Jul 31, 2018. Based on the closing price of $27.92 as of Jul 9, the second-quarter 2018 distribution translates to a yield of 6.2%, less than the industry’s 7.4%.

This marks the 65th 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. Notably, it is the 56th consecutive quarterly distribution increase effectuated by the partnership.

The partnership announced that it will report second-quarter 2018 earnings on Aug 1, 2018, before the opening bell. Its earnings for the to-be-reported quarter are estimated to soar 26.7% from the year-ago quarter’s figure. 

In a separate announcement, the partnership recently stated that it has commenced an open season to find shippers for the expanded capacity in its refined product pipeline. The pipeline starts from Seymour, IN and ends in Chicago, IL. The open season is expected to conclude on Aug 10.

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 50,000 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 2.7% in the past year against 8.8% loss recorded by the industry it belongs to.

Zacks Rank and Stocks to Consider

Currently, Enterprise Products has a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like BP p.l.c. (BP - Free Report) , EOG Resources, Inc. (EOG - Free Report) and Delek US Holdings, Inc. (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

London-based BP is an integrated energy company. The company’s top line for 2018 is anticipated to improve 12.6% year over year, while its bottom line is expected to increase 77.7%.

Houston, TX-based EOG Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 41.4% year over year. In the last four reported quarters, the company recorded an average positive earnings surprise of 30.1%.

Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is likely to improve 39.3% year over year, while its bottom line is expected to increase more than 300%.

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