Core Viewpoint - The article discusses the renewed focus on "Made in America" as a significant investment theme, driven by geopolitical tensions and a push for domestic manufacturing and energy independence [2]. Group 1: Companies Highlighted - Cleveland-Cliffs Inc. is North America's largest flat-rolled steel producer, operating fully integrated steelmaking facilities in the U.S. and supplying steel to various domestic sectors [5][6]. - Newell Brands Inc. produces iconic American household products and maintains substantial U.S. manufacturing despite some global sourcing. The company is focusing on streamlining operations and has a forecasted 19% earnings growth in the next 12 months [10][11]. - Energy Transfer LP operates over 125,000 miles of pipelines for transporting crude oil and natural gas, positioning itself as a key player in U.S. energy security. The stock has a consensus price target of $22.64, indicating a 26% upside potential [13][15]. Group 2: Stock Performance and Market Indicators - Cleveland-Cliffs stock is trading around $8.71, showing a strong rebound and surpassing key moving averages, with a potential upside target of $10 [7][8]. - Newell Brands stock has seen a decline of over 40% in 2025 but has recently increased by about 17% in the last 30 days, nearing its 100-day moving average [12]. - Energy Transfer stock is currently at $17.91, just below its 100-day moving average, with analysts predicting a bullish trend and a dividend yield of 7.31% [16].

Core Insights - Enbridge has become one of the largest publicly traded energy companies with a market cap exceeding $100 billion and offers a dividend yield of nearly 6% [1] - The company possesses significant competitive advantages, including the longest pipeline network in North America [2] - Enbridge transports approximately 90% of Canada's crude oil exports to the U.S. and about 40% of all crude oil produced in North America, making it a dominant player in the industry [3] Competitive Advantages - Pipelines are the most cost-effective and efficient method for transporting hydrocarbons over land, which enhances Enbridge's infrastructure value [4] - The high upfront costs and lengthy permitting processes for pipeline construction create barriers to entry, allowing Enbridge to enjoy high cash flow once projects are operational [5] - Due to increasing regulations, some of Enbridge's pipelines may face little to no competition in the future [5] Market Considerations - There are potential headwinds for hydrocarbon demand due to climate change and pollution concerns, which could impact Enbridge's revenue model that charges by volume [6] - Despite these challenges, Enbridge remains a viable investment for two main reasons: its substantial dividend yield and stability during bear markets [8][10] Investment Rationale - The company offers a dividend yield of 5.8%, with a history of consistent increases, supported by its toll-like business model that generates strong cash flows [8][9] - Enbridge's stock tends to be less volatile during bear markets, with a beta of around 0.87, indicating relative stability [10] - While the long-term demand for hydrocarbons may be uncertain, Enbridge is still suitable for retirees seeking income and investors looking to preserve capital [11]

Although the midstream energy sector is less vulnerable to oil and gas prices, the outlook for the Zacks Oil and Gas - Pipeline MLP industry remains uncertain. Conservatism in capital expenditures by upstream companies could lower the utilization of midstream assets. Additionally, a significant debt burden continues to hinder the ability of midstream energy companies to fund new projects and weather economic downturns.Despite the challenges, pipeline players are in a stronger position than upstream and down ...

Mick Jagger and the Rolling Stones were right when they sang "You Can't Always Get What You Want." In many cases, we have to be willing to settle for less than what we'd prefer. That's certainly often true with investing. However, sometimes you can get everything you want -- or at least come close to doing so. If you're an income investor, I think Enbridge (ENB 0.73%) just might give you almost everything you could want in a dividend stock. But the company's business extends beyond pipelines. Enbridge ranks ...

Group 1 - Pembina Pipeline reported revenue of $1.59 billion for the quarter ended March 2025, reflecting a 39.2% increase year-over-year [1] - The company's EPS for the quarter was $0.56, slightly up from $0.54 in the same quarter last year [1] - Revenue fell short of the Zacks Consensus Estimate of $1.6 billion, resulting in a surprise of -0.48%, while EPS also missed the consensus estimate of $0.57 by -1.75% [1] Group 2 - Over the past month, Pembina Pipeline's shares returned +9.4%, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Group 3 - Total pipeline volumes reached 2808 million barrels of oil equivalent per day, slightly above the average estimate of 2799.12 million barrels [4] - Conventional pipeline volumes were 1033 million barrels per day, compared to the average estimate of 1052.21 million barrels [4] - Transmission pipeline volumes were 740 million barrels per day, exceeding the average estimate of 707.5 million barrels [4] - Marketing & New Ventures volumes totaled 369 million barrels per day, significantly higher than the estimated 302.01 million barrels [4] - Facilities volumes for gas services were 619 million barrels per day, close to the estimate of 621.53 million barrels [4] - NGL services volumes were 277 million barrels per day, surpassing the average estimate of 264.34 million barrels [4]

