Group 1 - The article expresses a bullish outlook on Western Midstream (NYSE: WES) since October 2024, highlighting its yield-focused MLP strategy [1] - WES has shown total return performance that is almost identical to the MLP sector, indicating strong market positioning [1] Group 2 - The author has a beneficial long position in the shares of WES, indicating confidence in the company's future performance [2]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Group 1: Analyst Ratings and Price Targets - Delek Logistics Partners, LP (DKL) has a dividend yield of 9.90%. Mizuho analyst Gabriel Moreen maintained a Neutral rating and increased the price target from $44 to $45 on August 29, 2025, with an accuracy rate of 68%. Raymond James analyst Justin Jenkins maintained an Outperform rating and raised the price target from $44 to $46 on January 28, 2025, with an accuracy rate of 77% [7] - Okeanis Eco Tankers Corp. (ECO) has a dividend yield of 9.57%. Jefferies analyst Omar Nokta initiated coverage with a Buy rating and a price target of $29 on July 23, 2025, with an accuracy rate of 72%. B. Riley Securities analyst Liam Burke maintained a Buy rating but lowered the price target from $44 to $40 on January 15, 2025, with an accuracy rate of 71% [7] - Western Midstream Partners, LP (WES) has a dividend yield of 9.49%. Mizuho analyst Gabriel Moreen maintained an Outperform rating and increased the price target from $44 to $46 on August 29, 2025, with an accuracy rate of 68%. Morgan Stanley analyst Robert Kad maintained an Underweight rating and lowered the price target from $41 to $39 on August 26, 2025, with an accuracy rate of 71% [7] Group 2: Recent Earnings Reports - Delek Logistics Partners posted weaker-than-expected quarterly results on August 6, 2025 [7] - Okeanis Eco Tankers reported better-than-expected quarterly earnings on August 12, 2025 [7] - Western Midstream posted upbeat quarterly earnings on August 6, 2025 [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Price Targets - Delek Logistics Partners, LP (DKL) has a dividend yield of 9.90%. Mizuho analyst Gabriel Moreen maintained a Neutral rating and increased the price target from $44 to $45 on Aug. 29, 2025, with an accuracy rate of 68% [7]. Raymond James analyst Justin Jenkins maintained an Outperform rating and raised the price target from $44 to $46 on Jan. 28, 2025, with an accuracy rate of 77% [7]. Recent news indicated weaker-than-expected quarterly results on Aug. 6 [7] - Okeanis Eco Tankers Corp. (ECO) has a dividend yield of 9.57%. Jefferies analyst Omar Nokta initiated coverage with a Buy rating and a price target of $29 on July 23, 2025, with an accuracy rate of 72% [7]. B. Riley Securities analyst Liam Burke maintained a Buy rating but lowered the price target from $44 to $40 on Jan. 15, 2025, with an accuracy rate of 71% [7]. Recent news showed better-than-expected quarterly earnings on Aug. 12 [7] - Western Midstream Partners, LP (WES) has a dividend yield of 9.49%. Mizuho analyst Gabriel Moreen maintained an Outperform rating and increased the price target from $44 to $46 on Aug. 29, 2025, with an accuracy rate of 68% [7]. Morgan Stanley analyst Robert Kad maintained an Underweight rating and lowered the price target from $41 to $39 on Aug. 26, 2025, with an accuracy rate of 71% [7]. Recent news reported upbeat quarterly earnings on Aug. 6 [7]

Core Viewpoint - The article highlights four high-yield master limited partnerships (MLPs) that offer attractive investment opportunities for long-term income generation, with yields of nearly 7% or above. Company Summaries 1. Energy Transfer - Energy Transfer has a yield of 7.7% and has improved its balance sheet by reducing leverage and increasing distributions after a previous cut during the COVID-19 pandemic [3][5] - The company plans to invest approximately $5 billion in expansion projects this year, focusing on natural gas demand in Texas and the Southwestern U.S., as well as liquefied natural gas (LNG) projects [4] - Energy Transfer's distribution is well-supported by its distributable cash flow, with 90% of its EBITDA coming from fee-based operations, and it has raised its distribution for 15 consecutive quarters [5] 2. Enterprise Products Partners - Enterprise Products Partners offers a yield of 6.9% and has raised its distribution for 27 consecutive years, reflecting its conservative financial management [6][7] - The company maintains a strong balance sheet with leverage just over 3x and has increased its growth capital expenditures to over $4 billion this year [9] - With a consistent return on invested capital (ROIC) around 13%, Enterprise is positioned for solid growth in the coming years [9] 3. Western Midstream - Western Midstream provides a yield of 9.6%, supported by predictable cash flows from contracts, particularly due to its relationship with parent company Occidental Petroleum [10][12] - The company is expanding into new growth areas, including produced water, and has recently acquired Aris Water Solutions for $2 billion [12] - With leverage around 3x, Western Midstream expects to steadily grow its payout while offering a nearly 10% yield [12] 4. MPLX - MPLX has a yield of 7.6% and has increased its annual distribution by over 10% for three consecutive years, with a recent hike of 12.5% in 2024 [13] - The company has a solid coverage ratio of 1.5x and is involved in significant growth initiatives, including a $1.7 billion increase in growth capital expenditures this year [14] - MPLX is actively reshaping its business through M&A, including a $2.4 billion acquisition of Northwind Midstream, while maintaining a strong financial position [15][16]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes a community-oriented approach to investing, encouraging collaboration and education among investors [2] - The service offers various features including model portfolios, buy/sell alerts, and regular market updates to support investors [2] Group 2 - The article mentions the involvement of contributors who provide insights and recommendations, indicating a collaborative effort in investment strategies [4] - It highlights the importance of monitoring investment positions and issuing alerts to members, ensuring active management of portfolios [4]

