Enterprise Products Partners
This is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) provides a wide variety of midstream energy services, including gathering, processing, transportation and storage of natural gas, NGL fractionation, import and export terminaling, and offshore production platform services.
One reason many analysts may have a liking for the stock might be its distribution coverage ratio. This ratio is well above 1 times, making it relatively less risky among the MLPs. Trading at a reasonable 10.7 times estimated 2022 earnings, this is a solid value now.
Investors receive a 7.76% distribution. Goldman Sachs has a $30 price target on Enterprise Products Partners stock, though the consensus target is slightly higher at $31.61. Shares closed at $24.97 on Thursday.
Exxon Mobil
Despite the rally in oil this year, this mega-cap energy leader trades at a reasonable valuation and still offers investors an excellent entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
Top Wall Street analysts expect Exxon to remain a key beneficiary in this higher oil price environment, and most remain strongly positive about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery, with Exxon Mobil offering greater downstream/chemicals exposure relative to peers.
This top U.S. oil producer most recently reported a per-share profit that exceeded Wall Street’s consensus view, due to a huge jump in natural gas earnings, continued high oil prices and strong fuel sales.
Shareholders receive a 3.34% dividend, which will continue to be defended. The Goldman Sachs price target of $121 is well above the $114.64 consensus target. Exxon Mobil stock closed on Thursday at $110.50.
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