Taxi -based agreements support 90% of energy transfer revenue.
Kinder Morgan receives about 95% of its revenue from stable sources.
Williams receives approximately 91% of its profit from predictable contracts.
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Cash flows in the energy sector tend to be more resume Due to the instability of the prices of the goodsSSome energy stocks, however Simply Print money because their business models have a minimal direct exposure to the prices of goods. This gives them money to pay off profitable dividends.
Transmission(Nyse: et)., Morgan children(Nyse: kmi)and Williams(Nyse: WMB) Work with energy assets from the print of medium stream. Therefore, they are ideal options for investors who want to generate passive income.
Image source: Getty Images.
The transfer of energy operates a national imprint with key assets in the middle stream. This is more than 130,000 miles pipeline The network moves oil, natural gas and other goods from production pools to market centers in the United States and beyond its export terminals. Contracts based on fees and government -regulated structures support 90% of its profits. Because of this, Master Limited Partnership (MLP) Prints cash.
The middle stream giant generates more than $ 2.3 billion to distribute cash flow in the first quarter and allocate about $ 1.1 billion from investors’ money. The energy transfer uses its reserved cash flow to invest in expansion projects ($ 945 million in capital costs) and maintain its strong balance.
MLP invests greatly to expand its massive middle -stream imprint. This year it spends $ 5 billion on growth projects expected to come online by the end of next year. This should lead to a significant connection in its stable cash flows in 2026 and 2027. The increasing sources of energy transfer of stable cash flow should allow the MLP to continue to increase its distribution. It aims to raise more than 7%-yilding Repayment 3% to 5% annually.
Kinder Morgan has an indispensable energy infrastructure portfolio. He operates one of the largest natural gas Pipe networks in the country and are a leader in working with refined petroleum products and transportation of carbon dioxide.
Total or payment contracts, where entitled Kinder Morgan on payment regardless of volumes or prices, Back 64% of the company’s cash flow. Meanwhile, hedging contracts that guarantee that prices are locked in another 5% of its cash flow. Kinder Morgan also receives 26% of its tax -based sources, most of which have minimal volume fluctuations. As a result, the company’s assets pump a very stable cash flow every quarter.
Kinder Morgan generates $ 1.2 billion in cash flow from operations in the first quarter, covering a dividend cost of $ 642 million from approximately 2 timesS This allowed him to keep significantly Unnecessary free cash flow to finance expansion projects. The pipeline giant currently has $ 8.8 billion expansion projects that are expected to go into commercial service by 2030. They will grow the company Sources of stable cash flow, which should allow it to continue to increase its dividend by more than 4%.
Williams manages one of the largest natural gas infrastructure platforms in the country. It has key interstate pipelines (including the Transco system, which supplies gas to the main markets along the east coast). It also has collection and processing operations (G&P) in key manufacturing pools as well as other related infrastructure.
The highly regulated transmission and deep -sea assets represent 48% of Williams’ cash flow giving it AA very much A stable base. Meanwhile, Taxi -based assets are supplied with another 43% of their cash flow. Williams is also laying in hedges to redirect its more pricing assets.
The gas infrastructure company generates nearly $ 1.5 billion in operations available from operations in the first quarter. This covered more than 3%-a dividend of super comfortable 2.4 times. The wider ratio of Williams’ dividend payment allowed him to reserve a lot of cash to finance expansion projects and maintain his financial flexibility.
Williams works on a huge Shit of growth projects. He has several projects to expand Transco and his other gas transmission pipelines and connects new DeepWater projects to the bay with his infrastructure. Williams is also building a natural gas power plant to support the growing demand for AI data centers. These projects will nourish the growth of the flow of money in 2030, giving Williams more power to increase its dividend.
Medium stream energy companies such as energy transfer, Kinder Morgan and Williams mostly work assets based on taxes that print cash. Therefore, these energy infrastructure companies can pay off attractive and growing dividends. This makes them ideal options for investors looking for stable and stable Increasing passive streams of income.
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Matt Dilalo has positions in energy transfer and Kinder Morgan. Motley Fool has positions and recommends to Kinder Morgan. Motley Fool has a policy of disclosure.
These energy dividend stocks of print money were originally published by Motley Fool
