Enterprise Products Partners' Stellar Performance Demands An Upgrade

Daniel Jones Investing Group Leader Follow Summary Enterprise Products Partners is upgraded to a ‘strong buy’ due to robust financial performance, attractive valuation, and sector-leading net leverage. EPD’s Q2 revenue surged 60.8% year-over-year, with significant gains in operating cash flow, EBITDA, and distributable cash flow driven by higher volumes and margins. Current profitability is boosted by global energy market disruptions, but EPD’s long-term growth is underpinned by substantial organic investments and favorable US production forecasts. With a 5.76% yield and unmatched balance sheet strength, EPD offers compelling risk-adjusted returns versus peers, justifying a bullish outlook. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » gettinthere/iStock via Getty Images Back in May of this year, I made the decision to reaffirm Enterprise Products Partners ( EPD ) as a ‘buy’ candidate. I explained that the business remained a top tier midstream candidate thanks to its scale, diversification, and strong This article was written by Daniel Jones 37.78K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.