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Yahoo
3 days ago
- Business
- Yahoo
Where Will Energy Transfer Be in 1 Year?
Energy Transfer is a large North American midstream business. The MLP has a $5 billion capital investment program in the works. There are even more projects in Energy Transfer's backlog. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) is a midstream master limited partnership (MLP) with a lofty 7.5% distribution yield. There are a couple of big-picture reasons to dislike the business, but there are also some notable reasons to like it. One big reason to be positive is the growth opportunity in the years ahead for this diversified MLP. Here's what you need to know. Energy Transfer owns energy pipelines, storage, and transportation assets that help to move oil and natural gas from where they are produced to where they are used. The MLP largely charges fees for the use of this vital energy infrastructure, with about 90% of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) tied to fees. The business itself is fairly well diversified. Natural gas liquids and refined products account for 24% of EBITDA, midstream assets 23%, natural gas pipelines and storage 21%, crude oil 18%, and its stakes in two publicly traded MLPs 14%. Energy Transfer's leverage is within management's target range, and it's projecting 3% to 5% annual distribution increases for the foreseeable future. That said, too much leverage led to a distribution cut in 2020, a time of great uncertainty in the energy sector thanks to the coronavirus pandemic. Income investors were severely let down right when they likely would have most wanted income consistency. That cut comes on top of an unfortunate event involving peer Williams (NYSE: WMB) in 2016. Energy Transfer agreed to buy Williams and then chose to back out of the deal because it would have required a dividend cut, taking on massive debt, or both. Part of the process of killing the deal was the sale of convertible notes that look like they would have protected the then-CEO from the effect of a dividend cut, if one had been needed. The deal was called off, but this event, coupled with the distribution cut in 2020, should cause more conservative investors to pause here. There are equally attractive midstream businesses that don't have similar, potentially objectionable, histories. However, there are reasons to find Energy Transfer attractive. That starts with the fact, as noted above, that leverage is back down to levels with which management is comfortable. A stronger balance sheet is the foundation on which Energy Transfer is spending $5 billion in 2025 on capital investments. The investments are spread across its business, with the midstream segments getting 30% of the cash, natural gas liquids and refined products 28%, natural gas pipelines 28%, oil 6%, and "other" the remainder. There is an array of different types of projects in the works, from incremental improvements to existing assets to the ground-up construction of new assets. A number of capital investment projects will be completed in 2025, but there are others that will start adding to cash flow in 2026 and beyond. There are additional projects waiting in the wings that can be added to Energy Transfer's capital plans in the future. The big picture takeaway is that slow and steady growth seems like the order of the day, which is backed up by management's target of 3% to 5% distribution growth over the longer term. Energy Transfer's business should be slightly larger and more profitable in a year. That is likely to mean a distribution that's a little bit higher, too. If you can look past the trust issues that have arisen in the past, this high-yield midstream MLP looks like it is on a more sustainable path today. However, more conservative investors should note that the same sustainable growth path is expected from many peers, including Enterprise Products Partners, a competitor that has increased its distribution annually for 26 consecutive years. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Where Will Energy Transfer Be in 1 Year? was originally published by The Motley Fool
Globe and Mail
3 days ago
- Business
- Globe and Mail
Where Will Energy Transfer Be in 1 Year?
