5 Highest-Rated Energy Mid-Cap Stocks to Ease Inflation Pains – 24/7 Wall St.

With energy prices continuing to rise (if not skyrocket), it’s not just boosted energy giants like Chevron and Exxon Mobil. In fact, one of the companies we’re looking at here has had a bigger year-over-year share price increase than either of these giants, despite having a market capitalization of less than $5 billion. dollars and that its price per share is one-third that of Exxon and less than one-fifth that of Chevron.

All but one of the five companies on our list are organized as a master limited partnership (MLP), in which investors buy the company’s common shares instead of common stock. The MLP does not pay tax on its income, which is left to the investor-partners. This is one of the reasons why the distributions of these companies are so high.

Another reason why these energy midcaps (market cap between $2 billion and $10 billion) had a record year is that whatever business they are in, that business comes down to energy. Year-to-date, energy stocks are trading up almost 46%. No other market sector is trading in the green over the same period.

The mid-cap stocks on our list all have at least an average buy rating from analysts covering the stock.

Crestwood Energy Partners

Houston-based Crestwood Energy Partners LP (NYSE: CEQP) owns and operates assets and operations in the energy midstream. These assets are distributed among some of the largest shale plays in the Lower 48, including the Williston and Powder River basins, the Delaware (Permian) and Barnett shale basins in Texas, and the Marcellus shale in Ohio and North America. northeastern United States.

The company’s market capitalization is $2.86 billion and attracts little attention from analysts. Out of just eight brokerages covering the business, though seven have strong buy or buy ratings on common units. Based on a midpoint price target of $36.00, the upside potential for the stock is 23.3%.

Crestwood increased its distribution by $0.05 per common unit for the first quarter to $0.655. The yield at term of the units is 9.07%. The company’s payout ratio is negative for the past 12 months as it posted a net loss of $18.1 million during that period. On a pre-tax basis, excluding one-time items, Crestwood reported earnings of $87.3 million for the prior four quarters.

The 52-week trading range is $23.57 to $33.94 per share, and Crestwood’s one-year total return is 5.72%.

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