Manjeshwar holds a B.E. in Electronics from the University of Mumbai, a M.S. in Computer Science from James Madison University, and an M.B.A. from Georgetown University's McDonough School of Business. About UGI Corporation UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the U.S. and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electri ...

Key Takeaways EPD is set to report Q4 earnings of 70 cents per share, suggesting a 5.4% y/y dip.Gross margins in both crude oil and NGL pipeline segments are forecast to decline y/y.EPD continues to generate stable fee-based revenues and boost unitholder returns via buybacks.Enterprise Products Partners LP (EPD) is set to report fourth-quarter 2025 results on Feb. 3, before the opening bell.The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 70 cents per share, implying a 5.4% decline from ...

Core Viewpoint - Targa Resources Corp. has declared a quarterly cash dividend of $1.00 per common share for the fourth quarter of 2025, with plans to recommend an increase to $1.25 per share for the first quarter of 2026 [2][3]. Dividend Announcement - The quarterly cash dividend of $1.00 per common share will be paid on February 13, 2026, to shareholders of record as of January 30, 2026 [2]. - The annualized dividend based on the fourth quarter payment is $4.00 per common share [2]. Future Dividend Plans - For the first quarter of 2026, Targa intends to recommend an increase in the common dividend to $1.25 per share, which would annualize to $5.00 per share if approved [3]. Financial Reporting - Targa will report its fourth quarter 2025 financial results before the market opens on February 19, 2026, and will host a live webcast at 10:00 a.m. Central Time to discuss these results [4][5]. Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, focusing on the delivery of energy across the United States and to international markets [7]. - The company connects natural gas and natural gas liquids (NGLs) to markets with growing demand for cleaner fuels [7]. - Targa is a FORTUNE 500 company and is included in the S&P 500 [8].

Group 1 - Targa Resources Corp. has completed the acquisition of Stakeholder Midstream, LLC for $1.25 billion in cash, effective January 1, 2026 [1] - Targa is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, focusing on the delivery of energy across the United States and globally [2] - The company's operations are essential for connecting natural gas and natural gas liquids (NGLs) to both domestic and international markets, catering to the increasing demand for cleaner fuels [2] Group 2 - Targa Resources is a FORTUNE 500 company and is included in the S&P 500 index, indicating its significant presence in the market [3]

Core Insights - Phillips 66 (PSX) is an integrated downstream player that refines crude oil into final products and also engages in the transportation and storage of crude oil, natural gas, NGL, and refined products through its pipeline network and storage facilities [1] Group 1: Business Environment - The current trading price of West Texas Intermediate (WTI) crude is below $60 per barrel, down from $73.5 per barrel year over year, indicating a soft oil price environment that benefits downstream players like PSX by allowing them to purchase raw materials at lower prices [2] - PSX derives a significant portion of its revenues from its midstream business by renting midstream assets to shippers, generating stable fee-based revenues that provide predictable cash flow and protect the business from crude price volatility [3][9] Group 2: Strategic Focus - PSX is increasingly focusing on growing its midstream and chemicals businesses to generate additional cash flow and strengthen its overall business model [4][9] Group 3: Competitive Position - Compared to other downstream players like PBF Energy Inc. (PBF) and Valero Energy Corporation (VLO), PSX has an advantage due to its revenue generation from both midstream and downstream businesses, while PBF's business model is more vulnerable to crude price fluctuations due to its limited midstream revenue [5] Group 4: Financial Performance - Shares of Phillips 66 have gained 13.3% over the past year, outperforming the 12.2% rally of the composite stocks in the industry [6] - PSX trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 13.69X, which is significantly above the broader industry average of 4.51X [8] - The Zacks Consensus Estimate for PSX's 2025 earnings remains unchanged at 6.19, with the current quarter estimate at 2.24 and the next quarter at 2.62 [10][11]

Core Insights - Kinder Morgan (KMI) has provided a 2026 forecast indicating a 4% increase in adjusted EBITDA to $8.7 billion and an adjusted EPS of $1.37, reflecting an approximate 8% growth from previous guidance [1][8] - The company plans to increase its annualized dividend for the ninth consecutive year to $1.19 per share while maintaining a net debt to adjusted EBITDA leverage ratio around 3.8, at the lower end of its long-term target band of 3.5–4.5 [2] Financial Projections - For 2026, Kinder Morgan plans $3.4 billion in discretionary capital expenditure, which will be funded through internally generated cash flows, supporting its stable business model as a leading transporter of natural gas [3][8] - The long-term take-or-pay contracts for KMI's pipeline and storage assets ensure a consistent revenue stream, providing stability against fluctuations in natural gas volumes [4][8] Industry Context - Other midstream players such as The Williams Companies, Inc. (WMB), Enterprise Products Partners L.P. (EPD), and MPLX LP (MPLX) also exhibit stable fee-based revenues and are less vulnerable to oil and gas price volatility, each currently holding a Zacks Rank 3 [5] - WMB is planning to invest $3.95 billion to $4.25 billion in capital expenditure by 2025, significantly higher than its $1.5 billion expenditure in 2024 [6] - MPLX returned a total of $1.1 billion to its unit holders in the third quarter of 2025, demonstrating a strong focus on returning capital through distributions and unit repurchases [7]

