ssuaphoto/iStock via Getty Images
I wrote articles in early January on Enterprise Products Partners (NYSE:EPD) and Magellan Midstream Partners (MMP) explaining why they are my two largest positions. I haven't made any changes to the positions, but
Enterprise Products Partners And Magellan Midstream Partners: 2 Best-Of-Breed MLPs For Your Consideration
Summary
- EPD and MMP remain materially undervalued at current prices, even after a solid start to 2022.
- Both have massive distributions, with EPD's yield at 7.8% and MMP's at 8.6%.
- EPD announced the acquisition of Navitas in January, giving the company access to the Midland Basin in Texas.
- EPD and MMP partnered with Intercontinental Exchange to create a WTI Oil Futures Contract, which began trading in January.
You can find me on Substack at Kontrarian Korner: CPA and former Big 4 auditor. I break down investments in qualitative and quantitative terms, and I look for investments that will compound my money over the long term.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of EPD, MMP 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.