ETRN - A 7.4%-Yielding Midstream Portfolio From The Permian To The Marcellus For Passive Income

2024-01-29 20:36:59 ET

Summary

• In today's article, I will demonstrate how to strategically select midstream operators that encompass both the Permian and the Marcellus.
• These operators are chosen to provide balanced exposure to crude, natural gas, NGLs, and refined products.
• Enterprise Products (50%), MPLX LP (25%), and Equitrans (25%) are the pillars of this thesis as each company excels in its own specific area of the midstream industry.
• This portfolio avoids asset concentration while achieving an average yield of 7.4% and emphasizes distribution growth.

Thesis

Midstream companies typically offer a compelling and stable dividend growth engine. These stocks are some of the most popular on Seeking Alpha as they are excellent choices for income seeking investors.

In this article, I want to take a higher level and systematic approach to the midstream sector. As I was reviewing the midstream portion of my portfolio, I realized that I didn’t really have the exposure to all of the plentiful resources that America has to offer. As an investment thesis I want to build a midstream position that is connected to all of the major basins across all of the energy products. I broke this thesis down into three categories, Where, What, and How....

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