Industry Overview - The Zacks Oil and Gas - Pipeline MLP industry consists of master limited partnerships that primarily transport oil, natural gas, refined petroleum products, and natural gas liquids in North America, generating stable fee-based revenues from transportation and storage assets [3] - The industry is currently facing a gloomy outlook due to conservative spending by exploration and production companies, which is expected to reduce demand for transportation and storage assets [1][6] Financial Metrics - The industry has a high debt-to-capitalization ratio of 55.7%, indicating that borrowing is common for financing large infrastructure projects, but this elevated leverage may limit financial flexibility [4] - The current trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio for the industry is 10.49X, which is lower than the S&P 500's 18.55X but higher than the sector's 5.26X [14] Market Performance - The Zacks Oil and Gas - Pipeline MLP industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500 over the past year, declining by 4.3% while the sector gained 7.6% and the S&P 500 rose by 17.8% [10] Future Challenges - The industry is expected to face challenges from a shift to renewable energy, which may reduce the demand for pipeline and storage networks for oil and natural gas [5] - Oil and gas exploration and production companies are under pressure to prioritize stockholder returns over production growth, which is negatively impacting the demand for pipeline and storage assets [6] Notable Companies - Delek US Holdings, Inc. is positioned to benefit from its refining business, with expected growth of almost 40% in 2025 [18] - Energy Transfer LP has a stable business model with a vast pipeline network and is projected to see earnings growth of 7% this year [19] - Plains All American Pipeline LP also enjoys stable fee-based revenues and has seen upward earnings estimate revisions for 2025 [22]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with CareTrust REIT, Hess Midstream, and Kimberly-Clark recently announcing dividend hikes and offering yields up to approximately 8% [1] CareTrust REIT - CareTrust REIT Inc. is a real estate investment trust focused on seniors housing and healthcare-related properties [2] - The company has raised its dividends annually for the last 10 years, with the most recent increase on March 18, raising the quarterly payout from $0.29 to $0.335 per share, equating to an annual figure of $1.34 per share [3] - As of June 30, CareTrust's annual revenue was $277.03 million, with Q2 2025 revenues of $112.47 million and EPS of $0.43, both exceeding expectations [4] Hess Midstream - Hess Midstream LP operates midstream assets and provides fee-based services, having increased dividends for the last eight years [5] - The latest dividend hike on July 28 raised the quarterly payout from $0.7098 to $0.737 per share, resulting in an annual figure of $2.95 per share, with a current dividend yield of 8.64% [5] - The company's annual revenue as of June 30 was $1.57 billion, with Q2 2025 revenues of $414.20 million and EPS of $0.74, both surpassing market expectations [6] Kimberly-Clark - Kimberly-Clark Corp. is engaged in the manufacturing and marketing of personal care products on an international scale [7]

Core Points - Targa Resources Corp. declared a quarterly cash dividend of $1.00 per common share for Q3 2025, equating to an annualized rate of $4.00 per share, payable on November 17, 2025, to shareholders of record as of October 31, 2025 [1] - The company will report its Q3 2025 financial results on November 5, 2025, before market opening, followed by a live webcast at 11:00 a.m. Eastern Time to discuss the results [2][3] - A replay of the webcast will be available approximately two hours after the event, along with a quarterly earnings supplement presentation and updated investor presentation [4] Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, owning and operating a diversified portfolio of infrastructure assets critical for energy delivery [5] - The company's assets connect natural gas and natural gas liquids (NGLs) to both domestic and international markets, catering to the growing demand for cleaner fuels and feedstocks [5] - Targa is a FORTUNE 500 company and is included in the S&P 500 [6]

Company Overview - Plains All American Pipeline, L.P. (NYSE: PAA) is a midstream Master Limited Partnership (MLP) with a market capitalization exceeding $12 billion and offers a high single-digit dividend yield [2]. Performance Analysis - The company has underperformed the market in recent times, indicating potential challenges in its operational or market strategy [2]. Investment Strategy - The Value Portfolio focuses on constructing retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2].