While low crude and gas price have prompted some pipeline operators to cut or freeze their dividend payouts, two companies; Enterprise Products Partners LP and Tallgrass Energy Partners LP have done the exact opposite.
According to Pittsburgh Post-Gazette, Enterprise, the biggest U.S. pipeline partnership, raised its quarterly payout to 39 cents a unit and said management will recommend increases for every quarter this year. Tallgrass raised its own fourth-quarter distribution to 64 cents a unit and said management would recommend an increase of at least 6 cents for the first quarter.
Early this month, Tallgrass Energy Partners announced the payout of their quarterly distributions for the fourth quarter of 2015, to take place on Friday, February 12, 2016. The board of directors of Tallgrass Energy GP’s general partner declared a quarterly cash distribution of $0.173 per Class A share for the fourth quarter of 2015, or $0.692 on an annualized basis. This represents a 20.1 percent sequential increase from the third quarter 2015 distribution of $0.144 per Class A share and its second consecutive increase since its IPO in May 2015.
Enterprise, the biggest U.S. pipeline partnership, raised its quarterly payout to 39 cents a unit and said management will recommend increases for every quarter this year.
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