JPMorgan Chase Financial Company has declared the quarterly coupon amount for the Alerian MLP Index ETN (AMJB), providing updated data on this energy infrastructure strategy. Announced yesterday, November 24, the coupon underscores the continued role of midstream Master Limited Partnerships (MLPs) in income portfolios. The declared coupon amount is $0.5006 per note. This corresponds to an annualized current yield of 6.6% based on the closing price of the notes on November 20. The ex-dividend date and the re ...

Core Insights - Energy Transfer and Enterprise Products Partners are leading energy midstream companies in the U.S. with attractive income yields of 7.8% and 6.9% respectively, significantly higher than the S&P 500's yield of 1.2% [1] Group 1: Financial Performance - Energy Transfer generated $1.9 billion in cash during Q3, covering its distribution by approximately 1.7 times and retaining over $750 million [4] - Enterprise Products Partners generated $1.8 billion in cash during Q3, covering its distribution by 1.5 times and retaining $635 million [7] Group 2: Growth Outlook - Energy Transfer plans to invest $4.6 billion in growth capital projects this year and an additional $5 billion in 2026, with a significant project being the $5.3 billion Desert Southwest Expansion expected to complete by Q4 2029 [5] - Energy Transfer is also developing various expansion projects, including a large-scale LNG export terminal and oil pipeline expansions, enhancing its growth prospects [6] Group 3: Valuation and Payout - Enterprise Products Partners pays out a higher percentage of its stable cash flow compared to Energy Transfer but has a lower yield due to its higher valuation, trading at about 12 times earnings compared to Energy Transfer's valuation of approximately nine times earnings [9]

Core Insights - Midstream energy stocks are involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids, operating in a sector less affected by spot pricing due to long-term contracts [1][5] - Master limited partnerships (MLPs) are highlighted as a strong investment option for energy exposure, offering substantial and dependable dividends, particularly from midstream companies [2][5] - A screening of midstream MLPs identified four top companies that provide high distributions to shareholders, emphasizing their appeal for income-focused investors [3] Industry Overview - Energy MLPs are attractive investments due to their structure and market position, typically offering annual distributions of 5% to 8% by distributing most cash flow to unitholders, thus providing a steady income stream [5] - MLPs benefit from stable, fee-based revenues linked to energy transportation, which mitigates risks associated with commodity price volatility [5] Company Spotlight - Cross America Partners L.P. has shown significant growth and is expected to continue this trend, offering a high dividend yield of 10.60% [6] - The company operates through two segments: wholesale distribution of motor fuel and retail sales at various sites, including convenience stores [7]

Core Insights - Texas has a long history of wealth generated from natural resources, particularly oil and gas, which has led to the establishment of funds that provide financial benefits to its citizens [1][2] - The Texas Royalty Plan allows individuals, even non-residents, to receive payments from oil and gas revenues, with some individuals reporting substantial earnings [6][7] - The state is experiencing a significant boom in oil production, with a notable increase in annual output due to advancements in shale extraction [8][15] Texas Oil and Gas Wealth - Texas has two major funds, the Permanent School Fund and the Permanent University Fund, which are financed by oil royalties and support educational initiatives [2] - The state has seen a 577,990% increase in oil production over the past 17 years, contributing to the financial benefits available to citizens [8] - The Texas Royalty Plan has consistently raised payments for 28 years, indicating a stable income source for participants [7][15] Investment Opportunities - The Texas Royalty Plan is associated with Master Limited Partnerships (MLPs) that are required to distribute 90% of their earnings to shareholders, offering high dividend yields [10][22] - Current yields for these investments range from 6.8% to 9.6%, which is significantly higher than average stock market dividends [11][14] - Companies like Enterprise Products Partners (EPD), Energy Transfer (ET), and Western Midstream Partners (WES) are highlighted as potential investment opportunities within the Texas oil sector [24][26] Market Dynamics - Texas is becoming a hub for data centers due to its cheap and abundant energy, particularly natural gas, which is essential for powering these facilities [19][20] - The state's energy infrastructure is expanding, with a record production of 12.62 trillion cubic feet of natural gas anticipated in 2024, further supporting the growth of the Texas Royalty Plan [20] - Legislative efforts are underway to enhance Texas's digital infrastructure, positioning the state as a leader in the AI data center market [18]

