Latest news with #GenesisEnergy
Yahoo
4 days ago
- Business
- Yahoo
The Smartest High-Yield Midstream Stocks to Buy With $2,000 Right Now
Key Points Energy Transfer offers a strong combination of a high yield and solid potential growth. Enterprise Products Partners is a solid "sleep-well-at-night" stock. Genesis Energy has the potential to be a strong turnaround story. 10 stocks we like better than Energy Transfer › If you're looking to put $2,000 to work in this market, midstream energy stocks are a smart place to look. They tend to offer stable, fee-based cash flows, have high yields, and are seeing good growth opportunities. The sector is also trading well below historical valuations compared to a decade ago, despite the companies being in better financial shape. Let's look at three smart midstream investment options to buy right now. Energy Transfer In my view, Energy Transfer (NYSE: ET) is one of the most compelling risk/reward stocks in the market today, which is why it's one of my largest personal holdings. It combines a high yield, improving financial profile, and solid growth opportunities. Despite this, it also trades at one of the lowest valuations in the space. The company has spent the past few years improving its balance sheet and getting in better financial shape, and now it's set to reenter growth mode. It cut its distribution back in 2020 to get its debt under control, and since then, it's used free cash flow to help fund growth and lower its leverage. Its leverage is now at the low end of its targeted range, and management recently called its balance sheet the strongest it's ever been. That gives it flexibility as it enters growth mode, something it didn't have during its last big investment cycle. At the same time, 90% of its EBITDA (earnings before interest, taxes, depreciation, and amortization) is fee-based, with many contracts structured as take-or-pay. That gives it a recurring revenue stream that is largely insulated from commodity prices. Last quarter, its distributable cash flow (operating cash flow minus maintenance capital expenditures) covered its distribution by more than 2x, which leaves plenty of room for continued hikes. Management has already raised the distribution for 14 straight quarters, taking it back above pre-cut levels, and is targeting 3% to 5% annual growth going forward. Energy Transfer is also back in growth mode, with $5 billion in growth project spending planned this year compared to $3 billion last year. This includes projects aimed at supplying natural gas to artificial intelligence (AI) data centers and liquified natural gas (LNG) exports, which are two secular trends just getting started. Despite all of this, the stock trades at a forward enterprise value-to-EBITDA multiple of just 8, which is the most common method for valuing midstream stocks. That's too cheap for a stock with this kind of financial strength, a 7.5% yield, and strong upside potential. As such, this is a stock that belongs in long-term portfolios. Enterprise Products Partners Enterprise Products Partners (NYSE: EPD) is the type of company you can build a portfolio around. In fact, it's one of the stocks that I've held the longest. It has a long track record of distribution growth, operates in attractive markets, and runs a conservative balance sheet. It's not a stock that is going to double in a year, but it can provide you with a steady, rising income stream over a long period of time. Enterprise has increased its distribution for 26 straight years, and it has a current yield of around 6.9%. It raised its payout nearly 4% last quarter, and I would expect it to increase it by a similar percentage moving forward. That's the kind of compounding that adds up in a big way over time. Enterprise's business is also built for consistency. Historically, around 85% of cash flow comes from fee-based contracts, with many of them structured with take-or-pay terms and annual inflation escalators. This helps provide steady cash flows even in volatile energy markets. One of Enterprise's strongest areas is natural gas liquids (NGLs), where it's one of the biggest integrated players in the country. It operates across the entire value chain -- from gathering to processing to exports -- and demand for NGLs continues to grow globally. The company has always run a conservative balance sheet. Leverage sits at just over 3x, and the distribution is well covered with a 1.7x coverage ratio. It largely self-funds growth, so there's no need to tap the capital markets for every project. For long-term investors, Enterprise is a "sleep-well-at-night" stock. Genesis Energy Genesis Energy (NYSE: GEL) doesn't have the massive integrated midstream systems that Energy Transfer and Enterprise have, nor their track records. However, it's in the midst of a strategic shift that could unlock a lot of value. For investors willing to stomach a bit more risk, it has strong potential upside. One of my best midstream investments of all time was Crestwood (since bought by Energy Transfer), and Genesis has similar vibes. The company's big move came when it sold its soda ash business, bringing in $1.4 billion in proceeds. Genesis immediately used that to clean up its balance sheet, retiring high-cost debt and preferred units. UBS estimates that this move will save the company $84 million a year in interest expense and preferred dividends, helping lead to a meaningful boost to cash flow. The company's focus will now shift to its offshore pipeline assets. Two large deepwater projects in the Gulf of Mexico with connections to its offshore pipeline system are set to come online soon. Together, they could add up to $150 million in annual operating profit. At the same time, its marine transportation business is on track for record earnings this year, while offshore volumes are recovering from prior mechanical issues. All of this positions Genesis for much stronger cash flow going forward. Right now, the stock's yield sits at around 3.9%, but as these new projects ramp up, Genesis should have room to raise the distribution materially over time. This isn't the safest midstream stock you can buy, but it may have some of the biggest upside, even after its strong run this year. 