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Enterprise (EPD) Rewards Unitholders With Distribution Hike

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Enterprise Products Partners LP (EPD - Free Report) has announced approvals from the board of directors of its general partners to increase quarterly distributions.

The hiked quarterly distribution to be paid to its common unitholders is 49 cents per unit, which is $1.96 per unit on an annualized basis. Enterprise Products said that the fourth-quarter distribution, representing an increase of 3.2% from the prior quarter distribution, will be paid on Feb 14 to common unitholders of record as of the close of business on Jan 31.

Enterprise Products is also repurchasing shares to return capital to unit holders. Through the December quarter of 2022, in the open market, the partnership repurchased $120 million of its common units. Last year, EPD bought back a total of $250 million of common units, thereby utilizing 37% of its $2 billion authorized repurchase program.

EPD, currently carrying a Zacks Rank #3 (Hold), has a stable business model and is not significantly exposed to the volatility in oil and gas prices. Enterprise Products generates stable fee-based revenues from its extensive pipeline network that spreads across more than 50,000 miles, transporting natural gas, natural gas liquids, crude oil petrochemicals and refined products.

Better-ranked players in the energy space include Halliburton Company (HAL - Free Report) , Eni SpA (E - Free Report) and NexTier Oilfield Solutions Inc. . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Halliburton is a well-known name in providing products and services to energy companies.  Over the past seven days, HAL has witnessed upward earnings estimate revisions for 2022 and 2023, respectively. 

Leveraging on its consolidated global portfolio, Eni is ensuring to supply energy, especially natural gas, to Italy and Europe. Eni is also leading energy transitions with a commitment to reducing net greenhouse gas emissions to zero by 2050.

NexTier Oilfield Solutionsis also a well-known U.S. land oilfield service player. With higher exploration and production by upstream companies, demand for NEX’s diverse set of well completion and production services is handsome.


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