Several midstream names have beat expectations and raised guidance as earnings are underway.
Earnings from Williams Companies (WMB), Targa Resources (TRGP), Cheniere (LNG), and DT Midstream (DTM) have surprised to the upside. The midstream players beat analyst expectations for the last quarter as well as raised guidance or expect to come in at the top end of their guidance range.
The four midstream names can be found in the Alerian Energy Infrastructure ETF (ENFR). The fund offers exposure to the Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies, including C-corps and MLPs.
See more: Cheapest Energy Infrastructure ETF Crosses $200 Million in AUM
Midstream Earnings Beat Expectations
Williams on Nov. 6 reported adjusted EBITDA of $1.703 billion, slightly beating expectations. The midstream player also raised full-year guidance at the midpoint by $125 million to $7.075 billion.
To learn more about midstream and the opportunities provided by growing U.S. natural gas demand, join our 30-minute webcast on Tuesday, Nov. 12, 2024, at 12:30 p.m. ET with Williams’ (WMB) CFO John Porter. Register here.
Targa on Nov. 5 reported adjusted EBITDA for the third quarter of $1.07 billion, beating analyst estimates by 6.1%. The midstream company purchased $168 million in equity during the third quarter, bringing total year-to-date spend to $647 million. Targa expects to continue buybacks with $1.1 billion remaining under its authorization.
Additionally, Targa said it expects to recommend an increase its dividend by 33% in 2025.
Targa has been among the top-performing constituents in the S&P 500 by price return in 2024. Targa is up 104%, making it the fifth-best-performing name in the benchmark index as of Nov. 5.
Cheniere on Oct. 31 reported adjusted EBITDA of 1.48 billion, 0.6% above expectations. The company increased full-year adjusted EBITDA guidance to $6.15 billion from $5.9 billion at the midpoint.
Additionally, Cheniere repurchased $282 million in equity during the third quarter, bringing total year-to-date buyback spend to $2 billion.
Finally, DT Midstream on Oct. 29 reported adjusted EBITDA of $241 million, beating estimates. The company also increased adjusted EBITDA guidance to $965 million at the midpoint from $955 million.
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