Investment Opportunities in Energy Midstream Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Attractive Energy Transfer: Energy Transfer (ET) offers a 7.1% dividend yield with a distribution coverage ratio of nearly 1.8 times last quarter, indicating strong cash flow and growth potential, with expected annual distribution growth of 3% to 5% moving forward.
- Stability of Enterprise Products Partners: Enterprise Products Partners (EPD) has raised its distribution for 27 consecutive years, currently yielding 5.9%, and is projected to see double-digit growth in adjusted EBITDA and cash flow by 2027, showcasing resilience amid market fluctuations.
- Genesis Energy's Transformation: Genesis Energy (GEL) has significantly reduced interest expenses by selling its volatile soda ash operations and replacing high-interest debt, projecting EBITDA growth of 15% to 20% in 2026, indicating strong growth potential.
- High Leverage with Growth Potential: Despite a leverage ratio of 5.12 times, Genesis Energy has no major capex this year and a distribution coverage ratio of 2.8 times last quarter, demonstrating its ability to reduce leverage in the coming years while raising its quarterly distribution by 9%, reflecting confidence in its business.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 18.560
Low
17.00
Averages
20.65
High
23.00
Current: 18.560
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Plans to Release 172 Million Barrels of Oil
- Strategic Reserve Release: The U.S. plans to release 172 million barrels from the Strategic Petroleum Reserve (SPR) to address supply disruptions caused by the Iran war, with the release expected to occur over 120 days, aimed at stabilizing oil prices and alleviating market tensions.
- Energy Transfer Benefits: Energy Transfer is poised to benefit from this SPR release due to its extensive oil infrastructure along the U.S. Gulf Coast, which is expected to drive higher earnings in the coming quarters as the U.S. releases these volumes.
- Rapid Replenishment Plan: The U.S. also plans to rapidly replenish the SPR, arranging to add about 200 million barrels of oil over the next year, which will further enhance Energy Transfer's volumes as its infrastructure plays a critical role in supporting this strategic stockpile.
- Impact of Rising Oil Prices: With oil prices surging due to supply disruptions from the Iran conflict, Energy Transfer's crude oil segment is expected to see strong growth driven by higher prices and the SPR release, leading to accelerated earnings growth and potentially increasing unit prices.
See More
Investment Opportunities in Energy Midstream Sector
- Attractive Energy Transfer: Energy Transfer (ET) offers a 7.1% dividend yield with a distribution coverage ratio of nearly 1.8 times last quarter, indicating strong cash flow and growth potential, with expected annual distribution growth of 3% to 5% moving forward.
- Stability of Enterprise Products Partners: Enterprise Products Partners (EPD) has raised its distribution for 27 consecutive years, currently yielding 5.9%, and is projected to see double-digit growth in adjusted EBITDA and cash flow by 2027, showcasing resilience amid market fluctuations.
- Genesis Energy's Transformation: Genesis Energy (GEL) has significantly reduced interest expenses by selling its volatile soda ash operations and replacing high-interest debt, projecting EBITDA growth of 15% to 20% in 2026, indicating strong growth potential.
- High Leverage with Growth Potential: Despite a leverage ratio of 5.12 times, Genesis Energy has no major capex this year and a distribution coverage ratio of 2.8 times last quarter, demonstrating its ability to reduce leverage in the coming years while raising its quarterly distribution by 9%, reflecting confidence in its business.
See More
Investment Opportunities in Energy Midstream Stocks
- Energy Transition Potential: Energy Transfer currently offers an attractive yield of 7.1% with a distribution coverage ratio of nearly 1.8 times last quarter, indicating strong financial health, and is expected to grow its distribution at a pace of 3% to 5% annually, further solidifying its market position in Texas and Arizona.
- Stable Income Choice: Enterprise Products Partners, with a 5.9% yield and a record of raising distributions for 27 consecutive years, stands out as an ideal choice for investors, as its conservative financial management and 1.8 times distribution coverage provide security for long-term investments, while projected adjusted EBITDA growth in 2027 is expected to be in double digits.
- Transformation and Growth: Genesis Energy has successfully reduced debt and interest expenses by selling its unpredictable soda ash operations, projecting EBITDA growth of 15% to 20% by 2026, and despite a leverage ratio of 5.12 times, its 9% quarterly distribution increase reflects confidence in future prospects.
- Market Competitive Advantage: Amidst volatile oil and gas prices, pipeline stocks in the energy midstream sector function as energy toll roads, providing predictable cash flows and stable distributions, attracting investors seeking steady passive income and demonstrating the industry's resilience in economic uncertainty.
