I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Core Viewpoint - The article highlights three master limited partnerships (MLPs) that offer high yields, strong cash flow, and growth potential, making them suitable for income-focused investors Group 1: Energy Transfer - Energy Transfer has a yield of 7.6% and is entering a growth phase with significant projects, including a $5.3 billion Desert Southwest pipeline to transport natural gas from the Permian Basin to Arizona and New Mexico [2] - The company is progressing on the Lake Charles LNG export project, having partnered with MidOcean Energy and secured several offtake deals, with $5 billion in growth capital expenditures planned for this year [3][4] - Energy Transfer maintains a solid financial foundation with a distribution coverage ratio of 1.7x and has raised its distribution for 15 consecutive quarters, expecting 3% to 5% annual growth [4] Group 2: Enterprise Products Partners - Enterprise Products Partners offers a 7% yield and has increased its distribution for 26 consecutive years, with a strong coverage ratio and controlled leverage [5][6] - The company plans to spend between $4 billion and $4.5 billion in growth capital expenditures this year, a significant increase from $1.6 billion in 2022, with growth projects expected to come online soon [7] - Enterprise's cash flow is primarily from fee-based contracts, ensuring stability and a clear growth trajectory [5][6] Group 3: Western Midstream - Western Midstream provides the highest yield at 9.5%, supported by steady cash flows and disciplined management, with over 40% ownership by parent company Occidental Petroleum [9] - The company is expanding its produced water business, with significant projects like the Pathfinder produced water system and the North Loving natural gas processing plant [10] - Western Midstream's recent $2 billion acquisition of Aris Water Solutions is expected to be immediately accretive, enhancing its cash flow visibility and operational synergies [11][12]

These stocks look attractive in an increasingly expensive market.The S&P 500 has continued to rally this year. It's up about 10% year to date and almost 20% over the past 12 months. That has the market trading at an elevated valuation of about 22 times forward earnings. The only other times it has been this high in the last quarter century are right before the dot-com bust and shortly after the pandemic. While most stocks currently trade at high valuations (especially the "Magnificent Seven"), there are som ...

JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure:I/we have a beneficial long position in the shares of ET, EPD eith ...

Industry Overview - The Zacks Oil and Gas - Pipeline MLP industry consists of master limited partnerships (MLPs) that primarily transport oil, natural gas, refined petroleum products, and natural gas liquids (NGL) in North America, providing midstream services and generating stable fee-based revenues [3] - The industry is capital-intensive, with a debt-to-capitalization ratio of 55%, which can limit financial flexibility for midstream energy companies [4] Current Challenges - The outlook for the industry remains uncertain due to conservative capital spending by upstream players, which may lead to lower utilization of midstream assets [1][6] - A significant debt burden continues to hinder midstream energy companies' ability to fund new projects and withstand economic downturns [1][4] - There is a gradual shift from fossil fuels to renewable energy, which may reduce demand for pipeline and storage networks for oil and natural gas [5] Competitive Position - Pipeline players are in a stronger position compared to upstream and downstream firms, benefiting from steady, fee-based income through long-term contracts with shippers [2] - Leading companies in the sector include Enterprise Products Partners LP (EPD), Energy Transfer LP (ET), and Plains All American Pipeline LP (PAA) [2] Industry Performance - The Zacks Oil and Gas - Pipeline MLP industry has outperformed the broader Zacks Oil - Energy sector, with an 11.9% increase over the past year, compared to a 3% gain for the sector and a 21.6% improvement for the S&P 500 [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 10.97X, lower than the S&P 500's 17.45X but significantly above the sector's 4.76X [14] - Over the past five years, the industry has traded between 7.48X and 12.57X, with a median of 10.11X [14] Notable Companies - Enterprise Products Partners LP (EPD) has a diversified asset portfolio with over 50,000 miles of pipelines and a storage capacity of 300 million barrels, generating stable fee-based revenues [17] - Energy Transfer LP (ET) operates a vast pipeline network across 125,000 miles, with a projected earnings growth of 9.4% for the year [21][22] - Plains All American Pipeline (PAA) relies on its oil and natural gas pipeline network and is expected to see marginal top-line growth of 1% in 2025 [25]

