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May 24, 2023

Energy Transfer vs Enterprise Partners: which is the better MLP stock?

Energy Transfer vs Enterprise Partners: which is the better MLP stock? Master Limited Partnerships (MLPs) are a popular investment option for those seeking high yields and tax benefits. Two of the biggest players in the MLP space are Energy Transfer and Enterprise Partners. But which one is the better investment? Energy Transfer is a diversified MLP with operations in natural gas, crude oil, and refined products. The company has a strong presence in the Marcellus and Utica shale regions and is one of the largest natural gas pipeline operators in the country. Energy Transfer also has a significant presence in the Gulf Coast region, where it operates several crude oil and refined products pipelines. Enterprise Partners, on the other hand, is primarily focused on natural gas liquids (NGLs) and crude oil. The company operates a vast network of pipelines, storage facilities, and processing plants in the Gulf Coast region. Enterprise Partners is also one of the largest exporters of NGLs in the world. Both Energy Transfer and Enterprise Partners have strong fundamentals and offer attractive yields. Energy Transfer currently yields around 7.5%, while Enterprise Partners yields around 6.5%. However, Energy Transfer has a higher payout ratio, which could make its dividend more vulnerable in the event of a downturn. In terms of growth prospects, Energy Transfer has a more diversified portfolio and is well-positioned to benefit from the growing demand for natural gas. The company is also investing heavily in renewable energy, which could provide a significant growth opportunity in the future. Enterprise Partners, on the other hand, is more focused on NGLs and crude oil, which could be more volatile in the short term. Overall, both Energy Transfer and Enterprise Partners are solid MLP stocks with attractive yields and growth prospects. However, Energy Transfer's diversified portfolio and focus on renewable energy make it the better long-term investment. Investors should carefully consider their investment goals and risk tolerance before making a decision.