Enterprise Products Parters L.P. (EPD) reported strong third-quarter results, raised quarterly distribution, and declared that it had sufficient internal resources to meet its next year's growth capital needs. Total gross operating margin increased 32% year-over-year, primarily driven by the diversified NGL (natural gas liquids) and natural gas pipeline and storage businesses.
Importantly, the partnership announced a 6.6% year-over-year increase in quarterly distribution to the annualized run rate of $2.09 per unit. Quarterly distributable cash flows provided very comfortable 1.2x coverage to cash distributions to limited partners.
Our continued favorable view of EPD units reflects the partnership's diversified asset base, strong distribution-growth prospects, and attractive valuation.
Read the full analyst report on EPD
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