Group 1 - Wolfe Research's Midstream group is led by Keith Stanley, who introduced ONEOK's senior management team, including CEO Pierce Norton, Chief Commercial Officer Sheridan Swords, and CFO Walter Hulse [1] - The event encourages audience participation, allowing attendees to ask questions during the presentation [2]

Core Viewpoint - Targa Resources Corp. is advancing several organic growth projects to enhance NGL and natural gas production in the Permian Basin, addressing customer infrastructure needs [1][2][3]. Group 1: New Projects - Targa plans to construct the Speedway NGL Pipeline, a ~500-mile pipeline with an initial capacity of ~500 MBbl/d, expandable to 1,000 MBbl/d, expected to be operational by Q3 2027 at an estimated cost of $1.6 billion [2]. - The company is also building the Yeti gas processing plant with a capacity of 275 MMcf/d, expected to be in service by Q3 2027, as part of five new gas processing plants in the Permian with a total capacity of 1.4 Bcf/d [3]. - A new 35-mile natural gas pipeline and a 55-mile conversion of an existing pipeline into natural gas service, collectively known as Buffalo Run, will enhance connectivity across Targa's plants and is expected to be completed by early 2028 [4]. Group 2: Financial Outlook - Targa estimates total net growth capital expenditures for 2025 to be around $3.3 billion, which includes costs for the Speedway pipeline and long-lead items for the Yeti plant [5]. - The company anticipates significant volume growth in 2026, supported by ongoing projects and a favorable industry trend of rising gas-to-oil ratios in the Permian Basin [6]. Group 3: Company Overview - Targa Resources Corp. is a leading midstream service provider and one of the largest independent infrastructure companies in North America, focusing on the efficient delivery of energy [8]. - The company operates a diversified portfolio of assets that connect natural gas and NGLs to both domestic and international markets, catering to the growing demand for cleaner fuels [8].

Core Viewpoint - ONEOK, Inc. (NYSE:OKE) is considered a buy by Jim Cramer due to its strong management and current undervaluation, despite being down over 30% from its highs late last year [1] Company Overview - ONEOK, Inc. is a midstream energy company that provides gathering, processing, storage, transportation, and export services for natural gas, NGLs, refined products, and crude oil [1] - The company also engages in marketing, blending, and leasing activities, serving producers, utilities, refiners, and industrial customers [1] Investment Potential - The stock currently offers a dividend yield of just over 5% [1] - ONEOK has a strong presence in bringing natural gas to the Gulf Coast, which is significant for liquefied natural gas export infrastructure [1] - Cramer suggests that ONEOK could have more upside potential compared to Energy Transfer due to its current low valuation [1]

Financial Performance and Guidance - ONEOK's 2025 adjusted EBITDA guidance is \$8.225 billion at the midpoint of the \$8 billion to \$8.45 billion range[14, 23, 25] - The company is targeting 3%-4% annual dividend growth and a dividend payout ratio of approximately 85% or lower[31] - ONEOK returned approximately \$2.5 billion to shareholders in 2024 through dividends and share repurchases and is targeting to return approximately 75-85% of forecasted cash flow from operations[32] - Second quarter 2025 adjusted EBITDA was approximately \$2 billion[47] Business Segments and Operations - Natural Gas Liquids contribute 37% to the adjusted EBITDA[14] - Natural Gas Gathering and Processing contribute 28% to the adjusted EBITDA[14] - Refined Products and Crude contribute 27% to the adjusted EBITDA[14] - Natural Gas Pipelines contribute 8% to the adjusted EBITDA[14] - The company's pipeline network spans approximately 60,000 miles[5, 11] Synergies and Growth Projects - Magellan synergies are expected to be over \$350 million realized by the end of 2025[27] - EnLink and Medallion synergies are expected to be over \$125 million realized by the end of 2025[29] - The Texas City Logistics Export Terminal JV is a 400,000 bpd LPG export terminal expected to be completed in early 2028[33, 61]

Kinder Morgan Conference Call Summary Company Overview - **Company**: Kinder Morgan (NYSE: KMI) - **Industry**: Midstream Natural Gas Infrastructure Key Points Industry Positioning and Demand - Kinder Morgan has the largest interstate natural gas pipeline network in the U.S., with more than double the miles of its closest competitor [3][4] - The company supplies 45% of the feed gas for liquefied natural gas (LNG) exports and 40% of the natural gas for power generation in the Southern States [4] - The demand for natural gas is expected to grow significantly, particularly in the U.S. [2] Project Backlog and Opportunities - Kinder Morgan's sanctioned project backlog has increased from $3 billion to $9 billion over the past 18 months, with an additional $10 billion in potential projects identified [13][22] - The company aims to secure projects that meet return thresholds rather than simply growing the backlog [13] - Opportunities for new projects are widespread, including Texas, Louisiana, and the Southeast, driven by LNG demand and power generation growth [16][18] Execution Risks and Permitting - Execution risks include permitting, construction, and competition, but the permitting environment has improved, with the FERC process streamlined by over five months [7][8] - Availability of skilled contractor labor is currently good, and construction bids for major projects have been favorable [9][10] - Equipment availability, particularly for turbines and compressor units, is becoming tighter, which is being monitored [10][12] Financial Outlook - Kinder Morgan plans to spend approximately $2.5 billion annually on capital expenditures, which is expected to support single-digit annual EBITDA growth [23][24] - The base business has stabilized, contributing to cash flow growth, with expectations for high single-digit EPS growth [24][25] - The company is positioned to reduce leverage as projects come online, with a current leverage ratio of 3.9 times debt to EBITDA [28][29] LNG Market Dynamics - The global LNG demand is expected to remain strong, with U.S. facilities likely to be fully utilized, despite potential overcapacity in the market [31][33] - Kinder Morgan mitigates risks by securing long-term take-or-pay contracts with counterparties [34] Regulatory Environment - The regulatory environment has improved, facilitating project timelines and reducing construction risks [49][50] - The company is exploring early procurement of equipment to ensure timely project execution [53][54] Regional Opportunities - There are emerging opportunities in Appalachia, contingent on state support for new pipeline projects [35][36] - The Permian Basin is experiencing increased pipeline capacity, which is expected to relieve pricing pressures in the region [44][45] Conclusion - Kinder Morgan is well-positioned to capitalize on the growing demand for natural gas and LNG, with a robust project pipeline and a favorable regulatory environment. The company is focused on maintaining financial discipline while pursuing growth opportunities across its extensive network.

