Key Takeaways PBA targets 2026 adjusted EBITDA of C$4.1B-C$4.4B, with fee-based growth due to higher volumes across assets.PBA plans C$1.6B in 2026 capital spending, with pipeline, facilities and Peace Pipeline system expansions.PBA plans C$1.6B in 2026 capital spending, with pipeline, facilities and Peace Pipeline system expansions.Pembina Pipeline Corporation (PBA) , a leader in North America's energy infrastructure, has outlined an ambitious growth strategy for 2026. This includes an increase in fee-base ...

Core Insights - The article highlights two investment opportunities with strong dividend yields and positive earnings growth projections, specifically focusing on AllianceBernstein and USA Compression Partners [2][3][9]. Group 1: AllianceBernstein (AB) - AllianceBernstein has reported a record assets under management (AUM) of $860 billion in Q3, with an annual dividend yield of 8.67%, significantly higher than the industry average of 2.27% [3][4]. - The company maintains a low debt-to-capital ratio, indicating a secure dividend, and has a trailing twelve-month return on equity (ROE) of 21%, compared to the industry average of 9% [4]. - Recent earnings per share (EPS) revisions for FY25 and FY26 have shown modest increases, making it an attractive time to consider adding positions in AB, which trades at approximately $40 per share and 11 times forward earnings, with an expected annual EPS growth of nearly 15% next year [5]. Group 2: USA Compression Partners (USAC) - USA Compression Partners, a Master Limited Partnership (MLP), is projected to achieve a 30% increase in EPS this year and a further 38% increase in FY26 [9][10]. - The MLP offers an annual dividend yield of 8.75% and trades at under $25 per share, with a forward earnings multiple of 27 times, which is reasonable given its EPS growth [11]. - Over the last 60 days, EPS revisions for FY25 and FY26 have increased by over 5% and 7% respectively, indicating positive momentum [12].

Financial Performance Highlights - The company achieved record revenues of $2503 million, a 4% year-over-year increase[5] - Record Adjusted EBITDA reached $1603 million, a 10% year-over-year increase[5] - The company reported a record distribution coverage of 161x[5] - Average revenue generating horsepower was 355 million, with pricing continuing at record levels of $2146 per revenue generating horsepower, a 4% year-over-year increase[5] Operational Efficiency - Total utilization remained strong at 94%, with large horsepower utilization at 98%[5] Debt Management - The company extended the majority of its debt maturities in Q3 at lower rates[5] - $420 million of $500 million Series A Preferred Units have been converted into Common Units[36] Future Growth and Market Position - The company is well-positioned to benefit from natural gas demand growth, driven by increased LNG exports and the electrification of everything (EoE)[6, 8] - Over 60% of the company's active fleet is located within the Permian and along the Gulf Coast, regions expected to benefit most from increased exports[9] - Approximately 33 million additional contract compression HP capacity is projected to be required to meet the incremental U S natural gas demand[9] Capital Structure and Returns - USAC has outperformed the S&P Value Index and MLP peers over the past three years on a total equity return basis[22] - Conversions of 84% of Preferred to Common Units has minimal impact on USAC's financial metrics[26]

Core Insights - Archrock, Inc. reported strong third-quarter performance in 2025, highlighting operational strength and profitability in the natural gas and compression markets [3][4][5] Financial Performance - Net income for Q3 2025 was $71.2 million, up from $37.5 million in Q3 2024, with adjusted net income at $73.2 million compared to $47.3 million in the previous year [5][7][22] - Adjusted EBITDA for Q3 2025 reached $220.9 million, a significant increase from $150.9 million in Q3 2024 [7][10][22] - Total revenue for Q3 2025 was $382.4 million, compared to $292.2 million in Q3 2024, with contract operations revenue increasing by 33% year-over-year [7][11][39] Operational Highlights - The company expanded its fleet by 56,000 horsepower sequentially, leading to increased contract operations revenue and adjusted gross margin [3][4] - Horsepower utilization at the end of Q3 2025 was 96%, up from 95% at the end of Q3 2024 [8][23] Shareholder Returns - Archrock declared a quarterly dividend of $0.21 per share, a 20% increase year-over-year, with a dividend coverage ratio of 3.7x [7][13][43] - The company repurchased 1,094,516 shares for approximately $25 million during Q3 2025, with an additional $100 million share repurchase authorization approved [14][15] Guidance and Outlook - The company raised its full-year 2025 adjusted EBITDA guidance to a range of $835 million to $850 million, driven by strong demand in the natural gas sector [7][16] - Management anticipates continued growth in U.S. natural gas infrastructure and demand for LNG exports, projecting a minimum of $250 million in growth capital expenditures for 2026 [4][16]

