HOUSTON - Enterprise Products Partners L.P. (NYSE: NYSE:EPD), a major North American midstream energy services provider, has announced an increase in its quarterly cash distribution to $0.515 per unit for the first quarter of 2024. This marks a 5.1 percent rise from the distribution declared in the same quarter of the previous year. The payment is scheduled for May 14, 2024, to unit holders on record as of April 30, 2024.
In addition to the increased distribution, the company has bought back $40 million worth of its common units in the open market during the first quarter of 2024. This buyback is part of a larger $2.0 billion authorization, of which 48 percent has now been utilized.
Enterprise is slated to release its first-quarter earnings on Tuesday, April 30, 2024, before the New York Stock Exchange opens. A conference call will follow at 9 a.m. CDT to discuss the results with analysts and investors. Interested parties can access the live webcast through the Investors section of Enterprise's website, with a replay available approximately one hour after the call's completion.
The partnership's extensive asset base includes over 50,000 miles of pipelines and storage capacities exceeding 300 million barrels for various hydrocarbon products, as well as 14 billion cubic feet of natural gas storage capacity.
These assets support a range of services such as natural gas gathering, processing, and storage; NGL transportation and fractionation; crude oil and petrochemical transportation and storage; and marine transportation along key U.S. waterway systems.
This press release also serves as a qualified notice to brokers and nominees regarding the withholding requirements for distributions to non-U.S. investors, as outlined by the Treasury Regulation Section 1.1446-4(b)(4) and (d).
InvestingPro Insights
Enterprise Products Partners L.P. (NYSE: EPD) has shown a strong commitment to shareholder returns, as evidenced by the recent increase in its quarterly cash distribution to $0.515 per unit for the first quarter of 2024. This move is part of a consistent pattern of dividend growth, which is further highlighted by the fact that EPD has raised its dividend for 27 consecutive years, as per InvestingPro Tips. Additionally, the company's significant dividend to shareholders is complemented by a dividend yield of 6.92%, standing out as a compelling aspect for income-focused investors.
From a valuation standpoint, EPD's market capitalization is currently at $64.16 billion USD, with a price-to-earnings (P/E) ratio of 11.82. This P/E ratio is relatively stable when compared to the last twelve months as of Q4 2023, where it was slightly lower at 11.71. Despite the company's strong dividend track record, InvestingPro Tips suggest that the stock may be trading at a high P/E ratio relative to near-term earnings growth, which could be a point for investors to consider when evaluating the company's future prospects.
On the operational side, EPD's revenue for the last twelve months as of Q4 2023 stands at $49.72 billion USD. However, it's important to note that the company has experienced a revenue growth decline of 14.56% during the same period. This contrasts with a positive quarterly revenue growth of 7.12% in Q1 2023, indicating some recent recovery in the company's financial performance.
For investors looking to delve deeper into the financial health and future outlook of Enterprise Products Partners L.P., additional InvestingPro Tips are available. There are a total of 12 more tips listed on InvestingPro that can provide a more comprehensive analysis. To gain access to these insights and make more informed investment decisions, users can visit https://www.investing.com/pro/EPD and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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