Key Points Energy Transfer's "toll road" pipelines generate stable profits. Its distributable cash flow can easily cover its distributions. Its low valuation and high yield should limit its downside potential. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET), one of the leading midstream companies in America, hasn't been an exciting investment over the past 12 months. Its stock rose less than 3% as the S&P 500 advanced nearly 15%. With reinvested distributions, it deliver ...

So, let's get to Kevin Green who joins me now and obviously the big focus is what's happening in the oil patch this morning. KG, talk us through uh what your read is as far as the reaction we're seeing in markets today. >> Well, I think you're seeing a couple of different factors that are taking place here.One, obviously the US sanctions that were placed on Russian oil companies yesterday was kind of that big first catalyst. Uh you also had the EU now saying that they're going to ban LG imports from Russia ...

Core Viewpoint - Shell's Nigerian subsidiary, SNEPCo, has approved investment in the HI offshore gas development, enhancing Nigeria's LNG exports and supporting Shell's global integrated gas strategy [1] Group 1: Project Overview - The HI field, discovered in 1985, is located about 50 kilometers off Nigeria's coast and is expected to produce up to 350 million standard cubic feet of gas per day, equivalent to around 60,000 barrels of oil equivalent per day, by the end of the decade [2] - The estimated recoverable resource for the HI project stands at approximately 285 million barrels of oil equivalent (mmboe) [2] Group 2: Economic Impact - Production from the HI field will be processed onshore at Bonny Island, contributing to Nigeria LNG (NLNG), where Shell holds a 25.6% interest, and supporting local economic growth through construction and operational employment [3] Group 3: Strategic Commitment - Shell's Upstream President emphasized the company's commitment to Nigeria's energy sector, particularly in Deepwater and Integrated Gas, stating that the HI project will help grow Shell's Integrated Gas portfolio and support Nigeria's ambitions in the global LNG market [4] - The HI development is operated under a joint venture between Sunlink Energies (60%) and SNEPCo (40%), featuring a wellhead platform with four wells and a multiphase gas pipeline to Bonny Island [4] Group 4: Future Outlook - The investment follows Shell's final investment decision (FID) on the Bonga North deepwater project, indicating sustained interest in Nigeria despite challenging fiscal and regulatory conditions [5] - Shell aims to deliver upstream and integrated gas projects achieving a combined 1 million barrels of oil equivalent per day of peak production by 2030 [5] - Liquefied natural gas is central to Shell's energy transition strategy, with a goal to grow global LNG output by 4–5% annually through the end of the decade [6]

Core Viewpoint - Venture Global faces significant financial repercussions following a legal defeat against BP, leading to a sharp decline in its stock price [1][2][3] Group 1: Legal Dispute - Venture Global lost an arbitration case against BP, with the ruling stating that it breached a contract by selling LNG on the spot market instead of fulfilling long-term agreements [2] - The arbitration panel was convened by the International Chamber of Commerce International Court of Arbitration [2] Group 2: Financial Implications - BP is seeking over $1 billion in damages from Venture Global, with financial remedies to be determined in a separate hearing [3] - The stock price of Venture Global dropped by 24% in response to the arbitration ruling, significantly underperforming compared to the S&P 500 index's 2.3% decline [1] Group 3: Company Response - Venture Global expressed disappointment in the arbitration decision, claiming it contradicts previous findings in a similar case against Shell [4] - The company is exploring all options in response to the ruling from BP [4]