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, Enterprise Products Partners, and Genesis Energy. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. The Smartest High-Yield Midstream Stocks to Buy With $2,000 Right Now 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
10-07-2025
- Business
- Yahoo
Genesis Energy, L.P. (GEL): A Bull Case Theory
We came across a bullish thesis on Genesis Energy, L.P. on by Ipartners. In this article, we will summarize the bulls' thesis on GEL. Genesis Energy, L.P.'s share was trading at $17.36 as of June 27th. GEL's trailing P/E was 41.53 according to Yahoo Finance. A towering deepwater pipeline pump emerging from a body of water at sunset, symbolizing the company's dedication to offshore logistics. Genesis Energy (GEL) offers a highly asymmetric investment opportunity following the March 2025 sale of its soda ash business to WE Soda Ltd. for an enterprise value of $1.425 billion—over 10x trough EBITDA. This transaction significantly improved GEL's capital efficiency by reducing debt and eliminating ~$203 million in annual cash outflows (interest, maintenance capex, and preferred dividends), exceeding the $140 million EBITDA contribution from soda ash and thus making the deal cash-flow accretive by ~$63 million. With growth capex largely complete, GEL's focus has now shifted toward capital returns and deleveraging, supported by management's commitment to a shareholder-friendly capital allocation strategy. The company anticipates generating ~$2.50/share in free cash flow by 2026, with a path to a $1.50 dividend next year and potential further hikes as preferreds are retired. Current operations are underpinned by stable cash flows from its marine, pipeline, and sulfur businesses—segments with minimal maintenance capex—and potential asset sales could accelerate deleveraging. Furthermore, the Shenandoah and Salamanca developments, ramping up in mid-2025, are expected to deliver $110 million in contracted EBITDA at conservative production levels. Upside to guidance exists, as operators anticipate outperforming base case volumes. Longer-term, tiebacks like Monument and Shenandoah South could unlock up to 600 million barrels of P50 reserves, fully dedicated to GEL's pipeline infrastructure, ensuring years of robust offshore cash flow. GEL's marine segment, already a discount to peers, could benefit from rising barge rates due to structural supply constraints. With a potential doubling of the stock price and low execution risk, GEL presents a compelling rerating story. Previously, we covered a on Golar LNG (GLNG) by unPopular Investing in June 2025, which highlighted the company's pivot to a de-risked FLNG model with long-term contracts and strong ESG positioning. The company's stock price has depreciated by approximately 0.71% since our coverage. This is because the thesis hasn't yet played out. Ipartners emphasizes GEL's near-term cash flow strength and asset monetization. GEL isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of GEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
Globe and Mail
10-07-2025
- Business
- Globe and Mail
Genesis Energy, L.P. Declares Quarterly Distribution
Genesis Energy, L.P. (NYSE: GEL) announced today that the Board of Directors of its general partner declared a quarterly cash distribution to be paid to Genesis common unit holders and Class A Convertible Preferred unit holders with respect to the quarter ended June 30, 2025. Each holder of common units will be paid a quarterly cash distribution of $0.165, or $0.66 on an annualized basis, for each common unit held of record. Each holder of preferred units will be paid a quarterly cash distribution of $0.9473, or $3.7892 on an annualized basis, for each preferred unit held of record. These quarterly distributions will be paid on Thursday, August 14, 2025 to holders of record at the close of business on Thursday, July 31, 2025. Genesis will announce its earnings for the second quarter of 2025 on Thursday, July 31, 2025, before the New York Stock Exchange opens for trading. Following the announcement, the partnership will host a conference call at 9:00 a.m. CDT with analysts and investors to discuss its earnings. The call will be webcast live on the Internet and may be accessed through the 'Investors' section of the partnership's website at A re-play of the webcast will be available following the conference call and may be accessed approximately one hour after completion of the call. Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis' operations include offshore pipeline transportation, marine transportation, sulfur services and onshore facilities and transportation. Genesis' operations are primarily located in the Gulf Coast region of the United States and the Gulf of America. This press release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of Genesis Energy's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Genesis Energy's distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. Nominees are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors.
