Enterprise Products Partners (NYSE: EPD ) is a leading Master Limited Partnership or "MLP" and I believe it is a "best of breed" pick for this sector for a number of reasons. This MLP has a vast network of pipelines and it focuses on transporting, processing, and storingLong-time stock market investor focused on strategic buying opportunities with dividend and value stocks. This investment strategy has resulted in a near 5 star rating on Tipranks.com and over 9,000 followers on Seeking Alpha. Follow me on T ...

Q2 2025 Performance - Adjusted EBITDA for Q2 2025 was $27.1 million[3], compared to $31.7 million in Q2 2024[3, 4], a decrease of 14.5% - The Transportation segment's Adjusted EBITDA decreased from $11.2 million in Q2 2024 to $8.5 million in Q2 2025[3, 4], a decrease of 24.1% - The Specialty Products segment's Adjusted EBITDA decreased from $5.7 million in Q2 2024 to $4.4 million in Q2 2025[3, 4], a decrease of 22.8% - The Sulfur Services segment's Adjusted EBITDA decreased from $10.6 million in Q2 2024 to $9.7 million in Q2 2025[3, 4], a decrease of 8.5% - The Terminalling & Storage segment's Adjusted EBITDA increased from $8.0 million in Q2 2024 to $8.4 million in Q2 2025[3, 4], an increase of 5% Full-Year 2025 Guidance - The company projects a full-year 2025 Adjusted EBITDA of $109.1 million[5] - Total segment adjusted EBITDA is projected to be $123.8 million[5] - Maintenance capital expenditures are estimated at $20.5 million, and plant turnaround costs at $5.4 million[5] - Total distributable cash flow is projected to be $27.8 million[5] - Total adjusted free cash flow is projected to be $18.8 million[5]

Kinder Morgan (KMI) came out with quarterly earnings of $0.28 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this oil and natural gas pipeline and storage company would post earnings of $0.35 per share when it actually produced earnings of $0.34, delivering a surprise of -2.86%.Over the last four quarters, the company has not been able to surpass consensus ...

Industry Overview - Natural gas distribution companies transport natural gas from production regions to consumers across the U.S., utilizing extensive underground pipeline networks [1] - The industry is transitioning towards cleaner energy, with natural gas serving as a critical bridge fuel for decarbonization goals [1] - The U.S. has 3,353 trillion cubic feet of natural gas and operates a 2.6-million-mile pipeline network, but faces challenges from aging infrastructure and competition from alternative energy sources [3] Future Outlook - U.S. Energy Information Administration (EIA) projects an increase in domestic dry natural gas production in 2025, particularly in the Permian and Eagle Ford regions [4] - LNG export volumes are expected to rise by 22.7% year-over-year in 2025 and 9.6% in 2026, highlighting the importance of gas pipelines for transportation to export terminals [4] - Interest rates have declined by 100 basis points, benefiting capital-intensive utilities planning infrastructure upgrades [5] Investment Opportunities - Natural gas utilities are investing approximately $37 billion annually to enhance the reliability of distribution and transmission systems, indicating long-term growth potential [6] - The Zacks Utility Gas Distribution industry ranks 52, placing it in the top 21% of the 244 Zacks industries, reflecting strong near-term prospects [7][8] Performance Metrics - The Gas Distribution industry has outperformed the S&P 500 and the Utility sector over the past year, with an 18.1% gain compared to 10.8% for the S&P 500 [9] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.12X, lower than the S&P 500's 16.96X and the sector's 15.09X, suggesting a potential valuation opportunity [12] Company Highlights - **Atmos Energy Corporation (ATO)**: Plans to invest $3.7 billion in fiscal 2025, with a current dividend yield of 2.23% and long-term earnings growth projected at 7.19% [18][19] - **UGI Corporation**: Expected to invest $3.7-$4.1 billion through fiscal 2027, with a dividend yield of 4.12% and long-term earnings growth of 5.2% [22][23] - **ONE Gas Inc. (OGS)**: Aims to invest $4 billion through 2029, with a dividend yield of 3.64% and long-term earnings growth of 5.6% [26][27] - **Northwest Natural Holding Company (NWN)**: Plans to invest $2.5-$2.7 billion through 2030, with a dividend yield of 3.64% [30][31]

The Zacks Oil & Gas – Production & Pipelines industry plays a vital role in supporting the nation’s energy security and economic stability. The United States relies heavily on an extensive and efficient pipeline network to transport hydrocarbons from major production regions, like the Permian, Bakken, and Marcellus basins, to refineries, export terminals and consumers. The long-term investment outlook for this industry looks bright due to steady domestic energy consumption, the growth of liquefied natural g ...

Core Viewpoint - Energy Transfer LP (ET) units are currently undervalued compared to the Zacks Oil and Gas Production Pipeline – MLB industry, with an EV/EBITDA ratio of 10.25X, below the industry average of 11.67X, indicating a discount relative to peers [1][2]. Company Overview - Energy Transfer operates an extensive pipeline network exceeding 130,000 miles across 44 states in the U.S. and is actively pursuing growth opportunities to meet increasing power demands [8]. - The company has consistently executed one major accretive acquisition annually since 2021, enhancing its infrastructure, particularly in the Permian Basin [8]. Revenue Generation - Nearly 90% of Energy Transfer's revenues come from fee-based contracts related to transportation and storage services, ensuring stable cash flows and reducing exposure to commodity price fluctuations [9]. - The company has significant export capabilities, with natural gas liquids (NGL) and crude oil export capacities exceeding 1.1 million and 1.9 million barrels per day, respectively [10]. Financial Performance - Energy Transfer's current quarterly cash distribution rate is 32.75 cents per common unit, with management raising distribution rates 14 times in the past five years, resulting in a payout ratio of 101% [12]. - The Zacks Consensus Estimate indicates year-over-year earnings growth of 9.38% for 2025 and 0.39% for 2026 [15]. Management and Insider Ownership - Management and insiders own nearly 10% of Energy Transfer units, with significant purchases totaling over 44 million units worth $468 million from January 2021 to February 2025, indicating confidence in the company's future [13][14]. Market Position - Energy Transfer's asset base is strategically distributed across key U.S. production basins, providing strong earnings support through a diversified portfolio of oil and gas pipelines, gathering and processing facilities, and storage assets [11]. - The company is well-positioned to benefit from the rising production of oil, natural gas, and natural gas liquids in the U.S. [18].