The Motley Fool

OCTOBER 8, 2024

I first added the midstream giant to my portfolio in early 2020, right before the pandemic hit. It repaid debt, which steadily drove down its leverage ratio. Today, Energy Transfer has a strong investment-grade balance sheet with a leverage ratio in the lower half of its 4.0-to-4.5x times target range.

Investing 246

Investing Leveraging Amortization Depreciation 246

The Motley Fool

NOVEMBER 26, 2024

To top it all off, Chevron has an elite balance sheet with very low leverage. Because of the deal, Oxy entered the oil and gas downturn of 2020 overleveraged and saw its stock price fall to single digits. But the subsequent boom in 2021 and 2022 was a huge win for Oxy, which was able to pay down debt thanks to higher oil prices.

Stakes 245

Stakes Leveraging Banks Debt 245

The Motley Fool

JANUARY 22, 2024

Chevron can now afford to go on the offensive again Over the last 15 years, ExxonMobil and Chevron have been trading places between which company is spending more money and has more debt and which company is being conservative. In 2020, ExxonMobil booked its worst annual loss in company history, losing $22.4 billion down to $14.6

Debt 245

Debt Stakes Leveraging Capital 245

The Motley Fool

FEBRUARY 12, 2024

The company now holds a significant amount of debt. Management plans to divest non-core assets to accelerate the paydown of that debt. It did something similar following the Anadarko acquisition in 2019 and the subsequent drop in oil prices in 2020. Buffett has a lot of confidence in Hollub.

Conglomerates 240

Conglomerates Enterprise Values Debt Amortization 240

The Motley Fool

NOVEMBER 26, 2023

The company first bought shares in Q3 2020, cut the position in 2021, then began building it up again in Q3 2021. million 2/16/2021 12/31/2020 0 11/16/2020 9/30/2020 Data source: Berkshire Hathaway SEC Filings. million 2/16/2021 12/31/2020 0 11/16/2020 9/30/2020 Data source: Berkshire Hathaway SEC Filings.

Mergers and Acquisitions 240

Mergers and Acquisitions Banks Leveraging Debt 240

The Motley Fool

AUGUST 6, 2023

For Berkshire, that meant its position in Apple grew from 5.39% in 2020 to 5.55% in 2021 without purchasing a single share. The deal will undoubtedly cause some debt concerns since the company already has nearly $10 billion in net debt (total debt minus cash and cash equivalents). at the end of its first quarter of 2023.

Stakes 246

Stakes Leveraging Debt Shareholders 246

The Motley Fool

DECEMBER 29, 2023

But in 2020, it ordered tens of thousands of top-tier ASIC miners and rebranded itself as a pure-play Bitcoin miner. That marked the first time its total cash and BTC holdings exceeded its total debt. Marathon's revenue soared from $4 million in 2020 to $150 million in 2021 as it deployed its first miners.

Enterprise Values 245

Enterprise Values Debt Leveraging Accounting 245

The Motley Fool

SEPTEMBER 10, 2023

In addition, closed-end funds can use leverage to attempt to generate outsized returns and dividends for investors. A rising rate environment can pressure high-yield corporate debt as better-quality debt is likely to become available as rates rise. Fund shares are listed on stock exchanges and have varying degrees of liquidity.

Funds 246

Funds Leveraging Assets Debt 246

The Motley Fool

APRIL 29, 2024

As an operating business, we are able to use cash flows, as well as proceeds from equity and debt financing, to accumulate bitcoin, which serves as our primary treasury reserve asset. In addition, it also enables us to acquire bitcoin through the use of excess cash or proceeds from equity capital raises or corporate debt capital raises.

Leveraging 246

Leveraging Debt Assets Capital 246

The Motley Fool

OCTOBER 19, 2024

In 2020, the price per barrel fell below $25, only to zoom past the $100 market two years later. Return on equity (ROE) gives us an idea of how much a company earns for shareholders, while return on invested capital (ROIC) captures value creation for debt and equity holders. Oil markets have been very volatile in recent years.

Leveraging 246

Leveraging Shareholders Debt Capital 246

The Motley Fool

SEPTEMBER 2, 2023

For many years, there were a lot of opportunities for midstream companies to grow, and investors were happily willing to help finance that via the equity and debt markets. per unit in 2020. As the chart above shows, the MLP shifted from increasing the distribution quarter to just once a year in 2020. Times have changed.

Companies 246

Companies Amortization Depreciation Earnings Before Interest 246

The Motley Fool

FEBRUARY 3, 2024

That growth seems anemic, but it bounced back from two consecutive years of double-digit declines in fiscal 2020 and fiscal 2021. That recovery seems promising, but Carnival turned unprofitable over the past three years and took on a lot of debt to stay solvent during the pandemic. billion in long-term debt. billion to $28.5

Debt 246

Debt Leveraging Returns Investors 246

The Motley Fool

AUGUST 25, 2023

The pipeline company kept its payout flat from the start of 2020 until earlier this year, when it provided investors with a modest 2% raise. While those investments grew its earnings, its leverage ratio also increased. Leverage has fallen from 4.6 at the end of 2020 to 3.25 by mid-2023.

