Core Points - Western Midstream Partners, LP (WES) announced a quarterly cash distribution of $0.910 per unit for Q1 2025, representing a 4% increase from the previous quarter's distribution, aligning with prior expectations [1] - The distribution is payable on May 15, 2025, to unitholders of record as of May 2, 2025 [1] - WES plans to report its Q1 2025 results after market close on May 7, 2025, followed by a conference call on May 8, 2025, at 9:00 a.m. Central [2][3] Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, crude oil, and produced water [4] - A significant portion of WES's cash flows is secured through fee-based contracts, minimizing direct exposure to commodity price volatility [4]

Company Overview - Enbridge is one of the largest midstream companies in North America, primarily involved in the transmission of oil and natural gas from Canada to the United States [1][2] - Approximately 75% of Enbridge's business is tied to oil and natural gas transmission assets, moving about 30% of North America's crude oil and nearly 20% of the natural gas consumed in the U.S. [2] Business Model - Enbridge operates as a service provider, earning fees based on the volumes of oil and gas transported, rather than being directly affected by commodity prices [4] - The company's Mainline pipeline system is a significant asset, facilitating the movement of oil from the Canadian Oil Sands to the Gulf Coast [2] Impact of Tariffs - Concerns exist regarding potential tariffs affecting Enbridge due to its role in transporting Canadian oil and gas to the U.S., but the company believes it is not directly impacted [3][4] - Enbridge is skeptical about a significant decline in volumes, as energy is a necessity, and demand for oil and natural gas will persist even under tariffs [5] Industry Dynamics - Energy-processing facilities are designed for specific types of oil, making it difficult for them to switch to oil from other regions, which may mitigate the impact of tariffs [6] - Enbridge's diversified operations, including regulated natural gas utilities and a renewable energy division, represent about 25% of its business and are expected to be relatively insulated from tariff impacts [7] Financial Outlook - Despite geopolitical uncertainties, Enbridge's business model and diversification position it well to handle potential tariff situations, maintaining a secure dividend yield of 5.9% [8]

Core Viewpoint - Kinder Morgan demonstrates resilience amid market volatility, showcasing a stable business model and strong cash flow, making it a safe investment option during uncertain economic times [2][3][13] Financial Performance - Kinder Morgan reported nearly $2.2 billion in adjusted EBITDA for the first quarter, reflecting a 1% increase from the previous year [4] - The company generated approximately $1.2 billion in cash flow from operations, sufficient to cover its dividend payment of $642 million [6] - A 2% increase in dividends marks the eighth consecutive year of dividend growth for Kinder Morgan [7] Business Segments - Strong operational performance was noted in natural gas pipelines, carbon dioxide, and terminals, while the products pipelines segment experienced a decline due to scheduled maintenance [5] - The company closed a $640 million acquisition of a natural gas gathering and processing system in the Bakken Formation, contributing to its growth strategy [6] Growth Outlook - Kinder Morgan's backlog of expansion projects reached $8.8 billion, an increase of nearly 8% from the end of the previous year, indicating a robust growth trajectory [9] - The addition of approximately $900 million in new projects during the quarter, including the $431 million Bridge pipeline project, enhances the company's growth outlook [10] - The company anticipates continued demand growth for natural gas, driven by LNG exports and increasing power demand [8] Investment Proposition - Kinder Morgan's stable cash flow, supported by long-term fee-based contracts, positions it as a reliable investment during economic turbulence [13] - The company's expansion projects are expected to provide incremental stable cash flow over the next five years, further supporting dividend growth [11][12]

Financial Performance & Projections - The company anticipates Adjusted Earnings Per Share (EPS) of $1.27 in 2025, representing an approximate 10% increase compared to 2024[31] - The company projects Adjusted EBITDA of $83 billion in 2025, reflecting an approximate 4% increase compared to 2024[31] - The company budgets discretionary capital of $2.3 billion for infrastructure projects with attractive returns in 2025[31] - The company expects to return $2.6 billion to shareholders through dividends in 2025[31] - The company projects a Net Debt to Adjusted EBITDA ratio of approximately 38x by year-end 2025, a decrease of 02x compared to year-end 2024[15, 31] Business Segments & Strategy - Natural Gas Transmission & Storage is expected to account for 59% of the company's Adjusted Segment EBDA in 2025[21, 99] - Approximately 40% of the United States' natural gas production is transported by the company[13, 15, 53] - The company's business mix is shifting, with Natural Gas Transmission & Storage increasing by 16% since 2014, while Natural Gas Gathering & Processing (G&P) and CO2 have decreased by 5% and 10% respectively[21, 22] - Approximately 95% of the company's cash flows are either take-or-pay, fee-based, or hedged[19] Growth & Capital Projects - The company has a committed growth capital project backlog of approximately $81 billion as of December 31, 2024, with approximately 90% allocated to natural gas investments[15, 27] - Approximately 25% of the company's backlog capital is expected to be in service during 2025[27]

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]