{"id":12835576,"date":"2025-08-20T12:16:33","date_gmt":"2025-08-20T16:16:33","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12835576"},"modified":"2025-08-20T12:17:51","modified_gmt":"2025-08-20T16:17:51","slug":"philstockworld-top-trade-alert-aug-20th-2025-enterprise-products-partners-epd","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2025\/08\/20\/philstockworld-top-trade-alert-aug-20th-2025-enterprise-products-partners-epd\/","title":{"rendered":"PhilStockWorld Top Trade Alert &#8211; Aug 20th 2025 &#8211; Enterprise Products Partners (EPD)"},"content":{"rendered":"<p>We did a Special Report last night on the Natural Gas Sector.\u00a0\u00a0<\/p>\n<p style=\"padding-left: 40px;\"><a title=\"PSW Special Report (Members Only): Natural Gas \u2013 Falling Knife or Energy Opportunity of the Year?\" href=\"https:\/\/www.philstockworld.com\/2025\/08\/19\/psw-special-report-members-only-natural-gas-falling-knife-or-energy-opportunity-of-the-year\/\" rel=\"bookmark ugc\"><strong>PSW Special Report (Members Only): Natural Gas \u2013 Falling Knife or Energy Opportunity of the Year?<\/strong><\/a><\/p>\n<p>In our recent <strong><a href=\"https:\/\/www.philstockworld.com\/2025\/08\/03\/philstockworlds-q4-2025-watch-list-stocks-to-buy-on-the-dip-members-only\/\" target=\"_blank\" rel=\"noopener\">Watch List Update<\/a><\/strong>, we had already noted:\u00a0\u00a0<\/p>\n<p>\u201c<strong>EPD ($33.81 when first watched, $30.74 as of Aug 1, 2025 close) \u2014<\/strong><\/p>\n<p><a href=\"https:\/\/publish.finviz.com\/082025\/EPDd083623926i.png\" target=\"_blank\" rel=\"nofollow noopener noreferrer ugc\"><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/082025\/EPDd083623926i.png\" alt=\"comment image\" \/><\/a><\/p>\n<ul>\n<li class=\"ql-indent-1\">Enterprise Products Partners continues to demonstrate why it is considered a blue-chip name in the midstream energy sector. The company\u2019s vast, integrated network\u2014spanning pipelines, processing plants, storage, and export terminals\u2014provides stable, fee-based cash flows that are largely insulated from commodity price volatility. Recent results show ongoing operational strength: Q1 2025 saw record natural gas and NGL volumes, with distributable cash flow up 5% year-over-year and distribution coverage maintained at a robust 1.7x. The company recently raised its quarterly distribution for the 26th consecutive year, now yielding over 6.9% at current prices, and retains ample financial flexibility with a conservative debt-to-EBITDA ratio of 3.0x<a href=\"https:\/\/ir.enterpriseproducts.com\/node\/44281\/pdf\" target=\"_blank\" rel=\"nofollow noopener ugc\">4<\/a><a href=\"https:\/\/stockanalysis.com\/stocks\/epd\/dividend\/\" target=\"_blank\" rel=\"nofollow noopener ugc\">6<\/a><a href=\"https:\/\/www.ainvest.com\/news\/enterprise-products-partners-epd-steady-hand-shifting-energy-markets-backed-5-dcf-growth-6b-strategic-projects-2505\/\" target=\"_blank\" rel=\"nofollow noopener ugc\">14<\/a>.<\/li>\n<li class=\"ql-indent-1\">Growth remains a key priority. EPD is investing $6 billion in strategic projects for 2025, including new natural gas processing capacity in the Permian Basin and expansions to its NGL export infrastructure, such as the Bahia pipeline and the Mont Belvieu fractionator. These projects are expected to drive incremental cash flow as they come online and further solidify EPD\u2019s leadership in North American energy logistics<a href=\"https:\/\/oilgasleads.com\/permian-growth-and-midstream-investment-enterprise-products-partners-expansion-strategy\/\" target=\"_blank\" rel=\"nofollow noopener ugc\">12<\/a><a href=\"https:\/\/www.ainvest.com\/news\/enterprise-products-partners-epd-steady-hand-shifting-energy-markets-backed-5-dcf-growth-6b-strategic-projects-2505\/\" target=\"_blank\" rel=\"nofollow noopener ugc\">14<\/a>.\u00a0Management\u2019s disciplined approach to capital allocation\u2014prioritizing high-return, fee-based projects\u2014positions EPD to benefit from rising U.S. natural gas and NGL production, as well as growing global demand for U.S. energy exports.<\/li>\n<li class=\"ql-indent-1\">Despite a slight pullback in the share price, EPD\u2019s valuation remains attractive at just over 10x forward earnings and a significant discount to its historical average. The company\u2019s strong balance sheet, consistent distribution growth, and clear path for future cash flow expansion make it a standout for income-focused investors.<\/li>\n<\/ul>\n<p><strong>Recommendation: Ready to Accumulate<\/strong><\/p>\n<p><strong>EPD is a high-quality, resilient operator with a proven track record of delivering income and modest growth. The current price weakness offers a compelling entry point for investors seeking both yield and exposure to the ongoing growth in U.S. energy infrastructure. Don\u2019t let it get away if you\u2019re looking for stability and income in a volatile market.<\/strong><\/p>\n<p>Since EPD was also the winner of our Special Report &#8211; who are we not to add them to our portfolios?\u00a0\u00a0<\/p>\n<p><strong>In the STP:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Let\u2019s sell 10 EPD 2027 $32 puts for $3.30 ($3,300) as we\u2019re happy to own it for net $28.70.<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>In the $700\/Month Portfolio:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Buy 8 EPD 2027 $30 calls for $2.95 ($2,360)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 5 EPD 2027 $35 calls for 0.95 ($475)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 3 EPD Oct $31 calls for $1.30 ($390)<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>That\u2019s net $1,495 on what should be at least a $5,000 spread when we\u2019re done rolling and we have 8 more chances to sell $390 ($3,120) but we\u2019ll conservatively call it $3,505 (234%) upside potential at $35 in 16 months.<\/strong><\/span><\/p>\n<p><strong>In the LTP, we can be more aggressive:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Sell 25 EPT 2027 $32 puts for $3.30 ($8,250)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Buy 75 EPT 2027 $30 calls for $2.95 ($22,125)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 50 EPT 2027 $35 calls for 0.95 ($4,750)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 25 EPT Oct $31 calls for $1.30 ($3,250)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 20 EPT Jan $22 puts for $1.50 ($3,000)<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>That is net $2,875 on the $37,500 spread with $34,625 (1,204%) upside potential if EPD gets about 10% higher. I LOVE this trade! AND there is solid income potential while we wait\u2026<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We did a Special Report last night on the Natural Gas Sector.\u00a0\u00a0 PSW Special Report (Members Only): Natural Gas \u2013 Falling Knife or Energy Opportunity of the Year? In our recent Watch List Update, we had already noted:\u00a0\u00a0 \u201cEPD ($33.81 when first watched, $30.74 as of Aug 1, 2025 close) \u2014 Enterprise Products Partners continues [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12835577,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26305],"tags":[],"class_list":{"0":"post-12835576","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-trades"},"_links":{"self":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12835576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/comments?post=12835576"}],"version-history":[{"count":2,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12835576\/revisions"}],"predecessor-version":[{"id":12835579,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12835576\/revisions\/12835579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media\/12835577"}],"wp:attachment":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media?parent=12835576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/categories?post=12835576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/tags?post=12835576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}