Scoop
09-07-2025
- Business
- Scoop
New Zealand Energy Companies Explore The Feasibility Of Importing LNG
Following the rapid decline in the availability of gas for electricity generation, a group of major New Zealand energy companies have collaborated to explore the option to import liquefied natural gas (LNG) and assessed the role LNG could play to meet New Zealand's future gas demand. Clarus, Contact Energy, Genesis Energy, Meridian Energy, and Mercury, commissioned two studies, looking at both conventional-scale solutions as used across the globe, as well as smaller scale options. Paul Goodeve, Chief Executive for Clarus said, 'This work aims to provide New Zealand with a robust and clear-eyed evaluation of LNG import feasibility, and while both options are technically feasible, they each come with very different costs and benefits.' The studies were carried out between September 2024 and May 2025 by international LNG experts, Gas Strategies (from the United Kingdom) that has advised previously on similar projects and has been able to provide their international expertise and knowledge, along with engineering consultancy Wood Beca (NZ). The reports show that a gas import option may be technically feasible, though more challenging than anticipated. Study partners have shared the reports with government officials, whose support would be necessary for any option to proceed. The study partners emphasised that LNG is just one of several options being explored to support energy resilience. Investment in renewables, demand-side management and electrification remain central to the country's low carbon energy transition. 'Ultimately, our energy future will be shaped by a mix of energy options and this work ensures the option of LNG is properly understood,' Goodeve said. Key Findings: Conventional-scale LNG options provide high levels of flexibility – but at a cost LNG is equivalent to our domestic natural gas (once LNG is regasified) and can be transported using existing gas networks and used in existing gas appliances. The global LNG industry has grown considerably over recent years, with around 50 countries now relying on LNG imports to meet their domestic energy needs. The global LNG trade has standardised around large vessels (carrying around 170,000– 180,000m³, or 4.5 PJ of gas), with much of the storage and regasification equipment located on permanently moored ships (known as Floating Storage and Regasification Units or FSRUs). The real benefit of these conventional-scale LNG solutions is to improve security of energy supply, providing access to energy when required. In New Zealand's case, this may be in a dry year when hydro inflows are low, or if domestic gas supply continues to decline. The study finds that a conventional solution would allow New Zealand to access additional gas at around $18 per gigajoule (GJ) on a landed cost basis. The landed price is at the entry point to the import terminal and includes shipping. The total cost to end users would also need to account for the capital and operational costs required to deliver that gas into the system through port upgrades, regasification systems and storage, estimated at an additional $170-$210 million per year. These would also contribute to the effective delivered cost to more accurately reflect the total cost to end users. Therefore, the final delivered cost per GJ would depend on the annual throughput of the terminal. The large size of the ships involved in conventional-scale LNG imports would necessitate significant infrastructure investment, including port or pipeline upgrades. Depending on the location and technology used, capital cost estimates range from $190 million to $1 billion which is a significant investment given the uncertainty around how often LNG imports would be needed. Smaller-scale options are lower cost to build but offer less flexibility In an effort to seek out lower capital cost solutions, the work also explored smaller-scale developments that would use existing port infrastructure without major modifications. These solutions would involve much smaller vessels of around 15,000m³ in size (0.4 PJ). Roughly one tenth the size of conventional LNG carriers, they could shuttle between Australian LNG export projects and a New Zealand port, such as Port Taranaki. This model could provide an additional 7–10 PJ of energy per year to the New Zealand system, equivalent to around one month of current gas supply. Crucially, the smaller size of ships means limited site works would be required, enabling faster and more flexible development. On a landed cost basis, small-scale LNG would cost approximately 25% more than large-scale, at $20–21/GJ. The additional capital costs of smaller-scale LNG infrastructure are estimated between $140 million and $295 million, depending on how much onshore storage is built. So, while the gas costs are more expensive than conventional scale, the infrastructure costs are lower, the gas itself is expected to be more expensive. Again, the final delivered costs per GJ would need to take into account both the landed cost and capital cost. The study also highlights several issues that would need to be addressed in moving forward with smaller-scale solutions. These include securing interest from existing sellers to supply a relatively small volume of gas and ensuring sufficient storage of LNG when it arrives in New Zealand.
Yahoo
02-07-2025
- Business
- Yahoo
What Are the 5 Best Pipeline Stocks to Buy Right Now?
