Latest news with #pipelines
Yahoo
3 hours ago
- Business
- Yahoo
These Energy Dividend Stocks Print Money
Fee-based arrangements support 90% of Energy Transfer's earnings. Kinder Morgan gets about 95% of its earnings from stable sources. Williams receives roughly 91% of its earnings from predictable contracts. 10 stocks we like better than Energy Transfer › Cash flows across the energy sector tend to be more variable due to commodity price volatility. However, some energy stocks just print money because their business models have minimal direct exposure to commodity prices. That gives them the cash to pay lucrative dividends. Energy Transfer (NYSE: ET), Kinder Morgan (NYSE: KMI), and Williams (NYSE: WMB) operate money-printing energy midstream assets. Because of that, they're ideal options for investors seeking to generate passive income. Energy Transfer operates a nationwide footprint of crucial midstream assets. Its more than 130,000-mile pipeline network moves oil, natural gas, and other commodities from production basins to market centers in the U.S. and beyond through its export terminals. Fee-based contracts and government-regulated rate structures support 90% of its earnings. Because of that, the master limited partnership (MLP) prints cash. The midstream giant generated more than $2.3 billion in distributable cash flow during the first quarter and distributed about $1.1 billion of that money to investors. Energy Transfer used its retained cash flow to invest in expansion projects ($945 million of growth capital spending) and maintain its strong balance sheet. The MLP is investing heavily to expand its already massive midstream footprint. It's spending $5 billion on growth projects this year, which are expected to come online through the end of next year. That should drive a meaningful uptick in its stable cash flows in 2026 and 2027. Energy Transfer's growing sources of stable cash flow should enable the MLP to continue increasing its distribution. It's aiming to raise its more than 7%-yielding payout by 3% to 5% per year. Kinder Morgan owns an irreplaceable energy infrastructure portfolio. It operates one of the largest natural gas pipeline networks in the country and is a leader in handling refined petroleum products and transporting carbon dioxide. Take-or-pay contracts, which entitled Kinder Morgan to payment regardless of volumes or prices, back 64% of the company's cash flow. Meanwhile, hedging contracts that guarantee prices lock in another 5% of its cash flow. Kinder Morgan also gets 26% of its earnings from fee-based sources, most of which have minimal exposure to volume fluctuations. As a result, the company's assets pump out a lot of stable cash flow each quarter. Kinder Morgan generated $1.2 billion in cash flow from operations during the first quarter, covering its dividend outlay of $642 million by roughly 2 times. That enabled it to retain meaningful excess free cash flow to fund expansion projects. The pipeline giant currently has $8.8 billion worth of expansion projects under construction, which are expected to enter commercial service through 2030. They will grow the company's sources of stable cash flow, which should enable it to continue increasing its more than 4%-yielding dividend. Williams operates one of the country's largest natural gas infrastructure platforms. It owns key interstate pipelines (including the Transco system that supplies gas to major markets along the East Coast). It also has gathering and processing (G&P) operations in key production basins, as well as other related infrastructure. Highly regulated transmission and deepwater assets account for 48% of Williams' cash flow, giving it a very stable foundation. Meanwhile, fee-based G&P assets supply it with another 43% of its cash flow. Williams also layers in hedges to backstop its more price-sensitive assets. The gas infrastructure company generated nearly $1.5 billion in available funds from operations during the first quarter. That covered its more than 3%-yielding dividend by a super comfy 2.4 times. Williams' lower dividend payout ratio enabled it to retain lots of cash to fund expansion projects and maintain its financial flexibility. Williams is working on a huge slate of growth projects. It has several projects underway to expand Transco and its other gas transmission pipelines, and it's connecting new deepwater projects in the Gulf to its infrastructure. Williams is also building a natural gas power plant to support the rising power demand of AI data centers. These projects will fuel cash-flow growth through 2030, giving Williams more power to increase its dividend. Energy midstream companies like Energy Transfer, Kinder Morgan, and Williams primarily operate fee-based assets that print cash. Because of that, these energy infrastructure companies can pay attractive and growing dividends. That makes them ideal options for investors seeking stable and steadily rising passive income streams. 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — 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 9, 2025 Matt DiLallo has positions in Energy Transfer and Kinder Morgan. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy. These Energy Dividend Stocks Print Money was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
19 hours ago
- Business
- Yahoo
UBS Sticks With Buy Rating on Kinder Morgan (KMI)
Kinder Morgan, Inc. (NYSE:KMI) is one of the 10 Best Oil and Gas Stocks to Buy Now. On June 11, UBS maintained its 'Buy' rating on Kinder Morgan, Inc. (NYSE:KMI) with a price target of $38. The research firm highlighted that the company will see a full quarter contribution from its Outrigger acquisition. UBS slightly raised its estimate for Kinder Morgan, Inc.'s (NYSE:KMI) EBITDA for the second quarter of 2025. The firm's new estimate is $1.932 billion, up from the previous $1.929 billion. This forecast is about 0.6% higher than the company's own guidance of $1.92 billion. UBS pointed out that Kinder Morgan, Inc.'s (NYSE:KMI) guidance does not include any contribution from the Outrigger acquisition. Aerial view of an oil and gas pipeline, spanning vast landscapes. The new estimate takes into account the full-quarter impact of the acquisition, higher operating costs in the first quarter for natural gas pipelines due to timing issues, and benefits from higher natural gas prices. The analysts believe that the first quarter did not show the full impact of the Outrigger acquisition. This was because transaction costs offset 1.5 months of contribution from Outrigger. UBS analysts noted that the second quarter will be 'the first clean quarter' for evaluating the impact of the acquisition. Kinder Morgan, Inc. (NYSE:KMI) is one of North America's largest energy infrastructure companies. It owns and operates pipelines and terminals. The company's pipelines transport natural gas, gasoline, and crude oil. While we acknowledge the potential of KMI 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: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. 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
Bloomberg
2 days ago
- Politics
- Bloomberg
Carney Bill to Speed Projects Passes Vote Despite Indigenous Opposition
Canada's House of Commons cleared a bill to accelerate the building of major projects such as pipelines, but Indigenous groups are threatening to force a legal battle over it. The legislation drafted by Prime Minister Mark Carney's government aims to fast-track construction by allowing projects that are deemed in the 'national interest' to receive a quicker review for environmental and other impacts. The bill now heads to the Senate, where it faces a final vote before becoming law.
