Enterprise Products Partners (EPD) is scheduled to report its 1Q17 earnings on May 2, 2017. For the quarter, analysts expect its EBITDA (earnings before interest, tax, depreciation, and amortization) to be $1.37 billion—an increase of nearly 3% compared to $1.33 billion for 1Q16. Enterprise Products Partners’ 1Q17 estimated EBITDA is 1% higher compared to 4Q16.
On April 5, 2017, Enterprise Products Partners increased its 1Q17 distributions to $0.42 per unit—an increase of 5.1% year-over-year and 1.2% quarter-over-quarter. It’s the company’s 51st consecutive quarterly distribution increase.
Currently, Enterprise Products Partners trades at a distribution yield of ~5.7%. In comparison, the Alerian MLP ETF (AMLP) is trading at a yield higher than 7%, while the SPDR S&P 500 ETF (SPY) yields nearly 2%. The energy sector forms nearly 6.6% of the S&P 500 Index (SPX-INDEX).
The above graph shows Enterprise Products’ EBITDA and distribution per unit over the last two years. It also shows the company’s expected EBITDA in 1Q17.
Key 1Q17 updates
In March 2017, Enterprise Products Partners acquired Azure Midstream Partners’ midstream business for $189 million after Azure’s bankruptcy. “These assets are very complementary to our East Texas NGL, Texas Intrastate natural gas pipeline, and our Haynesville gathering and Acadian natural gas pipeline systems. This transaction is expected to be immediately accretive to our distributable cash flow per unit,” said William Ordemann, executive vice president of Enterprise Products’ general partner, in a related press release.
In February 2017, Enterprise Products Partners renegotiated and extended a natural gas processing agreement with Ultra Petroleum (UPL). The agreement secures the supply of natural gas for Enterprise Products Partners’ cryogenic processing facility in Wyoming for a 20-year period. Enterprise Products Partners expects the facility to operate at nearly full capacity for the next five to ten years.
For an update on Enterprise Products Partners’ key indicators, read Enterprise Products Partners: Analyzing Recent Changes.