Core Insights - The midstream sector is demonstrating strong financial health at the start of 2026, with numerous companies announcing increases in distributions and dividends, reinforcing its position as a reliable income source for investors [1] Payout Growth Across Midstream - Williams (WMB) raised its quarterly cash dividend to $0.525 from $0.50, a 5% increase [1] - Plains All American (PAA/PAGP) increased its quarterly distribution to $0.4175 per unit, reflecting a 9.9% rise [1] - Enterprise Products Partners (EPD) raised its distribution to $0.55, nearly a 1% increase [1] - ONEOK (OKE) announced a 4% sequential increase to $1.07 per share [1] Broad Sector Momentum - Energy Transfer (ET) increased its quarterly distribution to $0.335, a 3.1% year-over-year rise from $0.325 [1] - Hess Midstream (HESM) raised its payout to $0.7641, marking a 9.0% year-over-year increase [1] - Sunoco LP (SUN) announced a distribution of $0.9317, a 5.1% year-over-year increase [1] - Genesis Energy (GEL) raised its distribution by $0.015 to $0.18 per unit, a 9.1% increase [1] - Kinetik (KNTK) raised its payout to $0.81, reflecting a 4% sequential increase [1] - Delek Logistics (DKL) increased its payout to $1.125, representing a 1.85% year-over-year rise [1] ETF Exposure - Energy Transfer, Enterprise, Hess Midstream, Genesis, Delek Logistics, Sunoco, and Plains are included in both the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) [1] - AMLP tracks the Alerian MLP Infrastructure Index (AMZI), while ENFR tracks the Alerian Midstream Energy Select Index (AMEI) [1] - Williams, ONEOK, and Kinetik operate as C-corps, with only ENFR holding them [1]

Core Viewpoint - Enterprise Products Partners LP (EPD) is expected to report a decline in fourth-quarter earnings and revenues for 2025, with earnings estimated at 70 cents per share, reflecting a 5.4% decrease year-over-year, and revenues projected at $13.14 billion, indicating a 7.5% drop from the previous year [1][6]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter earnings is 70 cents per share, with a downward revision noted in the past week [1][2]. - The estimates for the current year and next year are $2.62 and $2.86 per share, respectively, with a year-over-year growth estimate of -2.60% for the current year and 8.98% for the next year [2]. Earnings Surprise History - EPD has a mixed earnings surprise history, beating estimates in two of the last four quarters and missing in two, with an average negative surprise of 1.86% [3]. Revenue and Margin Projections - The Zacks Consensus Estimate for crude oil Pipelines & Services revenues is $4.96 billion, down from $5.03 billion a year ago, with gross operating margins expected to decline from $417 million to $384 million [7]. - For NGL Pipelines & Services, revenues are estimated at $1.43 billion, down from $1.55 billion, which is likely to impact overall performance [8]. Stock Performance and Valuation - EPD's stock has decreased by 1.6% over the past year, contrasting with a 10.2% decline in the industry composite, while competitors Kinder Morgan, Inc. and Enbridge Inc. have seen gains of 7.8% and 8%, respectively [9]. - EPD appears undervalued with a trailing enterprise value/EBITDA ratio of 10.73 compared to the industry average of 10.91, indicating potential for price increases [11]. Investment Thesis - EPD has low exposure to volume and commodity price risks due to long-term contracts for its midstream assets, ensuring stable fee-based revenues [13]. - The partnership has $5.1 billion in approved projects under construction, which will contribute to additional cash flows [13]. - EPD has a strong credit rating and has been actively returning capital to unitholders through a buyback program, having utilized nearly 60% of its $2 billion repurchase plan [14].

Key Takeaways KMI operates 79,000 miles of pipelines, 700 Bcf of gas storage and 139 terminals across North America.EPD runs over 50,000 miles of pipelines and storage assets, serving multiple markets with fee-based contracts.ENB transports about 30% of North American oil and liquids and earns stable revenue via contracted assets.The overall energy sector is highly vulnerable to crude price volatility as prices of crude oil and refined products are driven by factors largely outside their control, including ...

