Latest news with #WesternMidstreamPartners
Yahoo
3 days ago
- Business
- Yahoo
Forget Energy Transfer? The Smartest High-Yield Energy Stocks to Buy With $100 Right Now.
Key Points Energy Transfer pays a 7.5%-yielding distribution backed by a rock-solid financial profile. Western Midstream and Plains All American Pipeline have even higher current yields. The fellow MLPs could also increase their payouts at faster rates in the future. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) stands out in the energy sector for its attractive distribution. The energy midstream giant currently yields over 7.5%. However, it might not be the optimal option for those seeking to turn $100 into a high-octane income stream. Fellow master limited partnerships (MLPs) Plains All American Pipeline (NASDAQ: PAA) and Western Midstream Partners (NYSE: WES) currently offer higher-yielding payouts (8.5% for PAA and 9.5% for WES) backed by similarly strong financial profiles. That makes them smarter ways to maximize your passive income production these days. A well-oiled, income-producing machine Plains All American Pipeline owns and operates midstream energy infrastructure focused on crude oil and natural gas liquids (NGLs). About 8 million barrels of oil and NGLs flow through its system of pipelines, storage terminals, and other assets each day. The MLP primarily collects a fixed fee as those volumes pass through its network (85% of its earnings after closing the pending sale of its Canadian NGL business). The company has a stable cash flow profile similar to Energy Transfer, with only 15% of its future earnings having commodity price exposure compared to about 10% for its larger rival. The oil pipeline company expects to produce enough cash to cover its high-yielding distribution by 1.75 times this year. That's a comfortable level. (It's currently above its 1.6x target.) It's not too far from Energy Transfer's current coverage level (nearly 1.9x through the first half of this year). Plains All American Pipeline also backs its payout with a strong balance sheet. The oil pipeline company exited the second quarter with a 3.3x leverage ratio, putting it toward the low end of its 3.25x to 3.75x target range. That's well below Energy Transfer's level, which is currently near the low end of its 4.0x to 4.5x target range. Energy Transfer's larger, more diversified business model allows it to have a higher leverage ratio. Plains' already strong financial profile will grow only stronger once it closes its Canadian NGL sale. The company's strong financial profile allows it to invest in expanding its operations. Plains invests in organic expansion projects and makes small bolt-on acquisitions. (It bought another 20% interest in the BridgeTex Pipeline Company in the second quarter.) These growth investments should enable the company to continue increasing its distribution. Plains All American expects to increase its payout by around 10% annually until it reaches its targeted 1.6x coverage level, and then it aims to grow its payment at the same rate as its cash flow. That's likely a faster pace than Energy Transfer, which targets annual distribution growth of 3% to 5%. Steady baseline income growth with upside potential Western Midstream primarily focuses on providing natural gas, crude oil, and produced water services to oil and gas companies in the Delaware, DJ, and Powder River Basins. Fee-based contracts supply much of its earnings. That enables the MLP to produce predictable cash flow to support its high-yielding dividend. The energy midstream company expects to generate $1.3 billion to $1.5 billion of free cash flow this year. That's enough money to cover its lucrative distribution and the capital expenses to maintain and grow its operations, with room to spare. The MLP also has a sub-3.0x leverage ratio, giving it additional financial flexibility. Western Midstream plans to use some of its excess financial capacity to buy Aris Water Solutions in a $1.5 billion cash and stock deal. That deal will enhance its operations and boost its free cash flow next year. Meanwhile, it has visible growth coming down the pipeline in 2027 from its recently approved North Loving II gas processing plant and Pathfinder Pipeline projects. The company's growth investments should support continued distribution increases. Western Midstream aims to deliver low- to mid-single-digit annual growth supported by the steady expansion of its core business. Additionally, it sees the potential for incremental distribution growth fueled by major expansion projects and acquisitions. Better income options Energy Transfer is an excellent MLP to buy for passive income. However, Plains All American and Western Midstream currently offer higher-yielding payouts. Further, those MLPs (which, like Energy Transfer, send a Schedule K-1 Federal Tax Form each year) could deliver higher income growth rates in the future. That makes them smarter investments for those seeking to maximize the income produced from every $100 they invest. Should you buy stock 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 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 4, 2025 Matt DiLallo has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Forget Energy Transfer? The Smartest High-Yield Energy Stocks to Buy With $100 Right 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
Yahoo
06-08-2025
- Business
- Yahoo
Western Midstream: Q2 Earnings Snapshot
THE WOODLANDS, Texas (AP) — THE WOODLANDS, Texas (AP) — Western Midstream Partners, LP (WES) on Wednesday reported second-quarter earnings of $333.8 million. The The Woodlands, Texas-based company said it had profit of 87 cents per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 82 cents per share. The oil and gas transportation and storage company posted revenue of $942.3 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on WES at
Yahoo
25-07-2025
- Business
- Yahoo
Better Dividend Stock: Western Midstream vs. Energy Transfer