Energy Transfer and Enterprise Products Partners both have high yields and strong growth potential. Western Midstream, meanwhile, is more a yield-oriented investment, while Williams is a growth story. Genesis may have the most potential upside because the company is in the midst of a turnaround. 10 stocks we like better than Energy Transfer › The pipeline sector offers investors a nice mix of high yields, predictable cash flows, and solid growth. And with natural gas demand set to climb thanks to liquefied natural gas (LNG) exports and energy-hungry AI data centers, the midstream sector looks well positioned to deliver strong returns from here. My five favorite stocks in the pipeline space are: Energy Transfer (NYSE: ET), Enterprise Products Partners (NYSE: EPD), Western Midstream (NYSE: WES), The Williams Companies (NYSE: WMB), and Genesis Energy (NYSE: GEL). Each brings something different to the table for investors. Energy Transfer operates one of the largest midstream networks in the United States, and it's entering a clear growth phase. The company boosted its growth capital expenditure budget from $3 billion last year to $5 billion this year, with a focus on natural gas infrastructure tied to the Permian Basin. This puts it in a strong position as power demand spikes from AI data centers and LNG exports ramp up. The company already signed a deal with Cloudburst to directly supply natural gas to a prospective Texas data center, and it continues to get inbound interest for similar projects. Meanwhile, its long-delayed Lake Charles LNG export terminal looks increasingly likely to get the green light. About 90% of Energy Transfer's EBITDA is tied to fee-based contracts, with many having take-or-pay provisions, giving it steady and predictable cash flow. That supports a generous and well-covered distribution yielding 7.2%, with management targeting 3% to 5% annual growth. If you want bulletproof reliability, Enterprise Products Partners is about as steady as it gets. It has raised its distribution for 26 consecutive years through downturns, oil price crashes, and recessions. The reason? About 85% of its revenue is fee-based with inflation-linked escalators built into its contracts. Furthermore, many of its contracts are backed by take-or-pay terms, meaning it gets paid whether customers use its services or not. In addition, it has always maintained a conservative balance sheet. The result is steady, visible cash flow, quarter after quarter, and no stress from being over-leveraged with debt. Enterprise also has $7.6 billion in projects under construction, including $6 billion scheduled to come online this year. These are high-return expansions, much of them in the NGL value chain where the company is a dominant player. Despite its conservative approach, Enterprise isn't afraid to lean into growth opportunities, and it's doing exactly that right now. Enterprise is a solid option for investors who want dependable income and steady, long-term growth. If you like high yields, Western Midstream offers one of the highest in the space at 9.5%. But what makes it especially attractive is the quality of its cash flow. Most of its contracts include either cost-of-service protections or minimum volume commitments, which provide strong revenue visibility regardless of commodity prices. It's also one of the more conservatively run midstream names, with leverage below 3x and a distribution that's well covered. The company isn't chasing every growth project, but it's still investing where it sees solid returns. Its biggest project right now is the Pathfinder produced-water pipeline, an up to $450 million project that should be a solid EBITDA contributor when it ramps up. Western combines a high, sustainable payout with a measured growth strategy. That makes it a compelling stock to own over the long run. The Williams Companies may not yield as much as the other pipeline companies (its yield is currently around 3.2%) but it's got one of the best growth runways in the sector. Its crown jewel is its Transco pipeline system, which connects Appalachia's natural gas fields to the fast-growing Southeast and Gulf Coast. Transco continues to generate organic expansion projects, driven by coal-to-gas power plant conversions, rising LNG exports, and more recently, data center demand. The company has eight major expansions in its backlog that are scheduled to enter service between now and Q3 2030. Outside of its Transco expansion, Williams is moving into power generation with its Socrates project, a $1.6 billion investment to directly serve growing data center demand in Ohio. It's also taken a 10% stake in Cogentrix Energy, which will give it valuable power market insights to help optimize natural gas supply for next-gen power plants For investors focused more on growth than chasing the highest yield, Williams is an attractive option. Genesis Energy is different from the other stocks on this list. It doesn't have the consistent track record of Enterprise, the massive scale of Energy Transfer, the high yield of Western Midstream, or the growth of Williams. Instead, it's a turnaround story. The company recently sold its soda ash business for $1.4 billion and quickly used the proceeds to aggressively reduce debt and clean up its balance sheet. UBS estimates the move will help Genesis save $84 million a year in interest and preferred dividend payouts, which will boost future cash flow. Genesis is now turning its focus to growing its offshore pipeline system. When the Shenandoah and Salamanca deepwater projects, which will connect to Genesis' pipeline system, come online later this year it will add significant growth. In addition, the company's marine segment is on pace for record earnings this year, as volumes begin to normalize. Taken altogether, Genesis is laying the groundwork to see a significant turnaround in its business. While its yield is more modest at 3.8%, given the change in its cash-flow profile following the sale of its soda ash business and the growth set to come from its offshore pipeline business, it will have an opportunity to significantly ramp up its distribution in the future. Genesis is a higher-risk name, but the stock has strong upside potential if the company can continue to execute. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, Genesis Energy, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. What Are the 5 Best Pipeline Stocks to Buy Right Now? 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
