Eye Catching Insider Trading: Enterprise Products Partners (EPD)

Enterprise Products Partners (NYSE:EPD) insider has recently participated in insider trading activity. Director, MCMAHEN CHARLES E bought 10,000 shares for $199,900 via one transaction Feb 12. Another notable insider trading was done by Montgomery William C on Feb 11, who is the Director of the company. The insider acquired 10,000 shares at an average price of $19.69. Moreover, an insider buying of 3,830,256 shares was carried out by WILLIAMS RANDA DUNCAN, Director at the company, on Jan 04. Following the transaction, the insider now owns 3,330,619 shares in total. Director, ANDRESS THURMON bought 2,500 shares for $62,742 through one transaction Dec 22. Following this sale, this insider’s stake in the company comprises 47,552 shares, priced at $979095.68 as of Friday.

The stock has experienced a total of 10 insider trades in the past three months. These trades include Zero sell activities and 10 buy trades. Furthermore, over the past 12 months, the stock was traded 55 times by insiders. In 28 of these trades, the insider was a seller while an employee of the company was the buyer in twenty seven instances.

Enterprise Products Partners (EPD) on January 28, 2016 announced its financial results for the three months and year ended December 31, 2015.

For the year 2015, operating income and cash flow provided from operations was $3.5 billion and $4.0 billion, respectively. Enterprise reported $5.3 billion in gross operating margin, and a record $4.0 billion in distributable cash flow, excluding proceeds from asset sales, for the year 2015. Distributions declared with respect to 2015 were $1.53 per unit, a 5.5 percent increase compared to distributions paid with respect to 2014. Distributable cash flow for 2015, excluding the proceeds from asset sales, provided 1.3 times coverage of the distributions declared with respect to 2015. Including $1.6 billion of proceeds from asset sales, Enterprise retained $2.6 billion of distributable cash flow in 2015 to reinvest in the growth of the partnership.

Review of Fourth Quarter 2015 Results

Net income for the fourth quarter of 2015 was $694 million compared to $681 million for the fourth quarter of 2014. On a fully diluted basis, net income attributable to limited partners was $0.34 per unit for the fourth quarters of 2015 and 2014. Net income for the fourth quarters of 2015 and 2014 was reduced by non-cash impairment charges of $24 million, or $0.01 per unit, and $16 million, or $0.01 per unit, respectively, on a fully diluted basis.

On January 4, 2016, Enterprise announced an increase in the partnership’s quarterly cash distribution with respect to the fourth quarter of 2015 to $0.39 per unit, representing a 5.4 percent increase over the distribution paid with respect to the fourth quarter of 2014. Enterprise generated distributable cash flow of $1.1 billion for the fourth quarters of 2015 and 2014, which included proceeds from the sales of assets of $71 million and $24 million, respectively. Distributable cash flow for the fourth quarter of 2014 also included $28 million of proceeds from the monetization of financial instruments used to hedge interest rates.