Latest news with #MidOceanEnergy
Bloomberg
11-07-2025
- Business
- Bloomberg
MidOcean Leads Bidding for Stake in Petronas Canada Unit
MidOcean Energy, a liquefied natural gas company founded by private equity firm EIG and backed by Saudi Aramco, has emerged as the frontrunner to buy a minority stake in Petroliam Nasional Bhd. 's Canadian business, people familiar with the matter said. Petronas, as the Malaysian state energy firm is known, has picked MidOcean as the preferred bidder, according to the people. The companies are in advanced talks to hammer out details of a transaction for the stake, which could be valued at several billion dollars, the people said.
Yahoo
28-06-2025
- Business
- Yahoo
Energy Transfer (ET) Expands Chevron's Partnership with New LNG Supply Deal
Energy Transfer LP (NYSE:ET) is one of Goldman Sachs' top energy stock picks. On June 25, the company confirmed the signing of an incremental Sale and Purchase Agreement with Chevron USA through its subsidiary Energy Transfer LNG Export. A wind turbine, its blades spinning to generate clean renewable energy. The 20-year sale and purchase agreement for 1.0 million tons per annum (mtpa) is set to increase Chevron's total contracted volume to 3.0 mtpa, along with Energy Transfer's total contracted volume. The LNG is to be supplied on a free-on-board (FOB) basis. The Purchase price will consist of a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. The new agreement affirms the growing partnership between Energy Transfer and Chevron. It also affirms the ever-increasing demand for reliable and long-term LNG supply. The deal also underscores Energy Transfer's momentum in securing long-term LNG commitment. The company has already signed a Heads of Agreement with MidOcean Energy and a SPA agreement with Kyushu Electric Power Company for 1.0 million tonnes per annum (mtpa). Energy Transfer LP (NYSE:ET) is an energy company focused on the midstream sector, which involves transporting, storing, and processing natural gas, crude oil, natural gas liquids (NGLs), and refined products. It operates a vast network of pipelines and facilities across the United States. While we acknowledge the potential of ET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best AI Stocks to Buy According to Billionaire David Tepper and 10 Stocks Analysts Are Upgrading Today. Disclosure: None. 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
Yahoo
28-06-2025
- Business
- Yahoo
Chevron Boosts LNG Commitment from Energy Transfer's Lake Charles Facility to 3M Tonnes/Annum
Chevron Corporation (NYSE:CVX) is one of the undervalued S&P 500 stocks to buy according to hedge funds. On June 25, Energy Transfer (NYSE:ET) announced that its subsidiary, Energy Transfer LNG Export, has signed an incremental 20-year Sale and Purchase Agreement/SPA with Chevron USA Inc. (a subsidiary of Chevron Corporation) for an additional 1.0 million tonnes per annum/mtpa of liquefied natural gas/LNG from its proposed Lake Charles LNG export facility. The new agreement increases Chevron's total contracted volume from Energy Transfer LNG to 3.0 mtpa, which builds upon an initial 2.0 mtpa agreement signed in December 2024. Under the terms of both SPAs, the LNG will be supplied to Chevron on a free-on-board basis. The purchase price will comprise a fixed liquefaction charge and a gas supply component indexed to the Henry Hub benchmark. An aerial view of an oil rig at sea, the sun glinting off its structure. Energy Transfer LNG's obligations under the SPA are contingent upon the company making a positive final investment decision for the Lake Charles facility. The latest SPA with Chevron helps Energy Transfer in securing long-term LNG commitments for the Lake Charles LNG project. Other recent agreements include a Heads of Agreement with MidOcean Energy for ~5.0 mtpa and an SPA with Kyushu Electric Power Company for 1.0 mtpa. Chevron Corporation (NYSE:CVX) engages in integrated energy and chemicals operations in the US and internationally. Energy Transfer (NYSE:ET) provides energy-related services in the US. While we acknowledge the potential of CVX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
07-06-2025
- Business
- Yahoo
1 Magnificent Pipeline Stock Down Nearly 20% to Buy and Hold Forever
