Core Insights - Targa Resources has agreed to acquire Stakeholder Midstream for $1.25 billion in cash, enhancing its operations in the Permian Basin [1][2] - The acquisition is expected to close in the first quarter of 2026, pending regulatory approval [3] Company Overview - Stakeholder Midstream provides natural gas gathering, treating, processing services, and crude oil gathering and storage in the Permian Basin, operating approximately 480 miles (772 km) of natural gas pipelines [1][2] - The company has a daily cryogenic natural gas processing and sour treating capacity of around 180 million cubic feet per day [1] Financial Aspects - Stakeholder's assets are supported by long-term, fee-based contracts across approximately 170,000 dedicated acres, with low decline rates ensuring a stable volume profile [2] - Targa anticipates that Stakeholder will contribute around $200 million in annual free cash flow with minimal capital expenditure requirements [4] Strategic Implications - Targa's CEO highlighted that the acquisition is a strategic move to create shareholder value, supported by a stable to modestly growing volume profile and minimal capital needs [3][4] - The company plans to finance the acquisition using available liquidity, including cash on hand and its existing $3.5 billion revolving credit facility, with a limited impact on its leverage ratio [5] Advisory Roles - RBC Capital Markets is acting as the financial advisor to Targa, while Jefferies serves as the exclusive financial advisor to Stakeholder [5][6]

Core Viewpoint - Targa Resources Corp. has entered into a definitive agreement to acquire Stakeholder Midstream, LLC for $1.25 billion in cash, enhancing its midstream infrastructure and cash flow generation capabilities in the Permian Basin [1][10]. Acquisition Details - The acquisition price of $1.25 billion represents approximately 6 times the estimated unlevered adjusted free cash flow for 2026 [10]. - Stakeholder operates natural gas gathering, treating, and processing services, along with crude gathering and storage services, featuring around 480 miles of natural gas pipelines and a processing capacity of approximately 180 million cubic feet per day [2][10]. - Stakeholder's assets are supported by long-term, fee-based contracts across approximately 170,000 dedicated acres, which exhibit low decline rates, ensuring a stable volume profile [2][10]. Financial Impact - Targa anticipates that Stakeholder will generate unlevered adjusted free cash flow of about $200 million annually, with minimal capital needs and low integration costs [3][10]. - The transaction is expected to have a limited impact on Targa's leverage ratio, maintaining it within the long-term target range of 3.0 to 4.0 times [7][10]. Strategic Fit - The acquisition is viewed as a strategic move to enhance Targa's existing operations, leveraging strong relationships with major producers in the region and complementing its sour gas treating and carbon capture capabilities [4][5][10]. - Targa's CEO emphasized that this transaction aligns with the company's strategy to create shareholder value through balance sheet strength and organic growth opportunities [4][5]. Transaction Timeline and Advisors - The completion of the acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2026 [7]. - RBC Capital Markets is serving as Targa's financial advisor, while Jefferies is acting as the exclusive financial advisor to Stakeholder [8].

Group 1 - ONEOK has attracted investor interest due to stable oil prices and increasing U.S. natural gas demand, alongside a strengthened balance sheet and expanded pipeline and processing footprint [2] - The stock is currently trading nearly 40% lower than its one-year peak and has a price-to-sales ratio below the average of the past three years, indicating potential as a value investment [3] - ONEOK provides natural gas gathering, processing, storage, and transportation services across the U.S., in addition to owning a parking garage and leasing office space in Tulsa, Oklahoma [4] Group 2 - ONEOK has demonstrated reasonable revenue growth of 58.4% over the last twelve months and an average of 16.4% over the past three years, with a strong average operating margin of approximately 21.2% [8] - The stock is trading at a modest price-to-earnings (PE) multiple of 12.5, despite its positive fundamentals [8] - Historical data shows average forward returns of 12.7% for six months and 25.8% for twelve months, with a win rate exceeding 70% for both timeframes [9]

Company Overview - Kinetik Holdings (NYSE: KNTK) is a significant player in the US oil and gas infrastructure sector, involved in gathering natural gas, liquids, crude oil, and water from production sites, as well as compressing, transporting, processing, and treating these resources [1]. Analyst Experience - The analyst has over 10 years of experience researching companies across various sectors, including commodities like oil, natural gas, gold, and copper, as well as technology companies such as Google and Nokia, and numerous emerging market stocks [1]. Investment Focus - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, where they have researched hundreds of different companies, with a particular interest in metals and mining stocks, while also being comfortable with other industries like consumer discretionary/staples, REITs, and utilities [1].