Core Insights - Patterson-UTI Energy, Inc. (PTEN) is expected to report a third-quarter earnings loss of 9 cents per share, with revenues estimated at $1.17 billion, reflecting a decline from the previous year [1][3][10] Financial Performance - In the second quarter of 2025, PTEN reported an adjusted net loss of 6 cents per share, missing the consensus estimate of a 4-cent loss, while total revenues of $1.2 billion exceeded expectations by 0.3% [2] - PTEN has missed consensus estimates in each of the last four quarters, with an average negative surprise of 17.50% [3] Revenue and Cost Analysis - The Zacks Consensus Estimate for third-quarter revenues indicates a 13.56% decline from the previous year's $1.4 billion, primarily due to poor performance in Completion Services, Drilling Services, and other segments [3][7] - PTEN's operating costs are projected to decrease by 49.7% year-over-year to $1.2 billion, reflecting the company's focus on financial discipline [5][10] - Direct operating costs are expected to drop from $1 billion to $885.2 million, while depreciation, depletion, amortization, and impairment costs are anticipated to decrease from $374.7 million to $230.3 million [6] Market Position and Outlook - Despite the anticipated revenue decline, PTEN's cost-control measures are expected to mitigate the financial impact in the upcoming quarterly results [8] - The Zacks Consensus Estimate for third-quarter earnings has remained unchanged over the past week, indicating a lack of movement in market expectations [10]

Core Insights - Equinor ASA has drilled a dry exploration well in the Barents Sea, indicating no commercial hydrocarbons were found in the latest prospect [1] Group 1: Well Details - The dry well, named Deimos (7117/4-1), was drilled using the COSL Prospector rig and is located about 135 km west of the Snøhvit field [2] - Equinor holds a 40% stake in the production license 1238, with partners Vår Energi, Aker BP, and Petoro each holding 20% [2] Group 2: Geological Results - The drilling targeted Eocene and Paleocene reservoir rocks of the Torsk Formation, but high pressures necessitated a technical sidetrack, leaving both primary and secondary targets unmet [3] - A four-meter sandstone layer with good reservoir quality was encountered, but no commercial hydrocarbons were discovered [3] Group 3: Operational Impact - The well reached a vertical depth of 2,511 meters below sea level in a water depth of 283 meters before being classified as dry and set to be permanently plugged and abandoned [4] - This outcome represents a setback for Equinor's exploration efforts in the Barents Sea, although other activities in the region, such as around Johan Castberg, continue [4] Group 4: Broader Context - The rig deal for the COSL Prospector includes a two-year contract with options to extend, providing flexibility for ongoing and future exploration in Norwegian waters [5]

Core Insights - Exxon Mobil Corporation (XOM) warns that global net-zero targets are increasingly slipping beyond the 2050 horizon, with emissions projected to decrease only 25% by mid-century, significantly below the IPCC's recommended reduction of over two-thirds [1][4] Emissions and Energy Consumption Trends - The report highlights a rebound in coal consumption due to high energy costs and delays in renewable energy rollout, with global emissions in 2050 now projected to be nearly 4% higher than last year's forecast [2][4] - Increased coal usage is noted to supplement the variable output of wind and solar energy, alongside a slowdown in electric vehicle sales in the U.S. and Europe, which continues to support high oil demand [2][4] Oil and Natural Gas Projections - ExxonMobil expects oil demand to peak around 2030 but remain steady at over 100 million barrels per day through 2050 [3] - The company has raised its natural gas forecast, projecting a more than 20% increase in global consumption by mid-century due to rising power demand [3] - By 2050, oil and natural gas are expected to account for 55% of the world's energy mix, only slightly down from 2024 levels, while coal and bioenergy are anticipated to represent 14% and 10%, respectively [3] Challenges to Net Zero Goals - Economic challenges, consumer sensitivity to high costs, and ongoing reliance on fossil fuels, particularly coal, are identified as significant barriers to achieving net zero emissions [4] - The slowing adoption of renewable energy and the further delay of emissions targets underscore the urgent need for enhanced efforts in pursuing global climate goals [4]

