Summary of J.P. Morgan Fund Manager Radar - The Flow Paradox Industry Overview - The report focuses on the Australian equity market, highlighting the paradox of rising equity prices despite ongoing earnings per share (EPS) downgrades and cautious management guidance [6][6]. Key Points Market Dynamics - **Market Ascent Driven by Flows**: The Australian equity market continues to rise due to strong inflows from passive, active, and buyback activities, which are overwhelming the negative impact of fundamental factors [6][6]. - **EPS Downgrades**: Despite the market's rise, the earnings backdrop is described as mid-single digit at best, indicating a disconnect between market performance and underlying fundamentals [6][6]. Fund Flows - **Robust Inflows**: Australia is leading globally in terms of net inflows, with three months of positive active inflows in the year-to-date (YTD), contrasting with only one positive month in the previous two years [6][6][19]. - **Corporate Buybacks**: Approximately one-third of companies in Australia are engaging in buyback programs, with major players like CBA, CSL, and TLS collectively buying back around AUD 3 billion [6][6]. Sector Positioning - **Sector Movements**: In July, sector movements were muted, typical for the month leading into the full-year results season. Financials saw the largest inflow, while Materials and Communications experienced funding reductions [6][6]. - **Love Index**: ORI, BSL, and SGH emerged as the most loved stocks, while JBH, JHX, and ORG dropped out of the loved category [38][43]. Performance Metrics - **Relative Performance**: The report includes a table of stock performance relative to the ASX200, with notable positive movers like ORI (7.3% in July) and negative movers like MQG (-7.3% in July) [1][1]. - **Sector Allocation**: As of July 2025, the largest overweight positions were in Tech, Communications, and Healthcare, while Financials and REITs remained underweight [7][7]. Additional Insights - **Short Interest Trends**: The report notes significant changes in days-to-cover for various stocks, indicating long buying and short covering activities, particularly for stocks like STO and RMD [44][44]. - **Market Sentiment**: The Love Index reflects market sentiment, with upward momentum for several stocks, indicating a shift in investor preferences [38][38]. Conclusion - The Australian equity market is experiencing a paradoxical rise driven by strong fund inflows and corporate buybacks, despite a backdrop of EPS downgrades and cautious outlooks. The sector positioning and Love Index provide insights into investor sentiment and potential future movements in the market.

Core Insights - Stardust Solar Energy Inc. reported a strong performance in Q2 2025, with revenue of $2.21 million, a 13% increase year-over-year, and gross profit of $1 million, up 84% year-over-year [1][2][10] - The company experienced a significant increase in project backlog, reaching $2.52 million in new contracts signed during Q2 2025, a 69% increase compared to the same period in 2024 [3][10] Financial Performance - Year-to-date revenue for 2025 was $2.21 million, reflecting a 13% increase from the prior year, with gross profit rising to $1 million from $0.54 million in Q2 2024, resulting in a gross margin increase from approximately 28% to 45% [2][6] - Revenue growth was driven by a 175% increase in franchise fees ($696K vs. $253K) and a 28% increase in training revenue, while direct costs declined year-over-year [6][10] - Operating expenses rose to $2.1 million from $1.1 million, primarily due to increased advertising and promotion expenses, non-cash share-based compensation, and interest and bank charges [6][10] Project Backlog and Growth - The project backlog increased significantly, with a total backlog of $3.2 million year-to-date, indicating strong future revenue potential [3][10] - The franchise network expanded from 83 territories at the start of 2025 to 96 territories, with expectations to exceed 100 territories by year-end 2025 [9][11] Management Commentary and Strategic Outlook - Management expressed confidence in the company's performance, highlighting the strong revenue growth, improved gross margins, and reduced liabilities [10] - The company plans to continue expanding its franchise network and enhancing its service offerings to drive future growth and shareholder value [11][12]

