Latest news with #WesternMidstreamPartners
Yahoo
31-05-2025
- Business
- Yahoo
Here Are My Top 3 High-Yield Pipeline Stocks to Buy Now
Energy Transfer stock has a high yield with plans to increase its distribution moving forward. Enterprise Product Partners is a sleep-well-at-night stock with an attractive yield. Western Midstream Partners is an income-oriented investor's dream. 10 stocks we like better than Energy Transfer › If you're looking for stocks with high dividend yields that are safe, the midstream energy sector is a great place to start your search. The energy industry has transformed itself since the last big energy bust. Producers are no longer chasing production growth and instead are more focused on their cash flows. Pipeline companies, meanwhile, have improved their balance sheets and learned to grow within their cash flow. Energy prices and their impact on volumes are always a risk, but with both pipeline companies and their customers in solid financial shape, now is a great time to invest in the sector. Let's look at three high-yield pipeline stocks to invest in right now. I currently own all three and have for a long time. With a 7.3% forward yield and plans to increase its distribution by between 3% to 5% a year moving forward, Energy Transfer (NYSE: ET) is a stock that should be on every income-oriented investor's radar. After being forced to cut its distribution in half during the height of the pandemic when the economy effectively shut down for a short time, the company has worked hard to lower its leverage, improve its balance sheet, and restore its distribution to a level that is now above where it was before the cut. Last quarter, Energy Transfer proclaimed that its balance sheet was in the strongest position in its history. It also noted that it had its highest-ever percentage of take-or-pay contracts, which means that it gets paid on these agreements regardless of whether or not customers use its services. Overall, it expects 90% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) this year to come from fee-based services, where it has no exposure to fluctuating commodity costs or spreads. These types of contracts add to the safety of its cash flows and, thus, distributions. Meanwhile, the company sees a lot of attractive growth opportunities ahead stemming from increased natural gas demand. It is ramping up its growth capital expenditure (capex) this year to $5 billion from $3 billion, with an expectation of mid-teens returns on its projects. Energy Transfer has already signed a deal to supply natural gas to a planned data center in Texas and continues to explore artificial intelligence (AI) related opportunities. Trading at a forward enterprise value (EV)-to-EBITDA multiple of just 8.1 times, the stock is also cheap both on a relative basis and on a historical basis. If there is one midstream stock you can sleep well owning, it's Enterprise Product Partners (NYSE: EPD). The company has increased its distribution every year for the past 26 years through various energy and stock market turmoil. At present, the stock sports a 6.8% forward yield after increasing its distribution by nearly 4% year over year last quarter. The company takes a conservative approach and has one of the best balance sheets in the midstream sector. Like Energy Transfer, it also has a largely fee-based business and includes take-or-pay provisions in its contracts when it can. It also carries a robust coverage ratio based on its distributable cash flow (operating cash flow minus maintenance capex), which stood at 1.7 times last quarter. Like Energy Transfer, it has increased its growth capex spending this year to take advantage of attractive opportunities. After reducing its growth project spending to only $1.6 billion in 2022, it plans to spend between $4 billion and $4.5 billion this year, up from $3.9 billion a year ago. It currently has $6 billion in growth projects set to come online this year, paving the way for solid growth over the next couple of years. Trading at a forward EV/EBITDA ratio of under 10 times, the stock is attractively valued. Western Midstream Partners (NYSE: WES) is an income-oriented investor's dream. The stock has a robust 9.4% yield and plans to grow its distribution by mid-to-low single digits annually. It ended last year with leverage of under 3 times, which is very low for a midstream company, so it's in strong financial shape. The company's contracts generally have cost-of-service protections and/or minimum volume commitments (MVCs). MVCs require a customer to ship a minimum volume of product -- such as natural gas, natural gas liquids (NGLs), or crude -- through its pipelines or pay as if they did. Like take-or-pay contracts, they help ensure future cash flows and mitigate risk against volume declines. It's not pursuing as much growth as either Energy Transfer or Enterprise, but it is looking for safe, high-return organic growth projects that are supported by MVCs. It said it is in close contact with its customers and can quickly reduce or increase its capex based on their needs. In the event it can't find attractive growth projects, it said it could consider acquisitions or stock buybacks. The stock is a good value, trading at a forward EV/EBITDA ratio of 9 times 2025 analyst estimates. 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 May 19, 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. Here Are My Top 3 High-Yield Pipeline Stocks to Buy Now 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