Group 1 - The Alerian MLP ETF (AMLP) has reached a significant milestone after years of providing simplified exposure to Master Limited Partnerships (MLPs) [1] - MLPs are recognized for their attractive income potential, making them appealing to investors seeking yield [1] - The ETF has successfully navigated market challenges and continues to attract investor interest [1]

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]

Financial Data and Key Metrics Changes - The net loss for Q3 was $10.8 million or $0.17 per common unit, compared to a net loss of $8 million or $0.12 per common unit in the prior year [11] - Adjusted EBITDA for Q3 was $27 million, consistent with the prior year [11] - Total gross margin for Q3 was $163.5 million, unchanged from the prior year [13] - The consolidated leverage ratio improved to 4.33 times compared to 4.54 times at the end of the second quarter [14] Business Line Data and Key Metrics Changes - Retail propane gallons sold in Q3 were 71.9 million gallons, in line with the prior year [12] - Average wholesale propane prices increased by 4.7% compared to the prior year [12] - Average daily RNG injection declined slightly compared to the prior year due to operational downtime [8] Market Data and Key Metrics Changes - Propane inventories at the end of Q3 were at 75.7 million barrels, flat compared to June 2024 and roughly 10% higher than historical averages [13] - California LCFS credit prices increased by 30% since the amendments were finalized in late June 2025, while average Federal D3 RIN prices were down 21% year over year [10] Company Strategy and Development Direction - The long-term strategic growth plan focuses on fostering the growth of the core propane business while investing in lower carbon renewable energy alternatives [18] - The company is advancing capital projects at RNG facilities in Columbus, Ohio, and Upstate New York, expected to increase overall RNG sales once operational [8] Management's Comments on Operating Environment and Future Outlook - Management noted strong cash flow generation in Q3 due to collections on receivables and highlighted the impact of warm temperatures on propane volumes [7][10] - The company remains focused on operational improvements and strategic growth initiatives, including potential M&A opportunities [18][29] Other Important Information - The quarterly distribution declared was $0.0325 per common unit, equating to an annualized rate of $1.3 per common unit, with a distribution coverage of 2.16 times [16] - The company is actively monitoring regulatory developments related to RNG tax credits and the OBVA bill [22][25] Q&A Session Summary Question: Update on RNG rulemaking and tax credits - Management indicated no credits recognized under 45Z until final regulations are released, expected by the end of the calendar year [22] Question: Timing of New York and Columbus projects - Columbus and Upstate New York projects are on track for late this calendar year into early next year, while Arizona improvements are ongoing with no major timeline [27] Question: Size of insurance payout benefit and O&M trends - The insurance payout benefit was less than $2 million, offsetting inflation impacts, with expected inflation around 3% going forward [28] Question: M&A activity - The company is seeing a typical pipeline of M&A opportunities and remains focused on strategic growth through acquisitions [29]

Core Insights - Energy Transfer and Western Midstream Partners are significant players in the master limited partnership (MLP) sector, providing stable cash flows and high distribution yields of 7.5% and over 9% respectively [1][2] Company Operations - Energy Transfer operates a diversified midstream network, handling various commodities including natural gas, NGLs, crude oil, and refined products, with 90% of its earnings being fee-based [5] - Western Midstream focuses on the Delaware, DJ, and Powder River basins, primarily gathering, treating, processing, and transporting natural gas, NGLs, and crude oil, generating fee-based income secured by long-term contracts [4] Customer and Ownership Structure - Occidental Petroleum is a major customer of Western Midstream, holding a 44.8% direct interest in the MLP, while Energy Transfer does not rely on a single significant customer and controls two other MLPs, enhancing its income and growth profile [6] Financial Position - Energy Transfer is in a strong financial position with a leverage ratio in the lower half of its target range of 4.0-4.5 times and generates cash to cover its payout by more than two times [7] - Western Midstream also maintains a solid financial position with a leverage ratio below 3.0x and expects to generate sufficient free cash flow to cover capital expenditures [8] Growth Prospects - Energy Transfer plans to invest $5 billion in growth capital projects this year, including a new natural gas pipeline and gas processing plants, which are expected to drive earnings growth in 2026-2027 [9][10] - Western Midstream anticipates capital spending between $625 million and $775 million in 2025, with 65% allocated to growth initiatives, aiming for mid-single-digit cash flow and distribution growth [12] Investment Appeal - Both companies offer high-yielding distributions supported by stable cash flows, but Energy Transfer's greater diversification reduces risk and enhances growth potential, making it a more attractive option for sustainable income [13]