Financial Data and Key Metrics Changes - The first quarter was described as a transformational quarter for the company, successfully exiting the soda ash business and simplifying the balance sheet, which is expected to significantly reduce future cash costs [6][10] - The anticipated annual cash costs of running and sustaining the business have been reduced to approximately $425 million to $450 million [19][20] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment is expected to see a significant increase in financial contribution due to new production facilities, Shenandoah and Salamanca, which will add nearly 200,000 barrels of oil per day of incremental production capacity [9][10] - The Marine Transportation segment is on pace to post record earnings in 2025, supported by steady demand and limited new construction in the market [16][18] - The Onshore Transportation and Services segment has seen steady volumes and is expected to increase as new offshore projects commence production [19] Market Data and Key Metrics Changes - Gulf Coast refinery utilization has recovered from approximately 80% in January to roughly 94% in late April, supporting the need for transportation of heavy and intermediate products [17][18] - The demand for moving petroleum products from the Gulf Coast to East and Mid-Atlantic markets remains steady due to inadequate regional refining capacity [18] Company Strategy and Development Direction - The company plans to implement a capital allocation strategy focusing on redeeming high-cost preferred units, paying down debt, and returning capital to unitholders [20] - The management is optimistic about the long-term value creation potential from the offshore expansion projects and the overall midstream energy space [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of mechanical issues affecting production, expecting volume levels to return to normalized levels by the end of the second quarter or third quarter [11][40] - The company believes that deepwater projects are more resilient during low price environments compared to onshore shale plays, with significant capital already invested [14][40] Other Important Information - The Department of Interior's new permitting procedures are expected to expedite the development of domestic energy resources, potentially bringing forward opportunities that were previously slated for later [15] - Ten of the 22 active deepwater drilling rigs in the Gulf of America are working on leases dedicated to the company's pipeline infrastructure [16] Q&A Session Summary Question: Thoughts on capital allocation and distribution - Management indicated a likely flat distribution for the second quarter, with potential adjustments in the third quarter based on project timelines and mechanical issue resolutions [23] Question: Quantifying additional infield and subsea opportunities - Management noted that there are seven active rigs drilling for potential production increases, with typical wells expected to produce 7,000 to 10,000 barrels per day [26][31] Question: Segment margin guidance for offshore segment - Management anticipates that the offshore segment will contribute significantly to annual EBITDA guidance, with OTS and marine segments expected to remain consistent with the first quarter [30] Question: Confidence in resolution of producer issues - Management expressed confidence based on real-time data from producers and noted that producers are incentivized to resolve issues quickly [40] Question: Target leverage ratio and distribution coverage ratio - The long-term target leverage ratio is around four times, with expectations to reach this ratio rapidly as segment margins increase [42]

Financial Data and Key Metrics Changes - The first quarter was described as a transformational quarter for the company, successfully exiting the soda ash business and simplifying the balance sheet, which is expected to significantly reduce future cash costs [5][6] - The anticipated annual cash costs of running and sustaining the business have been reduced to approximately $425 million to $450 million [18][20] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment is expected to see a significant increase in financial contribution due to new production facilities, Shenandoah and Salamanca, which will add nearly 200,000 barrels of oil per day of incremental production capacity [8][9] - The Marine Transportation segment is on pace to post record earnings in 2025, supported by steady demand and limited new construction in the market [15][17] - The Onshore Transportation and Services segment has seen steady volumes and is expected to increase as new offshore projects commence production [18] Market Data and Key Metrics Changes - Gulf Coast refinery utilization has recovered from approximately 80% in January to roughly 94% in late April, supporting the need for transportation of heavy and intermediate products [16][17] - The demand for moving petroleum products from the Gulf Coast to East and Mid-Atlantic markets remains steady due to inadequate regional refining capacity [17] Company Strategy and Development Direction - The company is focused on generating excess cash flow and plans to implement a capital allocation strategy that includes redeeming high-cost preferred units, paying down debt, and returning capital to unitholders [19][20] - The management is optimistic about the long-term value creation potential from the offshore expansion projects and the overall midstream energy space [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of mechanical issues affecting production, with expectations for volume levels to return to normal by the end of the second quarter or third quarter [10][39] - The company believes that deepwater projects are more resilient during periods of low commodity prices compared to onshore shale plays, with significant capital already invested [12][13] Other Important Information - The Department of Interior's new permitting procedures are expected to expedite the development of domestic energy resources, potentially bringing forward opportunities that were previously slated for later [14] - Ten of the 22 active deepwater drilling rigs in the Gulf of America are working on leases dedicated to the company's pipeline infrastructure, indicating a strong strategic position [15] Q&A Session Summary Question: Thoughts on capital allocation and distribution - Management indicated that they are likely to maintain a flat distribution for the second quarter but will consider movements in the quarterly distribution for the third quarter and beyond [23] Question: Quantifying additional infield and subsea opportunities - Management noted that there are several active rigs drilling in fields dedicated to the company, with expectations for additional production in the range of 7,000 to 10,000 barrels per day from new wells [25][26] Question: Segment margin guidance for offshore segment - Management stated that while they do not provide segment guidance, they anticipate that the offshore segment will contribute significantly to overall EBITDA, especially as new projects come online [30] Question: Crude oil price impact on producer activity - Management expressed confidence that producers are incentivized to maintain production despite price fluctuations, citing low marginal lifting costs in the Gulf [40] Question: Target leverage ratio and distribution coverage ratio - The long-term target leverage ratio is around four times, with management confident in reaching this target rapidly as segment margins increase [41][42] Question: Marine segment day rates and new construction - Management indicated that day rates need to increase by 30% to 40% and be sustained for several years to incentivize new construction in the Marine segment [43]

