Is Enterprise Products Partners a Buy?
The energy sector is facing a massive supply and demand imbalance that's thrown a giant wrench into the normal flow of business. The problems aren't going to subside for a while. Now is the time to err on the side of caution, choosing large, diversified, and financially strong energy investments. That's exactly what Enterprise Products Partners (NYSE: EPD) happens to be. Here's a review of why this midstream stalwart is worth a close look today.
Enterprise operates in the midstream segment, which is a key differentiator in the energy sector. Unlike upstream companies that drill for oil and gas, volatile commodity prices don't dictate Enterprise's top- or bottom-line results. Nor is it like a downstream company that refines oil and gas or makes chemicals, where earnings are driven by the difference (or margins) between its input costs and the price for which it can sell its products.
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Source Fool.com