Globe and Mail
25-05-2025
- Business
- Globe and Mail
3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income
Buying dividend stocks is one of many ways to generate passive income. Many companies offer attractive yields that are much higher than the S&P 500 's average, which is currently below 1.5%. Dominion Energy (NYSE: D), Western Midstream Partners (NYSE: WES), and Chevron (NYSE: CVX) stand out to a few contributors for their higher dividend yields. Here's why they believe these stocks are great options for those seeking ways to boost their passive income. Dominion Energy is working back to dividend growth Reuben Gregg Brewer (Dominion Energy): Some turnarounds are very risky, with companies working back from the brink of financial disaster. Then there are the turnarounds like the one Dominion Energy is undertaking. Dominion is basically a well-run utility that got over its skis because of an overly complicated business model. It has been slimming down by selling assets such as pipelines and natural gas utilities. Now it is largely just a regulated electric utility operating in attractive regions. That makes the 4.8% yield on offer fairly attractive, noting that the average utility yields only around 2.9%. Investors can buy for the yield, with management stating clearly that the dividend is safe at current levels as the turnaround progresses. What the dividend isn't doing, however, is growing. That will be a problem for some income-focused investors and really highlights the current turnaround effort. D data by YCharts. EBITDA = earnings before interest, taxes, depreciation, and amortization. TTM = trailing 12 months. Dominion is currently working on strengthening its financial position and trimming its payout ratio so that it's more in line with industry peers. Essentially, the heavy lifting here is on the balance sheet. Progress is being made, but it will probably take at least another few years before dividends are reliably growing again because the payout ratio remains elevated. But with earnings projected to grow between 5% and 7% a year, that, too, will change for the better in time. A payout ratio below 70% will likely be a major dividend turning point. Meanwhile, while you wait for dividend growth to resume, you get to collect that well-above-average yield, which seems like a reasonable trade-off. A high-octane income stream Matt DiLallo (Western Midstream Partners): Western Midstream Partners is a master limited partnership (MLP) thatowns and operates midstream assets that gather, process, and transport oil and natural gas for energy companies, including its parent company, Occidental Petroleum. Most of its assets generate stable fee-based cash flows, which support a cash distribution that yields nearly 9.5%. More often than not, a payout approaching 10% is a red flag. However, that's not the case with Western Midstream Partners. The MLP expects to produce $1.3 billion to $1.5 billion in free cash flow this year. That's enough money to cover its lucrative distribution and planned capital expenditures to maintain and grow its business with room to spare. Meanwhile, the company has a strong balance sheet, with its leverage ratio currently below its 3.0 times target. That gives it ample financial flexibility to make bolt-on acquisitions and approve additional growth capital projects as opportunities arise. It's targeting organic investments that deliver mid-teens returns and acquisitions that enhance its asset footprint. Western Midstream's growth investments and financial flexibility fuel its view that it can grow its already monster distribution at a low- to mid-single-digit rate in the future. It recently hiked its payout by 4%. The company's high-yielding and growing distribution can boost your passive income as long as you're comfortable with receiving the Schedule K-1 federal tax form that the MLP sends its investors each year. A proven dividend growth stock Neha Chamaria (Chevron): With lower oil prices triggering a sell-off in oil stocks, shares of Chevron have slumped nearly 20% over the past month and a half as of this writing. The drop has pushed the oil stock's yield to 5%, making it an attractive dividend stock to buy now for years of passive income. Chevron has been an incredible dividend stock when it comes to stability and dividend growth. It has increased its dividend for 38 consecutive years, including a 5% hike earlier this year. Chevron is on solid footing right now and should be able to continue its