We recently published an article titled 11 Best Canadian Growth Stocks to Buy According to Hedge Funds. On January 28, Morgan Stanley raised its price target on TC Energy Corporation (NYSE:TRP) to C$93 from C$92 while maintaining an Overweight rating, as part of a broader reassessment of North American midstream and renewable infrastructure equities. The firm noted strong sector performance amid favorable commodity pricing and constructive earnings results, supporting continued investor interest in high-q ...

Core Insights - Kinder Morgan (KMI) has provided financial guidance for 2026, projecting nearly $8.7 billion in adjusted EBITDA, a 4% increase from 2025, highlighting the resilience of its fee-based business model amid market volatility [1] Financial Performance - The company expects strong fundamentals in its natural gas pipelines segment, which is its primary growth driver. Kinder Morgan plans to invest approximately $3.4 billion in discretionary capital expenditures in the coming year, with internal cash flow significantly funding these projects [2] - Management anticipates a Net Debt-to-Adjusted EBITDA ratio of 3.8x by the end of 2026, positioning it within the lower half of its long-term target range of 3.5x to 4.5x [2] Shareholder Returns - For income-focused investors, Kinder Morgan plans to increase its annualized dividend to $1.19 per share in 2026, up from $1.17 in 2025. This growth is supported by stable, fee-based cash flows that are less sensitive to commodity price fluctuations [3] Market Demand - The outlook for Kinder Morgan is bolstered by strong demand for natural gas infrastructure, driven by U.S. LNG exports and the increasing energy needs of AI data centers. Natural gas projects are a significant part of the company's backlog, allowing it to benefit from these long-term trends [4] Investment Opportunities - Investors interested in midstream exposure may consider the Alerian Energy Infrastructure ETF (ENFR), which tracks the Alerian Midstream Energy Select Index (AMEI). As of December 12, companies focused on natural gas pipeline transportation represent 37.9% of the index [5]

Core Insights - Utility stocks had been performing well in 2025 but have recently experienced a pullback, suggesting potential for a rebound in the sector Group 1: Brookfield Infrastructure - Brookfield Infrastructure operates globally with significant assets in utilities, including 3,500 kilometers of natural gas pipelines and 3,100 kilometers of electricity transmission lines [4][6] - The company has a market cap of $6.1 billion, with a current price of $46.33 and a dividend yield of 4.9% [5][6] - Brookfield Infrastructure's funds from operations (FFO) are diversified, with only 5% sensitive to oil and gas market conditions, indicating stability [6] Group 2: Enbridge - Enbridge operates an extensive pipeline network, transporting approximately 30% of North America's crude oil and 20% of the natural gas used in the U.S. [7][8] - The company has a market cap of $104 billion, with a current price of $47.55 and a forward dividend yield of 5.9% [9][10] - Enbridge has a strong track record of dividend increases, having raised its dividend for 30 consecutive years, and has $50 billion in visible growth opportunities through 2030 [11] Group 3: Evergy - Evergy operates in Kansas and Missouri, providing power and has outperformed both the S&P 500 and the utilities sector this year [12][13] - The company has a market cap of $17 billion, with a current price of $73.80 and a dividend yield of 3.8% [14][15] - Evergy is well-positioned for growth due to the construction of new data centers in its service areas, with management anticipating growth opportunities through 2030 and beyond [16]

Core Viewpoint - ONEOK has significantly expanded and diversified its operations over the past five years through a series of acquisitions, enhancing its position as one of the largest energy infrastructure companies in the U.S. [1] Performance Summary - ONEOK's share price has seen a one-year decline of 29.5%, but over three years, it has returned 14%, and over five years, it has achieved an impressive 88.5% return. [3] - The total return, including reinvested dividends, shows a decline of 27% over one year, but a growth of 31.4% over three years and a remarkable 148.4% over five years, outperforming the S&P 500 in total returns. [3] Key Financial Data - ONEOK's current market capitalization stands at $48 billion, with a current price of $76.34 and a dividend yield of 5.4%. [4][5] - The company's gross margin is reported at 19.10%. [5] Acquisition Strategy - ONEOK's transformation began with the $18.8 billion acquisition of Magellan Midstream Partners in 2023, which added refined products, crude oil, and export terminals to its portfolio. [6] - Subsequent acquisitions include Medallion Midstream and a 43% interest in EnLink for $5.9 billion, followed by the complete acquisition of EnLink for $4.3 billion. [6] - Smaller acquisitions include NGL pipelines from Easton Energy for $280 million and a 49.9% interest in a Delaware Basin gathering and processing company for $940 million. [6] Growth Prospects - The acquisitions have fueled significant earnings growth and positioned ONEOK for continued growth, with expectations of capturing hundreds of millions in merger synergies in the coming years. [7] - The company has approved several growth capital projects expected to come online through mid-2028, which will support its growth strategy. [7] Investor Returns - ONEOK has generated robust returns driven by its acquisition strategy and a growing dividend, with expectations to increase its dividend by 3% to 4% per year over the next five years. [8]

