After the purchase of Enable Partners in December of 2021, 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.
Investors receive a 9.26% distribution. Morgan Stanley has set a $17 price target, but the consensus target is higher at $17.29. Energy Transfer stock closed on Tuesday at $13.21.
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.
Pioneer 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.
Various media sources have said the company may still be in ongoing discussion with Exxon Mobil for a possible purchase or merger.
Shareholders enjoy a 10.64% dividend. Pioneer Natural Resources stock has a Wall Street high $315 target price at Piper Sandler. The consensus target is $248.44, and Tuesday’s closing share price was $219.53.
These five top companies are all based in the United States and each pay among the highest dividends in the sector. It is also important to remember that investors can sell covered calls on these stocks to increase the income potential. The best news is they all have backed way off their 52-week highs and all are offering outstanding entry points.
Originally published at 24/7 Wall St.
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