Opinions
The Panic-Proof Portfolio (Stockchase Research)
Enterprise Products Partners L P
EPD-N
PAST TOP PICK
Nov 21, 2024
Stock price when the opinion was issued
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EPD recently closed on a $3.3 billion acquisition of a large midstream energy processing company, allowing it to grow its status in the prolific Midland basin. It put $2.5 billion of project expansions into play this year and still has over $4 billion in backlog. It trades at 11x earnings and 2.1x book, while supporting a 20% ROE. Quarterly results showed cash reserves holding while debt was aggressively retired. It pays a great dividend backed by a payout ratio under 80% of cash flow. We recommend placing a stop loss at $24, looking to achieve $32 -- upside potential of 18%. Yield 7.4%
(Analysts’ price target is $32.16)We reiterate EPD as a TOP PICK. Cash flow per unit is growing by 15%, while debt is aggressively retired. It has over $6 billion in project back logs. Its excellent dividend is backed by a payout ratio under 80% of cash flow. We continue to recommend a stop at $24, looking to achieve $32 -- upside potential of 20%. Yield 7.6%
(Analysts’ price target is $31.84)As the company once again increased its dividend for the 24th consecutive year, we again reiterate this US energy infrastructure giant as a TOP PICK. It pays a great dividend, is retiring debt aggressively, while still growing cash reserves. It trades at 11x earnings, 2.2x book and supports a 19% ROE. We recommend maintaining the stop at $24, looking to achieve $32 -- 18% potential upside. Yield 7.3%
(Analysts’ price target is $31.89)We again reiterate EPD, a US energy infrastructure giant, as a TOP PICK. Recently reported earnings beat expectations as quarterly revenues grew by 14% as volumes transported rose and margins expanded. It trades at 11x earnings, 2.1x book and supports a 20% ROE. We recommend maintaining the stop at $24, looking to achieve $32 -- 20% potential upside. Yield 7.6%
(Analysts’ price target is $31.95)Enterprise products is one of north america's leading providers of midstream energy services. exciting new growth areas, developing markets, and innovative ways to help move energy are some of the reasons why today's energy professionals are discovering rewarding opportunities with enterprise products. finding the right people to drive our success is a critical step, and we have created an organization rich in energy-related opportunities. in addition to a competitive compensation package, enterprise products provides a comprehensive benefit package that provides our employees with the flexibility to make elections based on their personal and family needs. if you are a highly motivated achiever with a passion for success, we invite you to apply today to one of our open positions. visit us at www.enterpriseproducts.com to get more information about career opportunities, benefits, application and resume submission, recruiting events, and much more. Social media mentions are up 500% in the past 24h.
Our PAST TOP PICK with EPD has achieved its target at $32. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $27.00) to $28.50.