Latest news with #DelawareBasin
Yahoo
4 days ago
- Business
- Yahoo
Better Dividend Stock: Western Midstream vs. Energy Transfer
Key Points Energy Transfer and Western Midstream Partners have high distribution yields. The MLPs back their payouts with stable cash flow and strong financial profiles. Both have solid growth prospects. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) and Western Midstream Partners (NYSE: WES) are among the largest master limited partnerships (MLPs). These midstream companies generate stable cash flow, much of which they pay out to investors. Energy Transfer's distribution yields 7.5%, and Western Midstream's is over 9%. Most investors will likely prefer to own only one of these MLPs, especially due to the potential tax complications associated with the annual Schedule K-1 federal tax forms they send to investors. Here's a look at which MLP is the better buy for those seeking sustainable, growing dividend income. Drilling down into their operations Energy Transfer and Western Midstream operate diversified energy midstream networks. Western Midstream serves the Delaware, DJ, and Powder River basins. It primarily gathers, treats, processes, and transports natural gas, NGLs, and crude oil, as well as provides water disposal services. It generates fee-based income secured by long-term contracts. Energy Transfer offers broader diversification, as it serves a range of commodities, including natural gas, NGLs, crude oil, and refined products. Its integrated wellhead-to-water system features over 130,000 miles of pipelines linking gathering and processing assets, storage facilities, and export terminals. About 90% of its earnings are fee-based. Energy Transfer's larger, more diversified infrastructure business model reduces risk and increases its growth potential. There are other notable differences between these MLPs. Oil giant Occidental Petroleum is one of Western Midstream's largest customers and holds a 44.8% direct interest in the MLP, as well as a 2% stake in its operating company. Energy Transfer, on the other hand, doesn't have a single significant customer or a large controlling shareholder. Instead, the company controls two other MLPs (Sunoco and USA Compression), which supply it with additional income and enhance its growth profile. Comparing their financial positions A high dividend yield can sometimes signal financial distress, but that's not the case with these MLPs. Energy Transfer is in the best financial position in its history. Its leverage ratio is now in the lower half of its target range of 4.0-4.5 times. Additionally, the MLP generates enough cash to cover its payout by more than two times, providing it with the flexibility to invest in growth projects and make acquisitions. Western Midstream also maintains a strong financial position, backed by a leverage ratio currently below 3.0x. While Western Midstream has a higher payout ratio, it expects to generate sufficient free cash flow this year to cover its capital expenditures with some room to spare. As a result, it also has ample financial flexibility to make bolt-on acquisitions and approve additional organic expansion projects. A look at their growth profiles Energy Transfer plans to invest $5 billion in growth capital projects this year, including a major new natural gas pipeline, several additional gas processing plants, and increased export capacity. Those projects should fuel accelerated earnings growth in the 2026-2027 time frame. Meanwhile, the company has several more expansion projects under development, including its Lake Charles LNG export terminal. Energy Transfer also has the financial capacity to continue its industry consolidation strategy (it typically makes one multibillion-dollar acquisition per year to enhance its capabilities and drive growth). These growth investments support Energy Transfer's outlook for 5% earnings growth this year, which should accelerate in 2026. That backs its plans to increase its high-yielding distribution by 3% to 5% annually. Meanwhile, Western Midstream expects its 2025 capital spending to be between $625 million and $775 million, with 65% allocated to growth initiatives. It aims to use its financial flexibility for additional organic expansions and accretive bolt-on acquisitions as opportunities arise. These growth investments should drive mid-single-digit cash flow and distribution growth. High-quality, high-yielding investments Western Midstream and Energy Transfer offer high-yielding distributions, backed by stable cash flows and strong financial profiles. As a result, either would be a solid option for those seeking to generate passive income. However, Energy Transfer's greater diversification reduces risk and provides it with more growth potential. Those features make it a better choice for investors seeking a sustainable, growing income stream. 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 1,034% vs. just 180% for the S&P — that is beating the market by 853.75%!* 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 $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* 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 21, 2025 Matt DiLallo has positions in Energy Transfer. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Better Dividend Stock: Western Midstream vs. Energy Transfer was originally published by The Motley Fool
