Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Midstream energy giant Energy Transfer (ET) has just approved a new $2.7bn pipeline project. The Hugh Brinson pipeline is expected to be commercially operational by the end of 2026, providing the company with a steady stream of cash flow while acting as a key driver of its stock price.
It will increase the company’s natural gas transportation capacity in the Permian Basin to support growing demand for natural gas, including power plants and data centres.
The first phase of the project will have a transmission capacity of 1.2 billion cubic feet per day (Bcf/d) and will be in commercial operation by the end of 2026. It will be increased to 2.2 Bcf/d in the second phase.
Meanwhile, the energy giant is striving to expand the Nederland export terminal, eight 10-megawatt natural gas-fired power generation facilities, and the recently approved ninth natural gas liquids fractionator at the Mont Belvieu complex. Like Hugh Brinson, these projects will all be in commercial operation through 2026.
Energy Transfer’s recent acquisition of WTG Midstream is also expected to provide a boost. The company completed the nearly $3.1 billion deal in July. Management expects the acquisition to add $0.04 per unit to its distributable cash flow next year and $0.07 per unit by 2027, enough to support its dividend growth target of 3-5% over the next few years.
Energy Transfer stock currently offers an attractive dividend yield of 6.7%.
Energy Transfer’s co-chief executive officer Marshal McCrea said on its recent third-quarter conference call that the incoming Trump administration is likely to be more open to expanding the nation’s energy infrastructure. This means Energy Transfer’s signed LNG contracts with several potential customers will benefit.
In addition to the Lake Charles LNG project, the company is developing the Blue Marlin Offshore Port, a potential carbon capture and storage project, and the Blue Ammonia Hub in Nederland and Lake Charles.
This is a midstream energy player with financial flexibility and the ability to continue to make accretive acquisitions as opportunities arise. In addition to offering investors an attractive dividend, Energy Transfer expects to continue to grow steadily over the next few years given its recent acquisitions and secured expansion projects.
