We recently compiled a list of the 12 Best Stocks to Own for Grandchildren. Targa Resources Corp. is one of them. Targa Resources Corp. (NYSE:TRGP) is a leading midstream energy company with extensive infrastructure that connects North American natural gas and natural gas liquids (NGLs) to key domestic and international markets. Its core operations in gathering, processing, and transporting hydrocarbons provide fee-based revenue streams, offering resilience and stability for long-term investors. In Septe ...

Summary of ONEOK Fireside Chat - September 30, 2025 Company Overview - **Company**: ONEOK (NYSE: OKE) - **Industry**: Midstream Energy Key Points and Arguments Strategic Acquisitions - ONEOK has been highly acquisitive in the midstream space, doubling its size through mergers and acquisitions (M&A) since the early 2000s [2][3] - The company has established specific criteria for future acquisitions, focusing on projects that are credit accretive and provide scale [4][8] - Recent acquisitions include Magellan, Easton, EnLink, and Medallion, with five acquisitions completed in two years [5][4] Market Position and Integration - ONEOK is currently focused on integrating recent acquisitions and extending existing assets rather than pursuing new acquisitions aggressively [6][7] - The company aims to diversify its operations beyond the Bakken region, seeking demand-pull businesses [6][7] Volume Growth and Market Dynamics - The company anticipates modest volume growth across key basins, including Bakken, Mid Continent, and Permian, despite some winter-related volume declines [12][19] - The Mid Continent region has shown unexpected growth, particularly in the Cherokee formation [13][14] - The Permian Basin continues to grow, with producers becoming more efficient in drilling operations [20][21] Financial Outlook - ONEOK targets mid to upper single-digit growth in EBITDA for 2026, driven by volume growth and capital projects [23] - The company is completing several projects that will contribute to incremental growth, including the Denver expansion project [27][28] Risks and Market Sentiment - The primary risk to achieving growth targets is potential slowdowns in producer activity due to fluctuating crude oil prices [30][31] - There is skepticism in the market regarding the company's ability to model the impact of multiple acquisitions on earnings [10][11] New Projects and Infrastructure - The Sunbelt Connector project aims to address growing demand in Phoenix, with plans to connect refined products from various regions [33][34] - The company is optimistic about the returns from this project, which will include a larger pipeline to accommodate future demand [35][36] Capital Expenditure and Financial Strategy - ONEOK's growth capital expenditure (CapEx) is projected to remain around $3 billion, with expectations for a decrease in future years as projects are completed [40][42] - The company plans to utilize tax savings from new legislation to enhance cash flow and reduce leverage [42] Ethane Market and Export Opportunities - There is potential for increased ethane recovery in the Mid Continent region due to rising demand from export projects [47][49] - ONEOK is supportive of ethane export projects, recognizing their positive impact on pricing and demand [51][52] Natural Gas and LNG Demand - The company is well-positioned to benefit from increasing LNG demand, particularly in Louisiana, where it has seen unexpected growth in natural gas assets [55][56] - The Mid Continent region is viewed as an option for natural gas production, with expectations for increased activity as prices rise [57][58] Competition and Market Share - ONEOK holds a 60% market share in the Bakken for gas processing, with limited competition expected to impact its operations significantly [71][72] - The company maintains strong relationships with producers, which helps mitigate competitive risks [75] Additional Important Insights - The company is expanding its gas storage capabilities to manage increased gas flow and maintenance needs [66][68] - ONEOK's integrated systems provide a competitive advantage, allowing for streamlined operations and customer relationships [75]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA for the second quarter of $1,163 million, an 18% increase year-over-year, primarily driven by higher Permian volumes and margin contributions from the Badlands assets [18][19][21] - The full-year 2025 adjusted EBITDA is estimated to be in the range of $4,650 million to $4,850 million [19] Business Line Data and Key Metrics Changes - In the Permian, natural gas inlet volumes averaged a record 6,300 million cubic feet per day in the second quarter, an 11% increase year-over-year [12] - NGL pipeline transportation volumes averaged a record 961,000 barrels per day, while fractionation volumes averaged 969,000 barrels per day during the second quarter [15][16] - The fractionation volumes were impacted by a planned turnaround, but are now exceeding 1,000,000 barrels per day post-turnaround [16] Market Data and Key Metrics Changes - The company noted that while the Permian rig count has softened, the number of rigs on its system remains largely unchanged, indicating stability in its operations [7] - The demand for natural gas and NGLs is expected to continue increasing, supported by strong customer performance across the value chain [10] Company Strategy and Development Direction - The company is focused on increasing adjusted EBITDA, common dividends per share, and reducing share count while maintaining a strong investment-grade balance sheet [10][21] - The company plans to invest in integrated growth opportunities and return increasing capital to shareholders over the long term [10][21] - The company is preparing for growth in 2027 and beyond by ordering long lead items for additional Permian plants [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth on the Permian system for the remainder of 2025 and into 2026, supported by ongoing discussions with producers [7][9] - The company highlighted its differentiated growth profile, outperforming crude and gas production growth rates over the past five years [8][9] Other Important Information - The company repurchased $324 million in common shares during the second quarter and