Midstream MLPs
Posted: Wed Nov 21, 2012 10:26 am
Zacks reiterated its neutral rating on shares of Enterprise Products Partners (EPD). They have a $54.00 price target on the stock. Zacks` analyst wrote, "We are maintaining our recommendation for Enterprise Products Partners at Neutral following its third quarter results. The partnership registered increased transportation of crude, natural gas and other commodities through its pipelines. A 9% year-over-year drop in total costs and expenses was an added incentive. Based on a broad and vertically integrated asset base, steady cash flow generation ability and financial strength for strategic growth, we believe that Enterprise is well positioned to deliver impressive returns going forward. However, we remain apprehensive about the lower NGL pricing environment. Enterprise also remains vulnerable to macro conditions and unstable oil & gas prices, which in turn could hurt its margins in NGL, natural gas and other businesses. "
EPD Units are trading at $51.40 this morning. Yield is over 5% and the company has a history of raising distributions year after year.
I really like the Midstream MLPs and EPD is one of our top picks on the MLP Watch List. Midstream MLPs have much less exposure to dips in commodity prices than the upstream companies. Most of their revenues are locked in by long-term transportation and processing agreements. - Dan
EPD Units are trading at $51.40 this morning. Yield is over 5% and the company has a history of raising distributions year after year.
I really like the Midstream MLPs and EPD is one of our top picks on the MLP Watch List. Midstream MLPs have much less exposure to dips in commodity prices than the upstream companies. Most of their revenues are locked in by long-term transportation and processing agreements. - Dan