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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 That improving leverage ratio has provided Energy Transfer with increased financial flexibility. times target range.
clean energy developer, today announced that it has raised a $1.2bn capital package to support the expansion of its large-scale renewable energy portfolio comprising utility-scale transmission and storage, onshore wind and solar generation, and offshore wind. energyRe, an independent U.S.
This was done because management had to choose between paying the dividend or putting money to work in capitalinvestment projects that would grow the company. KMI Financial Debt to EBITDA (TTM) data by YCharts That said, a part of the problem was Kinder Morgan's more aggressive use of leverage than its peers'.
In the past, it has over-leveraged and left itself vulnerable to downturns. However, ExxonMobil has improved its balance sheet significantly since then, taking advantage of outsize gains in recent years to pay down debt. Despite its dominant position, ExxonMobil isn't a perfect company. But it wasn't always this way.
While this added protection does lower the yield Annaly receives on the MBSs it purchases, it also enables the company to prudently leverage its investments. This leverage allows Annaly to maximize its profit potential and sustain a double-digit yield. PennantPark Floating Rate Capital: 11.1% million in debt securities.
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. Today, most of the best investment opportunities for new projects have been exploited. In 2023, capital spending is projected to be around $2.3
Chevron also has one of the strongest balance sheets in the sector, with a debt-to-equity ratio of 0.12 This is vital because it allows management to take on debt during industry downturns to keep funding the business and the dividend. When the energy market improves again, as it always has historically, leverage is reduced.
The main factor holding back dividend growth in recent years has been the company's heavy investments to expand its midstream systems. While those investments grew its earnings, its leverage ratio also increased. Leverage has fallen from 4.6 Stomping on the gas Oneok has increased capitalinvestments in recent years.
A look Chevron's balance sheet shows that its debt-to-equity ratio of 0.12 That's important because during energy downturns Chevron takes on leverage so that it can continue to support its business and its dividend. More customers means more revenue and more opportunity for regulator-approved capitalinvestments.
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 The company is using its balance sheet capacity, stock sales, and non-core property sales to continue making new investments.
It recently flexed those muscles by raising $2 billion in low-cost debt. Capitalizing on its cost of capital advantage Enterprise Products Partners took care of its 2024 funding needs early. The midstream giant will use some of that money to refinance its lone 2024 debt maturity ($850 million of 3.9% It had about $3.8
ET Financial Debt to EBITDA (TTM) data by YCharts. Then there's the fact that Enterprise has an investment-grade rated balance sheet. Moreover, its leverage is normally toward the low end of its peer group, so it is conservative on both an absolute and relative basis. Oneok followed that up with a $5.9
Avoiding the need to tap the capital markets The most prominent benefit for miners from working with Wheaton, or peers like Royal Gold (NASDAQ: RGLD) and Franco-Nevada (NYSE: FNV) , is that they don't have to sell stock or issue debt. The payment it made covered around 78% of the capitalinvestment Vale was making in the Salobo mine.
Under CEO Mary Barra, GM has maintained a rock-solid balance sheet and greatly improved profitability, all while investing heavily in EVs and autonomous driving. billion of debt. A cash-rich balance sheet gives the company breathing room during a downturn and helps support its investments in EVs.
Kinder Morgan has done a good job of balancing investments and financial discipline. It has continued to reduce its leverage and now plans to finish the year with a net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) ratio of just 3.9. in dividends per share.
The company made the move to retain additional cash to reinvest in its business and reduce debt. However, with leverage finally coming down in the past year and a clear line of sight for more deleveraging in the future, AT&T's 5% yielding dividend is on a much firmer foundation. leverage ratio. billion over the past year.
It needed to retain additional cash to invest in its business and repay debt. The company has struggled to cut its debt in recent years, which caused concerns that it might need to cut its payout again. However, its leverage ratio is starting to come down (with more progress expected). AT&T benefited from $0.7
The company reduced its net debt by $1.9 That's allowing it to steadily reduce its leverage ratio. It's targeting to get its leverage ratio down to the 2.5x The company's elevated leverage ratio has caused concerns about the dividend's sustainability. Should you invest $1,000 in AT&T right now?
One very big reason is leverage. With limited revenue, cruise lines had to raise capital to cover the costs they still had to pay. Carnival's debt-to-equity level was around 0.45 By the middle of 2023, Carnival's debt-to-equity level had risen to more than 5.7 At that point, Carnival's leverage was still on the rise.
If you're seeking passive income from your investment portfolio, Hercules Capital (NYSE: HTGC) is one stock that may have caught your attention. Hercules Capitalinvests in venture-backed start-ups, and offers an ultra-high dividend payout of over 10% annually.
That extra money will most certainly go toward two things: additional growth-oriented capital spending and debt reduction. So investors that stuck it out while Southern was muddling through this troubled capitalinvestment project have been well rewarded from a total return perspective.
Verizon has a lot of debt Verizon is one of the largest telecommunications companies in the United States, operating a large cellular network. Operating a telecommunications business requires a huge amount of capitalinvestment. As such, companies in the industry tend to carry a lot of debt on their balance sheets.
Lower interest rates can spur capitalinvestment, lower the unemployment rate, and help accelerate economic growth. Lower interest rates make borrowing costs cheaper, which allows ConocoPhillips to refinance debt if needed or take on new debt at a lower rate. debt-to-equity ratio -- both near 10-year lows.
