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Many of these companies are structured as master limited partnerships (MLPs), which pass through their profits to their unitholders and as such don't pay corporate taxes. This portion is tax deferred until the stock is sold and reduces the owner's cost basis. This is a nice benefit, although it does add some paperwork come tax time.
Blackstone aims to secure a valuation for Liftoff of more than 10 times the company’s 12-month earningsbeforeinterest, taxes, depreciation, and amortization (EBITDA) of $350m. Blackstone acquired Vungle in 2019 and invested in Liftoff the following year. Liftoff currently generates around $650m in annual revenue.
James Hardie agrees to combine with Azek There are two concerns over the deal: the price and the fact that James Hardie is buying an asset in an industry that's continuing to be challenged by relatively high interest rates. However, there's a debate over whether the move downward is justified. Start Your Mornings Smarter!
to 5 times debt to EBITDA (earningsbeforeinterest, taxes, deprecation, and amortization). Enbridge is a toll taker What's equally interesting here is Enbridge's core business model. Throughout its business, the company focuses on generating reliable cash flows from fees, regulated assets, and contracts.
billion Canadian ($3 billion) of adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) in the period. Fueling that growth was strong utilization across its existing assets, recently completed expansion projects, and the impact of acquisitions. That was 8% higher than last year.
By and large, the companies structured as master limited partnerships (MLPs) have also eliminated their IDRs (incentive distribution rights), which essentially acted as a tax paid to their general partners every time they increased their distributions. Image source: Getty Images. multiple that midstream MLPs traded at between 2011 and 2016.
Growing despite the headwinds NextEra Energy Partners delivered modest earnings and cash flow growth during the first quarter: Image source: NextEra Energy Partners. As that slide shows, the company's adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) rose from $447 million to $462 million, a 3.4%
The move will expand Home Depot's addressable market by an estimated $50 billion, but the company said it would suspend share buybacks until it returns to its target-debt leverage of two times earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ).
The deal adds over 600,000 service customers in the state, which it serves with over 13,000 miles of gas distribution and transmission pipelines and other related gas infrastructure assets. The new gas utilities also increased the company's cash flow from stable regulated assets and enhanced its growth profile.
Coinbase is one of the world's largest cryptocurrency exchanges, and it facilitates trades of Bitcoin, Ether (CRYPTO: ETH) , Tether (CRYPTO: USDT) , and other crypto assets. Its exposure to those slower-growth assets seems to be throttling its overall growth. Both stocks more than tripled this year as Bitcoin's price more than doubled.
After its 2022 merger with Kirkland Lake Gold and its acquisition of Yamana's Canadian assets, Agnico has emerged as a leading producer of gold -- and profits. This helps provide the ability to acquire more assets or to advance growth projects that will expand its mineral resources and strengthen the company's future.
Enbridge currently gets 98% of its earningsbeforeinterest, taxes, depreciation, and amortization (EBITDA) from stable cost-of-service or contracted assets. Enbridge has been working to enhance the stability of its earnings profile by upgrading its portfolio.
Pressure on solar energy stocks continues Interest rates have been up and down over the past month, and at least in the first four days of trading this week, rates were on the rise, which is bad for renewable energy companies. What Seaport Global questioned was the company's ability to pay its lofty dividend long term.
Notably, most of its revenue is generated from fees for the use of its assets, so the income it produces is fairly reliable and largely untethered from volatile commodity prices. Midstream companies grow by expanding their asset base. Like Enterprise, Enbridge owns a massive collection of midstream assets.
This includes vital energy infrastructure assets like pipelines, storage, transportation, and processing facilities. In other words, Enterprise gets paid for the use of its irreplaceable assets. Image source: Getty Images. The key to the midstream sector is that it is largely a toll-taker business.
Most of the company's assets are highly regulated. Indeed, management has put a major focus in acquiring more "utility-like" assets over the last few years, and it's making a big increase in actual utilities with the acquisition of three properties from Dominion. EBITDA = earningsbeforeinterest, taxes, depreciation, and amortization.
If you have some money you'd like to invest in this wealth-building asset class -- that you don't need for living expenses or to pay off debt -- read on to learn about two great growth stocks. Widening budget needs are driving more governments to boost their tax revenue by legalizing sports gambling.
Investors who like Enterprise Products Partners (and understand the tax complexities of owning an MLP ) should check out fellow MLP MPLX (NYSE: MPLX). It operates pipelines, storage assets, a marine business, and export terminals. Those diversified midstream operations supply both MLPs with stable earnings and cash flow.
In other words, it is very unlikely that this business will be able to grow its market share or top line anytime soon, as it will have fewer and fewer productive assets to operate. That will further reduce its total assets, and reduce its financial flexibility to borrow money at an attractive interest rate, as it will have less collateral.
Drilling down into the deal Williams has agreed to buy a portfolio of natural gas storage assets from Hartree Partners for nearly $2 billion. The company is paying about 10 times estimated 2024 earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) for these assets. billion to $6.8
billion after-tax goodwill write-down of its VillageMD investment in an admission that it greatly overpaid for the business. Healthcare segment was able to flip to positive adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) of $17 million and a modest adjusted operating loss of $34 million.
Together, these groups cover areas like risk data management, regulatory reporting solutions, fraud and anti-money laundering , and surveillance for banks, insurers, and asset managers. times EBITDA (earningsbeforeinterest, taxes, depreciation, and amortization) to 3.3 times within three years.
