Published Thu, 26 Mar 2020 10:32:03 -0400 on Seeking Alpha
EPD is well positioned to ride out COVID-19 with $6.4 billion in liquidity and $1.4 billion cash on hand.
EPD's track record of paying an increased distribution is backed up by 21 years of annual growth and generating $6.6 billion of DCF in 2019.
The global population is still projected to reach 10 billion in 2057, and this will increase the global energy demand as we need more electricity, fuels, and plastics.
The energy markets are in a global rut making now a good time to look for well-run companies with critical infrastructure for the future.
As we end Q1 of 2020, the markets are certainly not playing out how analysts and investors had envisioned. COVID-19 has pulled the rug out from under the bull market as the major indices shed roughly a 1/3rd of their value in a little over one month. There is a saying which gets quoted way too often from Warren Buffett: "Fearful when others are greedy and greedy when others are fearful." The markets are extremely fearful these days and could present a major buying opportunity for the long term. It's extremely hard to time the markets and people drive themselves crazy about when to buy and when to sell. I think things could get worse before they get better, but the opportunity is certainly here if you have a long-term mentality. Enterprise Products Partners (EPD) is at the lowest it has been for 10 years, but it is not quite as low as it was in 2008. Energy is a hated sector, and as we approach the possibility of a national shutdown, EPD could still fall further. I believe the best-in-breed energy infrastructure companies won't go under and will still play a critical role in our country's development for decades to come. EPD is one of those best-in-breed cases, and I think adding to a current position or starting a small position and buying in increments will pay dividends for decades to come.
(Source: Seeking Alpha)
EPD just gave unitholders a solid distribution and provided insight to its capital... Read more