1Q 2025 Investor Presentation EPNG Mojave Compressor Station Disclosure Forward-Looking Statements / Non-GAAP Financial Measures / Industry & Market Data General – The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of information contained in this presentation as well as important additional information through the Securities and ...

Financial Data and Key Metrics Changes - The company reported strong financial results for Q1 2025, with natural gas demand growing by 6.8 billion cubic feet per day, driven by a 10% increase in residential and commercial demand and a 15% increase in LNG demand [14] - The project backlog increased to $8.8 billion after adding approximately $900 million during the quarter, with over 70% focused on serving power demand [15][16] - The acquisition of the Bakken Gathering and Processing System for $640 million was completed, although it had minimal impact on quarterly results due to a short ownership period [19][20] Business Line Data and Key Metrics Changes - Transport volumes in the natural gas business unit increased by 3% compared to Q1 2024, achieving new peak day volume records [25][26] - The largest project in the backlog, Bridge, is a $430 million extension of the Elba Express pipeline, expected to deliver 325 million cubic feet per day into South Carolina [16] Market Data and Key Metrics Changes - U.S. natural gas demand rose from approximately 60 BCF per day in 2005 to almost 109 BCF per day in 2024, marking an increase of roughly 80% [4] - Future growth in natural gas demand is projected to be between 20 and 28 BCF per day by 2030, primarily driven by increased LNG export demand [5][6] Company Strategy and Development Direction - The company remains bullish on U.S. LNG exports, citing factors such as increased demand from the EU and Asia to offset any potential loss from the Chinese market [9][10] - The company is focused on long-term contracts with creditworthy entities to support its projects, ensuring stable cash flow and a strong balance sheet [21] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for 2025 due to uncertainties surrounding tariffs and commodity prices, although they do not expect a material impact from tariffs [19] - The company anticipates that the $7 trillion in new U.S. investments could drive additional demand not currently captured in projections [15] Other Important Information - Management succession plans were discussed, with Tom Martin set to retire in January 2026, and Dax Sanders to succeed him as president [22][23] Q&A Session Summary Question: Impact of tariffs on project economics - Management does not believe tariffs will significantly impact project economics, estimating the impact to be roughly 1% of project costs for new large projects [17][18] Question: Performance of the Bakken Gathering and Processing System acquisition - The acquisition is performing in line with expectations, despite having only been owned for 45 days during the quarter [20]

Core Viewpoint - Energy Transfer is positioned as a reliable investment amidst market volatility, particularly due to its resilience against tariffs and economic downturns [1][2]. Company Overview - Energy Transfer is a midstream company providing pipeline, storage, and terminal services for natural gas, NGLs, crude oil, and refined products, operating over 125,000 miles of pipeline across 44 states [3]. - The company accounts for approximately 20% of the global NGL exports, functioning as a "toll-road operator" between upstream and downstream companies [3]. Economic Resilience - Midstream pipeline companies like Energy Transfer are less affected by price fluctuations in oil and natural gas, as they earn revenue through tolls on their infrastructure [4]. - This makes Energy Transfer an ideal investment during uncertain economic times [4]. Regulatory Environment - Recent developments indicate that Energy Transfer's regulatory challenges are easing, particularly following a North Dakota Supreme Court ruling that ordered Greenpeace to pay the company $660 million in damages [6]. - The Trump Administration's push for increased domestic energy production further supports the company's operational environment [6]. Growth Drivers - The rising energy demands from AI and cloud data centers are expected to provide significant growth opportunities for Energy Transfer, which is expanding its capacity in the Permian Basin [7]. - A recent partnership with CloudBurst to supply natural gas to an AI-focused data center in Central Texas exemplifies this growth strategy [7]. Financial Performance - Energy Transfer has experienced stable earnings growth, with revenue expanding at a CAGR of 4% from 2014 to 2024, and EPU rising at a CAGR of 8% during the same period [9]. - Analysts project revenue and EPU growth rates of 5% and 9%, respectively, from 2024 to 2027 [9]. Dividend Policy - As a master limited partnership (MLP), Energy Transfer has consistently raised its dividend for 12 consecutive years, with a forward yield of 8%, significantly higher than its peer Kinder Morgan's 4.6% [10]. - The company has allocated nearly 100% of its EPU to dividends over the past year [10]. Valuation Metrics - Energy Transfer's stock trades at a low valuation of 11 times this year's EPU, which, combined with its high yield and resilient business model, limits downside potential [11]. - In contrast, Kinder Morgan trades at 21 times its forward EPU despite slightly faster growth [11]. Insider Activity - Insider sentiment appears positive, with Energy Transfer's insiders purchasing seven times more shares than they sold over the past year, indicating confidence in the company's prospects [12]. - This contrasts sharply with Kinder Morgan, where insiders sold 18 times as many shares as they bought during the same period [12]. Investment Thesis - Energy Transfer is characterized as a safe-haven investment, particularly suitable for uncertain market conditions, and is viewed as an undervalued dividend play [13].

