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. More info.
The calculations below outline how an intrinsic value for
Enterprise Products Partners
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$-8.00||$1,046.50||$392.00||$372.00||$360.00|
|Source||Analyst x2||Analyst x2||Analyst x1||Analyst x1||Analyst x1|
Discounted (@ 11.15%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $360 × (1 + 2.47%) ÷ (11.15% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$4,084 = $1,581 + $2,503
Value = Total value / Shares Outstanding ($4,084 / 2,171)Discount to Share Price
Value per share:
Current discount (share price of $25.16): -1237.64%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 11.15% = 2.47% + (1.153 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($53,937,788,481).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.153 = 0.799 (1 + (1- 2.7%) (45.55%))
Levered Beta used in calculation = 1.153
Mr. A. James Teague, also known as Jim, has been the Chief Executive Officer of Enterprise Products Holdings LLC at Enterprise Products Partners L.P. since January 2016 and has been its Director since November 2010. Mr. Teague served as Chief Operating Officer of Enterprise Products Holdings LLC since November 22, 2010 until December 2015. Mr. Teague served as an Executive Vice President of Enterprise Products Partners L.P. He served as the Chief Commercial Officer and Executive Vice President of DEP Holdings LLC, the General Partner of Duncan Energy Partners LP since November 2010 until February 2013. He is responsible for managing all of its commercial businesses of the partnerships. He also serves as the Chief Operating Officer and Executive Vice President of EPE Holdings, LLC. He served as an Executive Vice President of Enterprise Products GP, LLC at Enterprise Products Operating LLC since November 1999. He served as the Chief Operating Officer of Enterprise Products GP, LLC since September 2010. He is responsible for Enterprise's natural gas liquids businesses and natural gas marketing group. He served as a Member of the senior management teams at affiliates of Shell Oil Company, MAPCO Inc., and Dow Chemical Company. Mr. Teague served as President of Tejas Natural Gas Liquids LLC from 1998 to 1999 and President of Marketing & Trading of MAPCO Inc., from 1997 to 1998. He has been a Director of Solaris Oilfield Infrastructure, Inc. since May 11, 2017. He has been Director of Enterprise Products Holdings LLC from November 22, 2010 to February 2013. He serves as Director at Texas Eastern Products Pipeline Company LLC. He serves as a Director of EPE Holdings, LLC. Mr. Teague served as a Director of Enterprise Products GP, LLC - General Partner of Enterprise Products Partners LP since May 2010. He served as a Director of EPE Holdings, LLC from October 27, 2009 to May 21st 2010. He served as a Director of DEP Holdings LLC of Duncan Energy Partners LP from July 2008 to May 2010.
Average tenure and age of the Enterprise Products Partners management team in years:
Average tenure and age of the Enterprise Products Partners board of directors in years:
Enterprise Products Partners LP.'s (NYSE:EPD) latest earnings update in December 2017 revealed that the business benefited from a robust tailwind, leading to a double-digit earnings growth of 11.96%. … Below is a brief commentary on my key takeaways on how market analysts perceive Enterprise Products Partners's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … This means, we can expect Enterprise Products Partners will grow its earnings by 8.17% every year for the next couple of years.Simply Wall St - – Full article
For Enterprise Products Partners, its most recent earnings (trailing twelve month) is $2,668.9M, which compared to the prior year's figure, has increased by a relatively soft 5.60%. … This means that, on average, Enterprise Products Partners has been able to steadily grow its net income over the last couple of years as well. … This suggests that, in the recent industry expansion, Enterprise Products Partners has not been able to realize the gains unlike its average peer.What does this mean?Simply Wall St - – Full article
See our latest analysis for Enterprise Products Partners Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Enterprise Products Partners’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Enterprise Products Partners’s equity capital deployed. … Given a positive discrepancy of 2.31% between return and cost, this indicates that Enterprise Products Partners pays less for its capital than what it generates in return, which is a sign of capital efficiency.Simply Wall St - – Full article
View our latest analysis for Enterprise Products Partners How does EPD’s operating cash flow stack up against its debt? … Additionally, EPD has generated cash from operations of $4,066.8M in the last twelve months, resulting in an operating cash to total debt ratio of 17.16%, meaning that EPD’s operating cash is not sufficient to cover its debt. … Since equity is smaller than total debt levels, Enterprise Products Partners is considered to have high leverage.Simply Wall St - – Full article
Another thing to keep in mind is that Enterprise Products Partners’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … Enterprise Products Partners’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe Enterprise Products Partners should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for EPD Price per share = $26.4 Earnings per share = $1.251 ∴ Price-Earnings Ratio = $26.4 ÷ $1.251 = 21.1x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you inadvertently compared riskier firms with EPD, then investors would naturally value EPD at a higher price since it is a less risky investment. … If this assumption does not hold true, EPD’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.Simply Wall St - – Full article
In September 2017, Enterprise Products Partners LP (NYSE:EPD) released its most recent earnings update. … To understand the overall trajectory of EPD's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NYSE:EPD Future Profit Dec 9th 17 From the current net income level of $2,500.2M and the final forecast of $3,434.2M by 2020, the annual rate of growth for EPD’s earnings is 9.03%.Simply Wall St - – Full article
NYSE:EPD Historical Dividend Yield Oct 25th 17 Occidental Petroleum Corporation (NYSE:OXY) OXY has an alluring dividend yield of 4.74% with a large payout ratio. … NYSE:OXY Historical Dividend Yield Oct 25th 17 Valero Energy Corporation (NYSE:VLO) VLO has a decent dividend yield of 3.62% and the company has a payout ratio of 63.93%. … NYSE:VLO Historical Dividend Yield Oct 25th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
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 19,600 miles of NGL pipelines; NGL and related product storage facilities; 14 NGL fractionators; and a liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,800 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 495 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, associated deisobutanizer units, and related pipeline assets; 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.
|Name:||Enterprise Products Partners L.P.|
Enterprise Products Partners L.P.
1100 Louisiana Street,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||EPD||Common Units||New York Stock Exchange||US||USD||28. Jul 1998|
|DB||EPD||Common Units||Deutsche Boerse AG||DE||EUR||28. Jul 1998|
|LSE||0S23||Common Units||London Stock Exchange||GB||USD||28. Jul 1998|
|Oil and Gas Storage and Transportation|
|Company Analysis updated:||2018/03/22 00:06|
|Last estimates confirmation:||2018/03/18|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.