authorized a new $1 billion share repurchase program [21][22] - The company expects net growth capital spending for 2025 to be approximately $3 billion, with maintenance capital spending of $250 million [20] Q&A Session Summary Question: Thoughts on outperforming the basin - Management noted that the combination of having the largest footprint and being over some of the best rock in the Midland and Delaware Basins contributes to their ability to outperform [25][26] Question: Outlook on NGL margins - Management indicated that they have a growing supply from their gas processing footprint and are well-positioned due to long-term contracts, despite concerns about overbuild and margin pressures [28][30] Question: Competition in the Northern Delaware - Management acknowledged increased competition but emphasized their established capabilities and long-term contracts that provide a competitive advantage [37][42] Question: Capital expenditures for 2026 - Management stated that they will assess producer budgeting cycles to inform their 2026 capital budget, but they expect to continue capital-efficient spending aligned with growth opportunities [46] Question: Confidence in future volume growth - Management expressed confidence based on observed volume ramp-up and the expected contributions from new processing plants coming online [54][56] Question: Expectations for Bull Run extension - Management described the Bull Run extension as a natural extension of their capabilities, supported by existing volumes and expected growth [60][61] Question: Balancing buybacks with other capital uses - Management emphasized an opportunistic approach to share repurchases while maintaining flexibility to invest in organic growth projects [62][64] Question: Performance of Badlands assets - Management confirmed that the Badlands transaction has met expectations, with overall volumes remaining flat but potential for future increases [69][70] Question: Approach to LPG export docks and competition - Management reiterated their strong position due to long-term contracts and the ability to meet growing global demand, despite new entrants in the market [81][83]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA for Q2 2025 of $1,163 million, an 18% increase year-over-year, primarily driven by higher Permian volumes and margin improvements across segments [19][20] - Full-year 2025 adjusted EBITDA is estimated to be in the range of $4,650 million to $4,850 million [20] - The company had $3,500 million of available liquidity at the end of Q2 2025, with a pro forma consolidated leverage ratio of 3.6 times, within the long-term target range of three to four times [20][21] Business Line Data and Key Metrics Changes - Natural gas inlet volumes in the Permian averaged a record 6,300 million cubic feet per day in Q2 2025, an 11% increase year-over-year [12] - NGL pipeline transportation volumes averaged a record 961,000 barrels per day, while fractionation volumes averaged 969,000 barrels per day during the same period [15] - The company experienced a planned turnaround at its fractionation complex, which reduced capacity for two-thirds of Q2, but volumes have since increased to over 1,000,000 barrels per day post-turnaround [15][16] Market Data and Key Metrics Changes - The Permian gas production growth has outpaced crude production, with associated gas growth averaging 13% per year over the past five years, while crude production has averaged 8% [8][9] - The company’s year-over-year volume growth averaged 17%, outperforming both associated gas and crude production [9] - The company is well-positioned for growth due to its footprint across high-quality rock in the Permian Basin and strong relationships with world-class producers [9][10] Company Strategy and Development Direction - The company aims to increase adjusted EBITDA and return capital to shareholders through share repurchases and dividends, while maintaining a strong investment-grade balance sheet [10][22] - The company is focused on integrated growth opportunities, with a capital spending plan of approximately $3,000 million for 2025 [21] - The company is preparing for future growth by ordering long lead items for additional Permian plants and enhancing connectivity through pipeline extensions [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth in volumes for the remainder of 2025 and into 2026, despite some macroeconomic volatility [6][10] - The company noted that ongoing discussions with producers indicate robust growth potential, supported by a strong demand for natural gas and NGLs [10][9] - Management highlighted the resilience of the business model amid commodity price volatility and global trade concerns [18] Other Important Information - The company announced a retirement of a key executive, Scott Pryor, effective March 1, 2026, with Ben Branstetter set to succeed him [4][5] - The company repurchased $324 million in common shares during Q2 2025, continuing its strategy of opportunistic share repurchases [20][22] - A new $1,000 million common share repurchase program was authorized, bringing total available repurchase capacity to approximately $1,600 million [22] Q&A Session Summary Question: Ability to outperform peers in the basin - Management highlighted the largest footprint and strong relationships with active producers as key factors for continued outperformance [26][27] Question: Outlook for NGL margins - Management noted growing supply and long-term contracts as supportive of margins, despite concerns about overbuilding [29][30] Question: Competition in the Northern Delaware - Management acknowledged increased competition but emphasized Targa's established capabilities and strategic positioning in sour gas treatment [38][39] Question: Capital expenditures for future projects - Management indicated that capital expenditures would be informed by producer budgeting cycles and ongoing project efficiencies [47][48] Question: Performance of Badlands assets post-acquisition - Management confirmed that the Badlands assets are performing as expected, with potential for increased production in the future [71][72] Question: LPG export docks performance - Management clarified that while dock loadings were strong, sequential volume fluctuations were due to market dynamics and contract structures [80][84] Question: Impact of new pipeline capacity on pricing - Management expressed optimism about new egress pipelines unlocking the basin and potentially improving pricing dynamics [90][92] Question: Use of third-party NGL transport - Management indicated that utilizing third-party transport allows for capital efficiency and diversification of transport options [93][94] Question: Capital costs for processing plants - Management acknowledged rising costs but emphasized effective cost management strategies to maintain competitive returns [100]

