In the constellation of energy stocks today, Energy Transfer (ET -2.37%) is a standout, offering investors a lofty 7.7% yield. That's extremely attractive given that the S&P 500 index, even after a big sell-off, is only yielding around 1.3%. The average energy stock is yielding just 3.1%. While it probably wouldn't be a huge mistake to buy Energy Transfer, that doesn't mean it would be the best decision, either. If you are one of those dividend investors that actually finds dividend reliability important, w ...

Group 1: Core Business Overview - Enbridge and Energy Transfer operate in the North American midstream sector, owning energy infrastructure assets like pipelines that facilitate the movement of oil and natural gas [2] - The midstream sector is considered the most reliable segment of the energy industry due to its fee-driven business model, where companies collect fees regardless of commodity prices [2] - Energy Transfer has investments in a compression business and fuel distribution, while Enbridge diversifies into natural gas utilities and clean energy, aligning with its goal of adapting to changing energy needs [3][4] Group 2: Dividend Comparison - Energy Transfer offers a higher dividend yield of 6.7%, compared to Enbridge's 6.2%, representing an 8% increase in income for investors focused solely on yield [5] - Enbridge has a strong track record of increasing its dividend for 30 consecutive years, demonstrating reliability, while Energy Transfer cut its dividend in half during the pandemic [6][7] - Although Energy Transfer's dividend is currently higher than pre-pandemic levels, the cut during a critical time for investors highlights the importance of dividend consistency, where Enbridge is favored [7][9] Group 3: Long-term Investment Considerations - Enbridge's strategy of transitioning towards cleaner energy sources may appeal more to long-term investors compared to Energy Transfer's higher yield [4][8] - The reliability of Enbridge's dividend, despite a lower yield, makes it a more attractive option for conservative income investors who prioritize stability [9]

Financial Data and Key Metrics Changes - The company generated net income attributable to Limited Partners of $326 million and adjusted EBITDA of $591 million in the fourth quarter [18] - For the full year 2024, net income attributable to limited partners was $1.54 billion, with adjusted EBITDA reaching $2.34 billion, exceeding the midpoint of the guidance range [19][20] - Free cash flow for 2024 totaled $1.32 billion, surpassing the high end of the guidance range [20] Business Line Data and Key Metrics Changes - Natural gas throughput increased by 4% sequentially in Q4, achieving record levels in the Delaware Basin [10] - Crude oil and NGLs throughput rose by 6% sequentially, driven by strong customer activity [10] - Produced water throughput saw an 8% sequential increase, attributed to strong producer activity [10] Market Data and Key Metrics Changes - Average throughput across all three products increased by double digits year over year, with natural gas throughput averaging 5.1 billion cubic feet per day, a 16% increase [13] - Crude oil and NGLs throughput averaged 530,000 barrels per day, representing a 12% year-over-year increase [14] - Produced water throughput averaged 1.1 million barrels per day, an 11% increase compared to the previous year [14] Company Strategy and Development Direction - The company announced a significant expansion of its produced water gathering and disposal infrastructure in the Delaware Basin, including the Pathfinder pipeline [4][5] - The strategy focuses on capital-efficient organic growth to generate strong returns for unitholders and sustain base distribution growth [7][8] - The company aims to target a long-term annual distribution growth rate of mid to low single digits, excluding potential increases from large organic growth projects [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth driven by strong operational performance and strategic positioning [29] - The company anticipates continued throughput growth in 2025, particularly in the Delaware Basin, supported by strong producer activity [15][31] - Management highlighted the importance of maintaining strong relationships with customers, particularly Occidental Petroleum, to support long-term development plans [30] Other Important Information - The company plans to retire the enhanced distribution concept to simplify its capital allocation framework and focus on sustainable base distribution growth [23] - A new long-term produced water agreement with Occidental Petroleum was executed, enhancing the company's service offerings [4][5] Q&A Session Summary Question: Growth outlook and capital allocation framework - Management explained that the mid to low single-digit distribution growth target was based on extensive forecasting and planning [36] Question: Pathfinder pipeline contract and filling capacity - Management indicated that the contract with Occidental Petroleum supports the pipeline's capacity and is expected to enhance returns over time [39] Question: Discussions with other customers for pipeline capacity - Management confirmed ongoing discussions with other producers to fill the pipeline and improve returns [43] Question: Competitors in the Permian produced water market - Management emphasized the unique long-term midstream solution offered by the company compared to shorter-term oilfield service solutions [45] Question: Future contract extensions with Occidental Petroleum - Management noted ongoing efforts to maintain and extend contracts with all customers, particularly in the Delaware Basin [50] Question: Capital expenditures for 2026 - Management indicated that capital expenditures for 2026 would be higher due to the Pathfinder project and ongoing growth initiatives [53] Question: Criteria for bolt-on acquisitions - Management outlined that acquisitions should complement existing operations and meet midstream return requirements [61] Question: Timing of buybacks given capital requirements - Management stated that while a buyback program was authorized, significant market dislocation would be needed to consider it in the near term [68]

Delek Logistics Partners, LP Common Units (NYSE:DKL) Q4 2024 Earnings Conference Call February 25, 2025 12:30 PM ET Company Participants Robert Wright - Deputy CFO Avigal Soreq - President Reuven Spiegel - EVP Mark Cox - EVP Conference Call Participants Doug Irwin - Citi Neal Dingmann - Truist Securities Operator Today's presentation material can be found on the Investor Relations section of the Delek US website. Slide two contains our Safe Harbor statement regarding forward-looking comments. Any forward-lo ...