#6 - Enterprise Products Partners L.P. (NYSE:EPD)
Enterprise Products Partners L.P. (NYSE: EPD) - Income investors looking for an oil and gas play that is not a driller can look to Enterprise Products Partners. This has been a shining star, but it has recently hit a rocky patch. Over the past three years, EPD has delivered a total return of less than 1%. This is a problem when oil prices have been steadily rising for the last two years. The question that investors should be asking is if the company’s recent performance is the new normal, or is there enough reason to propel the company forward? However, it appears the company’s cash flow – and stock – may have hit a bottom in 2016 and it is trying to rebound. One encouraging sign is that some key commercial expansion products have just recently gone online, and the company has over $5 billion in future projects under construction that should start generating cash flow in the next two years. Energy infrastructure remains a hot market, and EPD is positioned to cash in on their share of the $26 billion market for new energy-related infrastructure. All of this bodes well for the EPD’s ability to return value to its shareholders, which has been one of the key historical drivers of its growth. The company has a current dividend yield of just under 6%, well above the industry average.
About Enterprise Products Partners
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
Read More - Current Price
- $32.81
- Consensus Rating
- Buy
- Ratings Breakdown
- 10 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $34.00 (3.6% Upside)