Energy Transfer (NYSE: ET) is a midstream master limited partnership (MLP) with a lofty 7.5% distribution yield. There are a couple of big-picture reasons to dislike the business, but there are also some notable reasons to like it. One big reason to be positive is the growth opportunity in the years ahead for this diversified MLP. Here's what you need to know. What does Energy Transfer do? Energy Transfer owns energy pipelines, storage, and transportation assets that help to move oil and natural gas from where they are produced to where they are used. The MLP largely charges fees for the use of this vital energy infrastructure, with about 90% of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) tied to fees. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The business itself is fairly well diversified. Natural gas liquids and refined products account for 24% of EBITDA, midstream assets 23%, natural gas pipelines and storage 21%, crude oil 18%, and its stakes in two publicly traded MLPs 14%. Energy Transfer's leverage is within management's target range, and it's projecting 3% to 5% annual distribution increases for the foreseeable future. That said, too much leverage led to a distribution cut in 2020, a time of great uncertainty in the energy sector thanks to the coronavirus pandemic. Income investors were severely let down right when they likely would have most wanted income consistency. That cut comes on top of an unfortunate event involving peer Williams (NYSE: WMB) in 2016. Energy Transfer agreed to buy Williams and then chose to back out of the deal because it would have required a dividend cut, taking on massive debt, or both. Part of the process of killing the deal was the sale of convertible notes that look like they would have protected the then-CEO from the effect of a dividend cut, if one had been needed. The deal was called off, but this event, coupled with the distribution cut in 2020, should cause more conservative investors to pause here. There are equally attractive midstream businesses that don't have similar, potentially objectionable, histories. There are 5 billion reasons to like Energy Transfer However, there are reasons to find Energy Transfer attractive. That starts with the fact, as noted above, that leverage is back down to levels with which management is comfortable. A stronger balance sheet is the foundation on which Energy Transfer is spending $5 billion in 2025 on capital investments. The investments are spread across its business, with the midstream segments getting 30% of the cash, natural gas liquids and refined products 28%, natural gas pipelines 28%, oil 6%, and "other" the remainder. There is an array of different types of projects in the works, from incremental improvements to existing assets to the ground-up construction of new assets. A number of capital investment projects will be completed in 2025, but there are others that will start adding to cash flow in 2026 and beyond. There are additional projects waiting in the wings that can be added to Energy Transfer's capital plans in the future. The big picture takeaway is that slow and steady growth seems like the order of the day, which is backed up by management's target of 3% to 5% distribution growth over the longer term. Where will Energy Transfer be in 1 year? Energy Transfer's business should be slightly larger and more profitable in a year. That is likely to mean a distribution that's a little bit higher, too. If you can look past the trust issues that have arisen in the past, this high-yield midstream MLP looks like it is on a more sustainable path today. However, more conservative investors should note that the same sustainable growth path is expected from many peers, including Enterprise Products Partners, a competitor that has increased its distribution annually for 26 consecutive years. Should you invest $1,000 in Energy Transfer right now? Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor 's total average return is987% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
Yahoo
4 days ago
- Business
- Yahoo
This Top High-Yield Dividend Stock's Exports to China Could Take a Hit. Should Income Investors Be Worried?
Enterprise Products Partners needs to apply for a license to export ethane to China. The company isn't sure if it will be able to get a license or how much this will affect its business. While exports are a big part of its business, the MLP has very diversified operations and a top-notch financial profile. 10 stocks we like better than Enterprise Products Partners › Enterprise Products Partners (NYSE: EPD) has been an elite income-producing investment over the years. The master limited partnership (MLP) has raised its cash distribution to investors for 26 straight years (every year since its initial public offering). The energy midstream giant currently offers a yield of around 7%, which is several times higher than the S&P 500 (less than 1.5%). One factor fueling the MLP's lucrative and steadily growing payout is its leading energy export business. It operates several marine terminals along the U.S. Gulf Coast that export natural gas liquids, crude oil, petrochemicals, and refined products to global markets. China is a major destination for its ethane and butane exports. That's a potential problem now