Core Insights - The energy sector is highly vulnerable to fluctuations in oil and natural gas prices, affecting cash flow generation and business predictability [1] - Midstream companies like Enbridge Inc., Enterprise Products Partners LP, and Williams are less affected by price volatility due to their long-term contracts and stable fee-based revenue models [2] Company Summaries - Enterprise Products has over 50,000 miles of pipeline network and a liquid storage facility with a capacity exceeding 300,000 barrels, generating stable cash flows and securing future growth through ongoing capital developments [3] - Enbridge has significant secured capital programs across various sectors, including liquid pipelines and renewables, which will contribute to incremental cash flows for shareholders [4] - Williams operates a 33,000-mile pipeline network, positioning itself to benefit from the increasing demand for clean energy while generating stable cash flows [5][6]

Core Viewpoint - MPLX is actively streamlining operations and expanding its natural gas assets through significant transactions, including a billion-dollar divestiture and a recent acquisition [1][6]. Group 1: Company Operations - MPLX has entered into a billion-dollar agreement to divest its gathering and processing assets in the Rocky Mountain region, expected to close in Q4 of this year [1]. - The company recently completed the acquisition of Northwind Midstream for $2.375 billion, enhancing its capabilities in sour gas gathering and processing in New Mexico [6]. - MPLX operates a diverse network of assets, including natural gas gathering and processing facilities, oil terminals, and transport facilities [2]. Group 2: Financial Performance - In Q2 2025, MPLX reported $1.4 billion in distributable cash flow, allowing for $1.1 billion in capital returns to shareholders, including a quarterly dividend [7]. - The current dividend is $0.9565 per share, annualizing to $3.83, which provides a forward yield of 7.5% [7]. Group 3: Analyst Outlook - RBC's analyst Elvira Scotto views MPLX as a compelling income play among large-cap MLPs, with a price target of $58, indicating a potential upside of 13% [8]. - The consensus rating for MPLX is Strong Buy, based on 7 reviews, with 6 Buys and 1 Hold, suggesting a 14% gain potential from the current price of $51.28 [8].

Economic Indicators - The upcoming non-farm payroll report is highlighted as a critical economic indicator, overshadowing other data releases such as car sales and jobless claims [2] - If the payroll data shows rapid wage growth, the Federal Reserve may delay interest rate cuts, indicating a cautious approach to inflation management [2][3] - Federal Reserve Chair Jerome Powell is navigating a mixed economic landscape, with signs of slowdown in some sectors and growth in data center construction [2] Company Insights - Costco Wholesale Corporation (NASDAQ:COST) is noted for its strong long-term performance, delivering an annualized return of nearly 19% over the past 20 years, significantly outperforming the S&P 500 [7] - Despite a recent drop in stock price due to lower-than-expected membership growth, Costco's fundamentals remain strong, with increased membership fees and a younger demographic joining [7][8] - ONEOK, Inc. (NYSE:OKE) is recognized for its strong position in the natural gas sector, with a focus on providing services to the Gulf Coast, and is considered a buy due to its potential upside despite a recent decline in stock price [9]

Core Insights - Enterprise Products Partners L.P. (NYSE:EPD) is recognized as one of the 10 Best Recession Proof Dividend Stocks to Buy [1] - The company has demonstrated resilience in generating steady cash flow during economic downturns, including the 2007–2009 financial crisis, the 2015–2017 oil price slump, and the COVID-19 downturn from 2020 to 2022 [2] Company Overview - Founded in 1968, Enterprise Products Partners L.P. has become one of the largest midstream operators in the US, with assets across major shale basins and the Gulf Coast [3] - The company has maintained its dividend payouts through past recessions and even outperformed during the 2008 crisis [3] Operational Strengths - EPD operates an extensive network of pipelines, storage facilities, and infrastructure that transports fossil fuels from the wellhead to end users, earning fees at multiple stages of the supply chain [4] - The company has a strong track record of increasing its dividend for 27 consecutive years, currently offering a quarterly dividend of $0.545 per share and a dividend yield of 6.89% as of September 26 [4]

Core Viewpoint - Investing in dividend stocks requires balancing yield and risk, with opportunities to maximize returns while minimizing downside risk being crucial [1]. Group 1: Investment Opportunities - Barchart's Investing Ideas provide a list of the highest-yielding dividend stocks currently available, consisting of 199 companies that require further refinement [2]. - The selection process utilized Barchart's Stock Screener, applying specific filters to identify the best dividend stocks based on forward yields [3]. Group 2: Company Analysis - Energy Transfer LP is highlighted as the top dividend stock, recognized as one of North America's largest and most diversified midstream energy companies, operating in 44 states [6]. - The company offers a forward dividend yield of 7.58%, translating to a quarterly payout of 33 cents per share, with a history of increasing annual payouts since 2021 [7]. - A consensus among 16 analysts rates Energy Transfer LP as a "Strong Buy," indicating strong market confidence in the stock's performance [8].