Core Viewpoint - Western Midstream Partners has successfully renegotiated contracts with Occidental Petroleum for natural gas gathering and processing in the Delaware Basin [1] Company Summary - Western Midstream Partners is involved in natural gas gathering and processing operations [1] - The renegotiation of contracts indicates a strategic move to enhance operational efficiency and potentially improve financial performance [1] Industry Summary - The Delaware Basin remains a critical area for natural gas production, and partnerships between midstream companies and producers like Occidental Petroleum are essential for optimizing resource extraction and processing [1]

Core Viewpoint - Western Midstream Partners, LP has renegotiated natural-gas gathering and processing contracts in the Delaware Basin with Occidental Petroleum, transitioning to a fixed-fee structure that enhances drilling economics and supports development in the region [1][4]. Contract Amendments - The legacy cost-of-service structure has been replaced with a simplified fixed-fee structure, supported by acreage dedication, which is expected to align interests and position WES as a standalone midstream enterprise [1][4]. - Approximately 9% of WES's total revenue will remain under cost-of-service rates, with 1% expiring in the late 2020s, while the remaining provisions extend into the mid-to-late 2030s [4]. Financial Implications - The conversion to a fixed-fee structure is not expected to reduce Adjusted EBITDA through 2027, with minimal impact anticipated until 2032 [3]. - Occidental will transfer 15.3 million WES common units to WES, valued at approximately $610 million, resulting in a decrease of Occidental's ownership from 42% to 40% [4][10]. Revenue Diversification - WES has entered into a new agreement with ConocoPhillips for natural-gas volumes, which will reduce related-party revenue by over 10% and further diversify WES's revenue streams [4]. - The new contracts with Occidental and ConocoPhillips will be effective from January 1, 2026, and February 1, 2026, respectively [10]. Management Commentary - The President and CEO of WES emphasized that the transition to a fixed-fee structure is timely and logical, enhancing alignment with producers and diversifying the customer base [5]. - The changes are expected to provide greater clarity and confidence in WES's long-term earnings potential, supporting sustainable returns for stakeholders [5].

Core Insights - High Yield Investor is celebrating its fifth anniversary by offering a 30-day money-back guarantee, encouraging new memberships and the release of their Top Picks for 2026 [1] Company Overview - Samuel Smith, a lead analyst and Vice President at various dividend stock research firms, leads the High Yield Investor group, which focuses on balancing safety, growth, yield, and value in investment strategies [1] - The High Yield Investor group provides real-money core, retirement, and international portfolios, along with regular trade alerts, educational content, and an active chat room for investors [1] Investment Strategy - The article discusses the common perception among investors that there is a trade-off between yield and growth, as well as quality and total return potential, particularly among younger investors [1]

Group 1 - The article celebrates the fifth anniversary of High Yield Investor by offering a 30-day money-back guarantee, encouraging new memberships [1] - High Yield Investor is releasing its Top Picks for 2026, suggesting a focus on future investment opportunities [1] - A 9% yield on a stock is often perceived as high-risk, indicating potential issues with the company's balance sheet [1] Group 2 - Samuel Smith, the lead analyst, has a diverse background in dividend stock research and engineering, enhancing the credibility of the investment group [1] - The investment group, led by Samuel Smith, collaborates with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in their investment strategies [1] - High Yield Investor provides various portfolios, including core, retirement, and international options, along with trade alerts and educational content [1]

Group 1 - The current market sentiment is characterized by a three-year bull run and record highs, leading to concerns about the sustainability of this trend, especially with a unanimous consensus on a strong 2026 [1] - There is a notable unease among analysts regarding the market outlook, despite the prevailing optimism on Wall Street [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on shaping financial strategies for top-tier corporates and executing large-scale financings [2] - Berzins has contributed to the institutionalization of the REIT framework in Latvia, aimed at enhancing the liquidity of pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [2] - Berzins holds a CFA Charter and an ESG investing certificate, and has participated in thought-leadership activities to support capital market development in the Baltic region [2]

