Like so many burnt-out fireworks, natural gas prices fell straight down to Earth after the July 4th holiday, declining nearly 40%.
While this brutal correction is sure to bite some of the producers in the bottom (line, that is), it's business as usual for less price-sensitive gas infrastructure plays like dividend titan Energy Transfer Partners
ETP reported a 55% increase in revenue over the prior-year period, to $2.65 billion; a 19% rise in EBITDA, to $292 million; and net earnings of $0.60 per limited partner unit. According to the release, every segment met or exceeded internal expectations. Passing the success on to unitholders, the company recently raised its quarterly dividend, now yielding more than 8%.
According to CFO Martin Salinas, ETP continues to benefit from "increasing demand for transportation capacity on our extensive network of pipelines out of the Barnett Shale and Bossier Sands."
Back in April, ETP completed a pipeline project in the Bossier Sands of East Texas, where Anadarko Petroleum
With all this growth in the works, and no end in sight for natural gas demand, this Fool believes that profits could continue to flow steadily for Energy Transfer Partners.
Further Foolishness in the pipeline:
- Piping hot profits for Kinder Morgan.
- Another natural gas infrastructure pick.
- The politics of energy are so messy.