Group 1 - The Retirement Forum aims to provide actionable ideas, a high-yield safe retirement portfolio, and macroeconomic outlooks to help maximize capital and income [1] - Energy Transfer (NYSE: ET) stock has outperformed the S&P 500 by 50% over the past two years, driven by its strong dividend yield [2] - The Value Portfolio employs a fact-based research strategy, including extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations to identify investment opportunities [2] Group 2 - The analyst has a beneficial long position in Energy Transfer shares, indicating confidence in the stock's performance [3] - Seeking Alpha emphasizes that past performance does not guarantee future results, highlighting the importance of thorough research before making investment decisions [4]

Core Viewpoint - Energy Transfer reported solid second-quarter results, with strong midstream operations despite some headwinds, indicating potential for future growth [1][15]. Financial Performance - The company generated nearly $3.9 billion in adjusted EBITDA, a 3% increase year-over-year [3]. - Distributable cash flow (DCF) decreased by 4% to nearly $2 billion, reflecting a slowdown compared to last year's growth rates of 13% in EBITDA and 10% in DCF [3]. Segment Performance - The interstate transportation and storage segments, along with midstream operations, contributed positively to earnings, while crude oil, NGL, and intrastate segments faced challenges due to lower commodity prices and higher expenses [6]. - New partnership records were set in midstream volumes, crude oil transportation (up 9%), NGL transportation (up 4%), and NGL exports (up 5%) [11]. Future Outlook - The company anticipates adjusted EBITDA to be at or slightly below the lower end of its 2025 guidance range of $16.1 billion to $16.5 billion, implying about 4% growth from last year [8]. - Several expansion projects, including the Lenorah II and Badger processing plants, are expected to provide incremental earnings in the coming quarters [9]. - Additional projects planned for 2026 and beyond, such as the Mustang Draw gas processing plant and the Hugh Brinson gas pipeline, are expected to enhance earnings growth momentum [10]. Expansion Projects - Energy Transfer has secured new expansion projects that extend its growth outlook through the end of the decade, including the Hugh Brinson Phase II and the $5.3 billion Transwestern Pipeline [12]. - Proposed projects like the Lake Charles LNG export terminal and the CloudBurst AI data center gas supply project are under development, which could further enhance long-term growth [13]. Strategic Acquisitions - The company has financial flexibility to pursue strategic acquisitions, which could bolster its growth profile [14].

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited consolidated financial statements for the six months ended June 30, 2025, show total revenues of **$40.26 billion**, a decrease from **$42.36 billion** in the prior year period. Net income attributable to partners was **$2.49 billion**, slightly down from **$2.55 billion** year-over-year. Total assets stood at **$125.02 billion**, with total liabilities at **$79.17 billion**. The statements reflect the ongoing operations, recent acquisitions, and financial position of the Partnership [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Energy Transfer's total assets were **$125.02 billion**, a slight decrease from **$125.38 billion** at year-end 2024. The change was primarily driven by a decrease in current assets, offset by an increase in net property, plant, and equipment. Total liabilities increased to **$79.17 billion** from **$78.63 billion**, mainly due to a rise in long-term debt Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $13,671 | $14,202 | | **Property, Plant and Equipment, Net** | $95,531 | $95,212 | | **Total Assets** | **$125,022** | **$125,380** | | **Total Current Liabilities** | $11,849 | $12,656 | | **Long-term Debt, less current maturities** | $60,749 | $59,752 | | **Total Liabilities** | $79,165 | $78,633 | | **Total Equity** | $45,534 | $46,017 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, revenues