Core Insights - Australia anticipates gold to become its second most valuable resource export after iron ore, surpassing liquefied natural gas (LNG) due to increased demand driven by geopolitical instability [1][2]. Gold Exports - Gold exports are projected to increase by A$12 billion ($7.9 billion) to A$60 billion in the current financial year ending June 2026, benefiting from higher prices [2]. - The rise in gold exports will outpace LNG, which is expected to decline to A$54 billion this financial year and A$48 billion the following year due to lower oil prices [2]. Gold Prices - A lower interest rate environment in the United States is expected to support gold prices above $3,200 per troy ounce over the next two years, with current prices nearing $4,000 per ounce [3]. - Gold is experiencing a contrasting trend compared to other Australian resource exports, which have seen a decline as energy prices normalize after the spike caused by the Ukraine war [3]. Overall Resource and Energy Exports - Total Australian resource and energy export earnings are forecasted to drop by 5% to A$369 billion in the current financial year, with further declines expected to A$354 billion the following year [4]. - The report indicates that commodity markets are anticipating slower global growth due to rising trade barriers and restrictive monetary conditions in the US [4]. Iron Ore - Iron ore remains a crucial component of Australia's resource export earnings, accounting for over 25% of total earnings in the next two years [5]. - The iron ore price forecast has been raised by 10% to an average of $87 per metric ton for the current financial year, supported by steel demand from a proposed hydro dam in Tibet and China's efforts to reduce overcapacity in its steel industry [5]. Future Projections for Iron Ore - Despite the price increase, Australia expects a downward trend in iron ore earnings, projecting a decline of A$3.9 billion to A$113 billion in 2025-26 and further to A$103 billion in 2026-27 [6].

Group 1 - The core viewpoint is that liquefied natural gas (LNG) will be Shell's most significant contribution to the energy industry over the next decade in terms of value [1] - Shell aims to reduce emissions from fossil fuel production, positioning LNG as a key component of its strategy [1]

Core Viewpoint - ConocoPhillips is experiencing a decline in stock price due to lower oil prices, but multiple growth catalysts are expected to drive a recovery in free cash flow and shareholder returns in the coming years [1][13]. Near-term Catalysts - The company's adjusted earnings fell from $2.7 billion in Q1 to $1.8 billion in Q2, with operating cash flow decreasing from $5.5 billion to $4.7 billion, and free cash flow dropping from $2.1 billion to $1.4 billion [4]. - ConocoPhillips anticipates higher cash distributions from its investment in APLNG and tax benefits from the "one big beautiful bill act," along with savings from reduced capital spending, which should enhance free cash flow in the latter half of the year [5]. Growth from Acquisitions - The integration of the Marathon Oil acquisition is yielding better-than-expected results, with the company now estimating over 2.5 billion barrels of oil equivalent in net resources, up from an initial estimate of over 2 billion [6]. - Expected annual synergies from the acquisition have increased from $500 million to $1 billion by year-end, with an additional $1 billion in cost and margin enhancements anticipated by the end of next year [6]. Long-term Growth Drivers - ConocoPhillips is investing in long-cycle capital projects that are expected to significantly contribute to annual free cash flow, including a strategic partnership with Sempra for the Port Arthur LNG project, which is set to begin operations in 2027 [9]. - The company is also collaborating with QatarEnergy on the North Field projects, expected to start in 2027 and 2028, and investing over $7 billion in the Willow project in Alaska, which targets a 600-million-barrel resource and aims to produce 180,000 barrels per day by 2029 [10]. Future Cash Flow Expectations - The combination of these growth catalysts is projected to add an incremental $6 billion to annual free cash flow by 2029, potentially rising to $7 billion when including the Marathon Oil integration [11]. - This outlook assumes oil prices will improve to around $70 per barrel by 2026, but the company can still generate robust cash flow even if prices remain around $60 per barrel [11]. Shareholder Returns - The anticipated surge in free cash flow will enable ConocoPhillips to increase shareholder returns, with expectations of dividend growth within the top 25% of S&P 500 companies and significant share repurchases each year [12].

