EPD

Enterprise Products Partners’ DCF Coverage of Its Distribution Is Healthy

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Image Source: TradingView By Brian Nelson, CFA On July 28, Enterprise Products Partners (EPD) reported mixed second quarter results with revenue missing the consensus forecast, but GAAP earnings per share edging out what the Street was looking for. Enterprise reported net income of $1.4 billion and $0.66 per common unit, an increase of 3% compared to $0.64 per common unit in the second quarter of 2024. Distributable cash flow (DCF) was $1.9 billion in the second quarter, up 7% from the same period a year ago, and provided 1.6x coverage of the distribution declared for the second quarter of this year. Management had a lot to say about the results: In a seasonally weaker quarter challenged with macroeconomic, geopolitical, and … Read more

Dividend Increases/Decreases for the Week of July 11

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Below we provide a list of firms that raised their dividends during the week ending July 11. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Coca-Cola FEMSA (KOF): now $0.9877 per share quarterly dividend, was $0.8830. Enterprise Products Partners (EPD): now $0.545 per share quarterly dividend, was $0.535. Industrial Logistics Properties (ILPT): now $0.05 per share quarterly dividend, was $0.01. Levi Strauss (LEVI): now $0.14 per share quarterly dividend, was $0.13. Marsh & McLennan (MMC): now $0.90 per share quarterly dividend, was $0.81. PB Financial (PBNC): now $0.59 per … Read more

Magnificent 7 Earnings Reports Not Bad Thus Far

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By Brian Nelson, CFA   Shortly after Trump’s Liberation Day, where the President unveiled lofty tariffs on numerous countries, we released our wait-and-see outlook for the equity markets, which thus far has proven to be the right move, with the markets largely recovering from the depths reached in April. The S&P 500 (SPY), for example, is down just 3.3% year-to-date, excluding dividends.   A lot has happened since Liberation Day, including easing of tariffs to a 10% baseline for most, if not all, countries, with the key exception of China, where tariffs remain extremely elevated and prohibitive. Many countries are now reportedly negotiating trade agreements with the White House, and we expect China to be added to that list soon, even if … Read more

Enterprise Products Partners DCF Coverage of Its Distribution Remains Solid

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Image: Enterprise Products Partners’ units have done well of late. By Brian Nelson, CFA On April 29, Enterprise Products Partners (EPD) reported financial results for the three months ended March 31, 2025. The pipeline giant reported net income of $1.4 billion, or $0.64 per common unit on a diluted basis. Distributable cash flow (DCF) was $2 billion for the first quarter of 2025, a 5% increase compared to $1.9 billion in the first quarter of last year. DCF covered distributions declared for the first quarter by 1.7 times, with Enterprise retaining $842 million of DCF. Management had the following to say in the press release: During the first quarter of 2025, Enterprise continued to benefit from Permian driven volume growth … Read more

Trump Tariffs Higher than Expected; What We’re Doing

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By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more

Enterprise Products Partners Remains a Key Idea

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Image: Enterprise Products Partners units have fared well since the beginning of 2023. By Brian Nelson, CFA Enterprise Products Partners (EPD) recently reported fourth quarter results that came in better than expected on both the top and bottom lines. Enterprise reported net income attributable to common unitholders of $1.6 billion, or $0.74 per diluted common unit, which was a 3% increase compared to last year’s marks. Distributable cash flow [DCF] was $2.2 billion for the fourth quarter of 2024 compared to $2.1 billion in the same period a year ago. Distributions increased 3.9%, to $2.14 per common unit annualized, compared to distributions declared in the same quarter last year. DCF offered 1.8 times coverage of the distributions declared for the … Read more

Dividend Increases/Decreases for the Week of January 10

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Below we provide a list of firms that raised their dividends during the week ending January 10. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Albertsons Companies (ACI): now $0.15 per share quarterly dividend, was $0.12. Alpine Banks of Colorado (ALPIB): now $0.21 per share quarterly dividend, was $0.20. Apogee (APOG): now $0.26 per share quarterly dividend, was $0.25. ATCO (ACO.X:CA): now CAD 0.5045 per share quarterly dividend, was CAD 0.4898. ATCO Ltd. (ACO.Y:CA): now CAD 0.5045 per share quarterly dividend, was CAD 0.4898. Barry Callebaut AG (BRRLY): now … Read more

Enterprise Product Partners’ DCF Covered Its Distributions 1.7x in Third Quarter

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Image: Enterprise Products Partners’ units have done well the past couple years. By Brian Nelson, CFA On October 29, Enterprise Products Partners (EPD) reported third quarter results that came in slightly lower than expected. The midstream energy company reported net income attributable to common unitholders of $1.43 billion, or $0.65 per diluted unit, reflecting an 8% increase versus the $1.35 billion ($0.60 per diluted unit) it recorded in the third quarter of last year. Management had the following to say about the quarter: Enterprise reported another strong quarter as recently completed organic growth assets generated new sources of earnings and cash flow. Operationally, we set 5 volumetric records including 7.5 billion cubic feet per day of inlet natural gas processing … Read more

Kinder Morgan’s Dividend Is Much Healthier These Days

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Image: Kinder Morgan’s shares have done quite well thanks to improved free cash flow performance. By Brian Nelson, CFA On October 16, pipeline giant Kinder Morgan (KMI) reported weaker than expected third quarter results, with both revenue and non-GAAP earnings per share coming in lower than what the Street was looking for. Adjusted EBITDA expanded 2% in the third quarter on a year-over-year basis, while net income attributable to KMI came in at $625 million, higher than the $532 million mark it posted in the year-ago quarter. Third quarter earnings per share was up 17% compared to the same period last year, but adjusted earnings per share of $0.25 and distributable cash flow of $0.49 per share were flat on … Read more

An Important Measure of Leverage for Dividend-Growth and Income-Oriented Shareholders, One That Is Dividend-Adjusted

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As more and more investors rely on company dividends for income, dividends, in our view, have become more debt-like commitments in nature, especially from the perspective of dividend-growth or income-oriented shareholders. Years ago, we rolled out a measure of financial leverage that considers both the company’s debt and the present value of its future expected cash dividend obligations, which, in the eyes of die-hard dividend-growth or income-oriented shareholders, may be implicitly assumed to be debt-like commitments in substance. We think this leverage ratio can be used in conjunction with the Dividend Cushion ratio to gain additional insight into the dividend-paying financial health of an entity. Note: There is often great confusion with respect to published measures of financial leverage, and … Read more