Core Viewpoint - Energy Transfer's growth has significantly slowed in 2025, with a decline in unit prices and underperformance compared to the S&P 500, despite a strong previous year [1][2]. Financial Performance - In 2024, Energy Transfer achieved a record $15.5 billion in adjusted EBITDA, a 13% increase from 2023 [4]. - The company generated $8.4 billion in distributable cash flow in 2024, marking a 10% year-over-year increase [5]. - For the first half of 2025, adjusted EBITDA was nearly $8 billion, reflecting a 4% increase, while distributable cash flow was $5.5 billion, showing less than 1% growth [6]. Growth Outlook - Energy Transfer expects adjusted EBITDA for 2025 to be at or slightly below the lower end of its guidance range of $16.1 billion to $16.5 billion, indicating less than 4% growth compared to 2024 [7]. - The company is investing $5 billion in growth capital projects in 2025, with many projects expected to come online by the end of 2026 [8]. - Recent completions include two new gas processing plants, with another scheduled for completion in the second quarter of next year [9]. Expansion Projects - Energy Transfer is finalizing the Nederland Flexport NGL expansion and the Hugh Brinson Pipeline, which are expected to significantly boost earnings and cash flow in 2026 and 2027 [10]. - The Desert Southwest expansion of the Transwestern Pipeline, a $5.3 billion project, is anticipated to be operational by the end of the decade [11]. - The company is also advancing the long-delayed Lake Charles LNG export project and exploring additional projects to supply gas to new power plants and data centers [12]. Financial Position - Energy Transfer is in its strongest financial position to date, allowing for potential acquisitions as opportunities arise [13]. - Although no deals have been made this year, its affiliate Sunoco LP has agreed to acquire Parkland for $9.1 billion, expected to enhance earnings by over 10% in the first year [14]. Investment Opportunity - Despite the slowdown in growth, the recent dip in unit prices may present a buying opportunity, especially for investors willing to accept the Schedule K-1 tax form [15]. - Investors can benefit from a distribution yield of over 7.5%, which is expected to grow as income rises, positioning them for a high total return [16].

Core Insights - Targa Resources Corp. (TRGP) has outperformed its industry with a 12.9% stock gain over the past year, while the broader Oil-Energy sector declined by 1.9% [1][4] - The company is a leading player in the midstream energy sector, providing essential services across the natural gas and natural gas liquids (NGL) value chain [5] Performance Comparison - Other midstream companies like CrossAmerica Partners (CAPL) increased by only 1.8%, while Western Midstream Partners (WES) and Sunoco (SUN) saw declines of 1.2% and 1.7%, respectively [4] - TRGP's strong performance has attracted investor interest and discussions about its future potential [4] Growth Drivers - Targa Resources is positioned to benefit from growing global demand for NGLs and LPG exports, with its Galena Park terminal operating near full capacity [7] - The company plans to expand its LPG export capacity to approximately 19 million barrels per month by Q3 2027, capitalizing on long-term international demand growth [8] - Approximately 90% of TRGP's revenues come from fee-based contracts, providing stability against commodity price fluctuations [9] Capital Allocation and Tax Benefits - Targa Resources employs a disciplined capital allocation strategy, targeting a return of 40-50% of adjusted cash flow to shareholders through dividends and buybacks [10] - Recent tax legislation allows TRGP to defer cash tax payments beyond 2027, enhancing liquidity for growth projects [11] Market Position - Targa Resources is the largest gas processor in the Permian Basin, with a 17% CAGR in Permian volumes over the past five years, outpacing basin-wide production growth [12] Challenges and Risks - The midstream sector faces potential overcapacity in NGL infrastructure, which could impact utilization rates and margins [13] - Execution risks in expansion projects could hinder growth if delays or cost overruns occur [14] - Competitive pressures in the Permian Basin may affect Targa Resources' market share and profitability [15] - Macroeconomic uncertainties and exposure to commodity price volatility could add further challenges to the company's outlook [16][17]

Core Viewpoint - The article discusses the importance of selecting companies with solid fundamentals that can sustain dividend increases, contrasting them with companies that may overpay dividends temporarily to attract investors [1][2]. Group 1: Clorox Co. (NYSE: CLX) - Clorox has a current dividend yield of 3.97% with an annual dividend of $4.96 and a dividend payout ratio of 76.07% [4][5]. - The stock has fallen to 72% of its 52-week high, making its attractive dividend payout more appealing [4]. - Clorox's latest quarterly earnings showed a net EPS of $2.87, significantly beating the expected $2.24, indicating potential for higher future valuations [7]. Group 2: Wells Fargo & Co. (NYSE: WFC) - Wells Fargo has a dividend yield of 2.06% with an annual dividend of $1.60 and a payout ratio of 27.40% [9]. - The bank's management has increased its dividend payout to $1.80 per share, reflecting confidence in future earnings as the market anticipates lower interest rates [11]. - Analysts expect Wells Fargo's EPS to rise to $1.73 for Q2 2026, a 12% increase from the current $1.54 [10]. Group 3: Sunoco LP (NYSE: SUN) - Sunoco offers a high dividend yield of 6.89% with an annual dividend of $3.59 and a payout ratio of 176.85% [13]. - The company has increased its dividend payout to $3.63 per share, providing an annualized yield of 6.68% [14]. - Analysts have rated Sunoco as a Buy, with a target price of $67 per share, suggesting a potential upside of 25% from current trading levels [15].

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].

