XLE - Enterprise Products Partners: Getting On Board For The AI Gold Rush

2024-06-24 09:00:00 ET

Summary

• Enterprise Products Partners units offer unitholders an attractive yield of over 7%, mitigating downside volatility.
• EPD is investing more aggressively to capitalize on strong demand dynamics in energy infrastructure utilization.
• EPD has posted strong earnings through the cycle, assuring investors of its ability to invest for growth.
• EPD also expects to benefit from the AI gold rush, driving a surge in power demand.
• I argue why EPD is consolidating well above the $27 level. Investors should consider capitalizing to add more units.

Enterprise Products Partners: Over 7% Yield Helps Mitigate Downside Volatility

Enterprise Products Partners L.P. ( EPD ) unitholders witnessed downside volatility since my previous update in early April 2024. In my bullish EPD article, I reminded investors about its solid uptrend bias, supported by a well-diversified energy infrastructure portfolio. However, EPD's momentum has stalled over the past two months. Despite that, I observed robust buying support above EPD's $27 level, underscoring the market's confidence in EPD's long-term thesis....

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