Current Report: Enterprise Products Partners

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Enterprise Products Partners LP with the ticker EPD is a large-cap oil and gas midstream company operating in the energy business sector. This is the third of five energy sector candidates competing for the fifty-first slot in my Viital folio. It is my second report on EPD for my Viital portfolio. I discussed EPD back on December 29, 2021.

Enterprise Products Partners LP is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products and petrochemicals.

It is one of the largest midstream companies, with operations servicing most producing regions in the Lower 48 states. Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.

It operates 19 natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas, and Wyoming; NGL pipelines; NGL fractionation facilities; NGL and related product storage facilities; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil storage and marine terminals, which include a fleet of 255 tractor-trailer tank trucks that are used to transport crude oil.

It also operates refined products pipelines and terminals; and ethylene export terminals, as well as provides refined products marketing and marine transportation services.

The company was founded in 1968 and is headquartered in Houston, Texas.

Three key data points gauge any dividend equity or fund, such as Enterprise Products Partners LP:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

EPD Price

Enterprise’s price per share was $25.81 after yesterday’s market close.  One year ago its price was $21.52. So, Enterprise’s share price rose by $4.29 or about 20% in the past year.

If Enterprise’s stock trades in the range of $20.00 to $35.00 this next year, its recent $25.81 share price might rise by $4.19 to reach $30.00 by next year. My $4.19 upside estimate is $1.28 under the median of annual price target upsides projected by 19 analysts tracking Enterpise’s stock for brokers.

EPD Dividends

Enterprise’s most recently declared quarterly dividend of $0.475 per share was paid August 12th to shareholders on record as of July  28th.

Since November 1998 EPD has paid quarterly dividends, increasing annually. The current forward-looking annual dividend of $1.90 casts an annual yield 7.36% as of yesterday’s $25.81 share price.

EPD Returns

Adding the $1.90 EPD annual dividend to my estimated one-year price upside estimate of $4.29 shows a $6.19 potential gross gain, per share, to be reduced by any costs to trade Enterprise Products shares.

At yesterday's $25.81 closing price, a little over $1000 would buy 39 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $6.19 gross gain estimate per share results in a net gain of $5.93 X 39 shares = $231.27 for a 23% net gain including a 7.36% forward-looking annual dividend yield.

Over the next year our $1K investment in Enterprise Products Partners LP shares could generate $73.60 in cash dividends. Of course, a single share EPD stock bought at yesterday's $25.81 price is almost three times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire EPD shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 2.85 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Enterprise Products Partners LP Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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