FightingIrish33
Sep 28, 3:39 PM
$EPD EPD) currently yields 6%. The master limited partnership (MLP) sets the standard for balance sheet strength in the energy midstream sector with the highest credit rating at A-/A3. It backs that high rating with a low-leverage balance sheet (3.0x) and durable cash flows (80% fee-based). The MLP, which sends a Schedule K-1 Federal tax form each year, currently covers its high-yielding distribution with cash flow by 1.9 times, enabling it to retain over
$1 billion to reinvest in the partnership each quarter.
The company's strong, growing cash flows have enabled it to increase its distribution for 28 straight years. That growth should continue. Enterprise Products Partners currently has
$6.5 billion in major growth capital projects under construction that should enter commercial service through early 2029, giving it strong near-term growth visibility.
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