ET - Enterprise Products Partners: Still A Buy At The Highs Yielding 7.36%

2024-03-08 09:00:00 ET

Summary

• Enterprise Products Partners has a strong track record of delivering distribution increases and is expected to benefit from the current energy landscape.
• OPEC+ production cuts and surging US production are favorable for EPD's midstream operations.
• EPD's operational efficiencies, disciplined distribution growth, and attractive unit price make it an enticing investment option.

It's interesting how the landscape around oil and gas has changed. Several years ago, the discussion regarding renewable energy controlled the narrative, but today, fossil fuels seem less demonized. I am pro-renewables as I believe we will need to generate more energy across the board to meet the future global demand, but I am still focusing on investing in traditional oil and gas companies. As an income investor, I love the large yields energy companies deliver, and the midstream space, due to its tax structure, throws off some of the largest yields an investor can find. Enterprise Products Partners ( EPD ) is often referred to as the gold standard, as its operational track record speaks for itself. Since I started writing articles on Seeking Alpha, I have been bullish on EPD, and if you look at my track record , I didn't flip-flop when the oil and gas industry was decimated during the pandemic. EPD has continued to climb back to its pre-pandemic levels, and I believe it's going higher. All the data I look at indicates that we will need more energy in the future, and traditional sources of energy aren't going to disappear over the next several decades. EPD has established a 25-year track record of delivering distribution increases to its unit holders, and I think EPD will become even more popular as the Fed gets closer to a rate-cutting cycle. I am still long EPD and feel it can generate ongoing reliable income in addition to capital appreciation for investors in the future....

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