See More
Trump Administration Initiates Major Drawdown of Strategic Petroleum Reserve
- Strategic Reserve Drawdown: The Trump administration has formally requested to exchange 86 million barrels of crude oil as part of a broader 172-million-barrel release plan aimed at stabilizing global energy markets and addressing soaring fuel costs.
- Market Liquidity and Relief: According to the U.S. Department of Energy, crude deliveries are expected to begin by the end of next week, with the 86-million-barrel exchange being part of a coordinated 400-million-barrel effort with international partners to lower gasoline, diesel, and jet fuel prices.
- Geopolitical Pressure: This release highlights the political pressure on the White House to tackle domestic inflation ahead of the November midterm elections, particularly as the conflict in Iran shows no signs of easing, prompting the administration to leverage the SPR as a primary tool to mitigate inflationary shocks.
- Economic Risks and Market Response: While crude futures received temporary relief following the announcement of the 172-million-barrel figure, analysts remain cautious about whether this release can offset the structural deficit caused by halted Persian Gulf traffic, indicating an increased risk of recession for the broader economy.
See More
Concorde Financial Fully Liquidates Howard Hughes Holdings Stake
- Liquidation Transaction: Concorde Financial Corp disclosed in an SEC filing dated February 17, 2026, that it fully liquidated its stake in Howard Hughes Holdings, selling 52,047 shares for approximately $4.28 million, indicating a cautious outlook on the company's future performance.
- Position Change: Prior to the liquidation, Howard Hughes Holdings represented 2.4% of Concorde Financial's assets under management, with the firm reallocating its focus to other assets such as JPM and XOM, which now account for 7.1% and 6.2% of AUM, respectively.
- Market Performance: As of February 16, 2026, Howard Hughes Holdings shares were priced at $82.15, reflecting a 9.5% increase over the past year, yet underperforming the S&P 500 by 2.3 percentage points, highlighting its relative weakness in the market.
- Investor Considerations: Howard Hughes Holdings operates on a long-cycle real estate development model, and while it controls significant land in fast-growing markets, the ability to consistently convert land ownership into stable commercial income remains a critical concern for investors.
See More
Concorde Financial Completely Exits Howard Hughes Holdings
- Complete Liquidation: Concorde Financial Corp has fully liquidated its position in Howard Hughes Holdings by selling 52,047 shares for an estimated $4.28 million, reflecting trading activity and share price fluctuations based on quarterly average pricing.
- Asset Decline: This transaction resulted in a $4.28 million reduction in Concorde Financial's reportable assets under management, representing a 3.3% decrease, indicating a complete exit from its investment in Howard Hughes.
- Position Change: Prior to the sale, Howard Hughes Holdings constituted 2.4% of Concorde Financial's assets under management, and now the firm holds zero shares, highlighting a significant shift in its investment strategy.
- Market Performance: As of February 16, 2026, Howard Hughes Holdings shares were priced at $82.15, reflecting a 9.5% increase over the past year, yet underperforming the S&P 500 by 2.3 percentage points, suggesting a lack of confidence in the company's future prospects.
See More
U.S. Plans to Release 172 Million Barrels of Oil
- Strategic Reserve Release: The U.S. plans to release 172 million barrels from the Strategic Petroleum Reserve (SPR) to address supply disruptions caused by the Iran war, with the release expected to occur over 120 days, aimed at stabilizing oil prices and alleviating market tensions.
- Energy Transfer Benefits: Energy Transfer is poised to benefit from this SPR release due to its extensive oil infrastructure along the U.S. Gulf Coast, which is expected to drive higher earnings in the coming quarters as the U.S. releases these volumes.
- Rapid Replenishment Plan: The U.S. also plans to rapidly replenish the SPR, arranging to add about 200 million barrels of oil over the next year, which will further enhance Energy Transfer's volumes as its infrastructure plays a critical role in supporting this strategic stockpile.
- Impact of Rising Oil Prices: With oil prices surging due to supply disruptions from the Iran conflict, Energy Transfer's crude oil segment is expected to see strong growth driven by higher prices and the SPR release, leading to accelerated earnings growth and potentially increasing unit prices.
See More
Investment Opportunities in Energy Midstream Sector
- Attractive Energy Transfer: Energy Transfer (ET) offers a 7.1% dividend yield with a distribution coverage ratio of nearly 1.8 times last quarter, indicating strong cash flow and growth potential, with expected annual distribution growth of 3% to 5% moving forward.
- Stability of Enterprise Products Partners: Enterprise Products Partners (EPD) has raised its distribution for 27 consecutive years, currently yielding 5.9%, and is projected to see double-digit growth in adjusted EBITDA and cash flow by 2027, showcasing resilience amid market fluctuations.
