Six pipeline stocks to explore as energy demand soars

Summary

  • Altus Midstream Company (Nasdaq: ALTM) reported a net income of US$22 million in Q1, 2021.
  • Magellan Midstream Partners L.P. (NYSE: MMP) registered an operating income of US$279.5 million in Q1, 2021.
  • Enterprise Products Partners L.P. (NYSE: EPD) has a market capitalization of US$51.6 billion.

Pipeline stocks are companies that transport and store gas and oil. The rising demand for energy in the US has once again brought the focus on these stocks. In addition, it is expected that the reopening of the world economy post-covid restrictions would further accelerate the energy demand worldwide.

The reduced threat from the virus has helped reopen the economy, which contributed to the increasing demand for various commodities, including oil and gas. As a result, the US needs to expand its midstream infrastructure to cater to the growing needs.

Here we explore top pipeline stocks as the world economy reopens.

Altus Midstream Company (Nasdaq: ALTM)

Altus Midstream Company explores gas fields, processes, and transports them. The ALTM stock traded at US$66.47 at the premarket on July 22, up 4.28 percent over the previous close. The stock went up by 43.93 percent YTD.

Source: Pixabay

The market capitalization is US$1 billion. The P/E ratio and forward P/E ratio one year are 23.82 and 15.66, respectively. Earnings per share are US$2.79, and the annual dividend is US$6. The current yield is 9.41 percent, and the beta is 3.9.

ALTM's 52 weeks highest stock price is US$72.35, and the lowest is US$9.44. The share volume is 59,139.

The company reported a net income of US$22 million in Q1, 2021, which ended on March 31. Adjusted EBITDA was US$65 million. The total revenue of ALTM was US$31 million, and that was in Q1, 2020 was US$40 million. Also, it announced a US$1.50 per share cash dividend for the quarter.

Also read: How did these two ASX energy stocks fare in June quarter?

Magellan Midstream Partners L.P. (NYSE: MMP)

It transports and stores petroleum products. The MMP stock traded at US$46.51 at 9.13 am ET on July 22, up 0.28 percent from the previous close. The stock went up by 9.28 percent YTD.

Source: Pixabay.

The market capitalization is US$10.3 billion. The P/E ratio and forward P/E ratio one year are 13.89 and 11.92, respectively. Earnings per share are US$3.34, and the annual dividend is US$4.11. The current yield is 8.81 percent, and the beta is 1.12.

MMP's 52 weeks highest stock price is US$53.85, and the lowest is US$32.61. The share volume is 1,052,702.

The company reported total revenue of US$661 million in Q1, 2021, and that was US$782.8 million YoY. Gross profit for MMP in this quarter was US$345.6 million and US$388 million YoY. Its operating income was US$279.5 million and US$326.8 million in Q1, 2020.

Enterprise Products Partners L.P. (NYSE: EPD)

This midstream energy company provides crude oil and gas to consumers.

The EPD stock traded at US$23.73 at 9.16 am ET on July 22, up 0.38 percent from the previous close. The stock up by 20.62 percent YTD.

The market capitalization is US$51.6 billion. The P/E ratio and forward P/E ratio one year are 13.82 and 10.64, respectively. Earnings per share are US$1.71, and the annual dividend is US$1.80. The current yield is 7.58 percent, and the beta is 1.42.

EPD's 52 weeks highest stock price is US$25.69, and the lowest is US$14.90. The share volume is 6,326,663.

The company reported total revenue of US$9.1 billion in Q1, 2021, and that was US$7.4 billion in Q1, 2020. Gross profit for Q1, 2021 was US$2.3 billion and US$2.1 billion in Q1, 2020. EPD's net income before taxes was US$1.3 billion in this quarter, while that was US$1.1 billion YoY.

Williams Companies, Inc (NYSE; WMB)

Williams Companies, Inc, an energy transmission company, operates interstate crude oil and gas pipelines in the Gulf Coast region.

The WMB stock was priced at US$25.24 at 9.24 am ET on July 22, down 0.16 percent. The stock went up by 26.08 percent YTD.

The market capitalization is US$30.7 billion. The P/E ratio and forward P/E ratio one year are 26.89 and 21.07, respectively. Earnings per share are US$0.94, and the annual dividend is US$1.64. The current yield is 6.55 percent, and the beta is 1.5.

WMB's 52 week highest stock price is US$28.35, and the lowest is US$18.26. The share volume is 6,575,981.

WMB"s total revenue for Q1, 2021 was US$2.6 billion, and that was US$1.9 billion YoY. The company recorded gross profit of US$1.6 billion and US$1.5 billion in Q1, 2021, and Q1, 2020 respectively. Its operating income in this quarter was US$739 million while that was in losses of US$507 million YoY.

ONEOK, Inc (NYSE: OKE)

ONEOK, Inc, a midstream energy company in the U.S., gathers, processes, stores, and transports crude oil and natural gas.

The OKE stock priced at US$52.96 at 9.38 am ET on July 22, down 0.96 percent. Its stock price went up by 39.24 percent YTD.

The market capitalization is US$23.8 billion. The P/E ratio and forward P/E ratio one year are 20.8 and 16.05, respectively. Earnings per share are US$2.57, and the annual dividend is US$3.74. The current yield is 7.14 percent, and the beta is 2.03.

OKE's 52 weeks highest stock price is US$57.55, and the lowest is US$23.28. The share volume is 2,716,848.

OKE's total revenue in Q1, 2021 was US$3.1 billion, and in Q1, 2020, US$2.1 billion. Its operating income in this quarter was US$664.7 million, and losses in Q1, 2020 was US$155.4 million.

Also read: Why Oil Search said no to Santos’ AU$8.8 billion merger proposal

Pembina Pipeline Corp (NYSE: PBA)

Pembina Pipeline Corp, a Canada-based company, owns integrated pipelines and transports hydrocarbon liquids and gas in western Canada.

The PBA stock traded at US$31.31 at 9.56 am ET on July 22, down 1.35 percent. It went up by 32.21 percent YTD.

The market capitalization is US$17.4 billion. Forward P/E ratio one year are 15.19. Earnings per share are US$-0.70, and the annual dividend is US$1.114. The current yield is 3.61 percent, and the beta is 1.49.

PBA's 52 week highest stock price is US$34.25, and the lowest is US$20.09. The share volume is 1,231,031.

PBA's total revenue in Q1, 2021 was US$2 billion, and in Q1, 2020, US$1.6 billion. The gross profit for Q1, 2021, and Q1, 2020 was US$630 million and  US$733 million, respectively. Operating income for this quarter was US$527 million and US$655 million YoY.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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