Core Viewpoint - Western Midstream Partners, LP announced a quarterly cash distribution of $0.910 per unit for Q3 2025, maintaining the same level as the previous quarter [1] Group 1: Financial Announcements - The cash distribution is annualized at $3.64 per unit and will be payable on November 14, 2025, to unitholders of record by October 31, 2025 [1] - The Partnership plans to report its Q3 2025 results after market close on November 4, 2025, with a conference call scheduled for November 5, 2025, at 8:00 a.m. Central [2][3] Group 2: Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in various activities including gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, crude oil, and produced water [4] - A significant portion of WES's cash flows is secured through fee-based contracts, reducing direct exposure to commodity price volatility [4]

Group 1: Investment Activity - Benson Investment Management Company, Inc. initiated a new position in ONEOK with an estimated transaction value of $5.4 million, representing 1.8% of the fund's $292.7 million in reportable U.S. equity holdings [2][3]. Group 2: Company Performance - ONEOK's shares were priced at $69.09, reflecting a one-year decline of 29%, significantly underperforming the S&P 500's 12% gain during the same period [3]. - The company reported a trailing twelve months (TTM) revenue of $28 billion and a net income of $3.1 billion, with a dividend yield of 6% [4]. - In the second quarter of 2025, ONEOK achieved a net income of $853 million, a 9% year-over-year increase, and a 22% rise in adjusted EBITDA to approximately $2 billion, driven by higher production volumes [10]. Group 3: Company Overview - ONEOK, Inc. is a leading midstream energy company with over 17,500 miles of gathering pipelines and significant storage facilities, focusing on natural gas and NGL infrastructure [6]. - The company provides natural gas gathering, processing, storage, and transportation services, leveraging extensive midstream infrastructure to serve various customers, including energy producers and industrial end users [9]. Group 4: Strategic Positioning - Benson's investment in ONEOK adds exposure to energy infrastructure within a portfolio primarily focused on technology and metals, indicating a diversification strategy [7][11].

Economic Indicators - The upcoming non-farm payroll report is highlighted as a critical economic indicator, overshadowing other data releases such as car sales and jobless claims [2] - If the payroll data shows rapid wage growth, the Federal Reserve may delay interest rate cuts, indicating a cautious approach to inflation management [2][3] - Federal Reserve Chair Jerome Powell is navigating a mixed economic landscape, with signs of slowdown in some sectors and growth in data center construction [2] Company Insights - Costco Wholesale Corporation (NASDAQ:COST) is noted for its strong long-term performance, delivering an annualized return of nearly 19% over the past 20 years, significantly outperforming the S&P 500 [7] - Despite a recent drop in stock price due to lower-than-expected membership growth, Costco's fundamentals remain strong, with increased membership fees and a younger demographic joining [7][8] - ONEOK, Inc. (NYSE:OKE) is recognized for its strong position in the natural gas sector, with a focus on providing services to the Gulf Coast, and is considered a buy due to its potential upside despite a recent decline in stock price [9]

Core Viewpoint - Western Midstream Partners, LP announced a quarterly cash distribution of $0.910 per unit for Q2 2025, maintaining the same level as the previous quarter [1] Group 1: Financial Performance - The second-quarter distribution is annualized at $3.64 per unit, payable on August 14, 2025, to unitholders of record by August 1, 2025 [1] - The Partnership plans to report its Q2 2025 results after market close on August 6, 2025, with a conference call scheduled for August 7, 2025, at 9:00 a.m. Central [2][3] Group 2: Company Overview - Western Midstream Partners, LP is a master limited partnership focused on developing, acquiring, owning, and operating midstream assets across Texas, New Mexico, Colorado, Utah, and Wyoming [4] - The company engages in gathering, compressing, treating, processing, and transporting natural gas, as well as handling condensate, natural-gas liquids, crude oil, and produced water [4] - A significant portion of WES's cash flows is secured through fee-based contracts, reducing direct exposure to commodity price volatility [4]