Stifel updates midstream stock price targets ahead of earnings

Enterprise Products Partners reported a 21% rise in Q2 operational distributable cash flow to $2.3B, while ONEOK raised its 2026 adjusted EBITDA guidance. Enterprise offers a 6.1% yield with 1.69x coverage, while ONEOK has a 4.9% yield with 2.25x coverage and more debt. Investors compare their dividend growth prospects over the next decade.

The U.S. Department of Energy awarded up to $42M to Williams Companies for its 125-mile Constitution natural gas pipeline project, connecting Pennsylvania to New York. The funding aims to support energy infrastructure and reduce emissions, according to the DoE.

The Pipeline and Hazardous Materials Safety Administration ordered Energy Transfer to inspect and repair its pipelines due to a system-wide risk of leaks, similar to past incidents in Michigan and Pennsylvania. The agency cited failures in repair sleeves and inadequate record-keeping. Energy Transfer's Twin Oaks pipeline, operated by Sunoco LP, is currently running at reduced pressure. Investigations into the leaks are ongoing, and a U.S. representative has called for pipeline safety reforms.

Energy Transfer and its affiliates (Sunoco, SunocoCorp, USA Compression Partners) listed on the Texas Stock Exchange, totaling nearly $100 billion in market value. Energy Transfer alone accounts for $73.5 billion. The exchange raised $430 million in funding, with support from major investors. This is the first primary corporate listing for the Texas Stock Exchange, which began trading in July.

Zacks.com highlights five energy companies involved in recent M&A activity. Crescent Energy (CRGY) to acquire Devon Energy's Eagle Ford assets for $3.85B, Energy Transfer (ET) to buy Vaquero for $2.63B, Cenovus Energy (CVE) to acquire Athabasca for C$5.7B, and Drilling Tools (DTI) to acquire Saltire and Foxley. Deals aim to expand operations, reduce costs, and improve profitability.

Service Properties Trust (SSVC) received a $2.0B acquisition offer from TKO LLC. Viatris (VTRS) agreed to buy Pacira BioSciences (PCRX) for $1.65B. Option Care Health (OPCH) surged 34% after a $5.8B acquisition deal with CD&R and McKesson (MCK). Energy Transfer (ET) will acquire Vaquero Midstream for $2.625B. Emera (EMA) and Canadian Utilities (CDUAF) agreed to a $10B merger. Cenovus Energy (CVE) will acquire Athabasca Oil (ATHOF) for ~$5.7B.