This year was supposed to be a monster one for Crestwood Equity Partners (NYSE: CEQP). The midstream master limited partnership expected to put the finishing touches on a three-year, $1 billion expansion program, which it anticipated would fuel high-octane earnings growth.
It appeared the company was finally in the position to start increasing its distribution to investors. The COVID-19 pandemic, however, has upended those best-laid plans. It has devastated demand for oil and gas, putting immense pressure on pricing and the finances of Crestwood's core customers. That has investors worried these companies might not be able to pay Crestwood -- affecting its ability to maintain its lucrative dividend.
These factors have weighed on its value, sending its unit price down roughly 75% this year and pushing its yield up to an eye-popping 40%. The company, however, recently reassured investors that its payout is safe, at least for the time being.
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Source: Motley Fool
(April 19, 2020 - 10:15 AM EDT)
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