Core Viewpoint - The midstream master limited partnership (MLP) sector offers attractive income opportunities for investors, particularly through pipeline companies that have stable business models less affected by commodity price fluctuations [1]. Group 1: Western Midstream - Western Midstream Partners has a high yield of 9.2%, supported by a strong balance sheet and well-covered distributions [3]. - The company ended the last quarter with a leverage ratio of 2.8 times and holds an investment-grade credit rating, indicating financial stability [4]. - Western generates strong free cash flow exceeding its distribution, with significant business coming from its parent company, Occidental Petroleum [4]. - The acquisition of Aris Water Solutions will diversify Western's customer base, enhancing its growth potential [4]. - The company is focusing on produced water disposal in the Delaware Basin, with the Pathfinder Pipeline project being a key growth initiative [5]. - Western's enterprise value-to-EBITDA multiple is just over 8 times based on 2026 estimates, making it an attractive option for income-oriented investors [6]. Group 2: MPLX - MPLX offers an 8.1% yield and maintains a strong balance sheet, with a leverage ratio of 3.7 times and a distribution coverage level of 1.3 times based on its distributable cash flow [7][9]. - The company has repositioned its portfolio for growth through a series of acquisitions and divestitures, enhancing its attractiveness in the midstream sector [8].

Core Insights - The article emphasizes the author's extensive experience in financial markets, particularly in hedge funds, and highlights a focus on technology sectors, especially SaaS and cloud businesses, which are seen as offering significant growth opportunities [1]. Group 1: Analyst Background - The analyst has over a decade of experience in financial markets, primarily in a hedge fund in Rotterdam [1]. - The analyst has a rigorous approach to investment, maintaining high standards for personal investments [1]. Group 2: Sector Focus - The preferred sectors for analysis are technology, specifically Software as a Service (SaaS) and cloud businesses, due to their incredible growth potential [1]. - The technology sector is characterized by active news flow, providing ample research opportunities [1].

Core Insights - Western Midstream (WES) has been a long-term investment since October 2024, with the share price remaining nearly flat, increasing by less than 1% [1] - The total return on the investment has been positive despite the stagnant share price [1] Company Overview - WES is characterized as a high-yielding Master Limited Partnership (MLP) [1] - The investment strategy focuses on generating returns through dividends and capital appreciation [1] Analyst Background - The analyst has over a decade of experience in financial management, particularly in shaping financial strategies for top-tier corporates [1] - The analyst has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] - Additional contributions include developing national SOE financing guidelines and frameworks for private capital in affordable housing [1]

Core Insights - The article emphasizes the importance of skepticism in investing, suggesting that if an investment opportunity appears too good to be true, it likely is [1] Group 1: Analyst Background - Scott Kaufman, known as Treading Softly, has over a decade of experience in the financial sector and serves as the lead analyst for Dividend Kings [1] - The focus of the analysis is on identifying high-quality dividend-growing and undervalued investment opportunities [1] - The goal is to achieve a strong total return through cash dividends and capital gains [1]

Core Viewpoint - The article highlights three companies offering high dividend yields significantly above the S&P 500 average, which is currently around 1.1% [1] Group 1: Starwood Property Trust - Starwood Property Trust leads with a 10.3% dividend yield, supported by a diversified portfolio of income-producing properties and real estate-backed loans [3][4] - The REIT has maintained its dividend for over a decade and recently expanded its portfolio through a $2.2 billion acquisition, which includes 467 properties with a 17-year weighted average lease term and a 2.2% average annual rent escalation [4][6] - Starwood has made $10.2 billion in new investments in 2025, including a record $800 million in infrastructure lending, which supports its ability to continue paying high dividends [6] Group 2: Western Midstream Partners - Western Midstream Partners offers a 9.2% yield, generating stable cash flow from energy midstream infrastructure backed by long-term contracts [7][9] - The MLP expects to produce between $1.3 billion and $1.5 billion in free cash flow this year, sufficient to cover its distribution payments and capital expenditures [9][10] - The company has a strong balance sheet with a leverage ratio of 2.8 times and recently completed a $2 billion acquisition, which contributed to a 13% increase in its payout this year [9][10] Group 3: Verizon - Verizon provides a 6.8% yield, with a history of increasing its dividend for 19 consecutive years, supported by recurring revenue from mobile and broadband contracts [11][12] - The company generated $28 billion in cash flow from operations in the first nine months of the year, covering capital spending and dividend payments with a surplus of $7.2 billion [13] - Verizon anticipates generating more free cash flow in 2026 and is working on a $20 billion acquisition of Frontier Communications to enhance its service offerings [14]