Stock Update (NYSE:EPD): Enterprise Products Partners L.P. to Further Expand Delaware Basin Network with New Natural Gas Processing Plant

Enterprise Products Partners L.P. (NYSE:EPD) announced plans to build a new cryogenic natural gas processing facility and associated natural gas and natural gas liquids (“NGL”) pipeline infrastructure to facilitate continued growth of NGL-rich natural gas production in the Delaware Basinof West Texas and southeastern New Mexico. The site for the new processing plant, which will have a nameplate capacity of 300 million cubic feet per day (“MMcf/d”) and the capability to extract more than 40,000 barrels per day of NGL, has yet to be determined. The project is anchored by long-term commitments from a major producer. The facility is expected to begin service in the second quarter of 2018.

“This project, which complements our ongoing growth in the region, is the third cryogenic natural gas processing plant Enterprise has announced in less than 24 months,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “The South Eddy facility began operations earlier this year, while our joint venture processing plant at Waha is expected to begin service in the third quarter of 2016. Altogether, these initiatives are expected to increase our processing capacity in the Delaware Basin to 800 MMcf/d, compared to 40 MMcf/d in 2012.”

In addition to providing new gas processing capabilities, the scope of the project will include construction of rich natural gas gathering lines, a residue pipeline to Waha and an NGL pipeline to Enterprise’s Mid-America Pipeline system. These assets will be designed to integrate with the rest of the company’s Delaware Basin infrastructure.

Teague added, “The continued growth of Enterprise’s Delaware Basin network, and its integration with the rest of our systems, offers additional value-added options, as well as access to the most attractive domestic and international markets. For Enterprise, the expanded Delaware Basin facilities create efficient bolt-on opportunities.” (Original Source)

Shares of Enterprise Products Partners closed last Friday at $27.72, up $0.01 or 0.04%. EPD has a 1-year high of $31.29 and a 1-year low of $19. The stock’s 50-day moving average is $27.23 and its 200-day moving average is $24.33.

On the ratings front, EPD has been the subject of a number of recent research reports. In a report issued on May 24, Deutsche Bank analyst Kristina Kazarian reiterated a Buy rating on EPD, with a price target of $32, which represents a potential upside of 15.4% from where the stock is currently trading. Separately, on May 2, Credit Suisse’s John Edwards reiterated a Hold rating on the stock and has a price target of $30.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kristina Kazarian and John Edwards have a total average return of -8% and 1% respectively. Kazarian has a success rate of 39% and is ranked #3669 out of 3974 analysts, while Edwards has a success rate of 48% and is ranked #1500.

Overall, one research analyst has assigned a Hold rating and 4 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 $31.00 which is 11.8% above where the stock closed last Friday.

Enterprise Products Partners LP is a North American midstream energy company that is engaged in providing a wide range of services to producers and consumers of natural gas, natural gas liquids or NGLs, crude oil, refined products and certain petrochemicals. The company operates through five reportable segments: NGL Pipelines & Services, Onshore Natural Gas Pipelines & Services, Onshore Crude Oil Pipelines & Services, Offshore Pipelines & Services, and Petrochemical & Refined Products Services. 


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