Enterprise Products Partners: 13% Yield, Big Insider Buying Summary Pure midstream play Enterprise Products Partners L.P. is trading at its 52-week lows thanks to the brutal beat down in the energy sector in 2020. With capex expected to decline over the next two years, the partnership is close to self-funding its entire growth capex even after a partnership distribution currently yielding 13%. With 21 consecutive annual distribution increases and significant insider buying, Enterprise merited further investigation. A full investment analysis follows in the paragraphs below. I do much more than just articles at The Insiders Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today ยป The Bible is very clear about one thing: Using politics to create fairness is a sin." - P. J. O'Rourke Today, we take an in-depth look at a high yield play from the beaten down energy sector. The implosion of the entire energy sector as well as recent panic selling on any company with a significant amount of debt has crushed the shares. The stock is at new 52 week lows and yields an incredible 13%. However, this midstream concern is heavily insulated from falling energy prices, should see capex needs start to fall and has heavy insider buying as well. The shares trade near the lower end of a tight range the stock has been stuck in for more than a year now. A full analysis is presented in the paragraphs below. Company Overview Enterprise Products Partners L.P. (EPD) is a Houston based provider of midstream energy services to producers and consumers of natural gas, natural gas liquids {NGLs}, crude oil, petrochemicals, and refined products. Its assets include ~50,000 miles of pipelines; 260 MMBbls of storage capacity for liquid products and 14 Bcf of natural gas storage capacity. The company was founded in 1968 and went public in 1998, raising net proceeds of $243.3 million at $5.50 a share (split-adjusted). The fully integrated midstream energy concern currently trades near $13.00 a unit and commands a market cap of ~$30 billion. In addition to its pipeline and storage assets, Enterprise owns 26 natural gas processing plants; 23 fractionators; 11 condensate distillation plants; 1 propane dehydrogenation facility; and 18 docks for export. These assets connect to ~90% of U.S. refineries east of the Rockies, most major oil shale basins, and every ethylene cracker in the U.S. Enterprise has essentially grown either through capex spending or acquisition every year since 2001. Last year was no different with the company completing $5.4 billion of projects for which it has already secured contracts. Enterprise anticipates putting an additional $3.2 billion of projects into service in 2020 and an additional $4.6 billion in 2021-2023. The company is able to spend significantly thanks to its immense operation that generated gross operating margin {GOM} of $8.3 billion in 2019, up 13% from 2018 ($7.3 billion). GOM was 86% fee based, with differential-based (10%) and commodity price-based (4%) revenue comprising the balance. That $8.3 billion was split among four operating segments: NGL Pipelines & Services (2019 GOM of $4.0 billion); Crude Oil P&S ($2.1 billion); Natural Gas P&S ($1.1 billion); and Petrochemicals & Refined Products Services ($1.1 billion). https://seekingalpha.com/article/4332614-enterprise-products-partners-13-yield-big-insider-buying This is one for Warren Buffett, Sam Zell, Ackmann, Tom Barrack & Co...;=) On a personal note: bought a big chunk of that stuff for my portfolio, too... 50% upward potential from here: easily!