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IRE has agreed to grant EQT for exclusive due diligence

Investment Thesis
Since 24th February 2021 IRESS’s share price appreciated and traded on less attractive trading multiples and valuations.
No Doubt in quality of IRE’s quality with strong Team Management and its upside trade captured share price and trading multiples and hence its trading range bound.
Growing superannuation/pension resources bodes well for IRE’s clients, which bodes well for IRE’s product demand.
Financial market participants in Australia, United Kingdom and South Africa used use product of IRE widely. In the ANZ Wealth Management market for example, the expanding dynamic of practise self-licensing, strong client retention and increased demand for integrated solutions are major revenue drivers. More than 90% of revenue is recurring.
Strong momentum in ANZ Wealth Management’s core growth markets, including as South Africa and the United Kingdom.
The introduction of a new product provides prospects for expansion.
A strong financial position and a qualified management team.

Key Risks
Subscriptions are down due to dwindling demand from the sell-side and buy-side, as well as financial planners.
Competitive platforms/offers (new disruptive technology); competition’s better features and innovation.
Risks associated with the system, technology, and software.
Clients and their requirements are being impacted by regulatory and structural developments in the financial sector.
Deterioration in the equity and debt markets, which could have an adverse effect on terminal demand.
The company’s Canadian sector continues to deteriorate.

Key Highlight 2020

IRESS’s Revenue was up +1 to $298.7 million on a pro forma basis, as recurring sales now accounts for 90% of overall revenue.
IRESS’s Pro forma segment profit of $77.2 million and pro forma EPS of 14.2 cents were up 3% and 6%, respectively, and were in line with full-year guidance; driven by growth in Trading and Market Data, a full-year contribution from OneVue, and good progress with new client implementations across Super, Private Wealth, and in the UK, offset by expected revenue declines in the Australian financial services sector.
The cash conversion rate was 90%. (improved from 86 percent in FY20). The Pro forma ROIC was kept at 9% by IRE.
IRESS Board Declared Interim Dividend at 16cps, 80% franked.

Company Profile

Iress is an Australian financial software provider that specialises in the financial markets and wealth management sectors. Its mature financial markets business comprises around 25% of group EBITDA and has dominated the Australian market for around 20 years because of its leading order management platform. The wealth management software business comprises around a third of group EBITDA, and is the main contributor of group earnings growth, with superannuation and enterprise lending software comprising the remainder.

(Source: Morningstar)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

Vipers updated Fair Value Estimate increased to $21

and the announced Swallowtail acquisition, the fair value estimate of the company increased to $21 per unit while maintaining its narrow moat rating. With second-quarter results, Viper boosted its 2021 production guidance by 2% at the midpoint to just over 26,000 barrels of oil equivalent per day, mainly due to higher activity levels from third-party private operators versus public operators such as Diamondback.

After essentially halting acreage acquisitions in May 2020, Viper has returned to the M&A market with a large transaction. The deal is a $500 million cash and stock (55% stock, 45% cash) purchase of 2,302 net royalty acres in the Midland basin from Swallowtail Royalties, a private mineral rights firm where its acreage deals are financed by Blackstone funds. The price on a per acre basis is at over $200,000 per acre, roughly 80% higher than historical pricing and 40% higher than its last significant deal activity in May 2020.

Despite the high per-acre price, Viper has advantages, as 65% of the acres are operated by Diamondback with a net royalty rate of 3.6%. The value of the deal is demonstrated by the fact that Viper was able to offer a clear long-term growth trajectory for its Diamondback acres, substantially reducing uncertainty around future cash flows, but it wasn’t able to do the same for its non-Diamondback acres.

Company’s Future Outlook

The deal is expected to be completed by the early fourth quarter, and expected post-deal leverage will be about 2 times, which is considered reasonable. The Diamondback development plan is essentially minimal production today to 1,000 barrels of oil per day (bo/d) in 2022 to over 5000 bo/d by 2024. It is expected that this path to generate a solid amount of value for Viper.