At its current share price, Energy Transfer's distribution yields more than 7%, and the payouts have been growing. It has greatly improved its balance sheet and contract structure over the past few years. The master limited partnership has strong growth opportunities ahead of it. 10 stocks we like better than Energy Transfer › One of my favorite pipeline stocks to buy right now is Energy Transfer (NYSE: ET), and investors can pick up the master limited partnership (MLP) on sale, with shares trading down nearly 20% from their high as of this writing. In fact, the stock is one of my largest holdings. Here's why Energy Transfer is a great stock to buy and hold for the long term. Energy Transfer has built one of the largest integrated midstream systems in the U.S., handling the transport, storage, and processing of natural gas, crude oil, natural gas liquids (NGLs), and refined products. Its scale enables it to benefit from rising volumes across the energy value chain, as well as take advantage of price spreads across regions, seasons, and products. For instance, natural gas prices often rise in winter and can vary across the country. Energy Transfer can profit by storing gas ahead of periods of peak demand or by moving it from lower-priced to higher-priced markets. The company also upgrades certain hydrocarbons into more valuable end products. This kind of integrated footprint is hard to replicate, and it makes growth opportunities easier to take advantage of. With a strong position in Texas and the Permian Basin, Energy Transfer has access to low-cost associated gas, putting it in a solid spot to benefit from trends like the country's rising liquefied natural gas (LNG) exports and growing electricity demand tied to the AI infrastructure build-out. Given the opportunities in front of it, Energy Transfer has transitioned into growth mode. It plans to spend around $5 billion in growth capital expenditures (capex) this year, up from $3 billion in 2024. One of its major projects is the Hugh Brinson pipeline, which will transport natural gas out of the Permian to help meet growing natural gas demand in Texas stemming from new AI data center construction. It also signed a deal with data center developer Cloudburst to directly provide natural gas to its AI-focused data center development in central Texas. The company has also received inquiries from more than 60 power plants regarding new connections in 14 states, and requests from more than 200 data centers. Energy Transfer also appears ready to make a final investment decision on its long-awaited Lake Charles, Louisiana, LNG facility. It signed a deal with MidOcean Energy to fund 30% of the project's construction costs in exchange for 30% of the facility's LNG production if the project goes through, while it has also signed several sale and purchase agreements with potential customers. Demand for LNG continues to grow rapidly, with much of the new demand coming from Asia. Shell recently projected that global LNG demand could climb by 60% by 2040, driven both by Asian growth and a broader push for lower-emission energy sources for segments like heavy industry and transportation. Energy Transfer is also in a strong financial position. Building pipelines and other midstream assets is a capital-intensive business, and in 2020, the company cut its distribution in half to reduce leverage and improve its balance sheet. However, its distribution is now above where it was before that cut, and its leverage ratio is toward the low end of its target range of 4 to 4.5 times its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). In fact, the company recently said it was in the best financial shape in its history. On top of its solid balance sheet, the MLP is also in a good position from a contract standpoint. This year, it expects about 90% of its EBITDA to come from fee-based services, meaning it's largely insulated from swings in commodity prices and spread differentials. Additionally, the company said it now has its highest-ever percentage of take-or-pay contracts, which means it gets paid whether or not customers actually use its services. Fee-based contracts with take-or-pay provisions increase the stability of its cash flows and support its distributions. Currently, the company is paying a quarterly distribution of $0.3275 per share, which at recent share prices is good for a forward yield of 7.3%. Management has said it's looking to grow its distribution by 3% to 5% annually. The distribution is well covered. Its distributable cash flow (operating cash flow minus maintenance capex) was more than twice its distribution last quarter. In addition to Energy Transfer being in a strong financial position with growing opportunities, the stock is also cheap on both a historical and relative basis, trading at a forward enterprise-value-to-EBITDA multiple of just 8. Between 2011 and 2016 (before the pandemic), midstream MLPs traded at an average multiple of 13.7, and the stock currently trades at a lower valuation than most of its peers. Now, Energy Transfer is not a risk-free investment. The company carries debt, and falling commodity costs and macroeconomic headwinds can take a toll on fossil fuel volumes. However, given its improved contract structure and balance sheet, along with its current growth opportunities, Energy Transfer's stock should provide investors with both an increasing income stream and solid price appreciation potential. That makes it a magnificent stock to buy and hold for the long run. 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 $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% 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 Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. 1 Magnificent Pipeline Stock Down Nearly 20% to Buy and Hold Forever was originally published by The Motley Fool
