HOUSTON - Enterprise Products Partners L.P. (NYSE: NYSE:EPD) announced today that its new refined products truck terminal is now operational, enhancing the distribution network in the Southwest U.S. The facility, which is part of the Texas Western Products (TW Products) system, is situated in Grand County, Utah, and offers a significant storage capacity and efficient access to major transportation routes.
The Grand County terminal boasts a storage capacity of 400,000 barrels for gasoline and diesel and has the capability to load trucks at a rate of up to 20,000 barrels per day. Its strategic location near Interstate 70 is designed to serve markets in both eastern Utah and western Colorado effectively.
This development marks the completion of the second phase of the TW Products system. The system now includes four terminals, with the others located in Gaines County, Texas, and the Jal and Albuquerque areas in New Mexico. Together, these terminals provide a combined storage capacity of 1.5 million barrels and a loading capacity of 63,000 barrels per day.
A.J. "Jim" Teague, co-chief executive officer of Enterprise's general partner, expressed confidence in the new system. He highlighted the repurposing of existing pipeline assets to connect underserved markets to the largest refined products complex in the country. The aim is to provide customers with more reliable supplies and lower motor fuel costs. The system's significance is expected to grow, especially in light of recent and potential future refinery closures in California.
Enterprise Products Partners L.P. stands as a major North American provider of midstream energy services, with an extensive portfolio of assets including pipelines, storage facilities, and marine terminals. The partnership's network is designed to serve the natural gas, NGLs, crude oil, refined products, and petrochemical sectors.
The information for this report is based on a press release statement. Enterprise Products Partners L.P. cautions that these forward-looking statements are subject to risks and uncertainties and that actual results may differ from those projected. The company does not intend to update forward-looking statements unless required by law.
In other recent news, Enterprise Products Partners L.P. has reported a net income of $1.4 billion for Q2 2024 and has completed the acquisition of Piñon Midstream for $950 million, a strategic move that expands its natural gas gathering and treating services in the Delaware Basin. The company has also issued $2.5 billion in senior notes and secured 100,000 barrels per day of new contracted commitments from the diluent open season on the TE product system. BofA Securities has upgraded Enterprise Products Partners' shares to a Buy rating, citing robust growth prospects and the potential for a significant increase in cash flow payouts. Mizuho Securities maintains an Outperform rating on the company's shares, anticipating long-term benefits particularly in its downstream natural gas liquids operations. These are recent developments and represent the company's commitment to enhancing its asset base and service capabilities in the energy sector.
InvestingPro Insights
Enterprise Products Partners L.P.'s (NYSE: EPD) new refined products truck terminal in Grand County, Utah, aligns well with the company's strong market position and financial performance. According to InvestingPro data, EPD boasts a substantial market capitalization of $63.24 billion, underscoring its significant presence in the Oil, Gas & Consumable Fuels industry.
The company's strategic expansion of its distribution network comes at a time when it's demonstrating solid financial health. EPD's revenue for the last twelve months as of Q2 2024 stood at $54.86 billion, with a quarterly revenue growth of 26.59% in Q2 2024. This growth trajectory supports the company's ability to invest in infrastructure projects like the new terminal.
InvestingPro Tips highlight EPD's commitment to shareholder value. The company has raised its dividend for 27 consecutive years and currently offers a substantial dividend yield of 7.21%. This consistent dividend growth aligns with the company's strategy of providing reliable returns to investors while expanding its operational capabilities.
Moreover, EPD's stock is trading near its 52-week high, reflecting investor confidence in the company's recent developments and future prospects. The new terminal's potential to enhance distribution efficiency and serve underserved markets could contribute to maintaining this positive market sentiment.
For investors seeking a deeper understanding of EPD's financial health and growth potential, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's strengths and potential risks in the evolving energy sector.
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