Conocophillips hopes to execute several long -cycle projects over the next few years.
MPLX also has several long -term growth projects to be lagging behind.
This visible growth should provide these energy supplies fuel for a strong overall return in the coming years.
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The need for energy continues to grow. This allows energy companies to invest capital by expanding their business.
Conocophillips(NYSE: a policeman) and Mplx(NYSE: MPLX) Currently, development projects are planned to be joined online until 2029, which supports long -term growth in the coming years. Due to the strong growth profiles and record -raising very fertile dividends, they make them wonderful energy stocks to buy and store for a long time.
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Conocophillips believes she has created one of the deepest, most durable and various petroleum and gas industry portfolios. The oil company occupies one of the lowest costs in the resources sector, determining it to generate significant cash flows at lower oil prices. Her ability to generate cash will only strengthen in the coming years.
One of the factors determining that image is the acquisition of a marathon oil. Although the transaction ended at the end of last year, it will continue to pay dividends for investors for the coming year. The Conocophillips is already seeking to provide synergy of $ 1 billion from the end of this year, more than twice the twice as much more than twice as much more than twice as much as twice as much as twice as much as twice its initial expectations. It is now expected that from the end of next year, this acquisition will record another $ 1 billion expenditure and margin improvements.
In addition, the oil company is investing heavily in longer -cycle capital projects, which will promote production and cash flow growth over the next few years. It has three liquefied natural gas (LNG) investments, which are planned to be joined from 2027 to 2028.
The company hopes that these longer cycle projects are up to 2029. Will increase 6 billion dollars of increased annual cash flows, assuming that oil prices on an average of $ 70 per barrel in that year. By adding an additional Marathon impetus next year, a total of $ 7 billion increases to the end of the decade. It has a company that seeks to double its annual free cash flow compared to this year’s level.
The coming increase in free cash flows of the company will allow it to return even more money to shareholders. Conocophillips expects to increase by 3.3% of dividends in the coming years, with an average of good -natured to give the annual dividend growth in 25% of 25% of companies related to companies S&P 500; She also plans to redeem billions of dollars every year.
MPLX manages the diversified Middle Flow Business, which includes pipelines, processing companies, storage facilities and export terminals. These assets create stable and predictable cash flows based on long-term contracts and regulated rules that support the Master Limited Partnership (MLP) 7.6%. MLP also provides investors with certain fees benefits according to the Federal Tax Form of the K-1, which it sends every year.
The company hopes that in the coming years it will increase its earnings by approximately the average number of digit. One factor that promotes this image is the growing lag of commercially ensured development projects. MPLX is building several new pipelines, processing companies, NGL fractionator and export terminal, and projects go to commercial services each year until 2029. This schedule gives clear visibility in the future.
MLP has also purchased several acquisitions this year. She bought bets in two large -scale pipelines and bought two gathering and processing companies. The biggest deal was the $ 2.4 billion purchase of Northwind Midstream. These acquisitions will immediately increase cash flow and several transactions will increase their long -term growth profile. MPLX has a very strong financial profile, giving it a high capacity to invest in additional development projects and make further acquisitions.
Growing cash flows from development projects and acquisitions should maintain a continuous annual increase in distribution. MPLX has increased its payment every year since 2012 Public, including more than 10% compound annual growth from 2021. The combination of MLP income and growth should provide fuel to obtain a strong overall return in the coming years.
With a strong growth project piping, which ensures visibility over a decade, Conocophillips and Mplx are distinguished as intelligent long -term investments. They should have a lot of fuel to grow their high -income dividends for many years. This combination of growth and income makes large energy stocks to buy and maintain for a long time.
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Matt Diallo occupies positions in Conocofillips. The Motley fool has no position in any of the above stocks. The Motley fool has a disclosure policy.
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