Group 1 - DT Midstream, Inc. (NYSE:DTM) has been recognized as one of the 14 Best Up and Coming Dividend Stocks to Buy [1] - Morgan Stanley increased its price target for DT Midstream to $137 from $126 while maintaining an Underweight stance after the company reported "relatively in-line" Q3 earnings [2] - The company reported Adjusted EBITDA of $288 million for the quarter, an increase of $11 million from Q2, with improvements in the gathering segment due to stronger Haynesville volumes [3] Group 2 - Management raised its distributable cash flow guidance to a range of $800 million to $830 million, increasing the midpoint by $45 million due to lower maintenance spending, reduced interest costs, and lighter cash taxes [4] - DT Midstream plans to increase dividends by 5% to 7% annually, maintaining the third-quarter payout at $0.82 per share [4] - The company operates a comprehensive network of natural gas pipelines, storage infrastructure, gathering systems, and related facilities across interstate and intrastate markets [5]

Core Viewpoint - TC Energy is highlighted as a strong investment choice in the energy sector, particularly for investors seeking steady income due to its extensive pipeline network and power generation capabilities [1]. Group 1: Company Overview - TC Energy is headquartered in Calgary, Alberta, and operates nearly 58,000 miles of natural gas pipelines [1]. - The company manages seven power-generation facilities that can supply energy to over 4 million homes [1]. Group 2: Performance Metrics - TC Energy has seen a Relative Strength (RS) Rating upgrade to 71, indicating improving technical performance [3]. - The company has reached an RS Rating benchmark of 80-plus, showcasing its strong market position [3]. Group 3: Market Position - TC Energy is noted for offering a rare combination of high yield and steady stock performance, making it an attractive option for investors [3].

Core Insights - MPLX has increased its quarterly distribution by 12.5%, resulting in a yield of 8.4%, significantly higher than the S&P 500's 1.1% yield, continuing its streak of distribution growth since its IPO in 2012 [1][2] - The company generated nearly $1.7 billion in adjusted EBITDA during the third quarter, a 3% increase year-over-year, bringing the year-to-date total to $5.2 billion, reflecting a 4.2% year-over-year growth [3] - MPLX produced approximately $1.5 billion of distributable cash flow in the quarter, covering its raised payment level by 1.3 times, with a leverage ratio of 3.7 times, below the 4.0 times range supported by its cash flows [4] Expansion Projects - MPLX has a robust backlog of expansion projects, including two natural gas processing plants and two new natural gas pipelines, with in-service dates extending into 2026 [6][7] - The company has made significant acquisitions, including Northwind Midstream for $2.4 billion and a 55% interest in the BANGL pipeline for $715 million, which will contribute to incremental income and growth [7] - MPLX is expanding its capacity for the BANGL pipeline by 50,000 barrels per day, with expected in-service in the second half of 2026, and is also working on the Eiger Express Pipeline, expected to be completed by mid-2024 [8][9] Financial Profile - MPLX's energy midstream assets generate stable and rising earnings, providing the financial flexibility to maintain high distributions and invest in growth [11] - The company anticipates mid-single-digit annual adjusted EBITDA growth in the coming years, supported by its strong financial profile and ongoing expansion projects [9][10] - The completion of a $1 billion sale of non-core assets is expected to further improve its leverage ratio in the fourth quarter [4]

Core Insights - MPLX has achieved significant milestones in 2023, including new organic expansion projects and accretive acquisitions, enhancing its growth profile through the end of the decade [1][9] Group 1: Growth Projects - MPLX has a robust backlog of growth capital projects, including the Secretariat and Harmon Creek III gas processing plants, expected to be completed in Q4 2023 and H2 2026 respectively [3] - The WPC joint venture is constructing the Blackcomb and Rio Bravo natural gas pipelines, which are on track for commercial service in H2 2024, providing growth visibility through 2026 [3][4] - Additional projects include the Traverse Pipeline, expected to enter service in 2028, and the Eiger Express Pipeline, which will begin shipping gas in mid-2028 [4][5] - The company is also building two new NGL fractionators near Marathon Petroleum's Galveston Bay refinery, set to enter service in 2028 and 2029 [5] Group 2: Acquisitions - MPLX has completed four acquisitions in 2023, strategically enhancing its geographic footprint and increasing system capacity [7] - Notable acquisitions include Whiptail Midstream for $237 million, the remaining 55% interest in the BANGL NGL pipeline for $715 million, an additional 5% interest in the Matterhorn Express Pipeline for $151 million, and Northwind Midstream for $2.4 billion [10] - These acquisitions are expected to provide immediate cash flow and support long-term growth, with embedded growth opportunities in the BANGL pipeline and Matterhorn projects [7][10] Group 3: Financial Position - MPLX maintains a strong balance sheet, ending Q2 with a leverage ratio of 3.1 times, allowing for strategic debt acquisition for growth [8] - The company is also recycling capital by selling gathering and processing assets in the Rockies for $1 billion, which will enhance financial flexibility for future growth opportunities [8] Group 4: Distribution and Returns - MPLX has extended its growth outlook, providing visibility through the end of the decade, which supports continued distribution increases [6][9] - The current distribution yield stands at an attractive 7.5%, positioning the company for strong total returns for investors [9]