dividend increase streak for years to come. In 2024, the oil major returned a record $27 billion in cash to shareholders, including $11.8 billion in dividends. Chevron expects to grow production by a compound annual rate of 6% through 2026 and could generate $9 billion in incremental free cash flow between 2024 and 2026 at a Brent crude oil price of $60 per barrel. Its cash flows could grow faster if Chevron wins the ongoing arbitration proceedings and acquires Hess to gain a stake in Guyana's oil-rich Stabroek Block. All that excess cash, with or without the Hess acquisition, should mean bigger dividends for Chevron shareholders. That makes Chevron a highly reliable, high-yield dividend stock to buy now. Should you invest $1,000 in Dominion Energy right now? Before you buy stock in Dominion Energy, 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 Dominion Energy 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%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 May 19, 2025
Yahoo
25-05-2025
- Business
- Yahoo
3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income
Buy Dominion Energy for the 4.8% yield; keep it for the unfolding turnaround. Western Midstream Partners pays a monster cash distribution. The recent drop in Chevron's stock price is a solid buy opportunity. 10 stocks we like better than Dominion Energy › Buying dividend stocks is one of many ways to generate passive income. Many companies offer attractive yields that are much higher than the S&P 500's average, which is currently below 1.5%. Dominion Energy (NYSE: D), Western Midstream Partners (NYSE: WES), and Chevron (NYSE: CVX) stand out to a few contributors for their higher dividend yields. Here's why they believe these stocks are great options for those seeking ways to boost their passive income. Reuben Gregg Brewer (Dominion Energy): Some turnarounds are very risky, with companies working back from the brink of financial disaster. Then there are the turnarounds like the one Dominion Energy is undertaking. Dominion is basically a well-run utility that got over its skis because of an overly complicated business model. It has been slimming down by selling assets such as pipelines and natural gas utilities. Now it is largely just a regulated electric utility operating in attractive regions. That makes the 4.8% yield on offer fairly attractive, noting that the average utility yields only around 2.9%. Investors can buy for the yield, with management stating clearly that the dividend is safe at current levels as the turnaround progresses. What the dividend isn't doing, however, is growing. That will be a problem for some income-focused investors and really highlights the current turnaround effort. Dominion is currently working on strengthening its financial position and trimming its payout ratio so that it's more in line with industry peers. Essentially, the heavy lifting here is on the balance sheet. Progress is being made, but it will probably take at least another few years before dividends are reliably growing again because the payout ratio remains elevated. But with earnings projected to grow between 5% and 7% a year, that, too, will change for the better in time. A payout ratio below 70% will likely be a major dividend turning point. Meanwhile, while you wait for dividend growth to resume, you get to collect that well-above-average yield, which seems like a reasonable trade-off. Matt DiLallo (Western Midstream Partners): Western Midstream Partners is a master limited partnership (MLP) that owns and operates midstream assets that gather, process, and transport oil and natural gas for energy companies, including its parent company, Occidental Petroleum. Most of its assets generate stable fee-based cash flows, which support a cash distribution that yields nearly 9.5%. More often than not, a payout approaching 10% is a red flag. However, that's not the case with Western Midstream Partners. The MLP expects to produce $1.3 billion to $1.5 billion in free cash flow this year. That's enough money to cover its lucrative distribution and planned capital expenditures to maintain and grow its business with room to spare. Meanwhile, the company has a strong balance sheet, with its leverage ratio currently below its 3.0 times target. That gives it ample financial flexibility to make bolt-on acquisitions and approve additional growth capital projects as opportunities arise. It's targeting organic investments that deliver mid-teens returns and acquisitions that enhance its asset footprint. Western Midstream's growth investments and financial flexibility fuel its view that it can grow its already monster distribution at a low- to mid-single-digit rate in the future. It recently hiked its payout by 4%. The company's high-yielding and growing distribution can boost your passive income as long as you're comfortable with receiving the Schedule K-1 federal tax form that the MLP sends its investors each year. Neha Chamaria (Chevron): With lower oil prices triggering a sell-off in