CA - Why Enterprise Products Partners' Q4 Makes It My Favorite MLP Right Now

2024-02-04 14:00:00 ET

Summary

• Enterprise Products Partners (EPD) is a leading MLP due to its well-diversified business model, strong balance sheet, and consistent distribution growth.
• However, until recently it has not been my top MLP pick.
• I look at three key items that became evident from its Q4 earnings call that changed my mind and made it my favorite MLP right now.

I laid out my bull thesis for Enterprise Products Partners ( EPD ) in my last article on the company titled Enterprise Products Partners Vs. MPLX: Only One Of These Is A Buy . In essence, I believed that EPD was a Buy because:

1. It has a well-diversified and fully integrated business model that has proven to generate very stable and consistently growing cash flows through good times and bad. Moreover, its returns on invested capital have also been consistently in the double-digits over the past decade, even during some of the worst energy price crashes that the world has ever seen:...

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