Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]. - The article suggests that investment recommendations are built upon a comprehensive understanding of the investment landscape [1].

Key Takeaways Energy Transfer plans to invest $5B in 2025 to expand its organic pipeline and storage infrastructure. ET's focus on internal growth cuts regulatory risk and supports scalable, cost-effective expansion. ET units trade at a discount with a 10.09X EV/EBITDA compared with the industry average of 11.43X.Energy Transfer LP (ET) is expanding its organic asset base to meet increasing pipeline and storage requirements across the United States. With demand increasing for pipeline capacity, natural ga ...

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - The analyst, Michael Del Monte, has over 5 years of experience in the investment management industry and previously spent over a decade in professional services across various sectors including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1].

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to work ...

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte has over 5 years of experience as a buy-side equity analyst and previously spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1].

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte has over 5 years of experience as a buy-side equity analyst and previously spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1].

Core Insights - Transocean, Inc. added approximately $199 million to its contract backlog in Q2 2025, securing four new contracts and extensions with various customers [1][8] - The total contract backlog reached approximately $7.2 billion as of July 16, 2025, indicating strong demand for the company's advanced fleet and drilling management services [6][8] Contract Extensions and New Contracts - The Transocean Spitsbergen rig secured a contract extension with Equinor for offshore work in Norway, with a dayrate of $395,000 [2] - Transocean Equinox received a contract extension from an undisclosed client in Australia, with a dayrate of $540,000, scheduled to begin drilling for ConocoPhillips in September 2025 [3] - A new contract was secured for the Deepwater Skyros drillship with Murphy Oil, involving drilling three wells in Ivory Coast at a dayrate of $361,000, starting in December 2025 [4] - The Deepwater Mykonos drillship received a 60-day extension with Petrobras, with an option for an additional 120 days [5]

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating a company in isolation [1]. Group 1 - The analyst, Michael Del Monte, has over 5 years of experience in the investment management industry and previously spent over a decade in professional services across various sectors including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]. - Investment recommendations are based on a comprehensive understanding of the investment landscape, highlighting the interconnectedness of different sectors and companies [1].

Core Viewpoint - The U.S. stock market has been volatile in 2025, but Western Midstream Partners (WES) stands out with a robust 9.4% yield supported by a durable and inflation-resistant business model [1] Business Model - Western Midstream has a vast infrastructure across major oil and gas basins, including over 14,000 miles of pipeline, enabling it to process, transport, and store various energy products [3] - The company operates predominantly on a fee-based model, with approximately 95% of natural gas contracts and 100% of liquids contracts being fee-based, providing low exposure to commodity price fluctuations [4] Geopolitical Context - The ongoing geopolitical tensions, particularly the war in Ukraine, have led to a significant reduction in the EU's reliance on Russian pipeline gas, dropping from over 40% in 2021 to about 11% in 2024, while U.S. LNG exports to the EU surged from 26% in 2021 to 70% in the first half of 2025 [5] - Western Midstream's infrastructure in the Permian basin and Rocky Mountains positions it as a key player in the U.S. natural gas system, benefiting from these geopolitical shifts [6] Financial Performance - In Q1, Western Midstream reported $594 million in adjusted EBITDA and $399 million in free cash flow, with a cash balance of $2.4 billion and guidance for free cash flows between $1.275 billion and $1.475 billion for 2025 [7] - The company had a dividend coverage ratio of 1.6 times in Q1, indicating net income was 60% higher than dividends distributed, and it increased its quarterly dividend by 4% for 2025 [8] Business Expansion - Western Midstream completed its North Loving natural gas processing plant ahead of schedule, increasing processing capacity in West Texas by approximately 13% or 250 million cubic feet per day [10] - The company is also developing the Pathfinder pipeline, expected to transport 800,000 barrels per day of produced water, with a long-term agreement already in place with Occidental Petroleum, reducing execution risk [11] Valuation - Trading at an enterprise-value-to-EBITDA ratio of 9.8, Western Midstream appears discounted compared to peers, despite concerns over business concentration risk, as Occidental Petroleum accounted for nearly 60% of total revenues in 2024 [12] - The market may be overestimating the risks associated with Occidental, which is financially healthy and holds a 44.8% ownership stake in Western Midstream [12] Investment Appeal - Western Midstream offers a unique combination of a 9% yield, inflation protection, and exposure to a strong U.S. energy sector, making it an attractive investment option [13]

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte has over 5 years of experience as a buy-side equity analyst and previously spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]. Group 2: Investment Philosophy - The investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].