oil stocks, shares of Chevron have slumped nearly 20% over the past month and a half as of this writing. The drop has pushed the oil stock's yield to 5%, making it an attractive dividend stock to buy now for years of passive income. Chevron has been an incredible dividend stock when it comes to stability and dividend growth. It has increased its dividend for 38 consecutive years, including a 5% hike earlier this year. Chevron is on solid footing right now and should be able to continue its dividend increase streak for years to come. In 2024, the oil major returned a record $27 billion in cash to shareholders, including $11.8 billion in dividends. Chevron expects to grow production by a compound annual rate of 6% through 2026 and could generate $9 billion in incremental free cash flow between 2024 and 2026 at a Brent crude oil price of $60 per barrel. Its cash flows could grow faster if Chevron wins the ongoing arbitration proceedings and acquires Hess to gain a stake in Guyana's oil-rich Stabroek Block. All that excess cash, with or without the Hess acquisition, should mean bigger dividends for Chevron shareholders. That makes Chevron a highly reliable, high-yield dividend stock to buy now. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 May 19, 2025 Matt DiLallo has positions in Chevron. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Dominion Energy. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Dominion Energy and Occidental Petroleum. The Motley Fool has a disclosure policy. 3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income was originally published by The Motley Fool
Yahoo
12-05-2025
- Business
- Yahoo
WESTERN MIDSTREAM ANNOUNCES FIRST-QUARTER POST-EARNINGS INTERVIEW WITH CFO, KRISTEN SHULTS
AND PARTICIPATION IN UPCOMING INVESTOR CONFERENCES HOUSTON, May 12, 2025 /PRNewswire/ --Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that tomorrow before the market open it will make available on its website at a post-earnings interview with Kristen Shults, Senior Vice President and Chief Financial Officer that provides additional insights related to WES's first-quarter 2025 results. In addition, WES intends to participate in the following investor conferences during the second and third quarters of 2025: TPH&Co. Hotter 'N Hell 2025 in Houston, Texas May 14 - 15, 2025 The 22nd Annual Energy Infrastructure CEO & Investor Conference in Aventura, Florida on May 21 – 22, 2025 Citi's 2025 Natural Resources Conference in Las Vegas, Nevada on August 12 – 13, 2025 ABOUT WESTERN MIDSTREAM Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts. For more information about WES and Western Midstream Flash Feed updates, please visit WESTERN MIDSTREAM CONTACTS Daniel JenkinsDirector, Investor Relations Investors@ Rhianna DischManager, Investor RelationsInvestors@ View original content to download multimedia: SOURCE Western Midstream Partners, LP 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
Business Insider
12-05-2025
- Business
- Business Insider
Analysts Have Conflicting Sentiments on These Energy Companies: BKV Corporation (BKV), Enbridge (ENB) and Western Midstream Partners (WES)
Analysts have been eager to weigh in on the Energy sector with new ratings on BKV Corporation (BKV – Research Report), Enbridge (ENB – Research Report) and Western Midstream Partners (WES – Research Report). Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. BKV Corporation (BKV) In a report issued on May 9, Betty Jiang from Barclays maintained a Buy rating on BKV Corporation, with a price target of $29.00. The company's shares closed last Friday at $20.47. According to Jiang is a 1-star analyst with an average return of -3.6% and a 34.2% success rate. Jiang covers the NA sector, focusing on stocks such as California Resources Corp, Occidental Petroleum, and Antero Resources. BKV Corporation has an analyst consensus of Strong Buy, with a price target consensus of $28.00. Enbridge (ENB) In a report issued on May 9, Praneeth Satish from Wells Fargo maintained a Hold rating on Enbridge, with a price target of C$60.00. The company's shares closed last Friday at $46.10. According to Satish is ranked #1186 out of 9504 analysts. Currently, the analyst consensus on Enbridge is a Moderate Buy with an average price target of $47.92, which is a 3.2% upside from current levels. In a report issued on April 29, Jefferies also maintained a Hold rating on the stock with a C$65.00 price target. Western Midstream Partners (WES) Wells Fargo analyst Ned Baramov maintained a Hold rating on Western Midstream Partners on May 9 and set a price target of $38.00. The company's shares closed last Friday at $37.11. Baramov has an average return of According to Baramov is ranked #8418 out of 9504 analysts. Currently, the analyst consensus on Western Midstream Partners is a Hold with an average price target of $41.14, an 11.5% upside from current levels. In a report issued on May 8, Stifel Nicolaus also maintained a Hold rating on the stock with a $41.00 price target.