Company Profile
Viper Energy Partners was formed by Diamondback Energy in 2014 to own mineral royalty interests in the Permian Basin. It is publicly traded Delaware limited partnership formed by Diamondback to own and acquire mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin. Since May 10, 2018, the company has been treated as a corporation for U.S. federal income tax purposes. At the end of 2020, Viper owns 24350 net royalty acres that produced 26551 boe/d. Proved reserves are mostly oil, and at the end of 2019 stand at 99392 mboe.

(Source: Morningstar)

General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

Spark Directors Recommend Takeover Offer

Graphic of investment stock market data analysis business

Australian regulated electricity distribution networks, and 15% of a major electricity transmission network. Citi Power and Powercor are two of five electricity distributors in Victoria, while SA Power Networks is the sole electricity distributor in South Australia. Trans Grid is the major electricity transmitter in New South Wales. 

The Victorian networks contribute just under half of EBITDA, with 40% from South Australia and the remainder coming from Trans Grid. Regulated tariffs account for 80%-90% of group revenue, with unregulated and semi regulated services accounting for the balance. Semi regulated services include public lighting and meter reading. Unregulated services include services on other owners’ networks, asset rentals, and facilities access. These operations are generally higher-margin and more volatile. 

Spark is a solid company, with investments in Australian electricity distribution networks generating highly secure cash flow under a transparent regulatory regime. This is a major headwind for earnings. Capital expenditure on upgrading and expanding networks adds to the regulated asset base and helps revenue growth in the long term. EBITDA margins were solid at 71% in 2020. The main determinant of margins is the favorability of regulatory decisions.

Financial Strength

Spark Infrastructure is in sound financial health. Spark carries a high debt load, as do other regulated utilities. This should be manageable because of highly secure revenue, except in a severe credit crisis. Credit metrics are likely to deteriorate because of regulatory pressure on returns but should, on balance, remain reasonable. Leverage, measured as net debt/regulated asset base, was 72% for VPN and 74% for SAPN in December 2020. This is above some peers; however, this metric understates these assets’ financial strength, given material unregulated revenue streams. Trans Grid is more heavily geared, with net debt/regulated and contracted asset base of 81%. 

Bull Says

  • Revenue is highly secure between regulatory resets, underpinned by regulated tariffs and defensive volume.
  • Lower interest rates and cost-saving programs are helping offset lower returns.
  • core assets have a debt-funding cost advantage because of a halo effect from majority owner Cheung Kong Infrastructure.

Company Profile

Spark Infrastructure Group (ASX: SKI) owns 49% interests in three electricity distribution companies: Powercor, servicing western suburbs of Melbourne; Citi Power, servicing Melbourne’s inner suburbs and central business district; and SA Power Networks, servicing South Australia. Powercor and Citi Power are collectively known as Victoria Power Networks. It also owns 15% of Trans Grid, the main electricity transmission network in New South Wales. The assets are heavily regulated, falling under the purview of the Australian Energy Regulator.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Dividend Stocks Expert Insights

Sydney Airport Flight Delayed to Fiscal 2022; FVE Maintained

Long distances between major cities in Australasia means flying is a preferred mode of travel. Despite a rival airport scheduled to open in 2026, we expect Sydney Airport to remain the favoured terminal for business and long-haul leisure travellers for the next decade. Revenue is about evenly sourced from aeronautical and other operations. Aeronautical fees are mostly on a per-passenger basis, with base charges negotiated with airlines every five years. Retail is the largest non-aeronautical contributor, accounting for about 23% of pre-COVID-19 revenue.

Duty-free and luxury shopping has threats, given the ability for e-commerce sites to offer lower prices than duty-free, and ESG risks given the reliance on tobacco and alcohol sales. However, in the long run, risks materialising in any particular sub-category should be offset by passenger growth boosting defensive categories such as food, car-rental, parking, souvenirs, and holiday items. Population and passenger growth should aid Sydney Airport as it can increasingly allocate slots away from domestic and toward international flights. International flights account for about 40% of passengers, but about 70% of passenger revenue. 

