Analyst Note| Stephen Ellis |
As we expected, Enterprise Products Partners’ first-quarter results didn’t show much impact from the collapse in commodity prices in March. Management highlighted enough areas of resilience, particularly around its contracts, for us to hold to our $25.50 fair value estimate and wide moat rating. We continue to believe that Enterprise’s asset portfolio, diversified across basins and hydrocarbons, offers numerous opportunities to put capital to work at attractive returns and profit for short-term dislocations, and the firm remains deeply undervalued. In particular, its storage operations offer a good countercyclical balance at the moment.