Mergers and Acquisitions 245

Mergers and Acquisitions Leveraging Capital Debt 245

The Motley Fool

APRIL 4, 2024

In fact, back in 2020, the midstream company slashed its distribution in half. This is important for investors because it allows the company to pay out its distribution while still being able to pay down debt. When Energy Transfer cut its distribution in 2020, it was because its leverage became too high, and it needed to pay down debt.

Enterprise Values 189

Enterprise Values Depreciation Leveraging Debt 189

The Motley Fool

APRIL 27, 2024

Metric Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Stock Buybacks $66.1 AAPL Net Total Long Term Debt (Quarterly) data by YCharts Apple doesn't rely on leverage to operate its business. billion, while its term debt was $106 billion. Apple also has a massive capital return program. billion on dividends.

Stock Market 246

Stock Market Stock Market Leveraging Banks 246

The Motley Fool

SEPTEMBER 10, 2023

From their mid-March 2020 low to their all-time high in November 2021, the shares skyrocketed nearly 1,600%. By leveraging its fixed costs, management has quickly increased net income. Profitability is superb, but Crocs currently carries a $2 billion debt burden, primarily from the $2.5

Debt 246

Debt Leveraging Stakes Accounting 246

The Motley Fool

JUNE 25, 2023

Deleveraging complete : Midstream companies have spent the past three years paying down debt and achieved their target leverage ratios. EnLink cut its payout by 50% in 2020, saving $185 million to preserve liquidity and strengthen its balance sheet. Its leverage ratio has fallen to 3.4, per unit (23%) to $1.07

Returns 246

Returns Leveraging Capital Debt 246

The Motley Fool

SEPTEMBER 4, 2024

For capital-intensive businesses that tend to carry a high amount of debt on their balance sheets, lower interest rates can reduce the cost of capital and make debt financing less expensive. Nearly nine years later, Kinder Morgan has turned its business around by managing spending and paying down debt. per share to $0.63

Investing 246

Investing Debt Assets Leveraging 246

The Motley Fool

JUNE 16, 2023

Energy Transfer, on the other hand, cut its distribution in half in 2020 as the energy industry faced difficult times during the early days of the pandemic. For example, its ratio of debt to EBITDA ( earnings before interest, taxes, depreciation, and amortization ) is generally among the lowest of its closest peer group.

Mergers and Acquisitions 246

Mergers and Acquisitions Debt Amortization Depreciation 246

The Motley Fool

MAY 14, 2024

Memes and short squeezes Yesterday started a major run-up in stocks that were popular in the 2020 and 2021 meme craze, including SunPower, Sunnova, and Sunrun. Companies will now find it easier to raise cash through share offerings or even convertible debt offerings to finance solar projects. before closing up 6.5%.

Bidding 245

Bidding Leveraging Prospects Debt 245

The Motley Fool

JUNE 22, 2024

Big oil, big capital return programs It's been a good run for integrated oil majors like Chevron and ExxonMobil, which have seen their stock prices go from 15-year lows to all-time highs between 2020 and 2023. Leading up to the pandemic, Chevron was in a stronger financial position and had less leverage than Exxon.

Mergers and Acquisitions 245

Mergers and Acquisitions Investing Leveraging Debt 245

The Motley Fool

MARCH 25, 2024

The company claimed it could deliver a compound annual growth rate (CAGR) of 40%, taking revenue from $140 million in 2020 to $388 million in 2023 while expanding its gross margin from 30% to 50% and keeping its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) margins in the high teens. Before BigBear.ai

Mergers and Acquisitions 242

Mergers and Acquisitions Investing Enterprise Values Amortization 242

The Motley Fool

JULY 2, 2024

While Disney has slowly made progress in paying down its debt, its leverage remains above 4 times EBITDA today. That's not a high enough debt level to prevent major credit bureaus from awarding Disney an investment-grade credit rating, but it weighs on the business and limits management's flexibility.

Debt 233

Debt Leveraging Assets Returns 233

The Motley Fool

AUGUST 24, 2023

That all came to a head in 2020 when deteriorating market conditions during the pandemic left the midstream company with no choice other than to slash its distribution so it could retain additional cash to shore up its finances. Energy Transfer has since reduced its leverage ratio to its target range of 4 to 4.5 That changed this year.

