For Enterprise Products Partners L.P. (EPD), It’s All About the Liquids

Add all these assets up, and Enterprise has a near monopoly on the movement of NGL in the United States. It also has the keys to one of the fastest-growing markets for natural gas. As a transportation fuel, natural gas is still a few years away before it starts to make a dent in the natual gas market, and Cheniere Energy, Inc. (NYSEMKT:LNG) , the lead U.S. company for exporting LNG, doesn’t expect to make a shipment before 2015. Luckily for Enterprise, there are far fewer political hurdles to export natural gas that has been processed into a chemical than it is to export natural gas as a product itself. Expect the company to reap big revenue nyumbers from its NGL structure while the rest of the natural gas industry catches up.

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Even though Enterprise has a major advantage in the NGL market, it’s not a one-trick pony. The company’s joint venture with Enbridge Inc (USA) (NYSE:ENB) for the Seaway pipeline is one of the crucial links in American energy infrastructure that will bring Canadian oil sands to refiners in the Gulf Coast. This is one of the essential infrastructure pieces that will break the pricing disparity across the United States. The company has also planned to commit more than $4 billion to developing oil, NGL, and natural gas assets throughout the Eagle Ford.

The article For This MLP, It’s All About the Liquids originally appeared on Fool.com and is written by Tyler Crowe.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him on Fool.com under TMFDirtyBird, Google +, or Twitter: @TylerCroweFool.The Motley Fool recommends Enterprise Products Partners.

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