Units of Enterprise Products Partners (NYSE: EPD) slumped 30.4% in 2020, according to data provided by S&P Global market Intelligence . Weighing on the master limited partnership ( MLP ) was weakness in the oil market, which impacted its operations and growth prospects.
The oil market nearly collapsed during the second quarter after the COVID-19 outbreak forced the global economy to shut down, right as OPEC and Russia started an oil price war. Those dual headwinds caused oil demand and pricing to fall off a cliff. That impacted the volumes flowing through midstream systems, like those operated by Enterprise. As a result, its distributable cash flow declined by 4% through the third quarter.
Image source: Getty Images.
For further details see:
Why Units of Enterprise Products Partners Tumbled 30% in 2020