Why Units of Enterprise Products Partners Rebounded 27% in April
Units of Enterprise Products Partners (NYSE: EPD) have been excruciatingly volatile this year. The MLP plummeted nearly 40% in March due to cratering crude prices. It clawed some of that back after rallying 27.3% in April, according to data provided by S&P Global Market Intelligence. Aside from some stabilization in the oil market, the MLP reported solid first-quarter results, which helped lift some of the weight on the company's valuation.
Enterprise Products Partners' earnings and cash flow both slipped by low-single-digit rates during the first quarter as it felt some impact from all the volatility in the oil market. The company also warned that the glut of oil due to the COVID-19 outbreak would likely weigh on volumes during the second quarter. Because of that, it planned to cut capital spending by $1 billion as well as cut an additional $100 million of maintenance-related projects.
Image source: Getty Images.
Source Fool.com
