Energy Transfer LP (NYSE:ET) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 5, the company reported financial results for the third quarter of fiscal 2025. Energy Transfer LP (ET) Reports Mixed Results For Q3 Revenue declined 3.9% year-over-year to $19.95 billion, while net income was down 13.9% from Q3 FY24 to $1.02 billion, translating to a profit per share of $0.28, which missed expectations by 5 cents. Adjusted EBITDA stood at $3.84 billion against $3.96 billion in the prior y ...

Core Viewpoint - The energy sector is crucial to the global economy and can be volatile, making careful stock selection essential for investors, especially those focused on dividends [1]. Group 1: Chevron - Chevron is an integrated energy company with exposure across the entire energy value chain, which helps mitigate the volatility associated with commodity prices [3]. - The company boasts a strong balance sheet with a debt-to-equity ratio of 0.22x, allowing it to manage downturns effectively and maintain its dividend, which has been increased annually for 38 consecutive years [4]. - Chevron's current dividend yield is 4.4%, making it a more attractive option compared to ExxonMobil's 3.5% yield [6]. Group 2: Enterprise Products Partners - Enterprise Products Partners operates as a master limited partnership (MLP) and focuses on midstream energy infrastructure, charging fees for the use of its assets, which reduces exposure to commodity price fluctuations [7]. - The company has increased its distribution for 27 consecutive years, with a distribution yield of approximately 7% [8]. - While the MLP structure may lead to slower growth, it is appealing for conservative dividend investors [10]. Group 3: TotalEnergies - TotalEnergies is transitioning from traditional oil and gas profits to renewable energy, with its renewable division growing 17% in 2024 and 3% in the first nine months of 2025 [11]. - The company maintains its dividend during this transition, offering a yield of 6.1% [13]. - Unlike peers BP and Shell, which cut dividends to fund clean energy initiatives, TotalEnergies has committed to its clean energy strategy without sacrificing dividends [13]. Group 4: Investment Considerations - Chevron, Enterprise Products Partners, and TotalEnergies are all viable options for investors seeking energy sector exposure with dividend income, each catering to different investment strategies [14].

Core Insights - Kinetik Holdings Inc. (NYSE: KNTK) is recognized as one of the 15 Extreme Dividend Stocks to buy according to hedge funds [1] - Wells Fargo has lowered the price target for Kinetik Holdings from $48 to $40 due to concerns over reduced volume outlook, while maintaining an Equal Weight rating [2] - The company reported a downward revision in its 2025 EBITDA guidance, reflecting Q3 results and slowing producer activity [2] Financial Performance - In Q3 2025, Kinetik Holdings highlighted the successful startup of the Kings Landing processing plant in New Mexico, which is processing over 100 million cubic feet per day [3] - The company reported capital expenditures of $154 million and updated its full-year adjusted EBITDA guidance to a range of $965 million to $1.005 billion, citing volume-related challenges and fluctuations in commodity prices [4] - The timing of the Kings Landing plant startup also contributed to the revision in EBITDA guidance [4] Operational Developments - The Kings Landing facility is designed for future processing capacity expansions with fewer operational challenges, indicating a strategic investment in infrastructure [3] - Kinetik Holdings operates as a midstream energy firm in the Permian Basin, providing services to oil and gas producers [4]

Core Insights - Hess Midstream LP (NYSE:HESM) is recognized as one of the 15 Extreme Dividend Stocks to buy according to hedge funds [1] - The company announced a 2.4% increase in its quarterly dividend to $0.7548 per share, marking its 32nd consecutive quarter of dividend growth [2] - For Q3 2025, Hess Midstream reported a net income of $176 million, a slight decrease from $180 million in Q2, while adjusted EBITDA rose to $321 million from $316 million [3] Dividend and Financial Performance - The quarterly dividend increase will be paid on November 14 to shareholders of record as of November 6, with an ex-dividend date of November 6 [2] - The gross adjusted EBITDA margin remained strong at approximately 80%, exceeding the 75% target, indicating solid operating leverage [3] - The third-quarter distribution included a targeted 5% annual growth per Class A share, along with an additional boost from a $100 million share repurchase [3] Analyst Ratings and Price Target - Raymond James analyst J.R. Weston lowered Hess Midstream's price target to $35 from $48 while maintaining an Outperform rating, reflecting adjustments across the midstream suppliers group ahead of Q3 earnings [4] - Hess Midstream provides midstream services, including gathering, processing, storing, and transporting crude oil, natural gas, and natural gas liquids [4]

