At the same time all HESM Opco's ratings were affirmed, including its Ba2 Corporate Family Rating (CFR), its Ba2-PD Probability of Default Rating (PDR) and the Baa3 rating on its secured revolving credit facility and $400 million Term Loan A. The Speculative Grade Liquidity Rating remains SGL-2. HESM Opco is the wholly-owned operating subsidiary of Hess Midstream LP (HESM), holding all the entity's operating assets and debt.
Although Houston was host to the largest oil and gas merger of the year, deals across the space were down in 2019 by total value, volume and average size. Of the seven deals in 2019 valued over $5 billion — so-called megadeals — four of them involved Houston companies, according to a report published by PricewaterhouseCoopers International Ltd. on Jan. 23. The largest of the deals was Houston-based Occidental Petroleum Corp.’s (NYSE: OXY) acquisition of The Woodlands-based Anadarko Petroleum Corp. for $64.2 billion, a higher value than all six other megadeals combined, according to the report.
HESS MIDSTREAM LP ANNOUNCES 2019 SCHEDULE K-1 AVAILABILITY
It's been a good week for Hess Midstream LP (NYSE:HESM) shareholders, because the company has just released its latest...
Hess Midstream (NYSE:HESM) shareholders are no doubt pleased to see that the share price has bounced 101% in the last...
HESS MIDSTREAM LP ANNOUNCES INCREASED QUARTERLY DISTRIBUTION
This year certainly started with a bang -- or to be more precise, a boom. And that boom sent energy prices crazy.Of course, things have already started to calm down. Oil prices are now again in the upper-$50 range, after hitting $70 a barrel briefly on the day after the U.S. took out the No. 2 guy in Iran.Those prices certainly helped energy-dependent economies like Saudi Arabia and Russia. But it hasn't lasted.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd the one thing that's different this time around is that the U.S. is now a leading energy producer. This means U.S. operations can moderate whatever happens in OPEC crude. * 7 Inflation-Beating REITs to Ground Your Income Portfolio As for how to invest … at Growth Investor, we identify the right buys using my stock-picking system, Portfolio Grader. And the four energy stocks below are top-rated Portfolio Grader U.S. energy picks that will be able to help energize your portfolio for years to come. These are all smaller plays that will benefit most from growing domestic energy demand. Energy Stocks to Buy: PrimeEnergy Resources (PNRG)Source: Kodda / Shutterstock.com PrimeEnergy Resources (NASDAQ:PNRG) is just shy of a $300 million market capitalization. It's an exploration and production firm (E&P) with wells and properties in Texas, Oklahoma and West Virginia.It looks for oil and natural gas. And 15 years ago, it got a nice $70 million boost from General Electric (NYSE:GE) to help fund a natural gas production partnership. That shows it's a respected E&P by big firms.And PNRG has been around since 1973, so it has accessed some prime real estate before other companies knew what was coming.Also, it's able to convert traditionally drilled wells to unconventional drilling, which means PNRG can also tap back into formerly productive properties without having to go look for new sites. Speaking of property, it has real estate in the Permian Basin as well as the Marcellus Shale, two of the top energy patches in the U.S.The stock is up 85% in the past 12 months, yet its trailing price-to-earnings ratio remains near 32. It's popular, but it's not overvalued yet. Hess Midstream (HESM)Source: rafapress / Shutterstock.com Hess Midstream (NYSE:HESM) is a limited partnership that was spun off of parent and integrated oil company Hess (NYSE:HES).This has been a popular way for larger oil companies to segment operations around the upstream, midstream and downstream aspects of their business. HESM is a midstream operation (think pipelines) that operates in North Dakota's Bakken Shale.Recently, it bought its sister firm Hess Infrastructure Partners for about $6.2 billion, locking down most of the pipeline operations in the Bakken.Midstream players are great plays now because they don't live or die by the price of oil. They make their money on demand, on the volume that flows through their pipes. And in an expanding economy, demand grows, so pipelines stay busy. In fact, pipelines are the primary way we're playing the U.S. oil production boom here at Growth Investor. * 8 of the Strangest Stocks Worth Your Time This particular stock is up 26% in the past year, and it also delivers a 6.4% dividend, so if you invest here, do it for at least few years to take advantage of that juicy dividend. Dorchester Minerals (DMLP)Source: Shutterstock Dorchester Minerals (NASDAQ:DMLP) is yet another interesting energy company that's set up as a limited partnership. That means, for tax purposes, you're treated like an owner and receive net income from the company, distributed in the form of dividends. This structure is similar to that of a real estate investment trust.In DMLP's case, it doesn't do anything but own land that it leases out to energy companies. In return it gets royalties for the land and usually a