2024-05-01 13:26:22 ET
Summary
- Enterprise Products Partners is increasing its capital spending.
- The company's projects, such as the SPOT project, are progressing well, and there may be more potential projects in the planning stage.
- The growing capital expenditures are impacting the company's free cash flow. The free cash flow calculation includes the entire capital budget.
- The capital budget should continue to increase as the future unfolds.
- All volumes handled were up in the current quarter.
Enterprise Products Partners ( EPD ) has long been thought of as an income vehicle for that generous distribution that keeps going up over time. But at some point in the upstream cycle, there's inevitably a demand for more of what this partnership does than the partnership has available. That part of the industry business cycle appears to be on the horizon because the company showed an increase in capital spending over the previous fiscal year. If that positive comparison of capital investment keeps in future quarters, this company will add a significant amount of growth to that income....
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Enterprise Products Partners: The Growth Part Of The Cycle Arrives