Yahoo
6 days ago
- Business
- Yahoo
Producers Midstream II to enhance Delaware Basin system
Producers Midstream II has announced definitive agreements for a significant expansion of its Delaware Basin system, which will increase processing capacity by 50%. This second-phase development will raise capacity from 60 million cubic feet per day (mcf/d) to 90mcf/d and include an advanced acid gas injection well. The expansion, expected to be fully operational by the fourth quarter (Q4) this year, will enable the processing of a wider range of gas compositions including hydrogen sulphide (H₂S), carbon dioxide (CO₂), and nitrogen (N₂), ensuring consistent delivery to downstream markets. This follows the successful first phase, which started operations in Q2, just eight months after the final investment decision (FID). A portfolio company of Tailwater Capital, Producers Midstream's phased development strategy allows for rapid and capital-efficient scalability by leveraging its existing asset base. Producers Midstream president and CEO Matt Flory said: 'Strategically expanding within our core footprint enhances operational efficiency, maximises asset utilisation, and provides immediate value to our customers and stakeholders. 'Located in a high-growth corridor of the Delaware Basin, this expansion provides critical infrastructure to support our partners' development objectives.' Further expansion projects are being evaluated for quick deployment to meet growing demand. To ensure full support for field development, Producers Midstream has also secured long-term residue and natural gas liquids takeaway agreements. In December last year, Producers Midstream II secured a $400m expanded credit facility to support its strategic growth. This initiative, led by Texas Capital Bank, Bank of Oklahoma, Cadence Bank, US Bank and Wells Fargo Bank, will fund development projects across the Mid-Continent/Eastern Permian Basin and new projects in the Delaware Basin. "Producers Midstream II to enhance Delaware Basin system" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
21-07-2025
- Business
- Yahoo
Why Permian Resources (PR) is a Good Investment for Dividend Income
Permian Resources Corporation (NYSE:PR) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now. A row of massive oil rigs in a desert landscape, against a setting sun. The strategic advantage of Permian Resources Corporation (NYSE:PR) lies in its low breakeven cost of $40 per barrel, which allows the company to remain profitable and pay dividends even during periods of commodity price volatility. The company announced a quarterly dividend of $0.15 per share in May and boasts an annual dividend yield of 4.85% as of the writing of this piece. In Q1 2025, Permian Resources Corporation (NYSE:PR) reported the highest free cash flow per share in the company's history at $0.54 per share, driven by lower per-unit cost and solid production performance. These numbers are expected to receive a boost as the oil and gas producer recently completed the acquisition of Delaware Basin leasehold and royalty interests from APA Corporation, adding approximately 12,000 Boe a day, 13,320 net acres, and 8,700 net royalty acres to its portfolio. Moreover, these acquired locations have a breakeven price of as low as $30 per barrel, allowing Permian resources to generate in excess of 5% free cash flow per share accretion in the near-term, midterm, and long-term. Artisan Partners stated the following regarding Permian Resources Corporation (NYSE:PR) in its Q1 2025 investor letter: 'We made one new purchase this quarter, adding Permian Resources Corporation (NYSE:PR), an independent oil and gas company. PR is focused solely on the Delaware Basin of West Texas and southwestern New Mexico—the most prolific oil-producing region in the US. The founders and co CEOs, who also have large ownership interests in the business, have sought to build a business that can produce substantial free cash flow, return capital to shareholders and generate attractive equity returns across varied commodities price environments. To achieve these goals, PR has pursued best-in-class operations and responsible capital stewardship by thoughtfully acquiring assets it believes are undervalued and divesting acreage it believes would be better in someone else's hands, while meaningfully returning capital to shareholders in the form of dividends. We always seek to align ourselves with shareholder-oriented management teams, but this is even more critical when investing in mid-sized energy companies given their dependence on the underlying commodity prices and minimal diversification by business and geography as well as the sector's general predilection for reinvesting capital for growth rather than returns. Shares were rangebound for much of 2024 as macro fears have weighed on oil prices and energy sector stocks, giving us an opportunity to purchase a strong operator at a favorable price.' Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas company with operations focused in the Permian Basin, with assets concentrated in the core of the Delaware Basin. While we acknowledge the potential of PR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into. Disclosure: None. 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
15-07-2025
