The fees based on agreements support 90% of the energy transfer revenue.
Kinder Morgan receives about 95% of its revenue from stable sources.
Williams receives about 91% of its earnings from predictable contracts.
10 shares we like more than energy transfer ›
Cash flows throughout the energy sector are usually variable Due to the volatility of goods prices;However some of the stocks of energy Just Print money because their business models have a minimal direct impact of goods prices. It gives them cash to pay profitable dividends.
Energy transfer(Nyse: et)Is it Children Morgan(NYSE: BMI)and Williams(NYSE: WMB) Execute the middle of the money printing energy. For this reason, they are an ideal opportunity for investors who want passive income.
Image Source: Getty Images.
The transfer of energy affects the trace of the entire central assets of the whole country. It’s over 130,000 miles piping The network moves oil, natural gas and other goods through its export terminals, from the production pools to the US and outside the US. Taxes based on contracts and governments regulated by the Government support 90% of its earnings. For that MASTER LIMITED PARTERSHIP (MLP) Prints cash.
The Midstream Giant earned more than $ 2.3 billion distributed cash flows in the first quarter in the first quarter and distributed about $ 1.1 billion to investors. Energy transfer has used saved cash flows to invest in development projects ($ 945 million in growth capital costs) and maintain its strong balance.
MLP is investing greatly to expand its huge midfield. This year, it spends $ 5 billion on growth projects that are expected to be joined by the end of next year. This should encourage a meaningful increase in stable cash flows in 2026 and 2027. Growing power transmission sources of stable cash flow should allow MLP to further increase its distribution. The aim is to increase by more than 7% Payment 3-5% per year.
Kinder Morgan manages an indispensable portfolio of energy infrastructure. He manages one of the largest Natural gas Pipeline networks are the leader of refined petroleum products and carbon dioxide.
Take or pay contracts, which Kinder Morgan’s payment, regardless of volume or prices, Back 64% of the company’s cash flow. Meanwhile, hedging contracts that guarantee prices record another 5% of their cash flows. Kinder Morgan also receives 26% of his income from tax -based sources, most of which have the effects of minimal volume fluctuations. As a result, the company’s assets have pushed many stable cash flows every quarter.
Kinder Morgan earned $ 1.2 billion in cash flow in the first quarter, covering the cost of $ 642 million dividends to about 2 times; This allowed to keep it It makes sense Excess of free cash flows to finance development projects. Currently, the piping giant has $ 8.8 billion -worth of development projects, which are expected to start commercial services by 2030. They will grow up. They will grow up the company Sources of stable cash flows, which should provide the ability to further increase more than 4%dividends.
Williams owns one of the largest natural gas infrastructure platforms in the country. It includes the most important cross -border pipelines (including the Transco system, which supplies gas to the main market along the eastern coast). It also has collection and processing (G&P) operations in the main production pools as well as in other related infrastructure.
Highly regulated transfer and deep water assets make up 48% of Williams cash flows by giving a very Stable foundation. Meanwhile, G&P based G&P assets supply it by another 43% of its cash flow. Williams is also layered in hedges to prevent its more sensitive price.
The gas infrastructure company raised nearly $ 1.5 billion of available funds from operations in the first quarter. This included more than 3%of dividends with dividends that are particularly convenient for 2.4 times. The lower payment of Williams dividends allowed to maintain a lot of cash to finance development projects and maintain its financial flexibility.
Williams works a huge Growth Projects Slate. It carries out several projects to expand Transco and other gas transmission pipelines, and it combines new Gulf Deepwater projects with its own infrastructure. Williams also builds a natural gas power plant for AI data centers for increasing energy demand. These projects will promote cash flow growth by 2030, giving Williams more power to increase their dividends.
Energy Midstream companies such as Energy Transfer, Kinder Morgan and Williams first use tax -based assets that print cash. For this reason, these energy infrastructure companies can pay attractive and growing dividends. This makes them ideal for investors seeking stable And stable Rising passive income flows.
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Matt Digalo has energy transfer positions and Kinder Morgan. Motley fool is a position and recommends Kinder Morgan. The Motley fool has a disclosure policy.
The money printed by these energy dividends was initially spent by The Motley Fool