Core Insights - The AES Corporation is expanding its renewable energy generation through solar, wind, and battery storage to meet long-term clean energy targets while also increasing its presence in the liquefied natural gas (LNG) market [1][2] - The company is facing challenges due to a decline in wholesale electricity prices [1][6] Growth Catalysts for AES - AES completed the development of 1.2 gigawatts (GW) of solar and energy storage projects in Q2 2025 and aims to add 3.2 GW of renewable capacity by year-end [2][9] - In Q2 2025, AES secured long-term power purchase agreements (PPAs) for 1.6 GW of renewables, increasing its total PPA backlog to 12 GW [3] - AES Indiana's acquisition of the 170-megawatt (MW) Crossvine solar-plus-storage project is set to begin operations in 2027 [3] - The company completed the construction of the 1,000 MW Bellefield 1 project, supported by a 15-year contract with Amazon, and plans to deploy up to 1,300 MW of solar, wind, and battery energy storage by 2027 [4][9] LNG Operations - AES operates LNG import terminals in the Dominican Republic with a storage capacity of 160,000 cubic meters, supplying re-gasified LNG to industrial users and third-party power plants [5][9] Headwinds for AES - The decline in wholesale electricity prices is attributed to the rising adoption of renewable energy, abundant natural gas, and demand-side management initiatives, with new PPAs being signed at lower rates [6] - This downward trend in electricity prices is expected to continue, potentially impacting AES's financial performance [6] Financial Overview - As of June 30, 2025, AES had a long-term debt of $26.55 billion and a current debt of $3.72 billion, with cash equivalents of $2.11 billion [7] Stock Performance - Over the past six months, AES shares have increased by 20.7%, outperforming the industry's growth of 7.7% [8]

Group 1: Company Expansion and Operations - POSCO is expanding in the energy sector by launching a dedicated LNG carrier to enhance energy transportation stability amid global supply chain uncertainties [1] - The LNG carrier, named 'HL FORTUNA,' was developed through collaboration among POSCO International, HD Hyundai Samho, and H-Line Shipping [2] Group 2: Technical Specifications and Environmental Features - The HL FORTUNA is a 174,000 m³-class LNG carrier, measuring 299 meters in length and 46.4 meters in width, designed for transporting North American LNG [3] - The vessel features a dual-fuel system primarily running on LNG and a high-efficiency re-liquefaction system, ensuring compliance with global environmental standards [3] Group 3: Operational Timeline and Trade Plans - After delivery, the HL FORTUNA will undergo sea trials before entering global LNG trading operations in the second half of the year [4] - Starting in 2026, the vessel will load LNG at Cheniere's terminal in Louisiana, completing a minimum of five round trips annually to POSCO International's Gwangyang LNG terminal [4] Group 4: Stock Performance - In the past year, shares of POSCO (PKX) have declined by 37.4%, compared to the industry's decline of 36.8% [5]

Core Viewpoint - AES Corporation is focused on increasing its renewable energy generation through solar, wind, and battery energy storage, while also expanding its presence in the liquefied natural gas (LNG) market [1] Group 1: Renewable Energy Expansion - AES has been expanding its renewable generation portfolio to capitalize on the growing clean energy market, completing the construction of 3 gigawatts (GW) of wind, solar, gas, and energy storage in 2024, with an expectation to add a total of 3.2 GW to its operating portfolio by the end of 2025 [2] - The company is rapidly retiring coal-fired units to promote clean energy adoption, having retired 481 megawatts (MW) of coal generation in Chile and the United States in 2024 [3] Group 2: LNG Market Presence - AES operates two LNG terminals in the Caribbean and has long-term contracts to sell re-gasified LNG to industrial users and third-party power plants, capturing demand from industrial and commercial customers [3] Group 3: Financial Performance Challenges - The company faces challenges due to a significant decline in wholesale electricity costs driven by increased renewable energy use, low-cost natural gas, and demand-side management, which may negatively impact AES's financial performance [4] - As of December 31, 2024, AES had a long-term debt of $25.43 billion and a current debt of $3.59 billion, with cash equivalents of $2.04 billion, indicating a substantial debt burden [5] Group 4: Stock Performance - In the past month, AES shares have risen by 10%, outperforming the industry's growth of 0.2% [6]