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Energy Infrastructure: Big Yields, Low Prices, And Double-Digit Total Returns
Published Wed, 23 Oct 2019 19:27:05 -0400 on Seeking Alpha
Brookfield, They Believe In Mid-Stream Energy Infrastructure
Thinking about Brookfield's Public Securities Group, I am reminded of a commercial I used to see on TV when I was a kid; "When EF Hutton Talks People Listen". While we are not talking about EF Hutton or brokerage firms, when it comes to real assets, when Brookfield speaks, I listen. Brookfield is one of the top, if not the leading, investment managers when it comes to real assets, and I am interested in real assets. It's that simple.
Brookfield just held its 3rd quarter Real Assets update, and in it, they make a great case for energy infrastructure and specifically the midstream operators. Mid-stream operators are businesses that own and operate pipelines, processing, and storage facilities for petroleum liquids, natural gas, NGLs, petrochemicals, and their associated products. As a dividend-growth investor currently focused on infrastructure, I am naturally interested, so I had to dig deeper. From what I've found, energy infrastructure is poised to deliver double-digit-total returns in 2020.
How Midstream Operators Make Money
There are three Ways Midstream Operators Make Money
1) fees for services such as delivery, storage, processing etc.
2) regulated tariffs for interstate transportation.
3) other related businesses, petrochemicals, etc.
Demand, production, and supply of petroleum liquids, natural gas and related products are trending at record levels and on the rise. A look at data... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MARTIN MIDSTREAM PARTNERS | 4.19 | 0.0 | 0.00 | 1.00 | 24.39 | |||||||
| DELEK LOGISTICS PARTNERS LP | 30.70 | 12.5 | 2.46 | 3.40 | 11.22 | |||||||
| MPLX LP | 28.61 | 12.4 | 2.30 | 2.67 | 9.28 | |||||||
| PLAINS ALL AM. PIPELINE | 21.20 | 5.3 | 3.99 | 1.44 | 6.75 | |||||||
| ENBRIDGE | 34.70 | 19.7 | 1.76 | 2.21 | 6.38 | |||||||
| MAGELLAN MIDSTREAM PARTNERS | 65.61 | 11.0 | 5.99 | 4.05 | 6.20 | |||||||
| ENTERPRISE PRODUCTS | 28.68 | 12.4 | 2.31 | 1.76 | 6.13 | |||||||
| WILLIAMS | 24.29 | 303.6 | 0.08 | 1.52 | 6.12 | |||||||
| KINDER MORGAN | 20.42 | 20.6 | 0.99 | 1.00 | 4.94 | |||||||
| ONEOK | 73.93 | 24.6 | 3.01 | 3.56 | 4.84 | |||||||
| VALERO ENERGY | 83.70 | 13.8 | 6.06 | 3.60 | 4.41 | |||||||
| BROOKFIELD INFRASTRUCTURE PARTNERS LP | 47.35 | 1.0 | 0.03 | 2.01 | 4.25 | |||||||
| MARATHON PETROLEUM | 53.19 | 11.5 | 4.62 | 2.12 | 3.89 | |||||||
| PHILLIPS 66 | 102.19 | 8.8 | 11.56 | 3.60 | 3.50 | |||||||
| TRANSCANADA | 49.89 | 14.6 | 3.42 | 2.25 | 3.14 |