Core Insights - The oil and gas industry remains essential to the global economy, with companies in this sector being sensitive to commodity price fluctuations due to geopolitical and economic factors [1][2]. Company Summaries - **Chevron**: An integrated oil major with operations across upstream and downstream segments, Chevron has raised its dividend for 37 consecutive years, currently offering a 4% dividend yield. The company recently completed a $55 billion acquisition of Hess, enhancing its production growth potential, with management projecting a 10% annual increase in free cash flow over the next five years [3][5]. - **Enterprise Products Partners**: As one of the largest midstream companies in North America, Enterprise Products Partners operates over 50,000 miles of pipelines and is less sensitive to market price fluctuations. The company has a strong dividend history with 28 consecutive annual increases and currently offers a 6.54% dividend yield [6][8]. - **Enbridge**: A diversified Canadian energy company, Enbridge operates a midstream business alongside utility and renewable energy projects. The company has increased its dividend for 28 consecutive years, currently yielding 5.59%. Management anticipates mid-single-digit growth as new projects are initiated [9][10].

Group 1 - The article celebrates the fifth anniversary of High Yield Investor by offering a 30-day money-back guarantee for new members, promoting the release of their Top Picks for 2026 [1] - The stock market, represented by SPY, is currently considered overvalued based on various valuation metrics, indicating a potential risk for investors [1] - Samuel Smith, the lead analyst, has a diverse background in dividend stock research and focuses on balancing safety, growth, yield, and value in investment strategies [1] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content for investors [1] - The article includes a philosophical perspective on wealth and investment, quoting a biblical passage that emphasizes the importance of spiritual over material wealth [1]

Core Insights - The current price of West Texas Intermediate is around $60 per barrel, with the EIA projecting it to drop to $52.21 in 2026 and $50.36 next year, which may negatively impact many energy companies [1] - Enterprise Products Partners LP (EPD) is less vulnerable to commodity price fluctuations due to its midstream business model, which generates stable fee-based revenues [2][7] Company Overview - EPD operates a pipeline network exceeding 50,000 miles, transporting various commodities, which allows for predictable cash flows as assets are booked long-term [2][7] - Since its IPO, EPD has consistently returned capital to unitholders through repurchases and distributions, amounting to billions [3] Comparison with Peers - Kinder Morgan Inc. (KMI) and Enbridge Inc. (ENB) also have stable business models, generating predictable cash flows from their midstream assets [4][7] - As of September 2025, KMI has a project backlog of $9.3 billion, while ENB has secured a capital program worth billions of Canadian dollars, ensuring additional cash flows [5] Performance and Valuation - EPD's units have increased by 4.5% over the past year, contrasting with a 7.7% decline in the broader industry [6] - EPD's trailing 12-month EV/EBITDA ratio is 10.69X, which is below the industry average of 10.82X [10] - The Zacks Consensus Estimate for EPD's 2026 earnings has seen upward revisions recently, indicating positive sentiment [9]

Core Insights - Exxon Mobil Corporation (XOM) has outperformed Enterprise Products Partners LP (EPD) over the past year, with a gain of 24.4% compared to EPD's 5.2% [1] Group 1: Business Environment and Price Impact - The price of West Texas Intermediate (WTI) crude is currently around $60 per barrel, significantly lower than the previous year's levels, negatively impacting XOM's upstream business [4] - The U.S. Energy Information Administration projects a decline in WTI prices, with an average of $52.21 per barrel expected for 2026, down from $65.40 in 2025, which raises concerns about XOM's ability to maintain earnings from upstream operations [5] - EPD's midstream model is insulated from price fluctuations, generating stable, fee-based revenue, which is reflected in its higher EV/EBITDA ratio amid soft oil prices [5][12] Group 2: Business Models Comparison - XOM operates in advantageous areas such as the Permian Basin and offshore Guyana, but lower oil prices are likely to impact its profitability [6] - EPD's business model is resilient to low oil prices due to its extensive pipeline network of over 50,000 miles, allowing it to generate stable revenues regardless of commodity price volatility [8] - EPD has consistently returned capital to unitholders since its IPO, demonstrating the strength of its business model [9] Group 3: Financial Metrics and Valuation - XOM's debt-to-capitalization ratio stands at 13.6%, significantly lower than the industry average of 29.2%, providing it with a strong balance sheet to navigate challenging market conditions [10] - Investors are currently willing to pay a premium for EPD, as indicated by its trailing 12-month EV/EBITDA of 10.69X compared to XOM's 8.64X, suggesting a preference for EPD's stable midstream operations in the current market [12]