Financial Strength

Sydney Airport’s financial health is fair, with relatively defensive income offset by high debt. Net debt/EBITDA was a high 14 times in fiscal 2021, up from 7.2 in 2019. Our base case is that by fiscal 2023 debt/EBITDA will be back to a more sustainable level below 8 times, and declining, but under our bear scenario this would not occur until 2025 and would remain elevated over our 10-year discrete forecast period. Management acknowledged the high debt and took appropriate actions to reduce leverage, including cancelling distributions in 2020, delaying capital expenditure, securing additional bank facilities, and raising AUD 2 billion in equity in the September quarter of 2020.

Narrow-moat Sydney Airport’s half-year result showed potential, with domestic traffic recovering to 65% of April 2019 levels. This is negligible for our unchanged fair value estimate of AUD 7.85 per share. The key driver is our unchanged post-virus recovery and passenger growth estimates. An acquisition proposal from IFM was this week increased to AUD 8.45, up from 8.25, but was immediately rejected by Sydney Airport. The consortium’s valuation assumptions are unknown. Bulls on Sydney Airport appear to expect Chinese travellers, about 8% of Australia’s arrivals in 2019, will resume rapid growth as borders reopen.

While the long term is the key driver, the near term is relevant given Sydney Airport’s high debt load. Domestic travel volumes through Sydney Airport in the first half of fiscal 2021 improved on the coronavirus-impacted volumes of the second half of fiscal 2020, but domestic border restrictions have resulted in volumes falling significantly in July. A net debt to EBITDA ratio of 14 times is extreme and will be problematic if Australian international borders remain closed for years into the future. Further, the weighted average maturity of Sydney Airport’s portfolio of debt is about five years, and the group has AUD 500 million in cash and AUD 2.4 billion in undrawn banking facilities, more than enough to cover debt expiries in the next two years.

Bulls Say’s 

  • Sydney Airport’s convenience to the business district and coastal suburbs of Australia’s largest city makes it near impossible to replicate. Rising incomes in nearby nations, and Australia’s growing population bodes well for long-term passenger numbers.
  • A light regulatory regime is unlikely to become significantly more onerous.
  • Sydney Airport has spare landing slots, plus the ability to reallocate slots away from domestic and toward more lucrative long-haul international flights, as passenger traffic grows.

Company Profile 

Sydney Airport has a lease to operate the facility until 2097. As Australia’s busiest airport, it connects close to 100 international and domestic destinations, and handled more than 40 million passenger movements annually until COVID-19 border restrictions in 2020. Regulation is light, with airports setting charges and terms with airlines, and the regulator monitoring the aeronautical and car park operations to ensure reasonable pricing and service. Retail and property operations are free from regulatory oversight, though political and commercial pressure limits Sydney Airport from overly flexing its pricing muscle, particularly as the government owns the rival Western Sydney Airport, set to open in 2026.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

Santos Limited (ASX: STO)

  • Offers a number of core assets within its portfolio (no single asset risk).
  • On-going focus on cost reduction and positioning of the business for lower oil price environment.
  • Potential M&A activity – the Company has been the subject of several takeover offers.
  • Ramp up to GLNG.
  • Strong balance sheet position.
  • Strategic shareholders (potential corporate activity).

Key Risks

  • Supply and demand imbalance in global oil/gas markets.
  • Lower oil / LNG prices.
  • Not meeting cost-out targets (e.g. reducing breakeven oil cash price).
  • Production disruptions (not meeting GLNG ramp up targets).
  • Strategic investors sell down their stake or block any potential M& A activity.

1H21 Results Highlights

Relative to the pcp and in US$: Production of 47.3mmboe was up +23%. Sales volume of 53.8mmboe was up +15%. Product sales revenue of $2,040m was up +22%. EBITDAX of $1,231 was up +24%. Underlying profit of $317m is up +50%. STO achieved a net profit of $354m versus a loss of -$289m in FY20. Free cash flow of $572m was up +33%. The Board declared an interim dividend of 5.5cps (versus 2.1 in FY20) and equates to 20% of first half free cash flow, in-line with STO’s sustainable dividend policy which targets a range of 10% to 30% payout of free cash flow. Reported NPAT of $354m includes net gains on asset sales and is significantly higher than the PCP due to impairments included in the previous half-year result.