Core Viewpoint - The current stock market volatility presents an opportunity for investors to acquire stocks at discounted prices, particularly those that are poised to benefit from artificial intelligence (AI) advancements. Company Summaries Nvidia (Technology) - Nvidia's GPUs are essential for AI infrastructure, dominating the market with over 80% share and experiencing a revenue growth of 380% over the past two years [2][3] - The company's CUDA software platform enhances its competitive edge by simplifying AI programming for developers [3] - Nvidia anticipates AI data center capital expenditures to reach $1 trillion by 2028, positioning itself favorably to capture a significant portion of this spending [5] Amazon (Consumer Goods) - Amazon leads the cloud computing market with AWS, planning to invest $100 billion in AI infrastructure this year [6] - The company is developing over 1,000 generative AI applications, viewing AI as a transformative opportunity [6][7] - Amazon employs AI to enhance customer experience in e-commerce, optimizing delivery routes and utilizing AI robots in warehouses [8] Energy Transfer (Energy) - Energy Transfer is well-positioned to benefit from the rising demand for natural gas driven by AI data centers, owning the largest integrated midstream system in the U.S. [9][10] - The company has increased its growth capital expenditure budget to $5 billion for 2024, reflecting a positive outlook on natural gas demand [11] - Energy Transfer's stock is considered a solid investment opportunity, offering a forward yield of 7.8% [12] PayPal (Financials) - PayPal has faced margin pressures, with gross margin declining from 51% to 39.6% between 2015 and 2023 [13] - The new CEO is focusing on innovation and value-added services, leading to improved transaction margin dollars despite initial revenue growth deceleration [14] - PayPal's AI-driven solutions, such as Fastlane, enhance customer conversion rates and attract new users, indicating a potential turnaround for the company [16][17]

Core Points - Targa Resources Corp. has declared an increase in its quarterly cash dividend to $1.00 per common share, which is an annualized rate of $4.00 per share, marking a 33% increase from the first quarter of 2024 [1] - The dividend will be paid on May 15, 2025, to shareholders on record as of April 30, 2025 [1] - The company will report its first quarter 2025 financial results on May 1, 2025, and will host a live webcast to discuss these results [2][3] Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent infrastructure companies in North America [4] - The company operates a diversified portfolio of midstream infrastructure assets that are essential for the delivery of energy across the United States and to international markets [4] - Targa's operations include gathering, processing, transporting, and selling natural gas and natural gas liquids (NGLs), as well as crude oil services [4]

ONEOK (NYSE: OKE ) is a leading midstream platform with an increasing pipeline network that allows the company to deliver highly predictable and stable distributable cash flow to the company’s shareholders. ONEOK is delivering strong DCF, EBITDA and dividend growth andAnalyst’s Disclosure: I/we have a beneficial long position in the shares of OKE, ENB, KMI, WES, EPD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receivin ...