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]

Company Overview - Western Midstream (NYSE: WES) has experienced a significant underperformance in the market, lagging by double digits since the last investment recommendation, despite its impressive distribution [2] - The company's market value has rebounded to nearly $15 billion, marking a substantial recovery from the lows experienced during the COVID-19 pandemic [2] Investment Strategy - The Value Portfolio focuses on constructing retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] - The investment approach involves real monetary investments in the stocks that are recommended, emphasizing a commitment to the suggested strategies [2]

Group 1: Company Growth Strategy - Western Midstream Partners, LP (WES) plans to invest at least $1.1 billion in capital expenditures for 2026, focusing on significant growth in the Delaware Basin [1] - The company is executing a $2 billion acquisition of Aris Water Solutions, which is expected to enhance its produced water disposal capacity to over 3.8 million barrels per day and diversify its customer base [2] - A new natural gas processing train at the North Loving facility, sanctioned to process 300 million cubic feet per day, will increase total processing capacity to approximately 2.5 billion cubic feet per day by early Q2 2027 [3] Group 2: Operational Expectations - WES anticipates mid-single-digit year-over-year growth in natural gas and produced water throughput for the remainder of 2025, with low single-digit growth in crude oil and NGLs [4] - Continued growth is expected across all product lines in 2026, even before considering the contributions from the Aris acquisition [4] Group 3: Long-Term Value Creation - The company aims to deliver sustained throughput growth and operational scale in the Delaware Basin through infrastructure expansions, customer diversification, and disciplined balance sheet management [5]

Financial Data and Key Metrics Changes - The second quarter of 2025 marked the highest adjusted EBITDA in the partnership's history, indicating a successful operational performance [2] - Operationally, there was increased throughput across all product lines and large operated basins, contributing to the rise in adjusted EBITDA and adjusted gross margin [2][3] - Operating expenses (OpEx) remained relatively flat compared to Q1, with ongoing internal cost optimization efforts expected to yield further improvements in the latter half of the year [3][4] Business Line Data and Key Metrics Changes - The Delaware Basin achieved record oil, gas, and water throughput, significantly contributing to the overall increase in adjusted EBITDA [3] - Expectations for throughput growth rates for the remainder of the year include mid-single digits for gas, low-single digits for crude oil, and mid-single digits for water [4] Market Data and Key Metrics Changes - The company is experiencing strong support from existing agreements, providing insight into producers' activities and long-term forecasts, which bolstered confidence in sanctioning new projects [5][6] Company Strategy and Development Direction - The company sanctioned a second train at the North Loving plant, expected to come online in 2027, driven by strong existing agreements and successful organic development of the system [5][6] - The capital budget for 2026 is projected to be at least $1.1 billion, with significant spending allocated to new projects like Pathfinder and North Loving 2, which are expected to drive growth [9][10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term delivery of existing contract structures and the organic success seen over the past 12 to 18 months, particularly in gas gathering and processing contracts [6][8] - The company remains focused on executing infrastructure development, with the Pathfinder pipeline project on track to be operational in 2027 [8] Other Important Information - The majority of the capital expenditures for Pathfinder and North Loving 2 will occur in 2026, with ongoing adjustments based on producer forecasts [10][12] Q&A Session Summary Question: Can you talk about the decision to sanction another plant right now? - The decision was based on strong support from existing agreements and confidence in long-term delivery from producers [5][6] Question: Can you provide an update on the Pathfinder pipeline project? - The project is on track for a 2027 launch, with positive discussions with customers regarding long-term solutions [8]

Financial Data and Key Metrics Changes - The second quarter of 2025 marked the highest adjusted EBITDA in the history of the partnership, indicating a successful operational performance [1] - Operational expenditures (OpEx) remained relatively flat compared to Q1 2025, reflecting ongoing cost optimization efforts [2] - Expectations for throughput growth rates remain consistent, with gas projected to grow in the mid-single digits, crude oil in low single digits, and water in mid-single digits [3] Business Line Data and Key Metrics Changes - The Delaware Basin achieved record levels of oil, gas, and water production, significantly contributing to the increase in adjusted EBITDA and adjusted gross margin [2] Market Data and Key Metrics Changes - The company is experiencing increased costs related to higher water volumes and overall throughput, but is managing these through internal cost optimization strategies [2][3] Company Strategy and Development Direction - The company has sanctioned a second train at the North Loving plant, expected to come online in 2027, driven by strong support from existing agreements and successful organic development [4][5] - The Pathfinder pipeline project is on track for development and is expected to enhance long-term flow assurance solutions for customers [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term delivery of existing contract structures and the positive discussions with producers regarding future projects [5][6] - The capital budget for 2026 is projected to be at least $1.1 billion, with significant spending allocated to new projects like Pathfinder and North Loving 2, which are expected to drive growth [7][8][9] Other Important Information - The company plans to adjust its capital plans for 2026 based on updated forecasts from producers in the second half of the year [10] Q&A Session Summary Question: Can you discuss the decision to sanction another plant right now? - The decision was based on strong support from existing agreements and confidence in long-term delivery from producers [4][5] Question: What is the status of the Pathfinder pipeline project? - The project is on track for development and is expected to provide long-term flow assurance solutions [6] Question: What is included in the capital budget for 2026? - The budget includes significant spending on new projects and normal business operations, with expectations of continued growth in throughput [7][8][9]