Core Viewpoint - Enterprise Products Partners and MPLX are leading master limited partnerships (MLPs) in the energy midstream sector, known for their stable cash flows and growing distributions [1][2]. Financial Profiles - Enterprise Products Partners generated $2 billion in distributable cash flow in Q1, a 5% year-over-year increase, while MPLX produced $1.5 billion, an 8.5% increase [4]. - Enterprise's payout is nearly 7%, covered 1.7 times, while MPLX's 7.5% payout is covered about 1.5 times, indicating strong coverage levels for both MLPs [4]. - Enterprise Products Partners has a leverage ratio of 3.1, supporting its A-/A3 bond ratings, while MPLX has a leverage ratio of 3.3, below the 4.0 range supported by its BBB/Baa2 credit rating [5]. Growth Profiles - Enterprise Products Partners has raised its distribution for 26 consecutive years, including a 3.9% increase last year [7]. - MPLX has increased its payout every year since its inception in 2013, with a compound annual growth rate of over 10% since 2021 [8]. - Enterprise has $7.6 billion in major capital projects under construction, expecting cash flow growth through 2027, while MPLX has several expansion projects with visible growth through the end of the decade [9][10]. Income Options - Both MLPs are attractive for investors seeking growing passive income streams, with MPLX currently viewed as the better option due to its higher yield and growth visibility [11].

Core Viewpoint - Global Partners (GLP) is positioned as an attractive investment opportunity amid rising crude oil prices due to geopolitical tensions and supply disruptions [1][2]. Group 1: Market Context - Escalating tensions in the Middle East, particularly between Israel and Iran, have raised concerns about oil supply disruptions, as Iran is a significant oil producer [2]. - Wildfires in Canada have led to a reduction of approximately 350,000 barrels of oil production per day [2]. - OPEC has been unable to reach an agreement to increase global oil output, contributing to the current market dynamics [2]. - WTI crude prices have increased by 15% over the last month, surpassing $70 per barrel, despite a slight dip of over 1% on Monday [2]. Group 2: Company Performance - Global Partners operates a vast network of liquid energy terminals from Maine to Florida, facilitating the storage and distribution of various petroleum products [4]. - The company has achieved a total return of +23% in 2025, outperforming the broader market and its peers in the oil refining and marketing sector [5]. - GLP's total sales are projected to increase by 37% in fiscal 2025, reaching $23.55 billion, up from $17.16 billion the previous year [10]. - Annual earnings per share (EPS) are expected to rise by 18% this year and an additional 6% in FY26, reaching $3.03 per share [11]. Group 3: Dividend and Distribution - Global Partners, as a Master Limited Partnership (MLP), benefits from a tax structure that allows it to pass income directly to shareholders, making it appealing to income investors [8]. - The company currently has a payout ratio of 94%, with an annual distribution yield of 5.8% [9]. - GLP has increased its dividend 17 times in the last five years, resulting in an annual growth rate of nearly 11% during this period [9][10]. Group 4: Investment Outlook - The stock is currently rated as a Zacks Rank 1 (Strong Buy), indicating strong investor interest [12]. - The reasonable forward earnings multiple of 19.5X suggests potential for further price appreciation as crude prices rise [12].