European Gas Price Rises After Israeli Strikes Alarm Markets
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Wall Street Journal
24 minutes ago
- Wall Street Journal
Predatory Sparrow Hacks Iran's Financial System
The 12-day war between Israel and Iran featured an unprecedented cyber campaign against the Islamic Republic's financial system. Previous state-sponsored hacks aimed to steal data, ransom assets or disrupt operations. Israel did something far more radical: It destroyed digital assets and banking records to undermine the regime. Israel's success offers the Trump administration new tools for confronting the Iranian threat. Israel first struck Bank Sepah, Iran's oldest and largest state-owned bank. The central financial institution of the Islamic Revolutionary Guard Corps, Bank Sepah serves Iran's military and security forces, processing everything from salaries and pensions to sanctions-evading missile funds. Predatory Sparrow, a hacker group linked to the Israeli government, claimed credit for erasing Bank Sepah's banking data and rendering its systems inoperable. Automated teller machines went dark, and online and in-branch services shut down. Salary and pension payments halted.
Yahoo
5 hours ago
- Yahoo
5 Reasons to Buy Energy Transfer Stock Like There's No Tomorrow
Key Points Energy Transfer has improved its balance sheet and its contract structure. The stock has a yield over 7% with a safe and growing distribution. The company also is seeing solid opportunities due to increasing natural gas demand. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) isn't a flashy name, but it has one of the best risk-reward profiles in the market right now and a high yield. It's one of the largest holdings in my portfolio. Here are five reasons to buy the midstream energy company's stock like there's no tomorrow. Keep in mind, however, that investing in a master limited partnership means you'll get a Schedule K-1 tax form and need to take some extra steps with your tax filing. 1. A rock-solid financial position After getting overextended during its last growth cycle, Energy Transfer spent the past few years cleaning up its balance sheet. It cut its distribution in 2020 to reduce leverage, and since then, it has paid down debt and funded much of its growth through free cash flow. Today, leverage is at the low end of the pipeline company's target range. On its most recent call with analysts, management said the balance sheet is the strongest it has ever been. That gives it the flexibility to invest in growth projects and return capital to shareholders without the worry of becoming overextended once again. 2. Predictable cash flow Roughly 90% of Energy Transfer's earnings before interest, taxes, depreciation, and amortization (EBITDA) is from fee-based services, where it has no exposure to commodity prices. And many of its contracts are take-or-pay, meaning customers pay whether or not they use the service. That creates stable, recurring cash flow, which is exactly what supports its distribution and growth projects. Last quarter, Energy Transfer said it had a high percentage of take-or-pay contracts. That also helps give the company some of the best visibility it has ever had. 3. A high yield with a safe and growing distribution The company's stock offers a forward yield of 7.5% as I write this, and it's well covered. It is generating twice the cash it needs to support its distribution. Last quarter's distributable cash flow coverage multiple was 2.1, which gives management plenty of room to continue to increase it. It has now raised its distribution for 13 consecutive quarters, and it's well above pre-2020 levels when it had to cut it. Given its coverage ratio, strong balance sheet, and take-or-pay contracts, Energy Transfer is well positioned to grow its distribution in the years ahead. Management plans to raise it by 3% to 5% annually. 4. Increasing natural gas demand is a catalyst Not only has Energy Transfer strengthened its balance sheet and improved its contract structure, the company is also back in growth mode. It plans $5 billion in capital expenditures this year, up from $3 billion last year, and is targeting mid-teens returns on its project slate. These aren't speculative projects; they are tied to real demand with long-term contracts in place. One of its biggest projects is the Hugh Brinson pipeline, which is designed to move natural gas out of the Permian Basin in West Texas to meet growing power demand elsewhere in the state. Energy Transfer has also made progress on its long-delayed Lake Charles liquified natural gas (LNG) project and signed a cost-sharing deal with MidOcean Energy and several other agreements. If the project proceeds, it will open up a new growth avenue tied to LNG exports, with demand expected to rise 60% by 2040. At the same time, artificial intelligence (AI) data centers are becoming a potential source of incremental demand. The company signed a deal with CloudBurst to supply gas to a new AI-focused data center it plans to build in Texas. Management has also said it's in active discussions with more than 60 power plants and over 200 data centers across 14 states. These opportunities require relatively little capital and can generate quick returns. 