percentage of whatever they dig up.This is a great place to be, since there's no equipment issues, little overhead and in good times, the value of the land increases, along with royalty payments.What's more, while the stock isn't structured for pure growth, it is up nearly 25% in the past year, yet still has a trailing P/E of 12. Its dividend currently sits at 10.4%. And that's after a strong year for the stock.As long as oil prices stay healthy, you can expect that kind of solid performance. NuStar Energy (NS)Source: Shutterstock NuStar Energy (NYSE:NS) is the biggest of the featured companies, with a market cap just over $3 billion. That's hardly a monster in this sector, but it has operations around the country, focusing on pipelines, storage facilities and terminals.Currently, it has nearly 10,000 miles of pipelines and 74 terminal and storage operations in the U.S., Canada and Mexico. About 2,000 miles of its pipelines are for anhydrous ammonia -- water-free ammonia that's used in fertilizer, cleaning products and drug manufacturing.An expanding economy is good for midstream firms like NS. As demand for goods rises, production rises, and distribution and production of those goods require energy inputs like oil and natural gas.And as the U.S. allows more energy exports, that's even better news for NuStar, since it already has terminals and storage facilities at or near many key ports.The stock is up 12% in the past year and delivers a 8.8% dividend. It's a solid stock for the long haul, especially if you like a big income stream. And I've got more where that came from.At Growth Investor, we don't just invest in sectors, even ones as promising as oil; we invest in trends.And one trend that's just heating up is artificial intelligence (AI).If AI sounds futuristic -- you're already using it every day! If you've ever used Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google Assistant or Apple's (NASDAQ:AAPL) Siri … if you've had Netflix (NASDAQ:NFLX) recommend a movie or Zillow (NASDAQ:Z) recommend a house … even an email spam filter … then you've used artificial intelligence.In this new world of AI everywhere, data becomes a hot commodity. 'Data Is the New Oil'As scientists find even more applications for artificial intelligence -- from hospitals to retail to self-driving cars -- it's incredible to imagine how much data will be involved.To create AI programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every AI system. As one AI researcher from the University of South Florida puts it, "data is the new oil."So, as investors, if we want to buy the right stocks to ride the AI trend, all we have to do is look back at the oil boom of the 2000s.Back in 2003, if investors believed that crude oil was set for a big price rise, they had a handful of different vehicles to choose from. They could buy speculative futures contracts … they could buy a small oil company exploring for oil in some remote jungle … or they could have bought shares in Core Laboratories (NYSE:CLB).Core did no drilling or exploration of its own. It provided technology to the companies who did. As oil prices climbed from $30 per barrel in 2003 to $100 per barrel in 2008, Core's customers had more money to spend on exploration. Core's revenues surged … and CLB stock went from $5 per share to $60 per share … a gain in market value of 1,100%.Now, picture an industry like Big Oil as a huge skyscraper with lots of offices. By buying stock in an individual oil company, it's like having a key to one of those offices. By buying Core Laboratories, it's like having a "Master Key" to all of them. The AI 'Master Key'Core Laboratories was the Master Key to the 2000s oil boom. And here, the Master Key is the company that makes the "brain" that all AI software needs to function, spot patterns and interpret data.It's known as the "Volta Chip" -- and it's what makes the AI revolution possible.You don't need to be an AI expert to take part. I'll tell you everything you need to know, as well as my buy recommendation, in my special report for Growth Investor, The A.I. Master Key. The stock is still under my buy limit price -- so you'll want to sign up now. That way, you can get in while you can still do so cheaply.Click here for a free briefing on this groundbreaking innovation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post 4 Energy Stocks to Power the New Year appeared first on InvestorPlace.
To the annoyance of some shareholders, Hess Midstream (NYSE:HESM) shares are down a considerable 71% in the last...
Hess Midstream LP (NYSE: HESM) ("Hess Midstream") today reported first quarter 2020 net income of $129.0 million compared with net income of $80.8 million for the first quarter of 2019, as recast for the 2019 acquisition of Hess Infrastructure Partners LP ("HIP") by Hess Midstream Operations LP (formerly known as Hess Midstream Partners LP) (the "Partnership"), Hess Midstream’s controlled subsidiary. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $6.5 million, or $0.37 per Class A share. Hess Midstream generated Adjusted EBITDA of $195.3 million. DCF for the first quarter of 2020 was $170.3 million and free cash flow was $138.3 million.