Key Points Energy Transfer and Western Midstream Partners have high distribution yields. The MLPs back their payouts with stable cash flow and strong financial profiles. Both have solid growth prospects. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) and Western Midstream Partners (NYSE: WES) are among the largest master limited partnerships (MLPs). These midstream companies generate stable cash flow, much of which they pay out to investors. Energy Transfer's distribution yields 7.5%, and Western Midstream's is over 9%. Most investors will likely prefer to own only one of these MLPs, especially due to the potential tax complications associated with the annual Schedule K-1 federal tax forms they send to investors. Here's a look at which MLP is the better buy for those seeking sustainable, growing dividend income. Drilling down into their operations Energy Transfer and Western Midstream operate diversified energy midstream networks. Western Midstream serves the Delaware, DJ, and Powder River basins. It primarily gathers, treats, processes, and transports natural gas, NGLs, and crude oil, as well as provides water disposal services. It generates fee-based income secured by long-term contracts. Energy Transfer offers broader diversification, as it serves a range of commodities, including natural gas, NGLs, crude oil, and refined products. Its integrated wellhead-to-water system features over 130,000 miles of pipelines linking gathering and processing assets, storage facilities, and export terminals. About 90% of its earnings are fee-based. Energy Transfer's larger, more diversified infrastructure business model reduces risk and increases its growth potential. There are other notable differences between these MLPs. Oil giant Occidental Petroleum is one of Western Midstream's largest customers and holds a 44.8% direct interest in the MLP, as well as a 2% stake in its operating company. Energy Transfer, on the other hand, doesn't have a single significant customer or a large controlling shareholder. Instead, the company controls two other MLPs (Sunoco and USA Compression), which supply it with additional income and enhance its growth profile. Comparing their financial positions A high dividend yield can sometimes signal financial distress, but that's not the case with these MLPs. Energy Transfer is in the best financial position in its history. Its leverage ratio is now in the lower half of its target range of 4.0-4.5 times. Additionally, the MLP generates enough cash to cover its payout by more than two times, providing it with the flexibility to invest in growth projects and make acquisitions. Western Midstream also maintains a strong financial position, backed by a leverage ratio currently below 3.0x. While Western Midstream has a higher payout ratio, it expects to generate sufficient free cash flow this year to cover its capital expenditures with some room to spare. As a result, it also has ample financial flexibility to make bolt-on acquisitions and approve additional organic expansion projects. A look at their growth profiles Energy Transfer plans to invest $5 billion in growth capital projects this year, including a major new natural gas pipeline, several additional gas processing plants, and increased export capacity. Those projects should fuel accelerated earnings growth in the 2026-2027 time frame. Meanwhile, the company has several more expansion projects under development, including its Lake Charles LNG export terminal. Energy Transfer also has the financial capacity to continue its industry consolidation strategy (it typically makes one multibillion-dollar acquisition per year to enhance its capabilities and drive growth). These growth investments support Energy Transfer's outlook for 5% earnings growth this year, which should accelerate in 2026. That backs its plans to increase its high-yielding distribution by 3% to 5% annually. Meanwhile, Western Midstream expects its 2025 capital spending to be between $625 million and $775 million, with 65% allocated to growth initiatives. It aims to use its financial flexibility for additional organic expansions and accretive bolt-on acquisitions as opportunities arise. These growth investments should drive mid-single-digit cash flow and distribution growth. High-quality, high-yielding investments Western Midstream and Energy Transfer offer high-yielding distributions, backed by stable cash flows and strong financial profiles. As a result, either would be a solid option for those seeking to generate passive income. However, Energy Transfer's greater diversification reduces risk and provides it with more growth potential. Those features make it a better choice for investors seeking a sustainable, growing income stream. Do the experts think Energy Transfer is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Energy Transfer make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,034% vs. just 180% for the S&P — that is beating the market by 853.75%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 July 21, 2025 Matt DiLallo has positions in Energy Transfer. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Better Dividend Stock: Western Midstream vs. Energy Transfer was originally published by The Motley Fool
Yahoo
30-06-2025
- Business
- Yahoo
WESTERN MIDSTREAM ANNOUNCES AVAILABILITY OF 2024 SCHEDULE K-3
HOUSTON, June 30, 2025 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that its 2024 Schedule K-3 reflecting items of international tax relevance is available online. Unitholders requiring this information may access their Schedule K-3 at A limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. To the extent Schedule K-3 is applicable to your federal income tax return filing needs, we encourage you to review the information contained on this form and refer to the appropriate federal laws and guidance or consult with your tax advisor. To receive an electronic copy of your Schedule K-3 via email, unitholders may call Tax Package Support toll free at 833-618-2034. 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, 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
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
