Enterprise Declares Quarterly Distribution

Rhea-AI Summary

Enterprise Products Partners L.P. (NYSE: EPD) has announced a quarterly cash distribution of $0.525 per unit for the third quarter of 2024, payable on November 14, 2024, to unitholders of record as of October 31, 2024. This represents a 5.0% increase over the distribution declared for Q3 2023.

The company repurchased $76 million of its common units in Q3 2024, bringing the total repurchases for the first nine months of 2024 to $156 million and $252 million for the last twelve months. Enterprise has now repurchased approximately $1.1 billion of common units under its authorized $2.0 billion buyback program.

Enterprise will announce its Q3 2024 earnings on October 29, 2024, followed by a conference call at 9 a.m. CDT. The call will be webcast live on the company's website.

Positive

• Quarterly distribution increased by 5.0% compared to Q3 2023
• Repurchased $76 million of common units in Q3 2024
• Total common unit repurchases of $156 million in the first nine months of 2024
• $1.1 billion of common units repurchased under $2.0 billion buyback program

Negative

• None.

Insights

Financial Analyst

Enterprise Products Partners L.P. has announced a significant 5.0% increase in its quarterly distribution, raising it to $0.525 per unit or $2.10 annualized. This hike demonstrates the company's strong financial position and commitment to returning value to unitholders.

The partnership's ongoing unit repurchase program is equally noteworthy. With $76 million in buybacks during Q3 2024 and a total of $252 million over the last twelve months, EPD has now repurchased about $1.1 billion of its $2.0 billion authorized program. This aggressive buyback strategy signals management's confidence in the company's intrinsic value and future prospects.

For investors, the combination of distribution growth and unit repurchases presents a compelling total return proposition. The increased distribution yield, coupled with the potential for unit price appreciation due to reduced supply, could make EPD an attractive option for income-focused investors in the midstream energy sector.

Market Research Analyst

Enterprise Products Partners' distribution increase and ongoing unit repurchases reflect a broader trend in the midstream energy sector. As the industry recovers from previous volatility, many companies are focusing on returning capital to shareholders through dividends and buybacks.

EPD's extensive asset base, including over 50,000 miles of pipelines and significant storage capacity, positions it well to capitalize on the ongoing demand for energy infrastructure. The company's diverse portfolio spanning natural gas, NGLs, crude oil and petrochemicals provides resilience against sector-specific downturns.

Investors should note that while the distribution increase is positive, it's essential to consider the broader market context. With rising interest rates, yield-focused investments like MLPs may face competition from fixed-income securities. However, EPD's growth prospects and strong operational performance could offset this challenge, potentially making it an attractive option for those seeking both income and growth in the energy sector.

HOUSTON--(BUSINESS WIRE)-- Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) announced today that the board of directors of its general partner declared a quarterly cash distribution to be paid to Enterprise common unitholders with respect to the third quarter of 2024 of $0.525 per unit, or $2.10 per unit on an annualized basis.

The quarterly distribution will be paid Thursday, November 14, 2024, to common unitholders of record as of the close of business Thursday, October 31, 2024. This distribution represents a 5.0 percent increase over the distribution declared with respect to the third quarter of 2023.

Enterprise repurchased $76 million of its common units in the open market during the third quarter of 2024, bringing total common unit repurchases in the first nine months of 2024 to $156 million and total common unit repurchases for the last twelve months to $252 million. Inclusive of these purchases, the partnership has repurchased approximately $1.1 billion of common units under its authorized $2.0 billion buyback program.

Enterprise will announce its earnings for the third quarter of 2024 on Tuesday, October 29, 2024, before the New York Stock Exchange opens for trading. Following the announcement, the partnership will host a conference call at 9 a.m. CDT with analysts and investors to discuss earnings. The call will be webcast live on the Internet and may be accessed through the “Investors” section of the partnership’s website at www.enterpriseproducts.com. A replay of the webcast will be available following the conference call and may be accessed approximately one hour after completion of the call.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity.

Qualified Notice for Non-U.S. Unitholder Income Tax Withholding

This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent of Enterprise’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Enterprise’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Enterprise Products Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and its general partner expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in Enterprise’s reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241002339884/en/

Libby Strait, Investor Relations (713) 381-4754 or (866) 230-0745, investor.relations@eprod.com

Rick Rainey, Media Relations (713) 381-3635, RRainey@eprod.com

Source: Enterprise Products Partners L.P.

FAQ

What is Enterprise Products Partners' (EPD) quarterly distribution for Q3 2024?

Enterprise Products Partners (EPD) declared a quarterly cash distribution of $0.525 per unit for the third quarter of 2024, or $2.10 per unit on an annualized basis.

When will Enterprise Products Partners (EPD) pay its Q3 2024 distribution?

Enterprise Products Partners (EPD) will pay its Q3 2024 distribution on Thursday, November 14, 2024, to common unitholders of record as of the close of business on Thursday, October 31, 2024.

How much did Enterprise Products Partners (EPD) increase its distribution compared to Q3 2023?

Enterprise Products Partners (EPD) increased its quarterly distribution by 5.0% compared to the distribution declared for the third quarter of 2023.

How many common units did Enterprise Products Partners (EPD) repurchase in Q3 2024?

Enterprise Products Partners (EPD) repurchased $76 million of its common units in the open market during the third quarter of 2024.