Group 1 - The energy sector is currently attractive for income investors, offering the S&P 500's highest average dividend yield at approximately 3.4%, significantly higher than the index's average of less than 1.2% [1] - MPLX stands out with a substantial 7.5% dividend yield, appealing to investors focused on generating passive income [1] Group 2 - MPLX is characterized by a low risk profile, generating stable cash flow supported by long-term contracts and government-regulated rate structures [3] - In the first half of the year, MPLX produced nearly $2.9 billion in distributable cash flow, covering its high-yield payout by 1.5 times and generating nearly $1 billion in excess free cash flow [4] - The company returned an additional $200 million to investors through unit repurchases while retaining funds for expansion projects [4] Group 3 - MPLX has a strong balance sheet, ending the second quarter with a leverage ratio of 3.1 times, down from 3.4 times the previous year, well below the 4.0 times range its cash flows can support [5] - The company’s comfortable coverage ratio and strong financial metrics provide confidence in the sustainability of its high-yield distribution [5][6] Group 4 - MPLX has a robust growth profile with numerous expansion projects in the pipeline, including gas processing plants and natural gas pipelines [7] - Key projects include the Secretariat and Harmon Creek III gas processing plants, and several long-haul natural gas pipelines expected to enter commercial service between late 2024 and mid-2028 [7] - The company is also expanding its NGL infrastructure with multiple projects scheduled to begin service from the second half of next year through 2029 [7]

Summary of ONEOK (OKE) FY Conference Call - September 03, 2025 Company Overview - **Company**: ONEOK (OKE) - **Industry**: Midstream Energy Key Points and Arguments Synergy Targets and Acquisitions - ONEOK is focused on achieving $250 million in synergies by 2025, with progress tracking positively, especially from the Magellan acquisition completed in September 2023 [3][4][7] - The integration of Medallion and EnLink acquisitions is ongoing, with synergies expected to materialize over time, particularly as contracts roll off and new processing plants are built [5][8][10] - The company is ahead of expectations with Magellan, and synergies from Medallion are also progressing well [4][7] Cost Optimization and Logistics - ONEOK is optimizing logistics costs by reducing the cost of transporting butane from 20¢ per gallon to 10¢ per gallon by 2026, which will significantly enhance profitability [12][13][14] - The integration of NGL and refined product systems allows for more efficient movement of products, enhancing overall operational efficiency [12][13] Customer Engagement and Market Demand - Customers have responded positively to ONEOK's enhanced offerings and willingness to invest in infrastructure, leading to increased volume commitments [15][16] - The Denver refined product infrastructure project is strategically important due to growing demand in PADD four and five, with potential for expansion to meet future needs [24][25][26] Pipeline and Capacity Expansion - ONEOK has strategically oversized pipelines to allow for future volume growth without significant additional capital expenditure [18][21][32] - The Elk Creek and West Texas NGL pipelines are expected to contribute to future earnings, with a focus on filling existing capacity [19][20] Natural Gas Segment Growth - The Eiger Express Pipeline JV is aimed at increasing natural gas egress from the Permian Basin, driven by growing demand for LNG along the Gulf Coast [55][56][58] - ONEOK is optimistic about growth in the natural gas sector, particularly in Louisiana and West Texas, with ongoing projects to meet industrial demand [58][59][60] Competitive Positioning - ONEOK holds a 60% market share in the Bakken region, providing a strong competitive advantage despite new entrants in the NGL space [39][40] - The company emphasizes the importance of integrated services, offering a seamless supply chain from production to market [42][44] Capital Allocation and Future Outlook - ONEOK's capital allocation strategy focuses on organic growth while managing debt levels post-acquisition [63][64] - The recent tax changes are expected to provide significant free cash flow, allowing for potential stock buybacks as debt targets are met [65][66] Additional Important Insights - The company is prepared to scale the Denver project to 250,000 barrels per day if market conditions warrant [29][31] - ONEOK's strategic positioning near key markets and infrastructure enhances its competitive edge in the midstream sector [49][51] This summary encapsulates the critical insights from the ONEOK FY Conference Call, highlighting the company's strategic initiatives, market positioning, and future growth prospects.