Core Insights - The article discusses extreme dividend stocks, focusing on high-yield and dividend growth categories, highlighting the potential risks and benefits associated with high dividend yields [2][4]. Dividend Stock Categories - Dividend-focused indices are categorized into dividend growth and high yield, with high-yield stocks attracting income-seeking investors but facing reinvestment challenges [2]. - S&P 500 Dividend Aristocrats, which have increased dividends for at least 25 consecutive years, show steady growth in payouts even during market downturns, offering stronger yield-on-cost over time [3]. Performance of High Yield Dividend Stocks - The S&P Sector-Neutral High Yield Dividend Aristocrats (HYDA) index balances dividend growth with higher yields, achieving better risk-adjusted returns and reducing maximum drawdown by about 5% from January 2005 to July 2023 [4]. Methodology for Stock Selection - The stock screener selected dividend stocks with yields between 6% and 14% as of November 11, focusing on companies with stable dividend histories, although many have inconsistent records due to high yields [6]. - The final list includes companies favored by hedge fund investors, ranked in ascending order based on popularity [6][7]. Company Highlights - **Sunoco LP (NYSE:SUN)**: - Dividend yield of 7.34% as of November 11, with a recent $9 billion acquisition of Parkland Corporation, creating the largest independent fuel distributor in the Americas [9][10]. - Reported Q3 2025 revenue of $6.03 billion, a nearly 5% increase year-over-year, and raised its quarterly distribution by 1.25% [11][12]. - **Western Midstream Partners, LP (NYSE:WES)**: - Dividend yield of 9.18% as of November 11, with a recent price target increase from $41 to $43 by Stifel [13][14]. - Q3 2025 results exceeded expectations, with a projected adjusted EBITDA range of $2.35 billion to $2.55 billion for 2025, including contributions from the Aris acquisition [15][16]. - **Barings BDC, Inc. (NYSE:BBDC)**: - Dividend yield of 11.66% as of November 11, with a recent price target cut to $9.50 while maintaining a Market Perform rating [17]. - Reported total investment income of $72.4 million and net investment income of $33.6 million for Q3 2025, with a quarterly dividend of $0.26 per share [18][19].