Core Viewpoint - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as a strong investment opportunity due to its robust cash distribution and growth potential driven by strong electricity demand and LNG exports [2][3]. Group 1: Price Target and Market Outlook - Scotiabank raised its price target for EPD to $35 from $34, maintaining a Sector Perform rating, reflecting a positive long-term outlook due to strong power demand and LNG tailwinds [2]. - The upward revision of the price target is part of a broader update across Scotiabank's Energy Infrastructure coverage, indicating a favorable market sentiment towards the sector [2]. Group 2: Cash Distribution and Buybacks - Enterprise announced a quarterly cash distribution of $0.55 per unit for Q4 2025, which annualizes to $2.20 per unit, representing a 2.8% increase from the previous year's distribution [3]. - The distribution is scheduled for payment on February 13, 2026, to unitholders on record as of January 30, 2026 [3]. - In Q4 2025, Enterprise repurchased approximately $50 million worth of common units, bringing total repurchases for 2025 to around $300 million, utilizing about 29% of its authorized $5.0 billion repurchase program [4]. Group 3: Company Overview - Enterprise Products Partners L.P. is a significant midstream energy company that provides services across natural gas, NGLs, crude oil, refined products, and petrochemicals, supporting both producers and end markets [5].

Group 1: Retirement and Investment Strategy - The last of the Baby Boomers are expected to retire this decade, prompting a shift in investment strategy towards income-focused assets like dividend stocks [1] - Investors should prioritize income over growth as they approach retirement, making dividend stocks an attractive option [1][2] Group 2: Realty Income (O) - Realty Income is a popular real estate investment trust (REIT) known for its rising monthly dividends and strong cash flow, required to pay at least 90% of taxable dividends to shareholders [3][4] - The stock has maintained a high occupancy rate of 97% during economic downturns, showcasing its resilience [4] - Realty Income currently offers a dividend yield of 5.28% and is considered a Dividend Aristocrat, with potential for stock price appreciation to over $80 or even $100 by 2030 [4] Group 3: Enterprise Products Partners (EPD) - Enterprise Products Partners operates as a North American midstream energy company, providing stability through long-term fee-based contracts rather than being exposed to daily oil price fluctuations [5][6] - The stock has appreciated over 5% in the past six months, and with a 6.7% dividend yield, it offers a total return in the double digits, making it a reliable investment choice [7] Group 4: Verizon (VZ) - Verizon is highlighted for its high dividend yield, supported by its stable telecom business, which has remained profitable even during challenging economic periods [9] - The company has continued to pay and even increase dividends despite significant interest payments from recent interest rate hikes [9][11] - With a current dividend yield above 7% and a forward dividend payout ratio of 57.68%, Verizon is expected to recover and potentially exceed $60 by 2029 [11]

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on Enterprise Products Partners (EPD), highlighting the search for undervalued names in the oil and gas sector [1] - EPD has a strong following among investors, with many authors praising the company, indicating a positive sentiment in the market [2] - The industry is characterized as cyclical, requiring patience and experience for successful investment, as noted by a seasoned analyst with a background in accounting and finance [2] Group 2 - The investing group, Oil & Gas Value Research, aims to identify under-followed oil companies and midstream companies that present compelling investment opportunities [2] - The group facilitates discussions among oil and gas investors through an active chat room, allowing for the exchange of recent information and ideas [2]