OPEC’s 2 Million Barrel per Day Production Cut Could Make These 7 Big Dividend MLPs Rip Higher
After trading as high as $120 a barrel in June, West Texas Intermediate crude traded as low as $77 in late September, a decline of 36% in 90 days. It’s pretty much a given that the price to get a barrel of oil out of the ground did not suffer the same reversal. After cutting production by 100,000 barrels per day in September, it looks like the Organization of the Petroleum Exporting Countries (OPEC) is ready to get serious about supporting the price of benchmark crude.
After first floating the possibility of a 1 million barrel-per-day cut last week, the Joint Ministerial Monitoring Committee of the OPEC+ group recommended on Wednesday that the alliance cut 2 million barrels per day of production for the month of November. This is the deepest cut in production since the 2020 COVID-19 pandemic.
A hard cut of 2 million barrels per day in full is unlikely, as various countries are below their agreed-upon output levels now, but any large decline in production will lift benchmark prices higher. We covered the top exploration and production stocks to buy on the massive cut earlier this week.
Here, we decided to screen our 24/7 Wall St. energy master limited partnership (MLP) database looking for the top ideas that pay reliable dividends and have stocks rated Buy by major Wall Street firms. The following seven top stocks all make sense for investors who are more conservative and looking for energy exposure and income. It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
With shares trading near $10 apiece, this very well-run company offers a huge total return package. Antero Midstream Corp. (NYSE: AM) owns, operates and develops midstream energy infrastructure. It operates through two segments.
The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.
The Water Handling segment delivers fresh water and offers other fluid handling services, such as wastewater transportation, disposal and treatment, as well as high-rate transfer services.
Antero Midstream stock investors receive a 9.49% distribution. Wells Fargo recently lifted its $12 target price to $13. The consensus target is $10.57, and shares ended Wednesday trading at $9.87 apiece.
This top MLP is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.
This publicly traded limited partnership has core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGLs) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.
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