Bloomberg
2 days ago
- Politics
- Bloomberg
Canada Bill to Accelerate Projects Passes Vote Despite Indigenous Opposition
Canada's House of Commons cleared a bill to accelerate the building of major projects such as pipelines, but Indigenous groups are threatening to force a legal battle over it. The legislation drafted by Prime Minister Mark Carney's government aims to fast-track construction by allowing projects that are deemed in the 'national interest' to receive a quicker review for environmental and other impacts. The bill now heads to the Senate, where it faces a final vote before becoming law.
Yahoo
5 days ago
- Business
- Yahoo
Bell: Smith ally Premier Scott Moe says he won't kiss Quebec's butt for a pipeline
Gotta share this story. It's gold. Well worth the price of admission. It gives other Canadians the sense of the mood out here. Gives other Canadians a feeling of where we're coming from. Will drive the haters of the West crazy. We're in downtown Calgary on Monday with an oilpatch crowd. Packed house. Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe are on stage. After a lot of oil and gas chatter, Smith tells us most Canadians now back oil and gas pipelines, including in Quebec. There is acceptance for pipelines, even in Quebec. 'This is a moment in time. Things shifted dramatically six months ago. We certainly don't want to lose this opportunity,' she says. Enter Premier Moe, who sings from a similar songsheet to Smith, most of the time. He sees a somewhat different opportunity. Now, with all due respect, Moe is not the most boisterous or smart-alecky politician on the planet but this day he is definitely in the mood to tell us what he really thinks. And what he really thinks is what a lot of Albertans really think, along with some Canadians from elsewhere. 'I'm in violent disagreement with Danielle when it comes to lobbying Quebec for a pipeline.' The crowd laughs. 'Whatever,' continues Moe. The crowd laughs some more and Moe singles out Quebec and the need to build pipelines. 'Let's get this other one built. If they want one they can come get in line and we'll build them one when we get to it,' says Moe. 'I'm done with that conversation.' Laughs. Then applause. 'Let's get one to the west coast. Let's get one to the south.' Bell: With G7 in Alberta, Smith and Carney make headway on big energy projects Bell: Smith to Carney — Wanted Now, a pipeline to Prince Rupert, B.C. What is he really saying without saying it? To hell with Quebec. There has been far too much talk about Quebec and will they or won't they accept an east-west pipeline going through their province. Applause. More applause. Smith takes a second. She obviously has to one-up her buddy Moe. Besides, she doesn't want to be seen as soft toward Quebec. 'Well, if they had a new source of revenue we'd be more than happy to help them develop the royalty framework to wean them off the equalization that comes from western Canada,' says the Alberta premier. Mic drop. Applause. Cheers. A yahoo. She hits a nerve. Who benefits the most from equalization? All together now. Quebec. 'Let's talk about equalization,' says Moe. The crowd laughs again. In fact, Smith speaks again about the Liberals and their Nine Bad Laws and how some must be rewritten and some must be deep-sixed. Both Smith and Moe speak about how Carney sounds a whole lot different than former prime minister Justin Trudeau. On Monday at the G7 meeting in Kananaskis, it is clear Trump does not despise Carney the way he despised Trudeau. Trump and Carney are working on a trade and security deal. Speaking of deals, Smith calls the Nine Bad Laws investment killers. The Alberta premier repeats her demands. She wants a big-time rewrite of the No More Pipelines law and an end to the cap on oil and gas emissions. If you want to produce more oil and gas you can't do it with that cap. An end to the tanker ban off the west coast. If Smith gets a bitumen pipeline to the west coast you need boats to take the bitumen to Asia. The premier slams the net-zero vehicle mandate. 'We don't even have an electric vehicle industry in Canada,' she says. Smith also goes after plastics being declared toxic. 'I think the federal government only did that because Trudeau wanted to announce a ban on plastic straws.' The premier calls it 'bizarre.' Moe thinks there is 'a path forward for a new prime minister within the same government to actually have a realistic look at all those policies.' 'How can we adjust things so we can attract reasonable investment into all of our energy-producing industries?' The Saskatchewan premier is talking uranium, critical minerals, and yes, oil and gas. Smith likes Moe's talk about using the Manitoba port of Churchill and going up to an Arctic port in Nunavut. She and Moe talk about a corridor. Rail lines, electricity transmission lines, roads. The two premiers are thinking big. Smith says she will work with Carney — at least for now. If Carney ends up stabbing Smith and Alberta in the back, the premier will be at the head of a very long parade of outrage. If Carney comes through, her approach will be vindicated. She will then take a victory lap — or maybe an Indianapolis 500 worth of victory laps. But nobody is close to counting the chickens before they hatch. rbell@
