MLPs can produce prodigious passive income streams. Higher interest rates have been a passive income investor's dream scenario. Even lower-risk fixed-income investments like government bonds and bank CDs offer high yields these days. Because of that, equity investments, which are riskier by nature, have to offer even higher yields to entice income-seeking investors. For example, several high-quality yield-focused master limited partnerships (MLPs) currently pay around 8%. Because of that, a $1,000 investmen ...

This oil and gas stock offers a high yield of 7.9% and is increasing its dividend payout every year. With its 7.9% yield, Energy Transfer (ET -1.54%) is one of the highest-yielding large-cap oil and gas dividend stocks. The company is also among the largest midstream energy players in the U.S., storing and transporting natural gas, crude oil, natural gas liquids, and refined products to utilities, industrial, and other end users through its extensive pipeline system. Energy Transfer just raised its quarterl ...

Core Viewpoint - The article upgrades the rating of Energy Transfer LP (ET) to a strong buy due to the acquisition of Crestwood Equity Partners, which is expected to enhance ET's growth potential significantly [3][12]. Company Overview - Energy Transfer LP owns a diversified portfolio of energy assets in the U.S., primarily focusing on natural gas midstream facilities, which are crucial for electricity generation [16]. - The company has budgeted approximately $2.9 billion for growth capital in 2024 and has been averaging $3.18 billion in capital expenditures (CAPEX) in recent years [10][18]. Acquisition Impact - The acquisition of Crestwood Equity Partners is anticipated to catalyze a higher growth rate for ET, with valuation metrics indicating a P/E growth ratio of 0.8x and a PEGY yield of 0.5x, both significantly below the ideal threshold [3]. - Additionally, the recent acquisition of WTG Midstream adds around 6,000 miles of gas-gathering pipelines and eight gas processing plants, expected to contribute approximately $0.04 to Distributable Cash Flow (DCF) per common unit in 2025, increasing to $0.07 by 2027 [10]. Market Demand and Positioning - The demand for energy is projected to rise due to the increasing power needs of artificial intelligence technologies and data centers, positioning ET as a key player to meet this demand [5][12]. - Natural gas is currently the largest source of electricity generation in the U.S., accounting for about 43% of total electricity production, which aligns with ET's operational focus [16]. Financial Metrics - ET's cash flow to CAPEX ratio is currently at 3.244x, higher than its three-year average of 3.087x, indicating strong capital allocation flexibility [10][18]. - The company has received an upgrade in its credit rating to "BBB" from "BBB-" by S&P Global Ratings, reflecting improved financial stability [14].

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.46 per share and a revenue of $97.83 billion, signifying shifts of +33.94% and +24.49%, respectively, from the last year. Shares of the energy-related services provider witnessed a gain of 2.95% over the previous month, beating the performance of the Oils-Energy sector with its loss of 7.84% and the S&P 500's gain of 1.96%. Investors should also note any recent changes to analyst estimates for Energy Transfer LP. These latest adj ...

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Energy Transfer continues to add new growth drivers. Those needle-moving deals, along with organic expansion projects and healthy market conditions, position the midstream giant to grow its earnings by more than 10% this year. That will give it plenty of fuel to deliver on its plan to increase its nearly 8%-yielding distribution by about 3% to 5% this year. Closing another needle-moving deal On the financial side, the deal will provide the pipeline company with incremental revenue from gathering and process ...

Summing Up Energy Transfer will undoubtedly benefit from its JV in the prolific Permian Basin. Additionally, the acquisition of WTG Midstream will expand its operation in the Midland Basin. Entergy Transfer, with more than 130,000 miles of pipeline and related infrastructure in 44 states, is poised well to benefit from the improving oil, natural gas and natural gas liquid production volumes in the United States. This can be a favorable entry point for investors, given the positive movement in earnings estim ...

Heading into today, shares of the energy-related services provider had gained 5.68% over the past month, outpacing the Oils-Energy sector's loss of 7.9% and the S&P 500's gain of 4.43% in that time. It's also important for investors to be aware of any recent modifications to analyst estimates for Energy Transfer LP. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's busi ...

This acquisition expanded Energy Transfer's presence in the Midland Basin as it added 6,000 miles of complementary gas-gathering pipelines in the region. The deal added eight gas processing plants with a total capacity of 1.3 billion cubic feet per day and two additional processing plants, which are under construction. The completion of the acquisition will provide incremental revenues to Energy Transfer from gathering and processing activities, along with downstream transportation and fractionation fees. T ...