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3 Reasons to Like Enterprise Product Partners

3 Reasons to Like Enterprise Product Partners

Stephen Ellis: Enterprise Product Partners is a wide-moat firm. This is a very high-quality firm. So I'd like to make three points. First: A) It's a wide-moat firm with an efficient skill moat source; essentially, pipeline firms have a geographical monopoly and we can build from point A to point B. And as an incumbent they have advantages in terms of building incremental capacity that a new entrant cannot match. B) We increasingly see the incoming to a hydrocarbon whether it be oil, gas in the form of NGLs, LNG, or natural gas workings being exported. And C) Enterprise Product Partners is the leading export player and also has a 2 million barrel per day project due to come on line in 2022.

So in conclusion, you have a high-quality wide-moat firm, run by a SCM wave management team that is really well positioned for the big trend in midstream.

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Stephen Ellis

Strategist
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Stephen Ellis is an energy and utilities strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc., covering midstream companies. Ellis is a former member of Morningstar’s China Economic Committee, which provides research on the long-term outlook for the Chinese economy.

Before assuming his current role in 2017, he was director of equity research for financial services and a senior equity analyst. He is also a former editor of the Morningstar Opportunistic Investor newsletter and a former member of the Economic Moat Committee, a group of senior members of the equity research team responsible for reviewing all Economic MoatTM and Moat TrendTM ratings issued by Morningstar.

Prior to joining Morningstar in 2007, he worked as a freelance analyst for The Motley Fool and spent three years working in project and financial analysis for Environmental Systems Research Institute (ESRI), a supplier of geographic information system software and geodatabase management applications.

He holds a bachelor’s degree in business administration and a master’s degree in business administration from the University of Redlands.

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