Financial Performance - For the quarter ended June 2025, Energy Transfer LP reported revenue of $19.24 billion, down 7.2% year-over-year, and EPS of $0.32 compared to $0.35 in the same quarter last year [1] - The reported revenue was a surprise of -23.83% compared to the Zacks Consensus Estimate of $25.26 billion, while the EPS met the consensus estimate [1] Key Metrics - Gathered volumes for midstream operations were 21,329.00 BBtu/D, exceeding the average estimate of 20,762.51 BBtu/D [4] - NGLs produced were 1,181 million barrels, surpassing the estimated 1,098.09 million barrels [4] - Adjusted EBITDA for intrastate transportation and storage was $284 million, below the average estimate of $319.2 million, while interstate transportation and storage achieved $470 million, above the estimate of $423.8 million [4] Stock Performance - Shares of Energy Transfer LP returned -0.4% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Enbridge is positioned as a reliable dividend provider while meeting global energy demands, making it an attractive investment option for dividend-focused investors [1]. Dividend Attractiveness - Enbridge offers a high dividend yield of 6%, significantly above the S&P 500's 1.2% and the average energy stock's 3.4% [2]. - The company has a consistent dividend history, having increased its dividend for 30 consecutive years, indicating reliability [4]. Financial Stability - Enbridge maintains a strong financial foundation with an investment-grade credit rating, ensuring access to affordable capital [5]. Business Model - The company operates a stable business model by owning infrastructure assets like pipelines, generating income through fees for their use, which supports its dividend payments [7]. - Enbridge's large market capitalization of approximately $100 billion allows it to act as an industry consolidator, acquiring smaller companies to enhance its business [8]. Growth Opportunities - Enbridge has multiple avenues for growth, including internal capital investments to upgrade assets and expand capacity [9]. - The company is shifting towards natural gas and cleaner energy sources, having recently acquired regulated natural gas utilities, which enhances its cash flow and growth prospects [10]. Renewable Energy Exposure - Enbridge has invested in renewable energy, owning offshore wind farms in Europe and other renewable assets, positioning itself for future energy needs [11]. Simplified Ownership - Unlike some peers structured as master limited partnerships, Enbridge operates as a traditional corporation, simplifying ownership for investors [13]. Tax Considerations - U.S. investors can avoid Canadian taxes on dividends by holding Enbridge shares in tax-advantaged accounts, although dividends may fluctuate with interest rates [14]. Overall Assessment - Enbridge presents a compelling investment opportunity with a favorable balance of positives, making it a strong candidate for long-term holding [15].

Core Viewpoint - Enterprise Products Partners is poised for significant growth with approximately $6 billion in organic growth capital projects set to enter commercial service in the latter half of the year, enhancing its income and supporting its long-standing distribution increase streak [1][8]. Financial Performance - In the second quarter, Enterprise Products Partners generated $1.9 billion in distributable cash flow, marking a 7% increase year-over-year, which is an acceleration from the 5% increase in the first quarter [4]. - The company achieved record operational metrics despite facing macroeconomic and geopolitical challenges, including record volumes in gas processing, gas pipelines, crude oil pipelines, and refined product and petrochemical pipelines [5]. Growth Initiatives - The company has completed several growth capital projects, including the acquisition of Pinon Midstream and assets from Western Midstream, as well as the commissioning of two new gas processing plants in the Permian Basin [6][9]. - Additional growth projects are expected to come online, including the Neches River Terminal and the Bahia pipeline, with further expansions planned for 2026 [10][11]. Financial Flexibility - Enterprise Products Partners is projected to generate $2 billion in additional free cash flow next year, with a reduction in growth capital spending from $4 billion-$4.5 billion this year to $2 billion-$2.5 billion in 2026, indicating strong financial flexibility for future investments [12]. - The company maintains the strongest balance sheet in the midstream sector, positioning it well for further growth opportunities [12]. Distribution Growth - The company has a 26-year history of increasing its distribution, with a 3.8% increase over the past year, supported by visible earnings growth from new assets and a robust financial position, suggesting further distribution increases are likely [13].

Core Viewpoint - Hess Midstream LP is conducting its Q1 2025 earnings conference call, indicating a focus on financial performance and operational updates for the quarter [1]. Group 1: Company Overview - The conference call is hosted by Jennifer Gordon, Vice President of Investment Relations, who acknowledges the participation of attendees and mentions the availability of the earnings release on the company's website [3]. - John Gatling, President and COO, is also present to provide insights into the company's operations during the call [5]. Group 2: Financial Reporting - The earnings release for Q1 2025 was issued earlier in the day, highlighting the company's financial performance for the quarter [3]. - The call includes discussions on projections and forward-looking statements, which are subject to various risks and uncertainties [4].