Inflation Won't Interrupt Cash Flows For Magellan Midstream

David Trainer
16.64K Followers

Summary

  • Magellan is positioned to benefit from decades of continued demand for refined products and crude oil.
  • The company's strong free cash flow generation funds its 8.8% dividend yield.
  • Units are worth $67+ even if profits never reach 2018 levels.

Oil pipeline in green landscape

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This pipeline system operator offers low-cost, low-carbon, and high-volume transportation to half of U.S. refinery capacity. Better yet, the company's ability to consistently adjust its tariffs means it is well positioned to deliver strong cash flows even in a high inflation environment. Magellan Midstream Partners

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This article was written by

David Trainer
16.64K Followers
With AI-driven Robo-Analyst technology, we help investors make smarter decisions based on proven-superior fundamental data, stock ratings and research.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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