Here is why the stock is energy transfer purchase before 6 August | Motley fool

This is a big week for Energy transfer (AND 0.03%). Giant Energy Midstream Giant gives its financial results this week in the second quarter. In addition, they will pay another quarterly division to investors holding shares by the end of the week.

Given the timing of these waiting catalysts, investors who are considering buying energy transmission should consider before the market closes on 6 August. Here is why this is a remarkable date.

Revenue comes

Energy transfer announced that it plans to publish its financial results in the second quarter after the market closed on Wednesday 6 August. This report serves as a catalyst for the unit price of the Master Limited Partnership (MLP), which decreased by about 10%this year. The strong report of the second quarter could provide an impact that revives the unit price of the company.

Midstream Giant comes from a fixed neighborhood. Her earnings before interest, taxes, depreciation and amortization (EBITDA) rose by almost 6% to $ 4.1 billion in the first quarter, although its distribuable cash flow slipped by 2% to $ 2.3 billion. The company brought record volumes of natural gas transport (by 3%) and a strong growth in oil volume (10% increase). This benefits from healthy market conditions and the impact of last year’s WTG Midstream acquisition.

His financial results in the second quarter should start to see the initial benefits of the main wave of organic expansion projects. The company has completed the initial phase of some PERMIAN Processing Plant plants, its conversion of Sabina 2 and Etan and Propane Services in its Noderland Flexport NGL project. It is also completing several equipment for natural gas generation to support its Texas operations. These projects should begin to provide MLP with additional earnings and cash flows in the second quarter, which accelerated its level of growth.

New growth coming catalysts?

Another potential potential catalyst of Upsy, which could appear with a report on energy transfer earnings, is to detect new growth drivers. For example, MLP has several proposed expansion projects that are at the peak of the final investment decision (FID).

The largest is his long delayed project of lake Charles LNG. ALRERADY announced that in the last few months this project has passed two main developments. Energy transfer has provided several new customer contracts supporting the project, including expanding its agreement Chevron.

In addition, MLP has ensured Midocean energy as a partner of joint enterprises to help finance the project. The announcement that in this project could be finim could provide the MLP unit price with great support.

Energy transmission also works on several potential projects for natural gas supply to data centers for artificial intelligence (AI), including the previous AI Cloudburst Data Center. Formally, ensuring this project and other associated with AI data centers can also be the main catalyst of the unit price.

Last chance to lock another distribution payment

This week is also important for investors focused on focus. Energy transmission will apply next quarterly division of 19 August. However, investors must own MLP units until the market is closed on Friday, August 8. If you buy units after this date, you will not receive your first distribution unit in mid -November, when the company is likely to make a third quarter.

The upcoming quarterly Energy transfer payment will be $ 0.33 per unit ($ 1.32 analized). This rate gives it a distribution yield of 7.4% for its recent unit price. Payment increased from last quarter out of $ 0.3275 ($ 1.31 per year) and an increase in more than 3% compared to its payment in the second quarter of last year. MLP encounters its payment every quarter and loves to increase it by 3% to 5% carefully.

High-yaielding and the ever-increasing distribution of the energy company makes it a great investment opportunity for those who seek to generate passive income. However, it is worth noting that MLP sends the federal tax form K-1 to its investors every year, which can complicate your taxes. It is necessary to understand the advantages and disadvantages of investing in MLP, such as energy transfer, before purchasing units for your portfolio.

A big week to transmit energy

Investors who are considering buying energy transmission units should consider before the market will close on August 6. In this way, they would hold shares before his earning and distribution of the ears.

Matt dilallo has positions in Chevron and energy transfer. Motley Beble has positions and recommends Chevron. Motley fool has a publication of politics.