NYSE:EPD

Stock Analysis Report

Enterprise Products Partners

Executive Summary

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Enterprise Products Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EPD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

EPD

-0.7%

US Oil and Gas

-1.1%

US Market


1 Year Return

-7.6%

EPD

-18.9%

US Oil and Gas

17.9%

US Market

Return vs Industry: EPD exceeded the US Oil and Gas industry which returned -18.9% over the past year.

Return vs Market: EPD underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

EPDIndustryMarket
7 Day-1.2%-0.7%-1.1%
30 Day-5.1%-5.8%1.4%
90 Day-2.4%-7.6%6.9%
1 Year-1.5%-7.6%-15.7%-18.9%20.3%17.9%
3 Year12.1%-7.1%-12.1%-20.4%47.8%38.3%
5 Year5.3%-22.2%-21.3%-32.9%71.9%53.0%

Price Volatility Vs. Market

How volatile is Enterprise Products Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enterprise Products Partners undervalued compared to its fair value and its price relative to the market?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EPD ($25.95) is trading below our estimate of fair value ($29.16)

Significantly Below Fair Value: EPD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EPD is poor value based on its PE Ratio (12.4x) compared to the Oil and Gas industry average (10x).

PE vs Market: EPD is good value based on its PE Ratio (12.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EPD is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: EPD is overvalued based on its PB Ratio (2.3x) compared to the US Oil and Gas industry average (0.8x).

Future Growth

How is Enterprise Products Partners forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPD's forecast earnings growth (2.8% per year) is above the savings rate (1.7%).

Earnings vs Market: EPD's earnings (2.8% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: EPD's earnings are forecast to grow, but not significantly.

Revenue vs Market: EPD's revenue (5.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EPD's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EPD's Return on Equity is forecast to be low in 3 years time (19.9%).

Past Performance

How has Enterprise Products Partners performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPD has high quality earnings.

Growing Profit Margin: EPD's current net profit margins (14%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: EPD's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: EPD's earnings growth over the past year (10.6%) is below its 5-year average (14.9% per year).

Earnings vs Industry: EPD earnings growth over the past year (10.6%) exceeded the Oil and Gas industry -13.3%.


Return on Equity

High ROE: EPD's Return on Equity (18.4%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Enterprise Products Partners's financial position?


Financial Position Analysis

Short Term Liabilities: EPD's short term assets ($7.9B) do not cover its short term liabilities ($8.7B).

Long Term Liabilities: EPD's short term assets ($7.9B) do not cover its long term liabilities ($26.8B).


Debt to Equity History and Analysis

Debt Level: EPD's debt to equity ratio (109.9%) is considered high.

Reducing Debt: EPD's debt to equity ratio has increased from 108.5% to 109.9% over the past 5 years.

Debt Coverage: EPD's debt is well covered by operating cash flow (23.8%).

Interest Coverage: EPD's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: EPD has a high level of physical assets or inventory.

Debt Coverage by Assets: EPD's debt is not covered by short term assets (assets are 0.3x debt).

Dividend

What is Enterprise Products Partners's current dividend yield, its reliability and sustainability?

6.86%

Current Dividend Yield


Dividend Yield vs Market

company6.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Years7.2%

Current dividend yield vs market & industry

Notable Dividend: EPD's dividend (6.86%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EPD's dividend (6.86%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: EPD's dividends per share have been stable in the past 10 years.

Growing Dividend: EPD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.6%), EPD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EPD's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Jim Teague (74yo)

0.08yrs

Tenure

US$8,619,587

Compensation

Mr. A. James Teague, also known as Jim, is a Co-Chief Executive Officer at Enterprise Products Holdings LLC, the general partner of Enterprise Products Partners L.P. since January 28, 2020. Mr. Teague had ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD8.62M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
A. Teague
Co-CEO & Director of Enterprise Products Holdings LLC0.08yrsUS$8.62m0.091% $51.7m
W. Fowler
Co-CEO & CFO and Director of Enterprise Products Holdings LLC8.4yrsUS$5.58m0.069% $39.1m
Graham Bacon
Executive VP & COO4.3yrsUS$4.30m0.013% $7.3m
Brent Secrest
Executive VP & Chief Commercial Officer3.8yrsUS$2.87m0.0041% $2.3m
Michael Hanson
Principal Accounting Officer & VP3.5yrsno data0.0056% $3.2m
Paul Flynn
Senior VP & Chief Information Officer-Enterprise Products Holdings LLC15yrsno datano data
Christian Nelly
Executive VP of Finance & Investor Relations and Treasurer0.08yrsno data0.0034% $2.0m
Harry Weitzel
Executive VP3.3yrsUS$1.71m0.0038% $2.1m
Karen Taylor
Senior Vice President of Human Resources - Enterprise Products Holdings LLC3.5yrsno datano data
Anthony Chovanec
Senior Vice President of Enterprise Products Holdings LLC5.7yrsno datano data

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: EPD's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
A. Teague
Co-CEO & Director of Enterprise Products Holdings LLC0.08yrsUS$8.62m0.091% $51.7m
W. Fowler
Co-CEO & CFO and Director of Enterprise Products Holdings LLC8.4yrsUS$5.58m0.069% $39.1m
Harry Weitzel
Executive VP3.3yrsUS$1.71m0.0038% $2.1m
James Hackett
Director of Enterprise Products Holdings LLC5.8yrsUS$185.00k0.013% $7.2m
Richard Bachmann
Vice Chairman of Enterprise Products Holdings LLC4.1yrsUS$491.85k0.073% $41.4m
Ralph Cunningham
Advisory Director of Enterprise Products Holdings LLC1.1yrsUS$828.40k0.044% $25.1m
Randa Duncan Williams
Chairman of Enterprise Products Holdings LLC7yrsno data0.94% $536.7m
Richard Snell
Director of Enterprise Products Holdings LLC8.4yrsUS$170.00k0.0035% $2.0m
William Montgomery
Director of Enterprise Products Holdings LLC4.3yrsUS$170.00k0.0024% $1.4m
Edwin Smith
Advisory Director of Enterprise Products Holdings LLC0.08yrsUS$150.00kno data

5.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: EPD's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EPD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Enterprise Products Partners L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enterprise Products Partners L.P.
  • Ticker: EPD
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$56.809b
  • Shares outstanding: 2.19b
  • Website: https://www.enterpriseproducts.com

Location

  • Enterprise Products Partners L.P.
  • 1100 Louisiana Street
  • 10th Floor
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPDNYSE (New York Stock Exchange)YesCommon UnitsUSUSDJul 1998
EPDDB (Deutsche Boerse AG)YesCommon UnitsDEEURJul 1998
0S23LSE (London Stock Exchange)YesCommon UnitsGBUSDJul 1998

Biography

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,200 miles of NGL pipelines; NGL and related product storage facilities; 16 NGL fractionators; and liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,300 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 360 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,700 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related activities, including 800 miles of pipelines; butane isomerization complex and related deisobutanizer units; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,100 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:24
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.