Enterprise Products Partners L.P. (NYSE: EPD) (“Enterprise”) announced on July 7, 2022, that the board of directors of its general partner declared the quarterly cash distribution paid to limited partners holding Enterprise common units with respect to the second quarter of 2022 of $0.475 per unit, or $1.90 per unit on an annualized basis. This distribution represents a 5.6 percent increase over the distribution declared with regard to the second quarter of 2021.
This is an example of a corporate action that supports our view that midstream free cash flow has progressively grown. Many midstream companies implemented measures during the previous quarters to protect their balance sheets with cost-saving initiatives and cancellations or reductions to capital spending. Companies have transitioned to paying down debt and, in the case of larger midstream companies, instituted share buybacks or dividend increases as a way to return cash opportunistically. Shareholders of midstream energy companies benefit from share repurchases and incremental dividend increases. We believe these activities by management will help midstream companies successfully operate during periods of volatile energy prices.
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