Enterprise Products Partners L.P. Raises $2.0 Billion Through Senior Notes Offering

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Enterprise Products Partners ($NYSE:EPD) L.P. recently announced a successful senior notes offering worth $2.0 billion. The offering was met with great enthusiasm from investors, helping the company raise the funds it needed to continue its operations. The company also has international operations in Canada and Mexico. EPP provides its customers with a variety of services such as storage, transportation, processing, fractionation, and marketing of crude oil, natural gas liquids, and refined petroleum products.

In addition, the company engages in natural gas processing and treating, natural gas marketing, and offshore pipeline transportation. The successful $2.0 billion senior notes offering is expected to help EPP continue its operations and maintain a strong financial position in the industry. The funds will be used to finance a portion of the company’s general corporate purposes and to refinance existing indebtedness. EPP’s strong financial position will help the company continue to grow its business and build shareholder value in the future.

Stock Price

The offering resulted in a sizable increase in stock price, with the stock opening at $26.6 and closing at $27.0, up by 1.4% from previous closing price of 26.6. The company’s decision to raise capital via debt was widely seen as a positive step, as it will help fund their ongoing investments and initiatives. Furthermore, the high yield on these notes is expected to be beneficial for investors looking for good returns in the long-term. The proceeds from the offering will be used for general corporate purposes, such as acquisitions, investments, working capital and repayment or refinancing of existing debt.

All in all, the company’s senior notes offering is seen as a positive development for both the company and its investors. It will provide the company with much-needed funds to make investments and achieve its strategic objectives, while simultaneously providing investors with attractive yields and returns on their investments. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for EPD. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for EPD. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for EPD. More…

Key Ratios Snapshot

Some of the financial key ratios for EPD are shown below. More…

Analysis

The Star Chart compares the company’s performance in terms of asset, growth, profitability and dividend, and shows that ENTERPRISE PRODUCTS PARTNERS L.P is strong in asset, medium in growth, profitability and weak in dividend. Based on these findings, GoodWhale classifies ENTERPRISE PRODUCTS PARTNERS L.P as a ‘rhino’ company – one that has achieved moderate revenue or earnings growth. Given these results, who may be interested in such a company? Long-term investors who are willing to invest in a company with moderate growth but strong asset base may be interested in ENTERPRISE PRODUCTS PARTNERS L.P. Furthermore, the company has a high health score of 8/10 with regard to its cashflows and debt, ensuring that it is capable to safely ride out any crisis without the risk of bankruptcy. More…

Peers

Enterprise Products Partners LP is a Houston-based partnership that owns and operates pipelines and other energy-related transportation and storage facilities. The company’s main competitors are Energy Transfer LP, Enbridge Inc, and Kinder Morgan Inc. All three companies are based in North America and are involved in the transportation and storage of oil and natural gas.

– Energy Transfer LP ($NYSE:ET)

Energy Transfer LP is a publicly traded partnership that owns and operates energy infrastructure assets in the United States. The company’s assets include natural gas pipelines, natural gas storage facilities, and crude oil pipelines. Energy Transfer LP is headquartered in Dallas, Texas.

– Enbridge Inc ($TSX:ENB)

Enbridge Inc is a Canadian energy transportation and distribution company. It has a market capitalization of $103.97 billion as of 2022 and a return on equity of 9.87%. The company operates in the oil and gas industry and owns and operates a network of pipelines that transport crude oil, natural gas, and refined products in Canada and the United States. Enbridge also owns and operates a fleet of oil tankers and gas storage facilities.

– Kinder Morgan Inc ($NYSE:KMI)

Kinder Morgan Inc is a leading North American energy company that specializes in the transport, storage, and distribution of natural gas and crude oil products. The company has a market capitalization of $40.72 billion as of 2022 and a return on equity of 7.82%. Kinder Morgan is one of the largest energy infrastructure companies in North America, with a network of approximately 84,000 miles of pipelines and 160 terminals. The company’s pipelines transport natural gas, crude oil, refined products, and CO2, while its terminals store and handle petroleum products, chemicals, and other bulk materials.

Summary

Enterprise Products Partners L.P. recently raised $2 billion in capital through a senior notes offering. The notes were sold to qualified institutional buyers and to certain persons outside of the United States. Proceeds from the offering will be used for general corporate purposes, including potential acquisitions and/or debt reduction. It is expected that the offering will add to Enterprise’s liquidity and strengthen its balance sheet significantly.

Analysts view the company’s cost-cutting strategies as a positive catalyst, helping to drive long-term growth. Further, the company’s large asset base and diversified portfolio of midstream energy production provide a strong foundation for future earnings growth. As such, investors should consider Enterprise Products Partners as a potential investment opportunity.