Company Description  

Santos Limited (STO) explores for and produces natural gas, liquefied natural gas, crude oil, condensate, naptha and liquid petroleum gas. STO conducts major onshore and offshore petroleum exploration and production activities in Australia, Papua New Guinea, Indonesia, and Vietnam. The company also transports crude oil by pipeline.  

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Technology Stocks

Telstra Corporation updates

  • Solid dividend yield in a low interest rate environment. 
  • On market buyback of $1.35bn (post sale of part of Towers business) should support its share price.
  • Additional cost measures announced to support earnings.
  • InfraCo provides optionality in the long-term. 
  • Despite intense competition, subscriber growth numbers remain solid. 
  • Company looking to monetize $2.0bn of assets. 
  • In the long-term, the introduction of 5G provides potential growth, however we continue to monitor the ROIC from the capex spend. 
  • TLS still commands a strong market position and has the ability to invest in growth technologies and areas (e.g. Telstra Ventures) which could provide room for growth.
  • Industry consolidation leading to improved pricing behavior by competitors.

Key Risks

We see the following key risks to our investment thesis:

  • Further cuts to dividends.
  • Further deterioration in the core mobile and fixed business.  
  • Management fail to deliver of cost-out targets and asset monetisation. 
  • Any increase in churn, particularly in its Mobile segment – worse than expected decrease in average revenue per users (or any price war with competitors).
  • Any network disruptions/outages.
  • More competition in its Mobile segment. Merger of TPG Telecom and Vodafone Australia creates a better positioned (financially and resource wise) competitor
  • Quicker than expected deterioration in margins for its Fixed segment.
  • Risk of cost blowout in upgrade network and infrastructure to 5G.

FY21 Results Highlights

Relative to the pcp: 

  • On a reported basis, total income fell -11.6% to $23.1bn (within FY21 guidance of $22.6bn to $23.2bn); EBITDA declined -14.2% to $7.6bn; NPAT increased +3.4% to $1.9bn. 
  • Underlying EBITDA of $6.7bn was within FY21 guidance of $6.6bn to $6.9bn. Underlying EBITDA, which includes an estimated $380m Covid impact fell -9.7% on a guidance basis including an in-year nbn headwind of $650m. Excluding the in-year nbn headwind, underlying EBITDA declined by ~$70m. (3) TLS FY21 underlying earnings were $1,191m while net one-off nbn receipts were $561m versus underlying earnings of $1,224m and net one-off nbn receipts of $1,075m in FY20. 
  • Capex of $3,020, was -6.6% lower, but within FY21 guidance of $2.8bn to $3.2bn. 
  • Free cashflow of $4,887m, was up +21.1%. Free cashflow after operating lease payments of $3.8bn beat FY21 guidance of $3.3bn to $3.7bn. (6) Basic EPS of 15.6 cents, was up +2%.

Company Description  

Telstra Corporation (TLS) provides telecommunications and information products and services. The company’s key services are the provision of telephone lines, national local and long distance, and international telephone calls, mobile telecommunications, data, internet and on-line. Its key segments are Mobile, Fixed, Data & IP, Foxtel, Network applications and services and Media.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

EOG May Need Fewer Rigs to Avoid Excess Growth Due to Capital Efficiency, Lowering FVE

 It derives almost all of its production from shale fields in the U.S., with a small incremental contribution from Trinidad. The firm differentiates itself by attempting to identify prospective areas before most peers catch on, enabling it to secure leaseholds at attractive rates (rather than overpaying for land after the market overheats). It has only one large-scale M&A deal under its belt, related to its 2016 entry to the Permian Basin.

Nevertheless, the firm is also active in most other name-brand shale plays, including the Bakken and Eagle Ford. Additionally, the focus now includes the Powder River Basin (Wyoming) and a new natural gas play in southern Texas that the firm has christened “Dorado.”