There are negatives for Enbridge with this deal, which is requiring it to take on some debt. However, Enbridge has reliable cash flows from its fee-based, regulated, and contract-driven income streams and should be able to handle the additional leverage. So, basically, it is baking in more slow and steady growth for the future.
billion of free cash flow after capitalinvestments and vendor financing payments. The company is using its remaining excess free cash flow to repay debt. Its net debt has declined by $1.9 Its net debt has declined by $1.9 That's helping push down its leverage ratio , from 3.1 The telecom giant generated $9.1
In the past nine years, it has reduced its total net long-term debt position by 29% and lowered its leverage. As you can see in the following chart, Kinder Morgan's debt-to-capital (D/C) ratio is now just 51%, which is among the lowest of its peer group. PBA Debt To Capital (Quarterly) data by YCharts.
Enterprise has an investment-grade rated balance sheet A reliable cash-generating business is important, but a good business foundation isn't enough. Companies can easily cause themselves massive problems if they use debt too aggressively. TRP Financial Debt to EBITDA (TTM) data by YCharts 3. times in 2023.
It has used its cash flow to invest in expanding its mobile and broadband businesses while directing any excess free cash flow after dividends to repaying debt. AT&T expects to reinvest around $22 billion of its annual cash flow into capitalinvestments in the 2025 to 2027 time frame. per share ($0.2775 each quarter).
Verizon is big, important, and heavily leveraged Verizon is one of the leading telecommunications companies in the United States. Capitalinvestment is a large and constant expense. The debt-to-equity ratio is a tiny 0.15 Verizon's debt and slow growth are big issues to consider, along with its fat yield.
billion to pay off debt related to Cove Point. The rest is likely to be used to pay off other Dominion debts, helping to improve the utility's overall leverage metrics. First, Dominion's leverage is a concern among investors. Reducing leverage is, after all, a key goal as Dominion repositions its business.
Free cash flow is counted after a business makes capitalinvestments, so that number has already factored in the money AT&T invests to maintain and build its networks. It's still paying down a massive debt from its failed entertainment acquisitions earlier this decade.
For example, higher rates make it more costly for companies to justify capitalinvestment projects since debt will be more costly to manage. It makes properties more expensive to finance for real estate investment trusts (REITs). As an example, retailer VF Corp.
The REIT has grown by investing shareholder capital into income-generating net lease real estate. It plans to leverage that expertise by bringing in private capital in a brilliant move that could grow shareholder value significantly in the future. It funds those deals with 35% debt and 65% equity (all from shareholders).
Centerbridge invests between $50 million and $300 million in US-based leveraged buyouts and distressed securities. The firm has $38 billion of capital under management and is headquartered in New York City, with an additional office in London. The firm is headquartered in Stamford, Connecticut.
But that will require a lot of capitalinvestment before there's any substantive revenue coming in. Meanwhile, Intel is looking to preserve cash for its capitalinvestment push, which was highlighted by its recent dividend cut. That, meanwhile, has to be juxtaposed against the company's leveraged balance sheet.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter Sign up TPG, formerly Texas Pacific Group, is co-headquartered in Fort Worth and San Francisco and specializes in leveraged buyouts and growth capital. The firm was founded in 1992 and manages assets and investments totaling $139bn.
It's good old-fashioned leverage that can amplify gains during certain conditions and compound losses if oil prices take a turn for the worse. However, it also said that 90% of its planned upstream capitalinvestments over the next five years will be able to return 10% or more even if Brent crude oil is $35 a barrel.
But Hess is in a partnership with Exxon on a big capitalinvestment in the oil space. Notably, Exxon's debt-to-equity ratio is roughly 0.2 European peers make much greater use of leverage. Leverage is important because the energy sector is highly cyclical and prone to dramatic price swings.
It keeps leverage low so it can lean on its balance sheet when times are tough to support the dividend. When volatile energy prices rise off of their lows, it uses the extra profit to pay down the debt. Energy giant ExxonMobil is a good example. Image source: Getty Images.
Total capitalinvestments in the second quarter of 2023 were $784 million, which included $683 million for growth capital projects and 101 million of sustaining capital expenditures. We continue to expect sustaining capital expenditures for 2023 will be approximately $400 million. Turning to capitalization.
billion indirectly through share repurchases, all while reducing debt 35%. Led by our employees' commitment to operational excellence and capital discipline, we outperformed on oil, natural gas, and NGL volumes for the quarter, as well as beating expectations on per-unit cash operating costs.
With a debt-to-equity ratio of roughly 0.12 Essentially, during the lean times, it can take on debt to keep funding its business and dividend while it waits for better days. When energy prices recover, as they always have historically, the company reduces its leverage to prepare for the next downturn.
Sun Capitalinvests from $50 million to $300 million in leveraged buyouts, equity, and debt in companies with more than $32 million in EBITDA that can benefit from its in-house operating professionals and experience. Sectors of interest include business services, consumer, healthcare, industrial, and technology.
clean energy developer, today announced that it has raised a $1.2bn capital package to support the expansion of its large-scale renewable energy portfolio comprising utility-scale transmission and storage, onshore wind and solar generation, and offshore wind. energyRe, an independent U.S.
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