Enterprise Products Secures New Revolving Credit Facility
Enterprise Products Partners L.P. EPD recently declared the commencement of a new revolving credit facility. The partnership secured a 364-day credit facility of $2 billion through its subsidiary, Enterprise Products Operating LLC. The move will likely offer the partnership more financial flexibility as well as capacity to take up growth opportunities.
Notably, the credit facility is expected to mature on Sep 11, 2019. It replaced a similar credit facility of $1.5 billion, which was scheduled to mature on Sep 12, 2018. Enterprise Products’ credit ratings of Baa1/BBB+ positioned it better than most of the master limited partners. As far as financial flexibility is concerned, Enterprise Products had a consolidated liquidity of $3.6 billion at the end of the second quarter, which comprised unrestricted cash on hand and available borrowing capacity.
The partnership is among the leading midstream energy players in North America. It has an extensive network of pipeline that spreads across nearly 50,000 miles. With its wide base of midstream infrastructure assets, the partnership provides services to producers and consumers of commodities that include natural gas, natural gas liquids (NGL), oil and refined petrochemical products.
Headquartered in Houston, TX, Enterprise Products has gained 10.6% in the past year compared with 1.2% collective growth recorded by the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, the stock carries a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks like Petroleo Brasileiro S.A. or Petrobras PBR, Subsea 7 S.A. SUBCY and Helix Energy Solutions Group, Inc. HLX, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Rio de Janeiro, Brazil-based Petrobras is an integrated energy company. The company’s top line for 2018 is likely to improve 7.5% year over year. In the last four reported quarters, it delivered an average positive earnings surprise of 10.4%.
Luxembourg-based Subsea is an oilfield service providing company. In the last four reported quarters, the company delivered an average positive earnings surprise of 318.6%.
Houston, TX-based Helix Energy’s bottom line surpassed the consensus mark in three of the last four quarters, with the average positive earnings surprise being 66.7%.
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