Core Viewpoint - Archrock, Inc. has announced the dual listing of its common stock on NYSE Texas, supporting a pro-business initiative in Texas while maintaining its primary listing on the New York Stock Exchange [1][2][3]. Company Overview - Archrock is an energy infrastructure company focused on midstream natural gas compression, committed to safe and environmentally responsible operations [4]. - The company is headquartered in Houston, Texas, and is a leading provider of natural gas compression services across the U.S. [4]. Listing Details - The dual listing on NYSE Texas allows Archrock to trade under the same "AROC" ticker symbol while supporting local business initiatives [1][3]. - The company has a long history with the New York Stock Exchange, dating back to 1997 [2].

Core Insights - Three stocks with strong value characteristics and a buy rank are highlighted for investors: KNOT Offshore Partners LP, Natural Gas Services Group, Inc., and Penguin Solutions, Inc. [1][2][3] Company Summaries - **KNOT Offshore Partners LP (KNOP)**: - Zacks Rank: 1 - Earnings estimate increase: 44.9% over the last 60 days - Price-to-earnings ratio (P/E): 9.80 (industry average: 16.00) - Value Score: A [1] - **Natural Gas Services Group, Inc. (NGS)**: - Zacks Rank: 1 - Earnings estimate increase: 18.6% over the last 60 days - Price-to-earnings ratio (P/E): 17.43 (S&P 500 average: 23.48) - Value Score: B [2] - **Penguin Solutions, Inc. (PENG)**: - Zacks Rank: 1 - Earnings estimate increase: 14.2% over the last 60 days - Price-to-earnings ratio (P/E): 13.03 (S&P 500 average: 23.48) - Value Score: A [3]

Core Insights - MPLX LP reported first-quarter 2025 earnings of $1.10 per unit, exceeding the Zacks Consensus Estimate of $1.06, and improved from $0.98 in the same quarter last year [1] - Total quarterly revenues reached $3.12 billion, falling short of the Zacks Consensus Estimate of $3.21 billion, but increased from $2.85 billion year-over-year [1] Segment Performance - The Crude Oil and Products Logistics segment's adjusted EBITDA rose to $1.1 billion from $1.06 billion a year ago, driven by increased rates and higher pipeline throughputs, which averaged 5.93 million barrels per day (mbpd), a 12% increase from 5.29 mbpd in the prior year [3] - Adjusted EBITDA from the Natural Gas and NGL Services segment increased to $660 million from $576 million, supported by higher volumes from the Utica and Permian Basins and a non-recurring benefit of $37 million from a customer agreement [4] Operational Metrics - Gathering throughput volumes averaged 6.5 billion cubic feet per day (Bcf/d), reflecting a 5% increase year-over-year, while natural gas processed volumes totaled 9.8 Bcf/d, indicating a 4% improvement [5] - Total costs and expenses rose to $1.76 billion from $1.6 billion, primarily due to higher operating expenses and increased depreciation and amortization [6] Cash Flow and Financial Position - Distributable cash flow for the quarter was $1.49 billion, providing 1.5X distribution coverage, up from $1.37 billion in the previous year [7] - Adjusted free cash flow increased to $641 million from $294 million year-over-year [7] - As of March 31, 2025, the partnership held $2.5 billion in cash and cash equivalents, with total debt at $22.4 billion [8]