The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota.
The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; and crude oil rail cars, as well as Johnson’s Corner Header System, a crude oil pipeline header system.
Investors receive a 7.37% distribution. The Hess Midstream stock price target at Goldman Sachs is $40. The consensus target is $34.50, and shares closed on Tuesday at $30.16.
Phillips 66
This extremely diversified energy company has a long and successful operating history, and it is a long-time Goldman Sachs Conviction List member. Phillips 66 (NYSE: PSX) operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company holds many of these assets within its MLP, Phillips 66 Partners.
The company benefits from the tax-advantaged structure while still operating a more diversified operating business that also contains many assets that are not ideal MLP assets, such as its fast-growing chemical manufacturing business and its super-profitable refined products marketing business.
Phillips 66 is the top idea within refining coverage at Goldman Sachs, which continues to see headroom for incremental capital returns this year. The analysts are constructive on a positive rate of change at Refining in 2022. In addition, they continue to see attractive nonefining value in the other segments.
The dividend yield is 4.34%. The Goldman Sachs price target is $109, while the consensus target is $101.36. On Tuesday, $89.36 was the closing share price for Phillips 66 stock.
All these dividend-paying energy sector giants have backed up nicely. In a world where interest rates are stagnant despite Federal Reserve increases (and plans to continue), they offer dependable income, a degree of safety and some of the best entry points in months. Given the declines, and the fact that earnings for the quarter have been posted, it makes sense for those looking to buy to get aggressive here.
Originally posted at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