Due to the combination of its size and focus, EOG has significantly more shale wells under its belt than most peers. This has enabled it to advance more quickly up the learning curve in each play. As a result, initial production rates from new wells are usually well above industry averages. The firm’s acreage contains over 10,000 potential drilling locations that management designates as “premium.” However, management is now prioritizing a sizable subset, 5,700+ locations, designated “double premium.” 

Financial Strength

Overall, EOG’s financial health is excellent compared with peers, giving it the ability to tolerate prolonged periods of weak commodity prices, if necessary. The firm holds about $5.1 billion of debt, resulting in below-average leverage ratios. At the end of the most recent reporting period, debt/capital was 20% and net debt/EBITDA was 0.2 times. These metrics are likely to trend even lower over time, as the firm is capable of generating more cash than it needs to fund its operations and its growing dividend under a wide range of commodity scenarios. Furthermore, the firm also has a comfortable liquidity stockpile, with $3 billion cash and another $2 billion available on its undrawn revolver.

Bull Says

  • EOG is among the most technically proficient operators in the business. Initial production rates from its shale wells consistently exceed industry averages.
  • EOG’s vast inventory of premium drilling locations provides a long runway of low-cost resources.
  • EOG often adds new premium drilling opportunities to its queue via exploration or by using improved knowhow and technology to “upgrade” opportunities that did not previously qualify.

Company Profile

EOG Resources Inc (NYSE: EOG) is an oil and gas producer with acreage in several U.S. shale plays, including the Permian Basin, the Eagle Ford, and the Bakken. At the end of 2020, it reported net proved reserves of 3.2 billion barrels of oil equivalent. Net production averaged 754 thousand barrels of oil equivalent per day in 2020 at a ratio of 72% oil and natural gas liquids and 28% natural gas.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Expert Insights Technology Stocks

Narrow-Moat Syneos Reports Strong Q2 Results; Raising FVE to $64 on Improved 2021 Outlook

 global, late-stage contract research organizations, but at the price of a significant debt load. Most of Syneos’ CRO business comes from the most lucrative area of the CRO market: long, complex trials that typically require thousands of patients across the globe and thus have ample room for missteps. Trial sponsors need a CRO not only with strong technical know-how in specific disease areas, but also with the expertise in local country cultures and government relations.

Legacy INC Research was a leader in late-stage clinical research from small- and mid-cap biopharma, while inVentiv Health had better exposure to large pharma. The combined company has a diversified client base and provides a full portfolio of offerings, including staffing solutions and commercialization. While we don’t see significant competitive advantages in the staffing and selling business, both complete Syneos’ portfolio of services and offer flexibility to clients. The lower-margin commercial solutions business has had mixed success, but management’s cross-selling strategy to offer hybrid contracts with both clinical and commercial components should be a boon to the segment.

Financial Strength 

Narrow-moat Syneos reported second-quarter revenue of $1.3 billion, representing nearly a 27% increase year over year. Adjusted EBITDA was $175 million for the quarter, up 47% from the prior-year period. Syneos is recovering well from pandemic-related challenges, as evidenced by its strong year-over-year figures. Due to strong demand across Syneos’ clinical and commercial segments, management has updated its 2021 guidance. Syneos reported solid net new business wins in Clinical and Commercial Solutions, totaling $1.7 billion for the quarter, representing a book-to-bill ratio of 1.33 times. The new business wins contributed to an ending backlog of $11.7 billion for the quarter, up 21% from the prior-year period. 

Syneos ended the quarter with about $261 million of unrestricted cash and total debt outstanding of about $2.9 billion, resulting in a net leverage ratio of 3.8 times. We continue to think Syneos’ positive momentum indicates the operating environment remains strong. Syneos is in middling financial health after the 2017 merger, with about $2.9 billion in total debt weighing down the balance sheet. The deal pushed the company to the top tier of large, global late-stage players, which positions the company to secure deals with large biopharma companies and propel cash generation, but we expect the deal to limit near-term financial flexibility. Syneos’ major debt maturities are pushed out to 2024 and beyond, which provides the company ample opportunity to grow and unearth synergies from the merger.