were **$19.24 billion**, down from **$20.73 billion** in Q2 2024, primarily due to lower refined product and crude sales. Net income attributable to partners was **$1.16 billion**, compared to **$1.31 billion** in the prior-year quarter. For the six-month period, revenues decreased to **$40.26 billion** from **$42.36 billion**, while net income attributable to partners slightly decreased to **$2.49 billion** from **$2.55 billion** Key Operating Results (in millions, except per unit data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $19,242 | $20,729 | $40,262 | $42,358 | | **Operating Income** | $2,309 | $2,298 | $4,800 | $4,678 | | **Net Income** | $1,458 | $1,992 | $3,178 | $3,684 | | **Net Income Attributable to Partners** | $1,163 | $1,314 | $2,486 | $2,554 | | **Basic Net Income per Common Unit** | $0.32 | $0.35 | $0.68 | $0.67 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$5.68 billion**, a decrease from **$6.04 billion** in the prior year period. Net cash used in investing activities increased significantly to **$2.90 billion** from **$1.15 billion**, driven by higher capital expenditures. Net cash used in financing activities was **$2.85 billion**, primarily for distributions to partners and debt management Cash Flow Summary - Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $5,679 | $6,042 | | **Net Cash Used in Investing Activities** | $(2,899) | $(1,151) | | **Net Cash Used in Financing Activities** | $(2,850) | $(4,402) | | **Decrease in Cash and Cash Equivalents** | $(70) | $489 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on the Partnership's accounting policies and financial activities. Key highlights include significant acquisition activity by subsidiary Sunoco LP, details on debt obligations and recent refinancing activities, equity transactions including preferred unit redemptions and common unit distributions, and extensive disclosures on regulatory matters, legal contingencies, and environmental liabilities. The notes also disaggregate revenue and provide segment-level financial data - Sunoco LP, a consolidated subsidiary, announced a definitive agreement to acquire Parkland Corporation for approximately **$9.1 billion** and entered an agreement to acquire TanQuid GmbH & Co. KG for approximately **€500 million**[31](index=31&type=chunk)[34](index=34&type=chunk) - The Partnership issued **$3.0 billion** in new senior notes in March 2025 to refinance existing debt and redeemed **$2.0 billion** of senior notes due in March and May 2025[50](index=50&type=chunk)[51](index=51&type=chunk) - Quarterly cash distributions on common units increased sequentially, reaching **$0.3300 per unit** for the quarter ended June 30, 2025[65](index=65&type=chunk) - As of June 30, 2025, the Partnership had accrued approximately **$305 million** for contingent obligations deemed probable and reasonably estimable, with a potential range of additional losses up to **$42 million** for matters considered reasonably possible[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=41&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's discussion provides an analysis of the financial results for the three and six months ended June 30, 2025. Consolidated Adjusted EBITDA increased to **$3.87 billion** for the quarter and **$7.96 billion** for the six-month period, driven by strong performance in the Midstream and Investment in Sunoco LP segments. The discussion details segment-level performance, recent acquisitions by Sunoco LP, regulatory updates, liquidity position, capital expenditure plans for 2025, and cash distribution policies Consolidated Adjusted EBITDA (in millions) | Period | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $3,866 | $3,760 | $106 | | **Six Months Ended June 30** | $7,964 | $7,640 | $324 | - The increase in Adjusted EBITDA was primarily driven by higher segment margin in the Midstream segment and the Investment in Sunoco LP segment[204](index=204&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, permanently reinstates **100% bonus depreciation**, which is expected to defer a significant portion of U.S. federal income taxes for the Partnership's corporate subsidiaries in future periods[185](index=185&type=chunk) [Recent Developments](index=41&type=section&id=Recent%20Developments) Key recent developments include significant acquisition activities by subsidiary Sunoco LP, which agreed to acquire Parkland Corporation for ~**$9.1 billion** and TanQuid for ~**€500 million**. Energy Transfer also announced an increased quarterly cash distribution of **$0.33 per common unit**. Additionally, the report notes the enactment of the One Big Beautiful Bill Act (OBBBA), which reinstates **100% bonus depreciation** and is expected to defer future federal income tax payments - Sunoco LP announced a definitive agreement to acquire Parkland Corporation in a cash and equity transaction valued at approximately **$9.1 billion**, expected to close in Q4 2025[178](index=178&type=chunk) - Sunoco LP also agreed to acquire TanQuid GmbH & Co. KG, which operates fuel terminals in Germany and Poland, for approximately **€500 million**, including assumed debt[181](index=181&type=chunk) - Energy Transfer announced a quarterly distribution of **$0.33 per common unit** (**$1.32 annualized**) for the quarter ended June 30, 2025[184](index=184&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) For Q2 2025, consolidated Adjusted EBITDA increased by **$106 million** YoY to **$3.87 billion**. The Midstream segment's Adjusted EBITDA grew by **$75 million** due to acquired assets and higher Permian volumes. The Investment in Sunoco LP segment saw a **$134 million** increase, largely from the NuStar acquisition. These gains were partially offset by decreases in the Intrastate, NGL & Refined Products, and Crude Oil segments. For the six-month period, Adjusted EBITDA rose **$324 million** to **$7.96 billion**, with the Midstream and Sunoco LP segments again being the primary drivers of growth Segment Adjusted EBITDA - Q2 2025 vs Q2 2024 (in millions) | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Intrastate transportation and storage | $284 | $328 | $(44) | | Interstate transportation and storage | $470 | $392 | $78 | | Midstream | $768 | $693 | $75 | | NGL and refined products transportation | $1,033 | $1,070 | $(37) | | Crude oil transportation and services | $732 | $801 | $(69) | | Investment in Sunoco LP | $454 | $320 | $134 | | Investment in USAC | $149 | $144 | $5 | | **Total Adjusted EBITDA** | **$3,866** | **$3,760** | **$106** | - The Midstream segment's performance was boosted by recently acquired assets and higher volumes in the Permian region, which increased segment margin by **$176 million** YoY[227](index=227&type=chunk) - The Investment in Sunoco LP segment benefited from the NuStar acquisition (acquired May 2024), contributing to a **$12 million** increase in segment margin and a **$48 million** increase in Adjusted EBITDA from unconsolidated affiliates (ET-S Permian)[235](index=235&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) The Partnership maintains a strong liquidity position, funding capital expenditures and distributions primarily with cash from operations. For 2025, total planned capital expenditures are approximately **$6.1 billion**, with **$5.0 billion** allocated to growth projects and **$1.1 billion** for maintenance. As of June 30, 2025, the Partnership had **$2.51 billion** available for future borrowings under its **$5.0 billion** Five-Year Credit Facility. Total consolidated debt stood at **$60.76 billion** 2025 Expected Capital Expenditures (in millions) | Category | Growth | Maintenance | Total | | :--- | :--- | :--- | :--- | | Intrastate transportation and storage | $1,400 | $85 | $1,485 | | Interstate transportation and storage | $170 | $205 | $375 | | Midstream | $1,525 | $375 | $1,900 | | NGL and refined products | $1,375 | $150 | $1,525 | | Crude oil transportation and services | $295 | $180 | $475 | | All other | $235 | $105 | $340 | | **Total** | **$5,000** | **$1,100** | **$6,100** | - As of June 30, 2025, the Partnership's Five-Year Credit Facility had **$2.47 billion** of outstanding borrowings and **$2.51 billion** available for future borrowings[265](index=265&type=chunk) - Total consolidated debt was **$60.76 billion** as of June 30, 2025, up from **$59.76 billion** at year-end 2024[258](index=258&type=chunk) [Cash Distributions](index=62&type=section&id=Cash%20Distributions) Energy Transfer follows a policy of distributing all available cash quarterly. For the quarter ended June 30, 2025, the distribution on common units was set at **$0.3300 per unit**. The report also details distributions for various series of preferred units. Consolidated subsidiaries Sunoco LP and USAC also continued their regular quarterly distributions to their respective unitholders Energy Transfer Common Unit Distributions Declared in 2025 | Quarter Ended | Rate per Unit | | :--- | :--- | | December 31, 2024 | $0.3250 | | March 31, 2025 | $0.3275 | | June 30, 2025 | $0.3300 | [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Partnership