SOURCE: Advisor Access

August 09, 2016 10:30 ET

Enterprise Products Partners President Randy Fowler Interviewed by Advisor Access

SAN FRANCISCO, CA--(Marketwired - August 09, 2016) - Enterprise Products Partners L.P. (NYSE: EPD) provides midstream energy services to producers and end users throughout the U.S. Enterprise's assets include 49,000 miles of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemical pipelines, storage for 250 million barrels of NGLs, refined products, and crude oil, 25 natural gas processing plants, and eight import/export terminals with over 20 docks. One of the largest MLPs in the U.S., Enterprise has maintained distributable cash flow in the most current downturn in the energy cycle.

  • Consistent distribution growth: 48 consecutive quarters
  • Market Cap: ~$60 billion
  • ~$35 billion of organic growth projects and $26 billion of major acquisitions since IPO in 1998
  • Dividend Yield: ~6%

Adviser Access spoke to Enterprise's President Randy Fowler about how the company has negotiated tough times in the energy market and plans for future growth.

Advisor Access: The question "Is the Master Limited Partnership (MLP) model broken?" keeps coming up. Enterprise Products Partners seems to be a case of how the model can and is working. Can you explain the steps the company has taken to make that happen?

Randy Fowler: We hear that quite a bit also. We believe the idea is a simplistic, broad-brush overstatement. The energy industry is a cyclical industry. Sometimes the oil and natural gas producers are most impacted, other times it may be the refining sector or the petrochemical sector. This time producers and oilfield services have been most impacted from an earnings standpoint. Some midstream impacted more than others. The earnings and cash flow of many midstream MLPs have held up quite well, which is expected from a primarily fee-based business model. However, the correlation of equity prices for the MLP sector with crude oil prices, as measured by the Alerian MLP Index, has been almost as high as that of the oil and gas producers…

AA: That leads into the next question: How does Enterprise balance growth in new infrastructure and financing requirements while still protecting investors through this downturn in the energy cycle?

Read the answer to this question and the full interview with Enterprise's President Randy Fowler, HERE.

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Enterprise Products Partners has paid Advisor Access a fee to distribute this email. Randy Fowler had final approval of the content and is wholly responsible for the validity of the statements and opinions.

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