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Stolen Update On Enterprise Products Partners

|Includes: Enterprise Products Partners L.P (EPD)

Enterprise Products Partners recently had its investor day - and the following comments (taken from a post by 'passandshoot' [a guy with tons of street credit] on the Investor Village MLP message board) were taken from major brokerage analysts that reported on that event.

2017 Investor Day comments from Investment Bank analysts:

a) "Enterprise's investor meeting provided the usual thorough macro overview (bullish), and highlighted the partnership's deep management bench, expansive asset footprint, and conservative balance sheet and structure...We maintain our Outperform rating given EPD's strong, diversified asset footprint, stable and growing fee-based cash flows, and solid balance sheet."

b) "We continue to view EPD as a core holding and a through-the-cycle winner given its strong diversified asset base with higher barriers to replication. Additionally, we view valuation at 5.5% yield (on CY18 DPU estimate of $1.78) or 15.5x CY18 EV/EBITDA as still compelling and think the spread vs. c-corp peers should narrow."

c) "Enterprise's (NYSE:EPD) geographically diverse, vertically integrated assets and
financial flexibility provide a foundation for steady execution across a range of opportunities - perhaps best exemplified by its rich-natural gas/NGL initiatives connecting midstream and downstream services. We believe EPD's stable DCF profile and attractive ~6% yield give the partnership a favorable risk/reward profile relative to its large-cap natural gas-oriented peers. With conviction high exiting the 2017 Analyst Day, we reiterate our Strong Buy rating."

d) "Mood was upbeat at EPD's analyst day with greater confidence about growth sustainability. A supportive macro backdrop is enhancing the value of EPD's assets and presenting the company with multiple capex opportunities."

e) "Core holding. Roll-out of new projects and ability to extend value chain (exports!) remains critical cog in the accelerating energy landscape.

• View on the stock. We remain bullish, with view that 2016 EPD underperformance (+12% vs +18% MLP group) turns as the "rebound trade" gives way to those entities such as EPD that have the best access to (NYSE:I) growth projects capturing more volumes across the value chain and (ii) capital to fund those projects."

f) "EPD remains a top large-cap midstream pick in part due to its steady financial profile, which includes (1) solid 5-6% annual distribution growth with 1.2-1.3x coverage, (2) diversified, largely feebased earnings with manageable counterparty risk, and (3) financial flexibility, including a strong balance sheet (<4x long term Debt/EBITDA), no IDR burden, and access to cost-effective debt and equity financing."

g) "Difficult to Duplicate: EPD is a core MLP holding, in our view, given its expansive geographic footprint, integrated asset base, investment-grade balance sheet, strong track record of executing organic growth projects on-time and on-budget, integrating acquisitions, and an innovative, experienced, and proven management team. EPD is a dominant player in the NGL markets with market-leading positions all along the NGL value chain: gathering, transportation, storage, fractionation, and exports."

h) "A Bullish Tone at the Analyst Day: EPD hosted its analyst day, the general tone was bullish and consistent with our view post 4Q earnings; a mirror image of last year. EPD's enthusiasm and bullish outlook were supported by new project announcements as well as a discussion on potential opportunities to further expand its integrated footprint."

IMHO - If you want a Sleep Well At Nigh portfolio - then you need to own stocks like this. It you seek to own stocks like this - then you need to generate the ability to see those attributes when I post the spreadsheets on their metrics. Here is a re-posting of those numbers:

Enterprise Products Partners Operating Margin

  Q4-2016 Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015 Q2-2015 Q1-2015 Q4-2014 Q3-2014 Q2-2014 Q1-2014 Q4-2013 Q3-2013 Q2-2013 Q1-2013
NGL Pipelines & Services 784.3 703.5 719.1 783.7 730.3 695.5 650.6 695.2 705.3 711.5 680.9 780.0 737.4 639.6 544.9 592.5
Crude Oil Pipelines & Services 220.9 254.0 177.4 202.3 257.7 254.6 235.6 214.0 228.0 190.8 184.0 159.7 163.1 146.0 197.2 236.4
Natural Gas Pipelines & Services 201.3 178.5 177.4 177.7 194.3 192.4 191.4 204.5 184.5 195.4 203.0 220.4 187.1 213.4 197.7 190.8
Petrochemical & Refined Products Services 148.7 171.6 175.5 154.8 171.1 191.5 181.3 174.6 198.6 190.3 161.7 130.4 175.2 117.1 162.7 170.9
Offshore Pipelines & Services 0.0 0.0 0.0 0.0 0.0 7.1 44.3 46.1 42.0 47.1 33.6 39.3 28.0 37.9 39.7 40.5