is exposed to market risks from commodity price volatility and interest rate changes. Commodity price risk is managed using various derivative instruments. A hypothetical **10%** change in commodity prices would have a varied impact on the fair value of its derivative portfolio. For interest rate risk, the company had **$4.05 billion** of floating-rate debt outstanding as of June 30, 2025, where a **100-basis-point** change would alter annual interest expense by approximately **$40 million**. There have been no material changes to market risk exposures since year-end 2024 - The company manages commodity price volatility through exchange-traded and OTC financial instruments, including futures, swaps, and options[281](index=281&type=chunk) - As of June 30, 2025, the Partnership had **$4.05 billion** of floating-rate debt. A **100-basis-point** change in interest rates would result in an estimated **$40 million** annual change in interest expense[283](index=283&type=chunk) [Controls and Procedures](index=66&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the Co-Chief Executive Officers and Chief Financial Officer, evaluated the Partnership's disclosure controls and procedures and concluded they were effective as of June 30, 2025. There were no material changes in the company's internal control over financial reporting during the second quarter of 2025 - Based on an evaluation, the Co-Principal Executive Officers and Principal Financial Officer concluded that disclosure controls and procedures were effective as of June 30, 2025[286](index=286&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[287](index=287&type=chunk) [PART II – OTHER INFORMATION](index=67&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=67&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The Partnership is involved in various legal and environmental proceedings. Notable updates include an investigation by the Pennsylvania Attorney General's Office into a refined products release from an SPLP pipeline in January 2025. Additionally, a lawsuit by the State of New Mexico regarding PCB contamination is proceeding to trial, with the state seeking damages of **$50-$60 million** from Transwestern. A consent decree related to a 2014 crude oil release in Ohio was terminated after payments of approximately **$3 million** were made - A January 2025 refined products release from the Twin-Oaks to Newark Pipeline in Pennsylvania is under investigation by the Pennsylvania Attorney General's Office, Environmental Crimes Unit. Potential charges and penalties are unknown[292](index=292&type=chunk) - In a lawsuit concerning PCB contamination, the State of New Mexico is seeking damages of **$50 million** to **$60 million** from subsidiary Transwestern, with a trial tentatively set for October 2025[293](index=293&type=chunk) - A consent decree related to a 2014 crude oil release in Ohio was terminated in May 2025 after SPLP and Mid Valley made total payments of approximately **$3 million** for civil penalties and natural resource damages[294](index=294&type=chunk) [Risk Factors](index=68&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2024, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 - No material changes have been identified from the risk factors described in the 2024 Form 10-K and the Q1 2025 Form 10-Q[298](index=298&type=chunk) [Exhibits](index=69&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed or furnished as part of the quarterly report, including corporate governance documents, certifications by executive officers as required by the Sarbanes-Oxley Act, and interactive data files

Financial Performance - For the quarter ended June 2025, Energy Transfer LP reported revenue of $19.24 billion, down 7.2% year-over-year, and EPS of $0.32 compared to $0.35 in the same quarter last year [1] - The reported revenue was a surprise of -23.83% compared to the Zacks Consensus Estimate of $25.26 billion, while the EPS met the consensus estimate [1] Key Metrics - Gathered volumes for midstream operations were 21,329.00 BBtu/D, exceeding the average estimate of 20,762.51 BBtu/D [4] - NGLs produced were 1,181 million barrels, surpassing the estimated 1,098.09 million barrels [4] - Adjusted EBITDA for intrastate transportation and storage was $284 million, below the average estimate of $319.2 million, while interstate transportation and storage achieved $470 million, above the estimate of $423.8 million [4] Stock Performance - Shares of Energy Transfer LP returned -0.4% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]