MLPS - Enterprise Products Partners: More Debt Means Larger Distributions

January, 30 2024 06:30 AM UBS AG 1xMonthly Short Exchange Traded Access Securities (E-TRACS) Linked to the Alerian MLP Infrastructure Total Return Index due October 1 2040

2024-01-30 06:30:00 ET

Summary

Enterprise Products Partners' decision to take on debt for increased earnings growth made some shareholders unhappy, which was silly.
The article discusses the history and implications of EPD's decision.
It highlights their strong financials and discusses their growth model.

Enterprise Products Partners ( EPD ) announced last fall that they were going to take on debt to help take advantage of some opportunities for increased earnings growth. Mr. Market hated it, pushing down the stock price by 10%. The price has recovered lately, although some other midstream stocks have appreciated too.

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Since the announcement, we've seen complaints in comments on articles about Enterprise. Some shareholders clearly feel damaged by this change. In contrast, my view, shared by Julian Lin , is that shareholders should be thankful....

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Enterprise Products Partners: More Debt Means Larger Distributions

Company Name:	UBS AG 1xMonthly Short Exchange Traded Access Securities (E-TRACS) Linked to the Alerian MLP Infrastructure Total Return Index due October 1 2040
Stock Symbol:	MLPS
Market:	NYSE

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Summary