Total gross operating margin 1,357.3 1,312.0 1,254.2 1,318.5 1,354.5 1,341.1 1,303.2 1,334.4 1,358.4 1,335.1 1,263.2 1,329.8 1,290.8 1,154.0 1,142.2 1,231.1

On 4-4-16 EPD priced a public offering of $1.25 billion of senior unsecured notes comprised of $575 million at 2.85% due April 15, 2021, $575 million at 3.95% due February 15, 2027, and $100 million at 4.90% due May 15, 2046.
On 5-4-15 EPD priced a public offering of $2.5 billion of senior unsecured notes comprised of $750 million at 1.65% due May 7, 2018, $875 million at 3.70% due February 15, 2026, and $875 million at 4.90% due May 15, 2046.
On 10-01-14 EPD paid approximately $4.41 billion to Oiltanking Holding comprised of $2.21 billion in cash and 54,807,352 Enterprise common units. Enterprise also paid $228 million to assume notes receivable issued by Oiltanking Partners.
On 2-05-14 EPD priced a public offering of $2 billion of senior unsecured notes comprised of $850 million at 3.90% due on February 15, 2024 and $1.15 billion at 5.10% due on February 15, 2045.
On 11-05-13 EPD offered 8,000,000 common units representing limited partner interests in the partnership at a public offering price of $62.05 (31.025 after stock split) per common unit.
On 3-11-13 EPD priced a public offering of $2.25 billion of senior unsecured notes comprised of $1.25 billion at 3.35% due on March 15, 2023 and $1 billion at 4.85% due on March 15, 2044.

Enterprise Products Partners metrics: 58% NGLs; 16% Crude; 15% Natural Gas; 11% Refined Product

