"I am adding Enterprise Products Partners (NYSE: EPD) to my 'Deep-Discount' portfolio," says Nathan Slaughter, editor of Half-Priced Stocks.

The advisor explains, "Enterprise is among the nation's largest pipeline operators, owning nearly 900 miles of crude oil pipelines and 33,000 miles of natural gas, natural gas liquids (NGL), and petrochemical pipelines." Here is his review.

"Following a series of acquisitions, Enterprise is now one of the nation's largest publicly-traded energy partnerships. As a master limited partnership (MLP), the company is generally exempt from federal income taxes, provided it distributes the lion's share of its cash flows to shareholders (technically referred to as unitholders.)

"This special status allows MLPs to shell out generous payments, although these distributions typically don't qualify for the reduced 15% dividend tax rate.

"As opposed to the 'upstream' business of exploration and production, Enterprise is a 'midstream' energy player -- a sector coveted for its steady cash generation potential. Much of Enterprise's diverse revenue stream comes from pipeline charges, which are influenced more by volume flow than by volatile commodity prices.

"And the firm's assets are focused in the nation's most reliable supply basins -- those representing approximately 90% of the production in the lower 48 states. Combined, Enterprise's network transports 1.8 million barrels of NGL and 7.9 trillion BTUs of natural gas every day.

"All of this has translated into a steadily rising stream of distributable cash flows. Following record financial results in 2006, the company has generated cash flows in excess of $730 million through the first three quarters of 2007.
"As a result, management just boosted quarterly distributions to $0.50 per unit, or $2.00 annually. That marks the 14th consecutive quarterly increase, and overall the payout has surged by +122% over the past decade.

"And there is plenty more where that came from. Natural gas consumption isn't slowing down -- management is expecting the rising volume of gas flowing through its pipelines and facilities to lead to heavier cash flows down the line. Increased deepwater drilling and leasing activity in the Gulf of Mexico also bodes well.

"Most importantly, the company is also wrapping up $2.1 billion worth of expansion projects that are just now coming online and could be key growth drivers going forward.

"Much like a toll road, Enterprise can now sit back and collect a steady stream of revenues as natural gas flows from producers into the homes of millions of Americans. With a sizeable yield of 6.4% and a appreciation potential to my $39 fair value, the units could continue gushing out gains for the next couple of years."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.