Core Viewpoint - Energy Transfer is positioned as a strong investment opportunity due to its nearly 8% forward yield and significant growth prospects, particularly in supplying natural gas to AI data centers [1][9][11] Company Performance and Prospects - Energy Transfer has secured multiple agreements to supply natural gas to major data center projects, including three with Oracle, totaling 900 Mcf per day [3] - The company is also set to supply 300 Mcf per day to Fermi's Project Matador hypergrid campus under a 10-year deal [3] - The Desert Southwest pipeline project, valued at $5.3 billion, is fully subscribed under long-term agreements, indicating strong demand [4] - The Hugh Brinson Pipeline is on track for phase 1 completion by the end of 2026, with potential for increased capacity due to data center demand [4] Financial Overview - Energy Transfer plans to invest $4.6 billion in growth capital expenditures this year, down from an earlier estimate of $5 billion, reflecting cost efficiencies [5] - The company anticipates spending around $5 billion in capex next year, primarily in the natural gas segment, aiming for mid-teens returns [6] - Q3 adjusted EBITDA fell 3% year over year to $3.84 billion, with distributable cash flow dropping 4.5% to $1.9 billion [6][7] Valuation and Investment Appeal - The stock is trading at a forward enterprise value-to-EBITDA multiple of 7.8 times, significantly lower than the historical average of 13.7 times for MLPs [10] - The company's distribution is well-supported by its cash flow, and its balance sheet remains strong, making it an attractive buy at current levels [10][11]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $65.5 million, representing a more than 7% increase from Q2 2025, with a run rate EBITDA of approximately $260 million [5] - Distributable cash flow generated during the quarter was $36.7 million, and free cash flow was $16.7 million [5] - Capital expenditures for the quarter totaled $22.9 million, with year-to-date capital expenditures including approximately $14 million for non-recurring projects [9] Business Line Data and Key Metrics Changes - The Rockies segment generated adjusted EBITDA of $29 million, an increase of $3.8 million from Q2 2025, driven by increased fixed fee revenue and improved product margin [10] - The Permian Basin segment reported adjusted EBITDA of $8.7 million, an increase of $0.4 million, primarily due to higher volume throughput [12] - The Piceance segment reported adjusted EBITDA of $12.5 million, an increase of $2 million, primarily due to realization of previously deferred revenue [13] - The Midtown segment reported adjusted EBITDA of $23.6 million, a decrease of $1.3 million, primarily due to lower product margin [14] Market Data and Key Metrics Changes - Natural gas volume throughput averaged 158 million cubic feet per day, a 7.5% increase from Q2 2025 [11] - Liquids volumes averaged 72,000 barrels per day, a decrease of 6,000 barrels per day compared to Q2 2025 [11] - Double E Pipeline averaged 712 million cubic feet per day of throughput, with an average of 745 million cubic feet per day in September [12] Company Strategy and Development Direction - The company expects to connect an additional 50 wells in Q4 2025, aiming to end the year around the midpoint of the original well connect guidance range of 125-185 wells [6] - The company is working with several customers on their 2026 development plans, which include over 120 new well connects in the first half of 2026 [6] - The company plans to release full-year 2026 financial guidance during the Q4 earnings release [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer engagement and visibility into next year's programs, indicating strong expected activity in Q4 2025 and the first half of 2026 [6][16] - The company noted that while financial results are expected to trend towards the low end of guidance due to well connect delays, these delays are anticipated to be short-lived [6] Other Important Information - The company had net debt of approximately $950 million, with available borrowing capacity totaling $349 million at the end of Q3 2025 [9] - The company is actively relocating compressors to mitigate lease expenses and improve EBITDA margins starting in 2026 [9] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a Q&A session [17]

Core Insights - The midstream/MLP earnings season for the third quarter saw mostly in-line results, with expectations for a softer quarter leading to moderated estimates [1][9] - Notable announcements included acquisitions, data center deals, and plans for dividend increases, indicating robust growth opportunities in energy infrastructure, particularly for natural gas [9] Company Summaries - **MPLX (MPLX)**: Reported in-line results with $100 million in buybacks; management targets mid-single-digit EBITDA growth and 12.5% distribution growth for the next few years [2] - **Targa Resources (TRGP)**: Adjusted EBITDA exceeded consensus; expects a 25% increase in quarterly dividend to $1.25 per share by May 2026 and at least 10% growth in Permian volumes for 2025 [3] - **DT Midstream (DTM)**: Beat-and-raise quarter with a $50 million increase in 2025 adjusted EBITDA guidance to $1.13 billion; reaffirmed 2026 adjusted EBITDA outlook [4] - **Western Midstream (WES)**: Results exceeded expectations; anticipates ending the year at the high end of 2025 adjusted EBITDA guidance [5] - **Enterprise Products Partners (EPD)**: Results fell short of consensus; increased repurchase authorization to $5 billion and raised 2025 organic growth capex guidance to ~$4.5 billion [6] - **Williams (WMB)**: Announced in-line results and increased the Socrates power project budget to $2 billion; focused on investment in Woodside's Louisiana LNG [7] - **Energy Transfer (ET)**: Results fell short of estimates; expects full-year adjusted EBITDA below guidance range but highlighted growth opportunities in natural gas and data centers [8] - **Sunoco (SUN)**: In-line quarter overshadowed by Parkland integration; expects leverage below 4x within 12 months and over $250 million in synergies [10] - **Plains All American (PAA/PAGP)**: In-line results with acquisition of remaining interest in EPIC; expects mid-teens returns and a 2026 EBITDA multiple of 10x [11] - **Kinder Morgan (KMI)**: In-line results; pursuing $10 billion in potential projects primarily around natural gas [12] - **TC Energy (TRP CN)**: In-line results; expects 6%-8% year-over-year adjusted EBITDA growth in 2026 [13] - **Enbridge (ENB CN)**: In-line results; reaffirmed 2025 guidance and sanctioned $3 billion of projects [14] - **Cheniere Energy (LNG)**: Adjusted EBITDA below consensus; raised distributable cash flow guidance midpoint by $400 million to $5 billion [15] - **ONEOK (OKE)**: Slightly above consensus results; on pace to realize $250 million in synergies in 2025 [16] - **Pembina (PPL CN)**: In-line results; narrowed 2025 guidance range and announced a 20-year agreement with Petronas [17] Outlook and Trends - Investors should watch for guidance from companies like Kinder Morgan, Pembina, and Enbridge in December for 2026 [18] - A cautious oil outlook may contribute to uncertainty around 2026, but several companies expressed constructive comments regarding growth [19] - The Alerian MLP Infrastructure Index (AMZI) and Alerian Midstream Energy Select Index (AMEI) were yielding 8.0% and 5.7%, respectively, indicating strong dividend income potential [19]

