Chairman Peter Havens of Baldwin Management, LLC is very optimistic about Enterprise Products Partners L.P. (NYSE:EPD) because its chemical plants will be coming online in the near future.
The main thesis behind our optimism about that company and that stock are new chemical plants that are coming online in 2017, 2018 and 2019. And so the date of those chemical plants coming online is just getting closer and closer. And so we’re as enthusiastic as we have ever been with regard to Enterprise Products.
Havens further explains the anticipation behind the chemical plants and how it is helping the company.
Well, primarily because of the main feedstock for these chemical plants, for the products that they produce can be derived from natural gas, and natural gas is very cheap. As a consequence, chemical companies, whether they be American chemical companies, or in particular, some foreign chemical companies, like Shell (NYSE:RDS.A), are coming to the United States and taking advantage of these very cheap feedstocks and using it to produce higher-margin end products. That’s why we continue to be enthusiastic.
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