- Business
- Yahoo
Matador Resources Company Declares Quarterly Cash Dividend
DALLAS, July 15, 2025--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) ("Matador") today announced that its Board of Directors declared a quarterly cash dividend of $0.3125 per share of common stock payable on September 5, 2025 to shareholders of record as of August 15, 2025. About Matador Resources Company Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties. For more information, visit Matador Resources Company at Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. "Forward-looking statements" are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "could," "believe," "would," "anticipate," "intend," "estimate," "expect," "may," "should," "continue," "plan," "predict," "potential," "project," "hypothetical," "forecasted" and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, share repurchases, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, disruption from Matador's acquisitions or dispositions making it more difficult to maintain business and operational relationships; significant transaction costs associated with Matador's acquisitions or dispositions; the risk of litigation and/or regulatory actions related to Matador's acquisitions or dispositions, as well as the following risks related to financial and operational performance: general economic conditions; Matador's ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of Matador's midstream oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on Matador's operations due to seismic events; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, capital markets, available borrowing capacity under its revolving credit facilities and otherwise; the operating results of and the availability of any potential distributions from our joint ventures; weather and environmental conditions; and the other factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador's filings with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section of Matador's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. View source version on Contacts Mac SchmitzSenior Vice President – Investor Relationsinvestors@ (972) 371-5225 Sign in to access your portfolio
Globe and Mail
15-07-2025
- Business
- Globe and Mail
Can Systematic Investment Strengthen Devon Energy's Growth Trajectory?
Devon Energy Corporation DVN, a leading independent oil and gas producer, has leveraged systematic capital investment to solidify its competitive position in the Zacks Oil and Gas – Exploration and Production – United States industry. The company's disciplined capital allocation framework emphasizes high-return projects, especially within its core acreage in the Delaware Basin, which supports sustainable production growth while maintaining cost efficiency. Devon's capital investment strategy is centered on maintaining production stability and enhancing free cash flow generation. By targeting investments with short-cycle paybacks, the company ensures flexibility to navigate commodity price volatility while optimizing operational margins. This strategy also allows Devon to rapidly scale production when market conditions are favorable without incurring excessive debt. Devon invested $3.64 billion in 2024 and aims to invest in the range of $3.7-$3.9 billion in 2025. The company's commitment to shareholder returns is directly tied to its capital discipline. Devon deploys excess free cash flow through a fixed-plus-variable dividend model, share buybacks and targeted reinvestments. This capital return strategy, backed by efficient spending, strengthens investor confidence and positions the company as a reliable income-generating asset. Looking ahead, Devon's continued focus on capital efficiency and strategic reinvestment in high-quality assets positions it well to benefit from long-term energy demand. As global supply remains constrained and oil prices stay resilient, Devon's methodical investment approach ensures both operational resilience and shareholder value creation. Oil & Gas Companies Are Making Long-Term Investments ExxonMobil XOM plans to invest approximately $140 billion through 2030 in high-return projects, with a strong focus on expanding its presence in the Permian Basin. The company anticipates generating returns exceeding 30% over the life of these investments. Its strategic position in the basin was further strengthened by the acquisition of Pioneer Natural Resources. Occidental Petroleum OXY aims to invest in the range of $7.2-$7.4 billion in 2025, out of which $3.5-$3.7 billion will be in the Permian Basin. By focusing capital on tier-one assets and technology-driven enhancements, Occidental has improved well productivity and reduced lifting costs across its portfolio. DVN Stock Returns Better Than Industry Devon's return on equity ('ROE') was better than the industry average in the trailing 12 months. ROE of DVN was 21.9% compared with the industry average of 16.74%. DVN's Shares Trading at a Discount Devon's shares are inexpensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 3.59X compared with the industry average of 11.31X. DVN's Price Performance Devon's shares have gained 13.3% in the past three months compared with the industry's rise of 17%. DVN's Zacks Rank DVN currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report
