How Enterprise Products Partners L.P. Makes Most of Its Money
Enterprise Products Partners (NYSE: EPD) is one of the largest master limited partnerships (MLPs) in the world. However, what's interesting about the company is that oil and natural gas weren't the primary fuels used to grow it into its current massive size. Instead, the company has focused its attention on serving the natural gas liquids (NGLs) market, where it is the dominant infrastructure provider. The company not only makes a boatload of money from the space, which helps support its lucrative distribution to investors, but it has a vast pipeline of growth opportunities that should keep that payout growing for years to come.
Given its dominance in the NGL space, it's not surprising that the company makes most of its money from assets serving that sector. In fact, of the $5.4 billion in gross operating margin Enterprise Products Partners has pulled in over the past year, 57% came from its NGL pipelines and services segment. Contrast that with the contributions from its other three segments: Its crude oil pipelines and services segment supplied 17% of the total, while the natural gas pipelines and services and the petrochemical and refined products services segments each contributed 13%.
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Source: Fool.com