5. The stock looks too cheap Even with everything going right, Energy Transfer still trades at a forward enterprise-value-to-EBITDA multiple of just 8. That's well below its historical average and a discount to most of its peers. Meanwhile, from 2011 to 2016, midstream master limited partnerships (MLPs) traded at an average EBITDA multiple of around 13.7. Investors still haven't fully adjusted to how much stronger Energy Transfer's business is today. The company has cleaned up its balance sheet, improved its contracts, and is pursuing disciplined growth with solid returns. It offers growth to go along with an enticing yield, making it a solid stock for income-focused investors. Do the experts think Energy Transfer is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Energy Transfer make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Geoffrey Seiler has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 5 Reasons to Buy Energy Transfer Stock Like There's No Tomorrow was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Yahoo
4 Key Signs Gas Prices Will Spike Due to Shortages in the Middle East
A major barometer for how many Americans feel about the economy is fuel prices. Rising prices at the pump can squeeze an already tight budget. Thankfully, GasBuddy reports that gas prices have been relatively stable in recent months. Read More: Find Out: Rising conflicts in the Middle East may threaten that stability. Recent actions by Israel and Iran could directly impact what Americans pay at the pump. Here are four key signs that gas prices will spike due to shortages by oil-producing countries in the Middle East. Iran Closing the Strait of Hormuz Americans may have heard reports of Iran considering closing access to the Strait of Hormuz. The Strait provides the only route from the Persian Gulf to the open ocean. Iran controls the northern side of the Strait. Closing access to it could have a significant impact on the price of oil. The New York Times indicated why this would be important, noting, 'A quarter of the world's oil and 20 percent of the world's liquefied natural gas passes through the Strait of Hormuz, so mining the choke point would cause oil and gas prices to soar.' While most of the oil going through the Strait goes to Asia, America would feel the impact of a move with increased energy costs. Discover Next: Continued Tensions Any time military action occurs, it can lead to a potential increase in cost, particularly when commodities are impacted. Continued hostilities in the Middle East will only exacerbate the risk of increased oil prices. 'With Israel and Iran trading attacks, oil prices have surged to multi-month highs — setting the stage for additional price hikes at gas pumps across the country. As long as tensions in the Middle East continue to escalate, the risk of further impacts on oil prices remains high,' said Patrick De Haan, head of petroleum analysis at GasBuddy, in an interview with Fortune. De Haan noted Americans can expect prices to increase by $0.10 to $0.20 per gallon in the near term, if not more. 'Motorists should prepare for what will likely be modest price increases, for now, but the situation has the potential to worsen at any moment,' said De Haan. Possible Regime Change Military action typically poses a risk to the price of goods, but regime change can be even more detrimental. Iran's Supreme Leader, Ayatollah Ali Khamenei, had not been publicly heard from for nearly a week after the United States bombed sites in Iran. Added to that, President Trump hinted at a possible regime change. And historically, regime changes have significantly increased oil prices Regime change could send oil prices significantly higher, particularly if it results in a loss of oil from Iran. 'The main concern is any disruption to energy flows and global confidence. A complete loss of Iranian oil, which accounts for 4% of global production, could push crude to $100 per barrel,' according to J.P. Morgan. OPEC+ Cuts Production OPEC and OPEC+ countries account for roughly 60% of the world's crude oil, according to the U.S. Energy Information Administration. There have been no indications that nations will cut production in light of recent actions in the Middle East. However, any move to cut production typically results in increased costs at the pump. Worse yet, the Strategic Petroleum Reserve (SPR) is at historically low levels, partly due to actions taken by the Biden administration. Additionally, there are no plans to replenish it. The combination of not refilling the SPR could prove costly if OPEC does reduce production. 'The decision not to refill the emergency reserve is significant for U.S. consumers and energy security. The SPR's depleted status limits the government's ability to intervene during supply shocks or price spikes, potentially leaving American families and industries more exposed to global oil market volatility,' according to Newsweek. While gas prices have been relatively stable of late, activities in the Middle East could cause prices to spike. It's best to stay informed and identify ways to save at the pump for Americans concerned with gas costs. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Types of Cars Retirees Should Stay Away From Buying Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 4 Key Signs Gas Prices Will Spike Due to Shortages in the Middle East Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
