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].