- Genesis Energy's Transformation: Genesis Energy (GEL) has significantly reduced interest expenses by selling its volatile soda ash operations and replacing high-interest debt, projecting EBITDA growth of 15% to 20% in 2026, indicating strong growth potential.
- High Leverage with Growth Potential: Despite a leverage ratio of 5.12 times, Genesis Energy has no major capex this year and a distribution coverage ratio of 2.8 times last quarter, demonstrating its ability to reduce leverage in the coming years while raising its quarterly distribution by 9%, reflecting confidence in its business.
See More
Investment Opportunities in Energy Midstream Stocks
- Energy Transition Potential: Energy Transfer currently offers an attractive yield of 7.1% with a distribution coverage ratio of nearly 1.8 times last quarter, indicating strong financial health, and is expected to grow its distribution at a pace of 3% to 5% annually, further solidifying its market position in Texas and Arizona.
- Stable Income Choice: Enterprise Products Partners, with a 5.9% yield and a record of raising distributions for 27 consecutive years, stands out as an ideal choice for investors, as its conservative financial management and 1.8 times distribution coverage provide security for long-term investments, while projected adjusted EBITDA growth in 2027 is expected to be in double digits.
- Transformation and Growth: Genesis Energy has successfully reduced debt and interest expenses by selling its unpredictable soda ash operations, projecting EBITDA growth of 15% to 20% by 2026, and despite a leverage ratio of 5.12 times, its 9% quarterly distribution increase reflects confidence in future prospects.
- Market Competitive Advantage: Amidst volatile oil and gas prices, pipeline stocks in the energy midstream sector function as energy toll roads, providing predictable cash flows and stable distributions, attracting investors seeking steady passive income and demonstrating the industry's resilience in economic uncertainty.
See More
Trump Administration Initiates Major Drawdown of Strategic Petroleum Reserve
- Strategic Reserve Drawdown: The Trump administration has formally requested to exchange 86 million barrels of crude oil as part of a broader 172-million-barrel release plan aimed at stabilizing global energy markets and addressing soaring fuel costs.
- Market Liquidity and Relief: According to the U.S. Department of Energy, crude deliveries are expected to begin by the end of next week, with the 86-million-barrel exchange being part of a coordinated 400-million-barrel effort with international partners to lower gasoline, diesel, and jet fuel prices.
- Geopolitical Pressure: This release highlights the political pressure on the White House to tackle domestic inflation ahead of the November midterm elections, particularly as the conflict in Iran shows no signs of easing, prompting the administration to leverage the SPR as a primary tool to mitigate inflationary shocks.
- Economic Risks and Market Response: While crude futures received temporary relief following the announcement of the 172-million-barrel figure, analysts remain cautious about whether this release can offset the structural deficit caused by halted Persian Gulf traffic, indicating an increased risk of recession for the broader economy.
See More
Concorde Financial Fully Liquidates Howard Hughes Holdings Stake
- Liquidation Transaction: Concorde Financial Corp disclosed in an SEC filing dated February 17, 2026, that it fully liquidated its stake in Howard Hughes Holdings, selling 52,047 shares for approximately $4.28 million, indicating a cautious outlook on the company's future performance.
- Position Change: Prior to the liquidation, Howard Hughes Holdings represented 2.4% of Concorde Financial's assets under management, with the firm reallocating its focus to other assets such as JPM and XOM, which now account for 7.1% and 6.2% of AUM, respectively.
- Market Performance: As of February 16, 2026, Howard Hughes Holdings shares were priced at $82.15, reflecting a 9.5% increase over the past year, yet underperforming the S&P 500 by 2.3 percentage points, highlighting its relative weakness in the market.
- Investor Considerations: Howard Hughes Holdings operates on a long-cycle real estate development model, and while it controls significant land in fast-growing markets, the ability to consistently convert land ownership into stable commercial income remains a critical concern for investors.
See More
Concorde Financial Completely Exits Howard Hughes Holdings
- Complete Liquidation: Concorde Financial Corp has fully liquidated its position in Howard Hughes Holdings by selling 52,047 shares for an estimated $4.28 million, reflecting trading activity and share price fluctuations based on quarterly average pricing.
- Asset Decline: This transaction resulted in a $4.28 million reduction in Concorde Financial's reportable assets under management, representing a 3.3% decrease, indicating a complete exit from its investment in Howard Hughes.
- Position Change: Prior to the sale, Howard Hughes Holdings constituted 2.4% of Concorde Financial's assets under management, and now the firm holds zero shares, highlighting a significant shift in its investment strategy.
- Market Performance: As of February 16, 2026, Howard Hughes Holdings shares were priced at $82.15, reflecting a 9.5% increase over the past year, yet underperforming the S&P 500 by 2.3 percentage points, suggesting a lack of confidence in the company's future prospects.
See More