Mergers and Acquisitions 246

Mergers and Acquisitions Leveraging Debt Financing 246

The Motley Fool

OCTOBER 28, 2024

in the past five years, with no dividend increases since 2020. The company has a conservative balance sheet with low leverage, minimal near-term debt maturities, and ample liquidity. Its leverage ratio is currently around 4.76, which is within its 4.0-5.0 During the past two decades, it has grown its payout at a 7.1%

Investing 246

Investing Leveraging Taxes Capital 246

The Motley Fool

NOVEMBER 2, 2024

For the year, MicroStrategy is up a resounding 264%, and since 2020, it has outperformed every single S&P 500 stock. MicroStrategy has been on a Bitcoin buying spree since 2020, and makes regular Bitcoin purchases nearly every month. So is MicroStrategy really on track to become the first $1 trillion crypto stock?

Investment Banking 246

Investment Banking Investment Banks Banks Assets 246

The Motley Fool

AUGUST 5, 2024

In the past, it has over-leveraged and left itself vulnerable to downturns. ExxonMobil's aggressive approach was partially to blame for amplifying losses in 2020 when the company posted a staggering net loss of over $22 billion. Despite its dominant position, ExxonMobil isn't a perfect company.

Investing 243

Investing Leveraging Debt Prospects 243

The Motley Fool

AUGUST 1, 2023

Some may have unsustainable payouts, declining businesses, or high debt levels that could jeopardize their dividends in the future. In 2020, for instance, AbbVie completed a $63 billion acquisition of Allergan, the maker of Botox and other aesthetic products. However, not all high-yield stocks are created equal.

Debt 246

Debt Shareholders Leveraging Accounting 246

The Motley Fool

APRIL 26, 2024

billion in the early stages of the pandemic by buying hedges on bond prices crashing, which paid off when markets plunged in March 2020. He also favors its straightforward business model, lack of debt, and that it owns all of its restaurants, unlike most fast-food chains. coli outbreak, Chipotle has been a consistent winner.

Hedge Funds 246

Hedge Funds Leveraging Stakes Debt 246

The Motley Fool

JULY 17, 2023

The 5G transition provided T-Mobile an opportunity, and management seized it by purchasing Sprint in 2020. Debt and dividends leave AT&T and Verizon vulnerable Because they have paid out such hefty dividends and made the expensive C-band investments, AT&T and Verizon also have larger debt loads. Verizon $152.9 $2.2

Debt 246

Debt Taxes Shareholders Leveraging 246

The Motley Fool

JULY 11, 2023

The midstream giant made the difficult decision to slash its payout by 50% in 2020 to retain additional cash for debt reduction. The company recently achieved its targeted leverage ratio of 4.0 The company structured the deal so that it would be leverage neutral. That deleveraging strategy has been a success. It spent $1.45

Leveraging 189

Leveraging Liabilities Debt Capital 189

The Motley Fool

MAY 12, 2024

Over the next several years, the company expects to free up another $1 billion in annual free cash flow due to cost savings related to its midstream and downstream assets, plus reductions to its total debt levels. Berkshire has also owned its Chevron stake longer than its Occidental position, first purchasing shares back in 2020.

Stakes 246

Stakes Shareholders Assets Leveraging 246

The Motley Fool

SEPTEMBER 18, 2023

Basis trades use heavy borrowing in the repurchase market to leverage the price difference between a short bet on Treasury futures and a long position on Treasury cash. When it works, hedge funds make huge profits -- with heavy leverage allowing them to put up precious little of their own cash.

Hedge Funds 147

Hedge Funds Banks Funds Leveraging 147

The Motley Fool

APRIL 29, 2024

The company has been on a Bitcoin buying spree since mid-2020, and currently holds more than 214,000 bitcoins on its balance sheet. In fact, his company recently had two new debt offerings, both with the express purpose of -- you guessed it -- buying more Bitcoin. That's more than 1% of all Bitcoin in circulation.

Assets 245

Assets Consulting Consultants Asset Management 245

The Motley Fool

NOVEMBER 26, 2023

He started the Bezos Earth Fund to fight climate change and protect nature in 2020. While he could use debt or raise equity funding from investors, selling shares to fund the company allows Bezos to maintain full control over Blue Origin. Bezos has committed to giving away most of his fortune.

Investors 246

Investors Taxes Bidding Leveraging 246

The Motley Fool

JULY 31, 2024

Since our last earnings call on April 30, I am pleased to announce that we are making solid progress on our path forward of one, simplifying the business; two, operational performance improvement and three, reducing leverage. Our path forward goal is to reduce $2 billion in debt. On to balance sheet matters.

Debt 246

Debt Assets Leveraging Financing 246

The Motley Fool

MARCH 9, 2024

No public company has gone all-in on Bitcoin (CRYPTO: BTC) quite like MicroStrategy (NASDAQ: MSTR) , which has purchased 193,000 bitcoins since 2020. Up until 2020, MicroStrategy was singularly focused on growing its core business. Therefore, most of its Bitcoin transactions were funded through debt and equity.

Debt 130

Debt Leveraging Exchange-Traded Funds Collateral 130