RTLR - Rattler Midstream: This High 7% Yield Won't Bite You
- When seeking a high-yielding investment, the process is fraught with dangers but the allure remains compelling.
- Rather comically, despite Rattler Midstream being named after a deadly snake, this is one high 7% distribution yield that will not bite investors.
- Even though the severe Texas Winter Storm caused a bumpy start to 2021, they should still produce sufficient free cash flow to adequately cover their distribution payments.
- Whilst many in the midstream industry are plagued by very high leverage, they only have moderate leverage and also strong liquidity that provides a solid financial safety net.
- These desirable aspects remove the proverbial poison from this rattler and thus leave their high distribution yield worthy of a bullish rating.
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Rattler Midstream: This High 7% Yield Won't Bite You