However, there's much less of a tax drag on the transaction. Share repurchases incur a 1% tax (paid by the business); qualified dividends are taxed at the long-term capital gains tax rate (paid by the shareholder). It's also taken a different strategy when it comes to fiber, opting to lease fixed-line assets.
These are vital assets, like pipelines and storage, that help move oil, natural gas, and the products into which they get turned around the world. For the most part, the partnership charges fees for the use of its assets, which creates fairly reliable cash flows over time. This is important. Image source: Getty Images.
Learn More Setting the stage Last year, Energy Transfer grew its adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) by 13%, while its distributable cash flow rose 10%. Our analyst team just revealed what they believe are the 10 best stocks to buy right now.
The remaining 28% of its trading volume came from "other crypto assets," which include smaller tokens, non-fungible tokens ( NFTs ), and other assets that flopped over the past year. Therefore, it can afford to wait for the crypto winter to end as long as it steers clear of the problems that sank FTX and torpedoed Binance.
While Verizon faces stiff competition and challenges in its fixed-line business, its extensive fiber-network assets and 5G technology offer growth potential.
AT&T's dividend had to come down because the company spun out its unpredictable media assets. times adjusted earningsbeforeinterest, taxes, depreciation, and amortization (EBITDA) at the moment to 2.5 In the first quarter, Steven Cohen and Point72, the fund he manages, bought about 15.3
ExxonMobil achieved record production from its Permian and Guyana assets in Q2. It now expects adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) of $17.7 But I think ExxonMobil is now a more attractive stock to buy. Even better, Enbridge raised its full-year outlook.
It owns physical assets, like pipelines , that help move oil and natural gas from where they are extracted to where they are consumed and/or processed. This is largely a fee-based operation, which means the company is being paid for the use of its assets. The core of the business Enbridge is classified as a midstream company.
That's an appropriate place for it, given that around 57% of the company's earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) comes from oil pipelines and another 28% from natural gas pipelines. But do the quick math -- this side of the company makes up 85% of EBITDA.
That's because midstream companies own the energy infrastructure ( like pipelines ) that connects the upstream to the downstream, and the rest of the world, and they largely charge fees for the use of their assets. Image source: Getty Images. Enbridge is, basically, a toll taker. That tends to lead to slow and steady growth over time.
year-over-year increase in its adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) to nearly $1.9 NextEra Energy Partners benefited from the increased income earned by new projects added to the portfolio and a reduction in management fees from its parent, NextEra Energy.
In 2021, its revenue and adjusted earningsbeforeinterest, taxes, depreciation, and amortization (EBITDA) soared 545% and 676%, respectively, as many cryptocurrencies hit their all-time highs. But in 2022, its revenue fell 57%, and its adjusted EBITDA turned negative.
Adjusted earningsbeforeinterest, taxes, depreciation, and amortization (EBITDA) more than doubled from last year in the first quarter to $871 million, and Carnival reported its third consecutive quarter of positive operating income. The long-term opportunity Carnival was a market-beating stock before the pandemic.
AT&T If you're looking for stocks that can grow their high-yield dividends, you might have overlooked AT&T because it reduced its dividend payout by 47% in 2022 to compensate for the spinoff of its media assets. times adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) last year, from 3.19
Roughly 90% of its adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) come from stable, fee-based sources. The MLP also has a well-balanced asset mix. An elite income investment Energy Transfer checks all the boxes for me. The midstream giant produces lots of steady cash flow.
One factor driving that view is the company's ability to continue expanding its portfolio of income-producing energy infrastructure assets. Meanwhile, distributable cash flow per share should rise by around 3% per year during that time frame, slowed down by modest headwinds from tax legislation.
That's the core of the business, representing around 75% of its earningsbeforeinterest, taxes, depreciation, and amortization (EBITDA). The company charges fees for the use of its assets, so this business is a highly reliable cash-flow generator. TD Bank has just been fined roughly $3 billion by U.S. That's bad.
It further diversifies our business and enhances the stable cash flow profile of our assets," stated Michele Harradence, the president of gas distribution and storage at Enbridge. "The addition of a strong Ohio-based gas utility company is a great strategic fit for Enbridge.
This business segment is also enormously profitable, generating 189 billion yuan ($26 billion) in earningsbeforeinterest, taxes, and amortization (EBITA) in the fiscal year 2024. With so many valuable assets under its umbrella, Alibaba needs to do just one thing: execute well to unlock the value of these assets.
that transport oil and gas plus other midstream assets. Roughly 90% of its adjusted earningsbeforeinterest, taxes, depreciation, and amortization ( EBITDA ) is fee-based, which means commodity prices don't impact profits very much. forward earnings. The stock currently trades at only 7.2x
Individual investors don't usually have to worry about unrealized capital gains or losses; gains or losses only come into play when they sell a stock, at which time there are capital gains tax considerations for the shareholder. The whole picture Net income is a popular metric because it's the literal bottom line.
EBITDA = earningsbeforeinterest, taxes, depreciation, and amortization. 2023 revenue and earnings guidance raised (after being significantly lowered last quarter) Management increased its annual revenue and earnings outlook because of recently rising lithium market prices. billion 60% $1.03 billion $11.3
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