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An investor’s introduction to Enterprise Products Partners

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Enterprise Products Partners

Enterprise Products Partners (EPD) is one of the largest midstream master limited partnerships or MLPs and a significant component of the Alerian MLP ETF (AMLP). EPD is a leading midstream service provider in the natural gas, natural gas liquids or NGLs, crude oil, petrochemicals, and refined products sectors. It offers its services to the energy producers and consumers.

Enterprise GP is Enterprise Products Partners’ general partner. EPD operates through its wholly owned subsidiary, Enterprise Products Operating LLC (“EPO”).EPD Asset Map

The company’s operations include:

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  • Natural gas gathering, treating, processing, transportation, and storage
  • NGL transportation, fractionation, storage, and LPG (liquefied petroleum gas) export terminals
  • Crude oil gathering, transportation, and storage
  • Offshore pipeline services
  • Petrochemical and refined products transportation
  • Marine transportation

As of June 2014, its assets include:

  • 51,000 miles of onshore and offshore pipelines
  • 200 million barrels or MMBbls of storage capacity for NGLs, petrochemicals, refined products, and crude oil
  • 14 billion cubic feet or Bcf of natural gas storage capacity
  • 24 natural gas processing plants
  • 22 NGL and propylene fractionators
  • six offshore hub platforms located in the Gulf of Mexico
  • a butane isomerization complex

A brief history

In September 2006, EPD formed Duncan Energy Partners (DEP) to acquire, own, and operate midstream energy assets. In September 2011, in an effort to streamline its organizational unit and optimize operational costs, DEP was merged into EPD as its subsidiary.

Recently, Kinder Morgan Inc. (KMI) has expressed its intentions to merge its midstream subsidiaries Kinder Morgan Energy Partners (KMP) and El Paso Pipelines Partners (EPB) into KMI. For details on the merger, read our article Everything you need to know about the Kinder Morgan consolidation.

Other MLPs operating in the midstream energy sector are Energy Transfer Partners (ETP) and Plains All American Pipeline (PAA). These companies are components of the Alerian MLP ETF (AMLP).

EPD Share Price

Stock performance

EPD’s share price has gone up ~33% in the past year.

On July 15, 2014, EPD declared a two-for-one stock split by distributing one additional common unit for each common unit outstanding.

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