  Q4-2016 Q3-2016 Q2-2016 Q1-2016 Q4-2015 Q3-2015 Q2-2015 Q1-2015 Q4-2014 Q3-2014 Q2-2014 Q1-2014 Q4-2013 Q3-2013 Q2-2013 Q1-2013
Revenues 6,478.8 5,920.4 5,617.8 5,005.3 6,115.0 6,307.9 7,092.5 7,472.5 10,190.3 12,330.2 12,520.8 12,909.9 13,101.3 12,093.3 11,149.3 11,383.1
Costs 5,647.8 5,107.7 4,857.3 4,190.8 5,291.6 5,501.6 6,402.4 6,665.7 9,349.7 11,464.8 11,686.8 11,933.7 12,227.0 11,317.4 10,412.7 10,469.9
EBITDA 1,355.1 1,258.9 1,314.7 1,327.2 1,335.1 1,309.9 1,296.3 1,326.0 1,316.0 1,300.7 1,248.2 1,365.8 1,224.2 1,138.7 1,103.8 1,250.1
Unadjusted DCF dollars 1,031.1 978.4 1,039.7 1,053.6 1,088.8 2,501.3 987.5 1,029.7 1,063.0 974.8 953.8 1,087.0 1,021.1 907.6 924.7 897.0
DCF dollars from one time gains 2.6 16.0 -14.5 -6.6 71.3 1,531.4 5.4 0.1 23.8 8.3 16.9 89.6 24.3 10.2 68.7 130.5
Normalized DCF dollars 1,028.9 962.4 1025.2 1060.2 1,017.5 969.9 982.1 1,029.6 1,039.2 966.5 936.9 997.4 996.8 897.4 856.0 766.5
Units 2,116.6 2,105.5 2,093.2 2,040.5 2,014.4 2,010.5 2,002.1 1,966.7 1,940.5 1,883.4 1,880.4 1,875.9 1,865.0 1,846.0 1,837.0 1,822.0
Unadjusted DCF/unit $0.4871 $0.4647 $0.4967 $0.5163 $0.5405 $1.2441 $0.4932 $0.5236 $0.5478 $0.5176 $0.5072 $0.5794 $0.5475 $0.4916 $0.5034 $0.4923
Normalized DCF/unit $0.4859 $0.4571 $0.4898 $0.5196 $0.5051 $0.4824 $0.4905 $0.5235 $0.5335 $0.5131 $0.4982 $0.5317 $0.5345 $0.4861 $0.4660 $0.4073
Upcoming Distribution $0.4100 $0.405 $0.400 $0.395 $0.390 $0.385 $0.380 $0.375 $0.370 $0.365 $0.360 $0.355 $0.350 $0.345 $0.340 $0.335
Unadjusted Coverage 1.188x 1.147x 1.242x 1.307x 1.386x 3.232x 1.298x 1.396x 1.481x 1.418x 1.409x 1.632x 1.564x 1.425x 1.481x 1.470x
Adjusted Coverage 1.185x 1.129x 1.225x 1.315x 1.295x 1.250x 1.291x 1.396x 1.447x 1.406x 1.384x 1.498x 1.527x 1.409x 1.371x 1.216x
Normalized DCF subtracts "cash proceeds from asset sales and insurance recoveries" - derivative gains do not appear to be included with DCF
Broker1_DCF/unit $0.48 $0.46 $0.50 $0.52 $0.55 $0.50 $0.51 $0.54 $0.56 $0.54 $0.52 $0.59        
Broker2_DCF/unit $0.49 $0.47 $0.50 $0.51 $0.51 $0.49 $0.50 $0.53 $0.52 $0.49 $0.50 $0.53        
Broker3_DCF/unit $0.49 $0.46 $0.50 $0.52 $0.54 $0.48 $0.49 $0.52                
Broker4_DCF/unit $0.487 $0.465 $0.496 $0.506 $0.539 $0.484 $0.493 $0.517 $0.549 $0.504 $0.508 $0.570 $0.549 $0.504 $0.508 $0.570
Broker5_DCF/unit   $0.46 $0.50 $0.50 $0.54 $0.49                    
Broker6_DCF/unit $0.49 $0.46 $0.50 $0.52 $0.54 $0.48 $0.49 $0.52                
LTM EBITDA 5,255.9 5,235.9 5,286.9 5,268.5 5,267.3 5,232.9 5,239.0 5,190.9 5,230.7 5,138.9 4,976.9 4,832.5 4,716.8 4,624.7 4,549.2 4,490.6
Long Term Debt   21,121.2 21,922.1 21,919.8 20,826.7 20,840.7 20,892.9 20,192.2 19,157.4 17,706.5 17,062.9 17,467.8 16,226.5 16,481.6 16,429.6 16,393.7
Long Term Debt/EBITDA   4.03x 4.15x 4.16x 3.95x 3.98x 3.99x 3.89x 3.66x 3.44x 3.43x 3.61x 3.44x 3.56x 3.61x 3.65x
Short Term Debt   2,838.1 875.4 835.9 1,863.9 1,619.4 1,400.1 1,399.8 2,206.4 1,939.9 1,300.0 900.0 1,125.0 1,049.9 540.0 1,150.0
Total Debt 23,901.6 24,163 22,999.9 22,946.4 22,690.6 22,460.1 22,293.0 21,592.0 21,363.8 19,646.4 18,362.9 18,367.8 17,351.5 17,531.5 16,969.6 17,543.7
Total Debt/EBITDA 4.55x 4.61x 4.35x 4.35x 4.31x 4.29x 4.26x 4.16x 4.08x 3.82x 3.69x 3.80x 3.68x 3.79x 3.73x 3.91x
Interest Expense 247.0 250.9 244.1 240.6 238.6 243.7 240.4 239.1 241.4 229.8 228.9 220.9 198.1 208.3 200.2 195.9
Interest Coverage 5.49x 5.02x 5.39x 5.52x 5.60 5.37 5.39 5.55 5.45 5.66 5.45 6.18 6.18 5.47 5.51 6.38

Historical Debt/EBITDA: 2010 3.9x; 2011 3.5x; 2012 3.6x; 2013 3.5x; 2014 3.8x (Oiltanking acquisition); 2015 4.2x (EFS Midstream acquisition)

If you can not 'see it' - then this is your opportunity to start asking questions.

Disclosure: I am/we are long EPD.