Bulls Say’s 

  • Syneos’ late-stage contract research business is poised to benefit from stable research and development spending and increased outsourcing in the biopharma industry.
  • High levels of new drug approvals should boost growth in the company’s contract commercialization business.
  • Robust net new business wins should translate to accelerated growth in the contract research segment in the near term.

Company Profile 

Syneos is a global contract research and outsourced commercialization organization that provides services to pharmaceutical and biotechnology firms. Its clinical solutions segment offers early- to late-stage clinical trial support that ranges from specialized staffing models to strategic partnerships that oversee nearly all aspects of a drug program, while the company’s commercialization solutions includes outsourced sales, consulting, public relations, and advertising services.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

Murphy Prioritizing Balance Sheet Strengthening While Commodity Prices Are Support

which was 10% higher sequentially and 1% higher year over year. Net production, excluding non controlling interest volumes from the firm’s Gulf of Mexico assets, was 171 mboe/d. This exceeded the high end of the guidance range of 160-168 mboe/d. Management attributed the outperformance to its Eagle Ford and Tupper Montney assets, which contributed 3.7 mboe/d and 2 mboe/ d, respectively, of upside relative to guidance.

The firm’s outlook for full-year volumes was nudged up by 0.5 mboe/ d, and the budget range was tightened, but the midpoint was unchanged. The firm’s financial results were similarly strong, with adjusted EBITDA and adjusted EPS coming in at $391 million and $0.59, respectively. 

Company’s Future Outlook

The estimates were $321 million and $0.17. Like many of its peers, Murphy is using the windfall from currently high commodity prices to strengthen its balance sheet. The firm has repaid its revolver in full and is now aiming for a further $200 million in net debt reduction by the end of the year. It is planned to incorporate these operating and financial results in our model shortly, but after this first look, our fair value estimate and no-moat rating remain unchanged.

Company Profile

Murphy Oil Corporation (NYSE: MUR) is an independent exploration and production company developing unconventional resources in the United States and Canada. At the end of 2020, the company reported net proven reserves of 715 million barrels of oil equivalent. Consolidated production averaged 174.5 thousand barrels of oil equivalent per day in 2020, at a ratio of 66% oil and natural gas liquids and 34% natural gas.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Commodities Trading Ideas & Charts

Boosting Our Oneok Fair Value Estimate to $49 Following Second-Quarter Results

our fair value estimate to $49 per share. Oneok’s second quarter clearly shows the firm benefiting from a recovery in volumes across its footprint after the COVID-19- driven decline last year as well as numerous new assets placed in service.

Given the strong results, Oneok boosted its 2021 EBITDA guidance to above its earlier midpoint of $3.2 billion, and toward our current forecast of $3.3 billion. Second-quarter EBITDA was $802 million, a 50% increase from last year’s levels. The largest contributor to its earnings improvement is a recovery in Rockies volumes, as well as higher realized commodity pricing on its gathering contracts with a percentage of proceeds component. Rockies volumes across its footprint have recovered over 85% since the second quarter of 2020 to nearly 300,000 barrels per day, or bpd, and Oneok still has 440,000 bpd of capacity, expandable to 540,000 bpd with minimal capital spending.

Every 25,000 bpd of Rockies volumes is worth another $100 million in Oneok EBITDA. Oneok remains well positioned to capture new opportunities in the Williston basin. The gas/oil ratio has improved 80% over the last year in the Williston basin, leading to a substantial recovery in gas production. Oneok’s second-quarter gas processing volumes were about 1.25 billion cubic feet per day, and the firm expects to connect more than 300 wells to its footprint this year.

The increased connections point to incremental upside of about 150 million cubic feet per day of processing volumes. Reducing flaring to zero across Oneok’s footprint adds another 100 million cubic feet per day. Beyond that, simply holding the current oil rig count flat in the Williston basin suggests another 1 billion cubic feet per day of upside in overall gas volumes over the next decade per Oneok estimates.

Company Profile 

ONEOK, Inc. is an energy midstream service provider in the United States. The Company owns and operates natural gas liquids (NGL) systems, and is engaged in the gathering, processing, storage and transportation of natural gas. THe Company’s operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions. The Company operates through three business segments. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.