Core Viewpoint - Plains All American Pipeline, L.P. has announced a public offering of $750 million in debt securities, which includes two types of senior notes with different maturities and interest rates [1] Group 1: Offering Details - The offering consists of $300 million of 4.70% Senior Notes due 2031 and $450 million of 5.60% Senior Unsecured Notes due 2036, priced at 99.872% and 100.518% of their face value respectively [1] - This offering is an additional issuance of previously issued notes, with $700 million of the 2031 Notes and $550 million of the 2036 Notes issued on September 8, 2025 [1] - The expected closing date for the offering is November 14, 2025, pending customary closing conditions [1] Group 2: Use of Proceeds - The net proceeds from the offering, estimated at approximately $747.2 million, will be used for general partnership purposes, including repayment of debt, intra-group lending, capital expenditures, and working capital [2] Group 3: Company Overview - Plains All American Pipeline is a publicly traded master limited partnership that operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids [6] - The company manages an extensive network of pipeline systems and related infrastructure, handling over 9 million barrels per day of crude oil and NGL on average [6] - The company is headquartered in Houston, Texas [7]

Core Insights - Summit Midstream Corporation reported solid growth in Q3 2025, with adjusted EBITDA increasing by 7.2% to approximately $260 million, driven by higher natural gas volumes in the Rockies region [3][9] - The company anticipates finishing the year near the low end of its adjusted EBITDA guidance range of $245 million to $280 million, primarily due to timing delays in customer activity [4] - The company is optimistic about customer engagement and expects over 120 new well connections in the first half of 2026 [4] Financial Performance - Q3 2025 net income was $5.0 million, with adjusted EBITDA of $65.5 million and free cash flow of $16.7 million [9][36] - Average daily natural gas throughput increased by 1.4% to 925 MMcf/d, while liquids volumes decreased by 7.7% to 72 Mbbl/d compared to Q2 2025 [5][36] - The Double E pipeline transported an average of 712 MMcf/d, contributing $8.7 million in adjusted EBITDA for the quarter [5][9] Segment Performance - Natural gas price-driven segments generated $36.1 million in combined adjusted EBITDA, a 2.0% increase from Q2 2025 [10] - Oil price-driven segments generated $37.7 million in combined adjusted EBITDA, representing a 12.3% increase from Q2 2025 [10] - The Rockies segment adjusted EBITDA increased by $3.8 million, driven by higher natural gas volume throughput and improved product margins [10] Capital Expenditures - Capital expenditures totaled $22.9 million in Q3 2025, primarily related to pad connections in the Rockies and Mid-Con segments [16] - Year-to-date capital expenditures include $9.5 million for Tall Oak Integration and compressor relocation projects [16] Liquidity and Capital Structure - As of September 30, 2025, the company had $24.6 million in unrestricted cash and $150 million drawn under its $500 million ABL Revolver [19] - The total leverage ratio was approximately 4.2x, including potential earnout liability from the Tall Oak Acquisition [19] Future Outlook - The company expects to connect approximately 50 wells in Q4 2025 and is working closely with customers on their 2026 development programs [4][9] - An update on activity levels and full-year 2026 financial guidance will be provided in the Q4 earnings release in March 2026 [4]