EPD has risen 11% this year
Enterprise Products Partners (EPD) stock has risen ~11% this year, outperforming Energy Transfer (ET) and Magellan Midstream Partners (MMP) but underperforming Kinder Morgan (KMI), which has risen ~12%. Crude oil prices have risen ~15% this year, supporting energy stocks. In the last year, EPD stock has fallen ~7%, whereas ET, MMP, and KMI have fallen ~7%, 25%, and 19%, respectively.
EPD faces resistance
Enterprise Products Partners stock is trading ~2% below its 200-day moving average of ~$27.70, where the stock may face resistance. Enterprise Products Partners has approached this level twice this month but hasn’t broken above it. EPD is trading ~4% above its 50-day moving average, which could act as near-term support for the stock.
Project updates in Q4
In November, Enterprise Products Partners announced projects to increase its fractionation capacity in Texas and Louisiana. Its fractionation capacity remains tight considering domestic production’s growth. In October, the company announced a new natural gas liquid fractionator that’s expected to be in service in 2020’s second quarter, and the beginning of a natural gas processing plant’s construction in Texas. These projects and others should drive the company’s long-term growth. Next, we’ll look at analysts’ recommendations for Enterprise Products Partners ahead of its fourth-quarter results.