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Enterprise Products (EPD) Declares 64th Distribution Hike


Enterprise Products Partners L.P. EPD recently got an approval from the board of directors for first-quarter 2018 quarterly distribution of 42.75 cents per unit, representing year-over-year hike of 3%. The new distribution also marked a sequential increase of 0.6%.

The increased distribution, on an annualized basis translates to a distribution of $1.71 per unit, will be paid on May 8 to the unitholders on record as of Apr 30, 2018. Based on the closing price of $25.19 as of Apr 10, the first-quarter 2018 distribution translates to a yield of 6.8%, less than the industry’s 8.2%.

This hike marks an 64th distribution raise since the 1998's initial public offering. The Houston, TX-based midstream energy partnership remains focused on boosting unitholders’ value through distribution hikes. Additionally, it is the 55th consecutive quarterly distribution increase by the partnership.

The partnership also announced that it will report first-quarter 2018 earnings on Apr 30, 2018, before the opening bell. Its earnings for this quarter are estimated to soar 2.8% from the year-ago quarter’s figure.

Price Performance

Enterprise Products has lost 9.8% last year compared with 27.3% loss recorded by the industry it belongs to.

About the Partnership

Enterprise Products is a leading master limited partnership, engaged in providing a wide range of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGL), and crude oil. It has pipelines of around 50,000 miles, along with storage capacity of 260 million barrels of liquids and 14 billion cubic feet of natural gas.

Zacks Rank and Stocks to Consider

Enterprise Products carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the oil and energy sector are CNOOC Ltd. CEO, Northern Oil and Gas, Inc. NOG and Continental Resources, Inc. CLR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hong Kong-based CNOOC is an integrated energy company. Its revenues for 2018 are anticipated to improve 51.3% year over year, while its bottom line is expected to increase 80.8%.

Minnetonka, MN-based Northern Oil and Gas is an independent energy company. Its revenues for 2018 are anticipated to improve 17.4% year over year. The company delivered a positive earnings surprise of 175% in the trailing four quarters.

Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are estimated to soar 55.7% from the year-ago quarter’s figure. For 2018, the bottom line is likely to be up 370.6%.

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