So, what’s going on in the stock markets? Are they completely haywire? Since February 19, when the bull market ended, the Dow Jones has fallen 36.6% and then gained back, in uneven steps, some 28% from the trough. Movements have been similar in the S&P 500 and the NASDAQ. For the last few weeks, both the S&P and Dow have been holding fairly steady – the S&P near 2,850 and the Dow near 23,950.Yet, there are more questions raised than answers. Are we in a true rally, or will the slide resume? What will happen when people return to work; will the economy pop back up again, or are we in a new recession? And if a recession, how bad will it get? The answer to that last may be worse than anticipated: The number of Americans filing for unemployment benefits because of the coronavirus has soared past 30 million.Corporate earnings season is in full swing, and the results are in-line with predictions – which is to say, profits are registering the worst quarterly decline since 2009. The economic impact of the COVID-19 epidemic is going to be with us for some time to come.Which means, for investors looking to boost their income, that dividends are the natural way to go. Governments have cut interest rates to the bare bones in an effort to provide stimulus – the US Federal Reserve’s key rate is down to the 0.0 to 0.25% range – and US Treasury bond yields are down below 1%. Stock dividends, however, can still provide high returns, and careful investors can find high-yielding dividend stocks that also present a strong case for share appreciation.We’ve used TipRanks database to find three stock to fit that profile. Each is showing a dividend yield of 10% or higher, and each also has at least a 30% upside potential in the coming year. Let’s see what Wall Street has to say about them.Global Net Lease, Inc. (GNL)We’ll start with a real estate investment trust, and reasonably so, for these companies typically show superb dividend yields. REITs exist to buy, own, and operate various forms of real property and mortgage assets, and derive their income mainly from rents and management fees. Global Net Lease focuses on commercial properties in the US and Europe. The company’s portfolio aims to provide both strong growth potential and stable dividend streams.The dividend stream is definitely there. In mid-2019, GNL raised its dividend from 18 cents to 53 cents quarterly, reflecting stable earnings. The current payment, announced this month and set for distribution to shareholders on the 15th, is 40 cents per share – the reduction is in anticipation of lower revenues due to the current economic shock. The annualized rate, $1.60, gives a dividend yield of 12%. This is 6x higher than the average yield found among S&P listed dividend stocks – and more than 12x higher than US Treasure bond yields.GNL’s earnings are expected to come in after hours on May 6, at 44 cents per share. EPS at that level will easily cover the dividend payment, with a payout ratio of 91%. Last quarter, GNL beat the earnings forecast, registering 44 cents EPS compared to a 42-cent prediction.4-star analyst Michael Gorman, of BTIG, sees Global Net as well positioned to survive the COVID-19 epidemic. He points out the diversity of the company’s portfolio, particularly its geographic spread. Taking coronavirus into account, Gorman lowered the full year earnings estimates for 2020 and 2021, but remains otherwise bullish. He writes, “GNL’s large exposure to countries outside of the U.S. and its focus on office/industrial properties might provide some buffer from the consumer challenges facing the economy from Covid-19… However, as the pandemic is a global event and is disrupting both offices as well as supply chains, we suspect the portfolio will still see some impact. The primary driver of our lower estimates is decreased investment volumes due to market volatility.”Overall, Gorman maintains his $23 price target on this stock, implying a healthy upside potential of 68% to back up his Buy rating. (To watch Gorman’s track record, click here)From the unanimous Strong Buy consensus rating, based on 3 recent reviews, it’s clear that Wall Street agrees with Gorman that GNL is a stock worth buying. The shares are attractively priced at just $13.65, and the average price target of $21.50 suggests that there is room for 61% appreciation this year. (See Global Net Lease stock analysis on TipRanks)Hess Midstream Operations (HESM)Midstreaming may not be the first thing you think of when you turn your attention to the oil industry, but it’s absolutely essential. Hess Midstream provides services and facilities for the gathering, processing, storage, terminaling, and transport of crude oil and natural gas in the rich Bakken Formation of the Dakotas.While oil and natural gas remain essential, even for an economy currently hamstrung by coronavirus, the epidemic has cut back on activity in Hess’s midstream operations. In March, the company released updated guidance for 2020. Taking the economic slowdown into account, management revised full-year net income downward to the range of $420 to $440 million, a 4% adjustment at the midpoint. On a positive note, strong year-to-date performance led