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@ShallowLoving 1 month ago

Breakdown of 3 pipeline MLPs for steady yield (ET, EPD, GEL)

Breakdown of 3 pipeline MLPs for steady yield (ET, EPD, GEL)

Energy pipeline MLPs are an option for steady income since they act like toll roads with long-term contracts. Here is a quick breakdown of three of them. **Energy Transfer (ET)** They currently have a 7.1% yield and are aiming for 3% to 5% annual distribution growth. They are expanding natural gas pipelines out of the Permian Basin and have projects tied to AI data centers. The stock trades at an 8.6x forward EV/EBITDA multiple. **Enterprise Products Partners (EPD)** This is a more conservative option. They have a 5.9% yield and have raised their distribution for 27 years straight. Leverage is relatively low at 3.3x. They are cutting their capex budget this year to fund stock buybacks and debt reduction. **Genesis Energy (GEL)** This is more of a turnaround play. They carry higher risk with 5.12x leverage, but they recently sold off their soda ash business to pay down expensive debt. They have a 4% yield, just raised their distribution by 9%, and are projecting 15% to 20% EBITDA growth in 2026 thanks to new Gulf of Mexico projects.
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@ProduceCut309 4 weeks ago

Pipeline MLPs can be interesting for income, stable cash flows, solid yields, and long-term contracts make them feel more like infrastructure plays than typical energy stocks.