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The Zacks Analyst Blog Highlights DCP Midstream, MPLX and The Williams Companies

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For Immediate Release

Chicago, IL – December 21, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: DCP Midstream LP and MPLX LP (MPLX - Free Report) while keeping an eye on The Williams Companies Inc. (WMB - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

3 Midstream Stocks to Gain Despite Market Volatility

Broad inflationary pressures are making the broader market extremely volatile. This is because investors are concerned, following warnings from central banks, that interest rates are needed to be held at higher levels for a longer period. This has further induced choppiness in overall energy operations, which is reflected in the oil price chart.  

Companies belonging to the energy sector have been witnessing a choppy business environment since the onset of the coronavirus pandemic. The initial pandemic period, when there were no vaccines, saw an environment of heightened uncertainties. The commodity's price plunged to a negative $36.98 per barrel on Apr 20, 2020. However, with the rapid developments of vaccines, which led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration.

Considering the backdrop, it would be wise for investors to bet on midstream stocks like DCP Midstream LP and MPLX LP while keeping an eye onThe Williams Companies Inc..

Midstream Energy Players to the Rescue

Although the fate of energy players is highly dependent on oil and gas prices, stocks belonging to midstream space have lower exposure to volatility in commodity prices. This is because midstream players generate stable fee-based revenues since the transportation and storage assets are being booked by shippers for the long term. Thus, their business model is relatively low-risk, signifying considerably less exposure to both oil and gas price and volume risks.

We have employed our Stock Screener to zero in on three stocks belonging to the midstream energy space. One stock sports a Zacks Rank #1 (Strong Buy), one carries a Zacks Rank #2 (Buy) and one has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.

3 Stocks in the Spotlight

DCP Midstream LP: DCP Midstream is a leading provider of midstream services, having a fully integrated and resilient business model. With 12 billion cubic feet of natural gas storage assets, the master limited partnership has 2.8 billion cubic feet of daily natural gas pipeline capacity. DCP Midstream, with a Zacks Rank of 1, strongly focuses on strengthening its balance sheet with the foremost priority of reducing debt load.

MPLX LP: MPLX has ownership and operating interests in midstream energy infrastructure and logistics assets, thereby generating stable cashflows. With a strong focus on returning capital to unit holders, the #2 Ranked MPLX announced that as of third-quarter 2022-end, it had roughly $1 billion available under its unit repurchase authorizations.

The Williams Companies Inc: The Williams Companies is well-poised to capitalize on the mounting demand for clean energy since it is engaged in transporting, storing, gathering and processing natural gas and natural gas liquids.

With its pipeline networks spread across more than 30,000 miles, The Williams Companies connects premium basins in the United States to the key market. With a Zacks Rank of 3 at present, WMB's assets can meet 30% of the nation's consumption of natural gas, which is utilized for heating purposes and clean energy generation.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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