Core Viewpoint - Stardust Solar Energy Inc. has introduced a new by-law (By-Law No. 1) that establishes an advance notice requirement for shareholders intending to nominate directors, aiming to enhance corporate governance and transparency [1][2]. Group 1: By-Law No. 1 Details - By-Law No. 1 mandates that shareholders must notify the Corporation in writing of their intention to nominate directors prior to any meeting where directors are to be elected [2]. - The by-law specifies that for annual meetings, notice must be given not less than 30 days and not more than 65 days before the meeting, with specific provisions if the meeting is announced less than 40 days in advance [4]. - For special meetings, notice must be provided no later than the close of business on the 15th day following the public announcement of the meeting date [5]. Group 2: Implementation and Ratification - By-Law No. 1 is effective immediately and will be presented for ratification at the upcoming annual and special meeting on September 18, 2025 [5][6]. - If confirmed at the meeting, By-Law No. 1 will remain in effect as ratified by the shareholders [6]. Group 3: Company Overview - Stardust Solar is a North American franchisor specializing in renewable energy installation services, including solar panels, energy storage systems, and electric vehicle supply equipment [7]. - The company supports entrepreneurs with branded business management services, advanced equipment, and comprehensive support in various operational areas [7].

Core Insights - Sunoco LP (SUN) reported second-quarter 2025 earnings of $0.33 per unit, missing the Zacks Consensus Estimate of $1.68 and declining from $3.85 per unit in the same quarter last year [1][9] - Total quarterly revenues were $5.39 billion, below the Zacks Consensus Estimate of $5.62 billion and down from $6.17 billion in the year-ago quarter [1][9] - The weaker-than-expected results were primarily due to lower contributions from the Fuel Distribution segment, attributed to reduced motor fuel profit per gallon [2][9] Distribution and Growth - The board declared a distribution of $0.9088 per unit for Q2 2025, marking a sequential increase of 1.25%, with an annualized basis of $3.6352 [3] - The partnership aims for a distribution growth rate of at least 5% for 2025 and plans to announce future increases quarterly [3] Segment Performance - **Fuel Distribution**: Adjusted EBITDA decreased to $206 million from $245 million in Q2 2024, impacted by lower fuel profits and higher expenses [4] - **Pipeline Systems**: Adjusted EBITDA rose to $177 million from $53 million in the prior year, aided by the acquisition of NuStar and a decline in operating costs [5] - **Terminals**: Adjusted EBITDA increased to $71 million from $22 million in the same period last year, primarily due to the NuStar acquisition, with throughput volumes at 692 thousand barrels per day compared to 638 thousand barrels per day in Q2 2024 [6] Financial Metrics - Motor fuel gross profit per gallon was 10.5 cents, down from 11.8 cents year-over-year [7] - Total operating income for the quarter was $203 million, up from $150 million in the prior-year quarter [7] - Net income for Q2 2025 was $86 million, compared to $501 million in Q2 2024 [7] - Adjusted distributable cash flow totaled $300 million, slightly up from $295 million year-over-year [8] Expenses and Capital Expenditure - Total cost of sales and operating expenses was $5.19 billion, down from $6.02 billion a year ago [10] - Capital expenditure for the quarter was $160 million, consisting of $120 million in growth capital and $40 million in maintenance capital [10] Balance Sheet and Outlook - As of June 30, 2025, Sunoco had cash and cash equivalents of $116 million and net long-term debt of $7.8 billion [11] - The company reaffirmed its full-year 2025 adjusted EBITDA guidance in the range of $1.90-$1.95 billion and aims to meet its distribution growth target of at least 5% [12]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements detail the company's financial position, performance, and cash flows for the period [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Financial statements show total assets of $14.43 billion, with a significant decrease in net income year-over-year Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,482 | $2,465 | | **Total Assets** | $14,428 | $14,375 | | **Total Current Liabilities** | $1,630 | $1,947 | | **Long-term Debt, net** | $7,803 | $7,484 | | **Total Liabilities** | $10,331 | $10,307 | | **Total Equity** | $4,097 | $4,068 | Consolidated Statement of Operations Highlights (in millions, except per unit data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $10,569 | $11,673 | | **Operating Income** | $499 | $447 | | **Net Income** | $293 | $731 | | **Net Income per Common Unit (Basic)** | $1.55 | $6.43 | Consolidated Statement of Cash Flows Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $399 | $216 | | **Net cash (used in) provided by investing activities** | ($350) | $727 | | **Net cash used in financing activities** | ($27) | ($746) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail major acquisitions like Parkland and TanQuid, debt structure, and segment performance - 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[30](index=30&type=chunk) - Entered into an agreement to acquire TanQuid, which owns 16 fuel terminals in Europe, for approximately **€500 million**, with the transaction expected to close in the second half of 2025[35](index=35&type=chunk) - In March 2025, the Partnership issued **$1.0 billion of 6.250% senior notes** due 2033 and used the proceeds to repay $600 million of notes due 2025 and borrowings under its Credit Facility[49](index=49&type=chunk) Segment Adjusted EBITDA (in millions) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Fuel Distribution | $426 | $463 | | Pipeline