Group 1: Company Overview - Enbridge operates in the midstream sector of the energy industry, focusing on energy infrastructure like pipelines, which transport oil and natural gas globally [2] - Approximately 75% of Enbridge's business is derived from midstream assets, while the remaining portion comes from regulated natural gas utilities and renewable power assets, providing reliable cash flows [4] Group 2: Dividend Sustainability - Enbridge has a current dividend yield of 5.8%, significantly higher than the average energy company yield of 3.1%, raising questions about its sustainability [1] - The company has increased its dividend annually for 30 consecutive years, indicating a strong commitment to maintaining dividend payments [1] - Management anticipates continued dividend growth due to the company's capital investment plans, suggesting that the dividend is sustainable [9] Group 3: Financial Health - Enbridge's recent acquisition of three natural gas utilities for approximately $14 billion increased its debt-to-equity ratio from 1.2 to around 1.5 by the end of 2025 [5] - Despite the increased leverage, Enbridge's debt-to-EBITDA ratio is lower than at the start of 2023 and is comparable to its pipeline peers, indicating reasonable leverage [6] - The company's balance sheet is rated investment-grade, suggesting that it is not viewed as a material financial risk by rating agencies [7] Group 4: Market and Geopolitical Factors - Geopolitical tensions and tariffs could impact Enbridge, but the company has historically maintained its dividend during similar challenges from 2016 to 2020 [8] - The importance of oil and natural gas in the global economy supports the notion that Enbridge can continue to operate effectively despite geopolitical uncertainties [8]

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for Q1 2025 and the timing for their earnings release [1][2][3]. Distribution Declaration - PAA Common Units will have a cash distribution of $0.38 per unit, unchanged from February 2025, equating to an annualized rate of $1.52 per unit [6]. - PAGP Class A Shares will also have a cash distribution of $0.38 per share, unchanged from February 2025, with an annualized rate of $1.52 per share [6]. - PAA Series A Preferred Units will distribute $0.61524 per unit, approximately $2.46 on an annualized basis [6]. - PAA Series B Preferred Units will distribute $21.49 per unit, based on the applicable quarterly floating rate [6]. Earnings Timing - PAA and PAGP will release their Q1 2025 earnings before market open on May 9, 2025 [3]. - A conference call for analysts and investors will be held at 9:00 a.m. CT (10 a.m. ET) to discuss the earnings, which will be webcast live [3]. Company Overview - PAA operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids (NGL), handling approximately eight million barrels per day [4]. - PAGP holds an indirect, non-economic controlling general partner interest in PAA and is one of the largest energy infrastructure and logistics companies in North America [5].

Group 1: Ares Capital - Ares Capital offers a high dividend yield of 8.68%, which is sustainable due to its stable financial performance and a history of paying dividends for 15 consecutive years [2][3] - As a business development company (BDC), Ares Capital must return at least 90% of earnings to shareholders as dividends to avoid federal income taxes, providing a strong incentive for management to maintain dividend payments [3] - Ares Capital is the largest publicly traded BDC with a diversified portfolio, boasting the highest base dividend per share and net asset value per share growth among large publicly traded BDCs over the past decade [4] Group 2: Energy Transfer - Energy Transfer has a forward distribution yield of 6.95% and plans to increase its distribution by 3% to 5% annually, having recently raised the payout by 3.2% in Q4 2024 [6] - The company operates over 130,000 miles of pipeline in the U.S., positioning itself as a leader in the North American midstream energy industry [7] - PJM projects a 19% increase in summer peak power demand over the next five years, driven by data centers and electrification trends, prompting Energy Transfer to invest in capital projects to meet this demand [8] Group 3: Pfizer - Pfizer offers a forward dividend yield of 6.82%, one of the highest in the healthcare sector, with management committed to maintaining and growing the dividend [10] - The company reported revenue of $63.6 billion and profit of $17.7 billion last year, indicating strong financial health to support its dividend strategy [11] - Despite facing patent expirations for several top products, Pfizer has a robust pipeline with 115 candidates, including five awaiting regulatory approvals and 32 in late-stage testing, providing multiple growth drivers [12]

Group 1 - Enbridge is an Alberta-based midstream company with an extensive pipeline network reaching the Gulf of America [1] - The company owns a broad asset base and is expanding through selective pipeline projects [1]