Crestwood Equity Partners (NYSE: CEQP) trades at a ridiculously low valuation these days. That's why the master limited partnership's (MLP) distribution currently yields an eye-popping 9%.
The company is working to take advantage of this discount. It recently made moves to enhance its ability to repurchase its dirt-cheap units. Its value-conscious investors won't want to miss this big-time income producer.
This year's strong conditions in the energy market enabled Crestwood to boost its 2022 forecast when it reported its second-quarter results in July. The MLP now expects to generate $800 million to $840 million of adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ), up from its initial forecast range of $780-$840 million. With a current enterprise value (EV) of around $7 billion, Crestwood trades at a mere 8.5 times its EV to adjusted EBITDA. That's a dirt cheap price for a company that's steadily growing its EBITDA.
For further details see:1 Incredibly Cheap Ultra-High-Yield Dividend Stock You Won't Want to Miss