the company to revise Q1 guidance and 2020 free cash flow slightly upward. Hess will report earnings on May 7, and we’ll see then how the new guidance corresponds to reality.One hint may come from the company’s dividend. Late last month – after issuing the above guidance – Hess announced a 43.1 cent quarterly dividend payment for Q1. This is an increase of 1.2% sequentially and 5% year-over-year. Hess has been raising its dividend steadily over the past three years, and it’s an important indicator of company confidence that it did so again – even in the midst of the current epidemic. The yield, at 11.7%, is impressive by any standard.Credit Suisse analyst Spiro Dounis takes a bullish position on HESM shares. After participating in a call with company management, Dounis notes that Hess’s contract structure allows it to maintain profits into 2021 even if rig activity halts altogether and that the company’s free cash flow is sufficient to keep up the dividend. Noting Hess’s apparent strength, he writes, “[B]uying HESM today would seem to imply you are not paying anything for growth and have considerable option value on a Bakken recovery.”Dounis backs his bullishness with a $16 price target that implies a 10% upside potential for the stock. (To watch Dounis’ track record, click here)Wall Street is actually more bullish on HESM than Dounis allows. The 3 Buy and 1 Hold rating add up to a Strong Buy consensus view, while the $19.25 average price target suggests room for a 31% one-year upside to the stock. (See Hess Midstream stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Today we are going to look at Hess Midstream LP (NYSE:HESM) to see whether it might be an attractive investment...
After hefty gains in 2019, when the S&P 500 added 29%, most analysts are predicting that markets will show decidedly more modest gains in 2020. The consensus view is, that stocks will appreciate between 3% and 5% in the coming year. While it’s not a gloomy picture, it does mean that investors will need to look outside of share prices for strong returns.This will naturally pull many investors right into dividend stocks. The reasons are simple. Interest rates are low, after 3 Fed cuts in 2019 brought them down to just 1.5% to 1.75%. With the Fed’s key rate pared so far back, Treasury bond yields are also low, holding between 1.5% and 2%. Among S&P listed companies, the average dividend yield of 2% still beats interest rates and bond returns. And remember: there is no ceiling on dividend yields.We’ve used TipRanks’ Stock Screener tool to seek out small- and mid-cap stocks with high dividends – that is, with yields exceeding 6%. To narrow it further, we looked only at stocks with ‘Strong Buy’ consensus ratings. TipRanks has a database encompassing over 6,500 stocks; our search parameters narrowed that down to 30. Here is the low-down on three of those.Hess Midstream Operations (HESM)The energy industry, especially the crude oil and natural gas extraction activities, has given a turbo boost to the US economy in recent years. Providing jobs and energy at the wellheads, in the midstream, and at the customer’s point of purchase, energy products also provide the fuel of our daily lives.Hess Midstream provides infrastructure system for oil companies in the Bakken Shale of North Dakota and Montana. The company owns a variety of assets, including crude oil, natural gas, and water gathering pipelines, pipeline and rail line terminal facilities, and natural gas plants.Last month, Hess completed an organization change that marked its transition from a small-cap limited partner to a mid-cap independent midstream operator. The company conducted a merger between the midstream operator branch and the corporate partnership. In short, Hess Midstream Partners successfully acquired Hess Infrastructure Partners. The HESM ticker inherited HIP’s market history. Shares are up 15% since the December 16 announcement.The company didn’t just reorganize and simply its partnership – it also maintained its lucrative dividend. HESM currently pays out 41 cents per quarter, and has raised that dividend payment every quarter since August 2017. At $1.64 annualized, the dividend gives a yield of 6.91%, well over triple the average in the broader market.Writing from Credit Suisse, market analyst Spiro Dounis says of final quarter projections, “We expect sequentially higher results, largely driven by volume ramp on LM4 and continued strength in Tioga volumes as spare capacity is backfilled with third-party volumes.” He adds that, “This should be a noisy accounting quarter with HESM reporting consolidated results for the first time following the close of the HIP acquisition on December 16.”Dounis is upbeat about HESM, and gives the stock a $26 price target, indicating room for 10% growth to the upside. (To watch Dounis’ track record, click here)HESM has built its Strong Buy consensus rating on solid performance which has attracted 3 "buy" ratings in the last three months, as opposed to only 1 "hold." This stock is selling for $23.91, so the $26.50 average price target implies an upside of ~11%. (See Hess Midstream stock analysis at TipRanks)Summit Hotel Properties (INN)Next