After the purchase of Enable Partners last December, Energy Transfer now owns and operates more than 114,000 miles of pipelines and related assets in all the major U.S. producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating (formerly known as Energy Transfer Partners), the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco and the general partner interests, and 39.7 million common units of USA Compression Partners.
The distribution yield is 10.45%. Morgan Stanley has set its price target at $19. The consensus target is lower at $16.75, and Energy Transfer stock closed at $12.05 on Tuesday.
Pioneer Natural Resources
Many Wall Street analysts love this stock as a pure crude oil play, and the company also employs a variable dividend strategy. Pioneer Natural Resources Co. (NYSE: PXD) operates as an independent oil and gas exploration and production company in the United States.
The company explores for, develops and produces oil, NGLs and natural gas. It has operations in the Midland Basin in West Texas. As of December 31, 2021, the company had proved undeveloped reserves and proved developed non-producing reserves of 130 million barrels of oil, 92 million barrels of NGLs and 462 billion cubic feet of gas, and it owned interests in 11 gas processing plants.
Its production services are supported by 100 well-servicing rigs, more than 100 cased-hole, open-hole and offshore wireline units, and a range of advanced coiled tubing units.
The company is a huge player in the Permian basin and the Eagle Ford in Texas, and it owns more than 20,000 locations in the world’s second-largest oil reservoir in the Midland Basin. With a stellar balance sheet, the company is poised to remain a top player in the Permian, as it expects to deliver solid production growth going forward.
Pioneer Natural Resources stock investors receive a 14.01% dividend, which again could be lower this year and may vary from quarter to quarter. The $322 Piper Sandler target price towers over the $256.92 consensus target and Tuesday’s close at $197.77.
These four top exploration and production leaders and a high-yielding energy master limited partnership offer investors very tempting entry points. Again, it is important to emphasize the variable dividend arrangements these companies use could provide higher or lower dividends, depending on production volume and per-barrel pricing. With that in mind, all are priced very reasonably now and could offer serious upside with a move higher in benchmark pricing in 2023.
Originally published at 24/7 Wall St.
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