Stock Update (NYSE:EPD): Enterprise Products Partners L.P. Withdraws Indication of Interest in Williams

Enterprise Products Partners L.P. (NYSE:EPD) generally does not comment on market rumors or speculation. However, due to recent news leaks, movements in the price of the partnership’s common units as well as questions from investors, Enterprise announced that it has withdrawn its indication of interest in The Williams Companies, Inc. regarding the possible combination of Enterprise and Williams.

“Since our initial public offering in 1998, we have been and remain focused on responsibly growing Enterprise to provide distribution growth for our partners and enhance the value of our partnership’s units,” stated A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “Consistent with these efforts and after extensive analysis of public information regarding Williams, we submitted non-binding proposals to Williams to combine Williams and Enterprise. As a result of rumors with respect to our proposals, as well as the lack of engagement by Williams, we have determined that there is no actionable path forward toward an agreement. We, therefore, have withdrawn our non-binding proposals. While we are disappointed, we will maintain our financial discipline as we pursue future growth opportunities for the partnership.” (Original Source)

Shares of Enterprise Products are up nearly 2% in after-hours trading. EPD has a 1-year high of $30.11 and a 1-year low of $19. The stock’s 50-day moving average is $27.34 and its 200-day moving average is $26.21.

On the ratings front, EPD has been the subject of a number of recent research reports. In a report issued on September 6, Jefferies analyst Christopher Sighinolfi reiterated a Buy rating on EPD. Separately, on August 31, Wunderlich Securities’ Jeffrey Birnbaum reiterated a Buy rating on the stock and has a price target of $32.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Sighinolfi and Jeffrey Birnbaum have a total average return of 9.6% and -10.7% respectively. Sighinolfi has a success rate of 62% and is ranked #362 out of 4147 analysts, while Birnbaum has a success rate of 38% and is ranked #3802.

The street is mostly Bullish on EPD stock. Out of 8 analysts who cover the stock, 6 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $33.50, which represents a potential upside of 23% from where the stock is currently trading.

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 following reportable segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services and Petrochemical & Refined Products Services. 


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