Filed under: Newsletters, Commodities, Oil, Stocks to Buy
“I am adding Enterprise Products Partners (NYSE: EPD) to my ‘Deep-Discount’ portfolio,” says Nathan Slaughter, editor of Half-Priced Stocks.
The advisor explains, “Enterprise is among the nation’s largest pipeline operators, owning nearly 900 miles of crude oil pipelines and 33,000 miles of natural gas, natural gas liquids (NGL), and petrochemical pipelines.” Here is his review.
“Following a series of acquisitions, Enterprise is now one of the nation’s largest publicly-traded energy partnerships. As a master limited partnership (MLP), the company is generally exempt from federal income taxes, provided it distributes the lion’s share of its cash flows to shareholders (technically referred to as unitholders.)
“This special status allows MLPs to shell out generous payments, although these distributions typically don’t qualify for the reduced 15% dividend tax rate.
“As opposed to the ‘upstream’ business of exploration and production, Enterprise is a ‘midstream’ energy player — a sector coveted for its steady cash generation potential. Much of Enterprise’s diverse revenue stream comes from pipeline charges, which are influenced more by volume flow than by volatile commodity prices.
Continue reading Enterprise Products (EPD): Pipeline to profits
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