Financial Data and Key Metrics Changes - Kinetic reported first quarter adjusted EBITDA of $250 million, a 7% year-over-year increase driven by process gas volume growth and margin expansion in the Midstream Logistics segment [7][14] - Distributable cash flow was $157 million, and free cash flow reached $120 million [14] - The company affirmed full-year adjusted EBITDA guidance of $1.09 billion to $1.15 billion, expecting a meaningful acceleration in adjusted EBITDA growth during the second half of the year [16][17] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated adjusted EBITDA of $159 million, up 11% year-over-year due to increased process gas volumes and margin expansion from Northern Delaware assets [14] - The Pipeline Transportation segment reported adjusted EBITDA of $94 million, down 2% year-over-year, primarily due to the absence of contributions from Gulf Coast Express following the sale of equity interest [16] Market Data and Key Metrics Changes - Kinetic's operations are primarily focused on the Permian Basin, which is expected to remain resilient despite macroeconomic challenges [9][10] - The company anticipates over 1 billion cubic feet per day of gas growth per year, even if Permian crude production remains flat [10] Company Strategy and Development Direction - Kinetic is focused on providing flow assurance and operational reliability to producer customers, with a strong emphasis on organic and inorganic growth opportunities [10][12] - The company announced a $500 million share repurchase program, reflecting management's confidence in Kinetic's value proposition [13][21] - Future capital expenditures are expected to be discretionary and flexible, with less than $50 million of committed growth capital in 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated volatility and macroeconomic uncertainty but expressed confidence in Kinetic's ability to navigate these challenges [7][20] - The company is seeing some indirect impacts of lower commodity prices, leading to adjustments in gas process volume growth assumptions from approximately 20% to high teens growth [18][19] - Management remains optimistic about the long-term growth outlook, projecting a 10% compound annual growth rate through 2029 [23][26] Other Important Information - Kinetic has made substantial progress on strategic projects, including the commissioning of the King's Landing complex [7][19] - The company has a strong hedging strategy, with approximately 83% of expected gross profit sourced from fixed fee agreements [17][18] Q&A Session Summary Question: Long-term growth drivers - Management highlighted that the 10% compound annual growth rate is supported by contractual resets and growth in New Mexico, with a focus on operational efficiency [23][26] Question: Capital allocation and buybacks - Management confirmed a flexible approach to capital allocation, emphasizing the value seen in the current share price and the potential for M&A opportunities [28][30] Question: Macro environment and CapEx adjustments - Management indicated that further production cuts could lead to adjustments in capital expenditures, but emphasized a customer-specific approach to decision-making [49][52] Question: Commodity exposure and hedging - Management stated that approximately 83% of gross profit is fee-based, with plans to continue hedging against commodity price fluctuations [61][63] Question: Performance of acquired assets - The Barilla Draw acquisition has exceeded expectations, with significant activity anticipated in the coming years [105][106]

Kinetik (KNTK) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Good morning. Thank you for attending today's Kinetic First Quarter twenty twenty five Results Conference Call. My name is Tamiya, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Alex Durkey with Kinetic. You may proceed. Speaker1 Thank you. Good morning, a ...

South Bow Corporation (NYSE:SOBO) Q4 2024 Earnings Conference Call March 6, 2025 10:00 AM ET Company Participants Martha Wilmot - Director of Investor Relations Bevin Wirzba - President and Chief Executive Officer Van Dafoe - Senior Vice-President and Chief Financial Officer Richard Prior - Senior Vice-President and Chief Operating Officer Conference Call Participants Maurice Choy - RBC Capital Markets Aaron MacNeil - TD Cowen Robert Hope - Scotiabank Patrick Kenny - MBS Robert Catellier - CIBC Capital Mark ...