on our list is a Real Estate Investment Trust, a natural stock to consider when looking for high dividends. REITs are holding companies for properties, and derive their earnings and profits from management fees and rents. Summit owns 73 non-food service hotels around the United States, with over 10,000 rooms available, serving middle and upscale customers.Last spring, Summit announced a sale of six hotels, in various locations around the country and under several different brands and totaling over 800 guest rooms, for a total of $135 million – netting the company a profit of $36.6 million. The sale of the six hotels was part of a capital improvement plan, and net proceeds were used to pay down debt carried on the company’s revolving credit facility. Summit currently has access to $395 million in credit.A strong credit line is not the only strength to INN shares. The stock gained 35% in 2019. And, Summit complies with US tax codes that require REITs to return profits to shareholders – by paying out a generous dividend. The 18 cents per share paid out quarterly annualizes to 72 cents, but even better, implies a yield of 6.2%. INN pays out a dividend three times higher than the S&P average.5-star analyst Wes Golladay, from RBC Capital, is impressed with Summit’s management. He writes of the stock, “We like INN's platform as the company has been able extract value at the property level including implementing ideas that were a first for the hotel brand. We remain impressed with the asset recycling, which improves what we believe is already a high-quality portfolio.”Golladay puts a Buy rating on INN, and his $13 price target implies an upside of 12%. (To watch Golladay’s track record, click here)Summit’s Strong Buy consensus rating is unanimous, based on 3 Buy ratings recently given. The $11.62 trading price is a bargain, considering the high dividend return, and the $13.50 average price target suggests an upside potential of 16%. (See Summit stock analysis at TipRanks)Gaming and Leisure Properties (GLPI)The third company on today’s list is another REIT, this one specializing in casino properties. Pennsylvania-based Gaming and Leisure owns 43 casino properties, and operates 2 of them directly. The company is also involved in the mortgage financing of 2 additional casino properties. Casino gaming is both popular and lucrative, and GLPI shares have been gaining steadily for the past five years.Momentum is on GLPI’s side in other ways, too. The company has beaten EPS forecasts in each of the last four quarters, and the upcoming Q4 2019 report is expected to show 85 cents per share in bottom line earnings. That’s 1-cent higher than the year-ago number.High earnings make this REIT’s high dividend easily sustainable. GLPI pays out 70 cents per quarter, which the earnings, at over 80 cents, can readily fund. The annualized payment of $2.80 gives the dividend a yield of 6.05%. GLPI has been raising the dividend periodically for the past five years.Carlo Santarelli, 5-star analyst with Deutsche Bank, took a bullish stance on this stock recently, but strong share appreciation has pushed the stock value right up to his price target. Santarelli pointed out several points supporting optimism: “1) GLPI shares have broadly outperformed gaming triple net peers, which is generally a fairly good place to start when arguing for change, 2) GLPI governance is strong, 3) GLPI’s historical deal activity has been best of breed in terms of accretion generated on a deal by deal basis…”Santarelli’s price target of $46 may be obsolete, as the stock has a current price of $46.31. His rating here is, of course, a Buy. (To watch Santarelli’s track record, click here)With 5 recent Buy ratings, and only 1 Hold, GLPI gets a Strong Buy from the analyst consensus. As noted, shares are selling for $46.31 after rapid gains in recent weeks. This price is just a shade below the current average price target of $46.58, suggesting a mere 0.59% upside. Expect analysts to recalibrate their price targets here in coming weeks. (See Gaming and Leisure stock analysis at TipRanks)
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
HESS MIDSTREAM LP ANNOUNCES UPDATED GUIDANCE
Top Ranked Income Stocks to Buy for March 11th
Hess Midstream LP (NYSE:HESM) is about to trade ex-dividend in the next 4 days. You will need to purchase shares...
As a result of the COVID-19 pandemic, our operations and those of our business partners, suppliers and customers, including Hess Corporation, have experienced and may continue to experience adverse effects, including disruptions, delays or temporary suspension of operations and supply chains, temporary inaccessibility or closures of facilities and workforce impacts. In addition, the pandemic has adversely impacted and may continue to adversely impact demand and marketability of crude oil, natural gas and NGLs that we gather, process and terminal for Hess and other third-party producers. To the extent, the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2019.
Alerian announced the results of the March quarterly review for the Alerian Index Series. All changes will be implemented as of the close of business on Friday, March 20, 2020.