that the U.S. Department of Commerce is requiring companies to apply for a license to export to China. Here's a look at whether this policy shift could affect the company's ability to continue growing its high-yielding payout. The Commerce Department recently ordered companies to stop shipping goods, including ethane and butane, to China without a license. That will have a direct effect on Enterprise Products Partners. The company's marine terminal on the Houston ship channel loaded about 85,000 barrels of ethane per day last year for export to Chinese markets. That represented about 40% of the volumes from that facility, a big chunk of this country's ethane exports to China, which hit a record 227,000 barrels per day last year. The U.S. also exported a record 26,000 barrels of butane per day in 2024. The company is currently evaluating its procedures and internal controls. It said in a regulatory filing that it's not yet sure if it will be able to obtain a license to resume exports to China. One potential roadblock to a license is that an agency of the Commerce Department told the company that ethane and butane exports to China pose an unacceptable risk of military end-use by the country. However, that's not the typical use of ethane. Chinese petrochemical companies use the cheaper natural-gas-based product in place of oil-based naphtha as a feedstock to produce plastics and chemicals. It also has heating and cooking uses. Enterprise isn't sure how much this policy change will affect its operations and cash flow. A big unknown is whether the industry will be able to quickly find alternative markets and uses for the U.S. ethane and butane that were flowing to China. It's also not clear how much effect this will have on prices. China is a major energy consumer, making it a prime destination for U.S. hydrocarbons. U.S. exports satisfy 27% of the country's demand. While the Trump administration is currently curtailing exports to China, increasing U.S. energy export volumes to the country could help reduce the current trade imbalance. Enterprise's co-CEO Jim Teague said on the company's first-quarter conference call last month that the new administration's tariff plan "is causing nothing short of chaos around the world. Energy is not excluded." However, his company believes that the administration's policies have an end goal, which is "intended to promote U.S. energy, not just for the next four years, but for decades," Teague added. That's because U.S. energy is important to our economy, global markets, and our balance of trade. The new license requirements to export ethane to China could have some effect on Enterprise Products Partners' export business. However, the company has one of the most diversified midstream operations in the industry, which should help mute the impact. On top of that, it has one of the strongest financial profiles in the energy midstream sector. Because of that, the headwind shouldn't significantly affect the MLP's ability to continue paying a growing distribution in the near term. Meanwhile, the administration's policies should be net positives for the U.S. energy sector over the long term, especially for exports, since they're crucial to helping balance trade. Given all the positives, the company remains a rock-solid option for income-seeking investors to buy and hold for the long haul. Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt DiLallo has positions in Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. This Top High-Yield Dividend Stock's Exports to China Could Take a Hit. Should Income Investors Be Worried? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
4 days ago
- Business
- Forbes
Dallas Flash Continue Their Unbeaten Run At Major League Pickleball Arizona Event
Jorja Johnson (R) and Hurricane Tyra Black (L) are on absolute fire in MLP this season. There's no rest for the weary. Major League Pickleball (MLP) presented by DoorDash picked up just a few days after its exciting Austin event and headed west to the (infamous?) Arizona Athletic Grounds for the 4th Stop in its 2025 season. I say 'infamous" because this host site is the basis of a $280M fraud lawsuit against its owners. It's a massive facility, with dozens of courts and has hosted a slew of pro events across all three tours over the years, and one can only hope the facility survives the legalities. Key Links for tracking the event this weekend, which featured livestreams from the two primary courts at the facility on MLP's YouTube channel and on No transactions were announced, but there is a major personnel issue covered in the News section. The next waiver period for both Premier and Challenger is in mid-June, just a couple weeks away. Bench Players who got in on the action this weekend, either by choice or due to player conflicts, included: - Utah played Erokhina as its Women's #2 instead of Safdar. - SoCal played both its bench players Hovenier & newly acquired Ingram in place of Bellamy and Tereschenko to start the event before Irina took over for Match day No. 2. Hovenier played the whole weekend and may have opened some eyes with his play. - Phoenix replaced Genie Bouchard with Alex Walker early, but then Bouchard was back in action by Friday. - Atlanta subbed in Rettger for DiMuzio towards the end of the