Yahoo
12-04-2025
- Business
- Yahoo
Energy Transfer Takes a Major Step Toward Adding a Lot More Fuel to Grow Its High-Yielding Dividend
Energy Transfer (NYSE: ET) has been working to convert its Lake Charles facility in Louisiana from natural gas imports to a liquefied natural gas (LNG) export terminal for many years. The midstream giant has faced many obstacles along the road, which have delayed this project. However, the master limited partnership (MLP) recently took a significant step in that key project. Moving forward with Lake Charles LNG would meaningfully enhance and extend Energy Transfer's long-term growth outlook, adding a lot more fuel to grow its high-yielding distribution (nearly 8% at the current yield). It was more than 10 years ago when Energy Transfer first proposed converting its existing natural gas import terminal in Lake Charles into an LNG export terminal with nearly 16.5 million tons per year of LNG production and export capacity. It was initially working with BG Group on the project. Global LNG giant Shell (NYSE: SHEL) became its 50/50 joint venture partner in 2016 after closing its acquisition of BG Group. However, Shell abandoned the project in 2020 due to the pandemic's impact on the global LNG market. That led Energy Transfer to continue developing the project on its own. Shell would eventually return to the project as a customer in 2022 by signing a 20-year sale and purchase agreement for 2.1 million tons of LNG per year. Energy Transfer has spent several years working to receive the necessary government approvals for the project. It has also continued to sign up customers to commercialize the facility. On top of that, it has been looking for new partners to help fund a portion of the project. After many years and lots of setbacks, Energy Transfer has finally found a partner to help it develop Lake Charles LNG. It announced this week that it had signed an agreement with MidOcean Energy, an LNG company formed and managed by leading institutional investor EIG, to jointly develop the facility. MidOcean Energy will fund 30% of the project cost in exchange for 30% of the LNG production. Energy Transfer's agreement with MidOcean Energy is a significant step forward for this project. MidOcean Energy will be an investor in the facility and a meaningful customer, receiving 30% of the LNG produced from the facility, or about 5 million tons per year. It joins the likes of Shell, Chevron, which signed a 20-year deal for 2 million tons per year last December, and other customers in the project. With a significant percentage of the LNG capacity under contract, Energy Transfer should have enough commercial contracts to make a positive Final Investment Decision (FID) on the project. Meanwhile, MidOcean will finance 30% of the project's multibillion-dollar construction cost. That will reduce the capital outlay required by Energy Transfer. The MLP will likely continue seeking additional financial partners to offload more of the project's costs. Previously, co-CEO Tom Long had stated, "We expect to finance a significant portion of the capital cost of this project by means of the sale of equity in the project to infrastructure funds and possibly to one or more industry participants in conjunction with LNG offtake agreements." Finally, MidOcean has committed to long-term gas transportation on Energy Transfer's pipelines as part of the deal. That's a big value driver of this project for Energy Transfer. Long has said that "upon completion of the LNG project, we expect to realize significant incremental cash flows from the transportation of natural gas on our Trunkline pipeline system and other energy transfer pipelines upstream from Lake Charles." With MidOcean on board, Energy Transfer is within reach of making an FID on Lake Charles, which it hopes to do by the end of this year. The project will supply significant future cash flows from its retained stake in the facility and the additional gas volumes flowing through its pipelines to the terminal. That growing cash flow will give Energy Transfer even more fuel to increase its high-yielding payout, making it an even more attractive long-term passive income investment. 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 $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $659,306!* Now, it's worth noting Stock Advisor's total average return is 787% — a market-crushing outperformance compared to 152% 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 April 5, 2025 Matt DiLallo has positions in Chevron and Energy Transfer. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Energy Transfer Takes a Major Step Toward Adding a Lot More Fuel to Grow Its High-Yielding Dividend was originally published by The Motley Fool Sign in to access your portfolio
