Dr. Stoxx
Stock Trader & Author, Oxford DPhil, Trading Education
Energy Transfer is more of a dividend play, a reasonable place to park extra cash for a while. It broke out cleanly on earnings, with a big spike in on-balance volume and supportive MACD and cycles on the daily chart. It is not a big mover, but its inverse head-and-shoulders continuation pattern targets around 23. x.comÂ
Energy Transfer is an irreplaceable tollbooth yielding 6.7%, though as an MLP it is hard for offshore investors to buy and its K-1 tax forms are a drag. The conviction rests largely on a close friend, one of the best energy portfolio managers in the world, who made the case for it. x.comÂ
Energy Transfer offers data center exposure because its pipelines run through key regions where data centers are being built, and natural-gas turbines and fuel cells are a big part of powering them. The case got stronger after Iran's strikes knocked out Middle East capacity. x.comÂ
Midstream operators like Energy Transfer should keep doing well as the AI revolution drives demand, with Energy Transfer expanding in all the right places. Semiconductors are not the only way to play AI. x.comÂ
Canadian Natural Resources' slowly declining oil and gas reserves will last many years and give it very steady production. It generates a lot of cash even when markets are tough, has raised its dividend for 26 years in a row, and plans to return 100% of free cash flow to shareholders through dividends and buybacks. x.comÂ
Venture Global is now quite a good story because it will have enough free cash flow to keep debt down while executing its long-term plan. Once locked-in underlying free cash flow tops $10 billion, risk falls by definition, and EBITDA could reach about $30 billion over the next three years, with far more production by 2029. Industry fees are rising with construction costs, so a $2.15 new-build baseline looks low. @ShaleTier7, whom the author answers, sees only about $2.2B a year contracted today. … Show more