weekend. Hopefully I didn't miss any player subs, but it is definitely interesting to see how much these teams are using their bench players. Ahead of the event, here's some news and noteworthy items for MLP. - Just ahead of the event on 5/29/25: UPA fines and suspends Quang Duong for playing in an unsanctioned (and clearly unapproved) event while traveling to Vietnam to support his new paddle sponsor. This will cost him $50k, one PPA event, and most of the upcoming MLP Phoenix event. He's replaced for the first four games of MLP Arizona by onsite sub Spencer Smith. Rachel Rohrabacher led her Brooklyn team to a 5-1 weekend. Day 1 Observations Day 2 Observations Tyler Loong (foreground) rips a forehand winner for his surprising Utah Black Diamonds team. Day 3 Observations Day 4 Observations Blaine Hovenier proved to be a spark plug for his SoCal Hard Eights team, leading them to their ... More first win of the season. Note: all standings are done by points-per-match. In Premier In Premier Here's a new section we're going to include going forward. Given the league structure and the varying attendance of teams at each event, here's some specific takeaways from the event. 1. Dallas is unstoppable. Between Jorja Johnson's leap forward improvement and the team's overall chip on their shoulder from last year, they're clearly the team to beat in 2025. Last year this team went through the motions a couple of times and dropped matches against inferior teams, which led to the No. 3 seed in the playoffs and a harder path to the title. This year they're collectively gunning for an undefeated season. 2. Utah is better than I thought. I had Utah 13th of 16 after the draft (my other pundits generally had them 11-12th). This placed them behind the likes of Carolina, Atlanta, and Phoenix. They're clearly better than all three of these teams right now, though probably not good enough to get into the playoffs unless they can beat the likes of LA (who they lost to 3-1 last weekend) or Chicago. 3. Phoenix is a lot worse than I thought. Just one win this weekend, over Atlanta, and they inexplicably lost to SoCal, who I legitimately thought was going to go 0-25 this season. Phoenix has absolutely no reason to be this bad, not with top players like McGuffin and Irvine who are getting results week-in/week-out on the PPA. What this says to me is that the Flames GM really, really overestimated the capabilities of Sock and especially Bouchard, and may not have understood the chemistry issues they were acquiring with Tyson. I had Phoenix 8th in my pre-season ranks, well ahead of where my fellow pundits had them ranked (10th-11th mostly, with Kloss having them 13th). Next up on the Pickleball Calendar? According to my Master Pickleball Schedule they're off to Daytona Beach for the third of three back to back MLP events next weekend. Teams in action next weekend include New York, Utah, 1st place St. Louis, LA, and New Jersey. Also back will be SoCal, Texas, Chicago, and the Carolina Hogs, who shouldn't have any lighting issues this time around since it's being held at the frequent pro tour hosting facility Pictona in Holly Hill. All match stats quoted in this article are courtesy of PickleWave. Visit for the premier source of Pro Pickleball data, including match replays, highlights, stats, and discussion. PickleWave has more than 22,000 matches in its database across all the pro tours. Also, a great thanks to The Dink's Erik Tice, who maintains a fantastic MLP detailed data breakdown and makes it publicly available at this Google XLS link. Tice's data has proved invaluable this year as MLP does not make match data available at this detailed level at present.
Yahoo
30-05-2025
- Business
- Yahoo
Alerian MLP ETF Tax Update
DENVER, May 30, 2025--(BUSINESS WIRE)--Alerian MLP ETF (the "Fund" or "AMLP") has modified the estimate of the Fund's deferred tax liability based on information reported by the Master Limited Partnerships (MLPs) and recorded a tax accrual adjustment of approximately $(3.6) million (approximately $0.016 per share) into the net asset value (NAV) of the Fund on May 30, 2025. As part of the tax accrual adjustment, the Fund's deferred tax liability (DTL) has decreased primarily due to tax reporting received from the underlying investments that indicates that additional capital loss carryforward is available to offset future taxable income. The Fund will rely to a large extent on information provided by the MLPs, which is largely reported on a delayed basis and is not necessarily timely, to estimate deferred tax liability for purposes of financial statement reporting and determining the NAV. From time to time, the Adviser will modify the estimates or assumptions regarding the Fund's deferred tax liability as new information becomes available and may consider, among other matters, the duration of statutory carryforward periods, shareholder transactions, underlying index constituent changes and market conditions. The Fund's estimates regarding its deferred tax liability are made in good faith; however, the daily estimate of the Fund's deferred tax liability used to calculate the Fund's NAV could vary significantly from the Fund's actual tax liability. ALPS Portfolio Solutions Distributor, Inc. is also the distributor for the Alerian Energy Infrastructure ETF and the ALPS | Alerian Energy Infrastructure Portfolio. Please direct any inquiries to info@ or by calling 1-866-759-5679. Important Disclosures An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit Read the prospectus carefully before investing. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable. All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus. Investments in securities of Master Limited Partnerships (MLPs) involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. A portion of the benefits you are expected to derive from the Fund's investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level. Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund's ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund. The Fund invests primarily in a particular sector and could experience greater volatility than a fund investing in a broader range of industries. Investments in the energy infrastructure sector are subject to: reduced volumes of natural gas or other energy commodities available for transporting, processing or storing; changes in the regulatory environment; extreme weather and; rising interest rates which could result in a higher cost of capital and drive investors into other investment opportunities. All K-1s are received and processed by the Alerian MLP ETF. The Alerian MLP ETF distributes a single Form 1099 to its shareholders. This notice is provided to you for informational purposes only and should not be considered tax advice. Please consult your tax advisor for further assistance. If, due to tax law changes or for other reasons, an MLP in the portfolio is deemed to be taxable as a corporation rather than a partnership for federal income purposes, then income would be subject to federal income taxation at the MLP level. This would reduce the amount of cash available for distribution to the fund which could result in a reduction of the fund's value. The Fund is taxed as a regular corporation for federal income purposes, which reduces the net asset value of fund shares by the accrual of any deferred tax liabilities. Depending on the taxes paid by the fund as a result of income and/or gains from investments and/or the sale of MLP interests, the return on an investment in the Fund will be reduced. This differs from most investment companies, which elect to be treated as "regulated investment companies" to avoid paying entity level income taxes. The ETF is taxed as a regular corporation and is subject to US federal income tax on taxable income at the corporate tax rate (currently as high as 21%) as well as state and local taxes. The Fund is classified for federal income tax purposes as a taxable regular corporation or so-called Subchapter "C" corporation. As a "C" corporation, the Fund accrues deferred tax liability for its future tax liability associated with the capital appreciation of its investments and the distributions received by the Fund on equity securities of master limited partnerships considered to be a return of capital and for any net operating gains. The Fund's accrued deferred tax liability, if any, is reflected each day in the Fund's net asset value per share. The deferred income tax expense/(benefit) represents an estimate of the Fund's potential tax expense/(benefit) if it were to recognize the unrealized gains/(losses) in the portfolio. An estimate of deferred income tax expense/(benefit) is dependent upon the Fund's net investment income/(loss) and realized and unrealized gains/(losses) on investments and such expenses may vary greatly from year to year and from day to day depending on the nature of the Fund's investments, the performance of those investments and general market conditions. Therefore, any estimate of deferred income tax expense/(benefit) cannot be reliably predicted from year to year. The Fund employs a "passive management" - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not "actively" managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively. ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc., ALPS Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc., affiliated entities, are unaffiliated with VettaFi and the Alerian Index Series. ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund. Not FDIC Insured • No Bank Guarantee • May Lose Value About SS&C Technologies SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 22,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology. Additional information about SS&C (Nasdaq: SSNC) is available at About SS&C ALPS Advisors SS&C ALPS Advisors, a wholly-owned subsidiary of SS&C Technologies, is a leading provider of investment products for advisors and institutions. With over $28.62 billion under management as of March 31, 2025, SS&C ALPS Advisors is an open architecture boutique investment manager offering portfolio building blocks, active insight and an unwavering drive to guide clients to investment outcomes across sustainable income, thematic and alternative growth strategies. For more information, visit * Christopher Murphy is a Registered Representative of ALPS Distributors, Inc. ALR001941 5/29/2026 View source version on Contacts For More Information Christopher Murphy*Director & Head of Advisor MarketingSS&C ALPS AdvisorsTel: 720-277-7861E-mail: Sign in to access your portfolio
