3 Reasons Investors Should Love This MLP

In this video, Motley Fool energy analyst Joel South takes a look at Enterprise Products Partners (NYSE: EPD). This master limited partnership is incredibly well integrated into every step of its industry, with 50,000 miles of pipeline on top of its production, storage, and refining capabilities, which makes customer loyalty very high because of the fees customers avoid by staying with Enterprise Products throughout the entire process. That means a strong competitive moat, and customer value at every step along the chain. He also likes that there is no general partner for this MLP, only the shareholders as limited partners, and the company pays a nice dividend, with a 5.1% yield.

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To find out whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand-new premium research report on the company.

The article 3 Reasons Investors Should Love This MLP originally appeared on Fool.com.

Joel South, Taylor Muckerman, and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Enterprise Products Partners. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.