Systems | $349 | $53 | | Terminals | $137 | $46 | | **Total** | **$912** | **$562** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, focusing on major acquisitions and segment performance drivers [Recent Developments](index=25&type=section&id=Recent%20Developments) This section details significant strategic acquisitions and the impact of new tax legislation - 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[97](index=97&type=chunk) - Entered an agreement to acquire TanQuid for approximately **€500 million**, which includes 15 fuel terminals in Germany and one in Poland, with the deal expected to close in H2 2025[103](index=103&type=chunk) - The "One Big Beautiful Bill Act" was signed into law on July 4, 2025, permanently reinstating **100% bonus depreciation**, which is anticipated to defer a significant portion of the Partnership's corporate subsidiaries' U.S. federal income taxes[106](index=106&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Consolidated Adjusted EBITDA grew significantly, driven by acquisitions, despite a drop in net income due to a prior-year gain Consolidated Adjusted EBITDA (in millions) | Period | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $454 | $320 | $134 | | **Six Months Ended June 30** | $912 | $562 | $350 | - The decrease in net income for H1 2025 to **$293 million** from $731 million in H1 2024 was primarily due to the absence of the **$598 million gain** on the West Texas Sale that occurred in April 2024[114](index=114&type=chunk) - Pipeline Systems segment Adjusted EBITDA increased by **$296 million** for H1 2025, driven by the NuStar acquisition and a **$95 million increase** in Adjusted EBITDA from the ET-S Permian joint venture[114](index=114&type=chunk)[132](index=132&type=chunk) - Terminals segment Adjusted EBITDA increased by **$91 million** for H1 2025, primarily due to contributions from the NuStar and Zenith European terminals acquisitions[114](index=114&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through cash from operations and its credit facility to fund capital expenditures - As of June 30, 2025, the company had **$116 million in cash** and cash equivalents and **$1.24 billion of available borrowing capacity** on its Credit Facility[136](index=136&type=chunk) - Net cash provided by operating activities increased to **$399 million** for the six months ended June 30, 2025, compared to $216 million for the same period in 2024[140](index=140&type=chunk) - The company projects approximately **$150 million in maintenance capital expenditures** and at least **$400 million in growth capital** for the full year 2025[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate risk on variable-rate debt and commodity price risk on fuel inventories - The company is subject to interest rate risk on its **$206 million** of outstanding borrowings under the Credit Facility as of June 30, 2025[160](index=160&type=chunk) - The company faces commodity price risk on its approximately **$1.15 billion of fuel inventory** and uses derivative instruments to hedge this risk, holding a position of **3.2 million barrels** with an aggregate unrealized gain of **$4 million** at June 30, 2025[161](index=161&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[164](index=164&type=chunk) - There have been **no changes** in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[165](index=165&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any litigation expected to have a material adverse impact on its business - The company does not believe it is party to any litigation that will have a **material adverse impact** on its financial condition or operations[167](index=167&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in prior SEC filings - There have been **no material changes** from the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2024, and the Q1 2025 Form 10-Q[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued common units as partial consideration for an acquisition via a private placement - On May 29, 2025, the Partnership issued **251,646 common units** valued at approximately **$13 million** as partial consideration for an acquisition[171](index=171&type=chunk) - The issuance was **exempt from registration** under Section 4(a)(2) of the Securities Act of 1933, as it did not involve a public offering[171](index=171&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists key agreements and certifications filed as exhibits with the Form 10-Q - Lists key agreements filed as exhibits, including the Arrangement Agreement for the **Parkland Corporation acquisition** and amendments to the Third Amended and Restated Credit Agreement[173](index=173&type=chunk)[175](index=175&type=chunk)

Financial Performance - Energy Transfer's Q2 2025 Adjusted EBITDA was $3.87 billion[7] - Distributable Cash Flow attributable to partners in Q2 2025 was $1.96 billion[7] - Year-to-date 2025 Growth Capital Expenditures reached $2.0 billion, while Maintenance Capital Expenditures were $418 million[7] - The company anticipates approximately $5.0 billion in Growth Capital Expenditures for the full year 2025[7] - The quarterly cash distribution increased to $0.33 per unit, a rise of over 3% compared to Q2 2024[7] Operational Highlights - Interstate natural gas transportation volumes increased by 11% compared to Q2 2024[7] - Midstream gathered volumes rose by 10%, setting a new partnership record[7] - Crude oil transportation volumes increased by 9%, also setting a new partnership record[7] - Total NGL exports increased by 5%, establishing another new partnership record[7] Strategic Initiatives - The company announced a 1.5 Bcf/d expansion to the Transwestern Pipeline, named the Desert Southwest expansion project, involving a 516-mile, 42-inch natural gas pipeline connecting the Permian Basin with markets in Arizona and New Mexico[7]