Company Update (NYSE:EPD): Enterprise Products Partners L.P. Completes Sale of Offshore Gulf of Mexico Business to Genesis

Enterprise Products Partners L.P. (NYSE:EPD) announced it has closed on the sale of its offshore Gulf of Mexico pipelines and services business toGenesis Energy L.P. (“Genesis”) for approximately $1.5 billion in cash.

“We are pleased to complete this transaction with Genesis,” said Michael A. Creel, chief executive officer of Enterprise’s general partner. “The proceeds from this sale significantly enhance our financial flexibility. Including the proceeds we received today, our current liquidity, consisting of unrestricted cash and available borrowing capacity under our credit facilities, is over $6 billion. This liquidity gives us flexibility in funding our growth capital projects, including attractive growth projects in the Eagle Ford and Permian regions, while eliminating our need to raise equity capital for the remainder of 2015 based on current expectations.”

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Our services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; crude oil and refined products transportation, storage and terminals; petrochemical transportation and services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 49,000 miles of onshore pipelines; 225 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity. (Original Source)

Shares of Enterprise Products Partners closed yesterday at $27.41. EPD has a 1-year high of $41.38 and a 1-year low of $27.03. The stock’s 50-day moving average is $30.35 and its 200-day moving average is $32.41.

On the ratings front, EPD has been the subject of a number of recent research reports. In a report issued on June 1, Oppenheimer analyst Bernard Colson maintained a Buy rating on the stock, with a price target of $39, which implies an upside of 42.3% from current levels. Separately, on May 26, Wunderlich Securities’ Jeffrey Birnbaum maintained a Buy rating on EPD and has a price target of $38.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Bernard Colson and Jeffrey Birnbaum have a total average return of -16.3% and -1.8% respectively. Colson has a success rate of 22.1% and is ranked #3701 out of 3714 analysts, while Birnbaum has a success rate of 15.4% and is ranked #2851.

Overall, 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $39.50 which is 44.1% above where the stock closed yesterday.

Enterprise Products Partners LP is a energy company. It provides services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil and certain petrochemicals.

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