Enterprise Products Partners (EPD) is a midstream energy company that provides services to producers and consumers of natural gas, NGLs, crude oil and petrochemicals in the U.S., Canada and the Gulf of Mexico.
The numbers: First-quarter revenue fell 40% to $3.4 billion as net income weakened 13% to $225 million and earnings per share fell 20% to 41 cents. A quick ratio of 0.6 and a debt-to-equity ratio of 1.5 indicate a less-than-ideal financial position. However, margins improved significantly during the quarter, with operating margin climbing to 11% and net margin jumping to 7%.
The stock: Enterprise Products has climbed 35% in 2009, outperforming all major U.S. indexes. Yet, at its current price, the stock still offers a cash distribution yield of 7.8%. Cash distributions are taxed differently than dividends.
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