At Extreme Investor Network, we aim to provide unique and valuable insights into investing opportunities that can help you grow your portfolio. Today, we’re diving into the world of data center power demand and how it can boost companies with ties to transporting and storing natural gas.
According to Bank of America analyst Jean Ann Salisbury, companies in the midstream space that are linked to natural gas could see significant benefits from the growing demand for data center power. The natural gas liquids midstream sector is viewed as relatively defensive, with positive catalysts expected in 2025 as data center development and LNG demand materialize.
One of the recommended stocks highlighted by Bank of America is Enterprise Products Partners LP. With a price target of $35, this stock offers 20% upside potential from Tuesday’s close. Enterprise Products is well-positioned to maintain its market share in Permian natural gas liquids growth and has added essential export capacity for liquified petroleum gas and ethane. Additionally, it offers a dividend yield of 7.3% and operates as a limited partnership, providing special tax treatment for investors seeking high yields.
Another stock to consider is Energy Transfer LP, which also offers attractive potential returns. With a price target of $20, implying a 22% upside, Energy Transfer has a dividend yield of 7.8% and is developing an LNG export facility in Louisiana. This stock, like Enterprise Products, operates as a limited partnership, offering preferential tax treatment and higher yields for investors.
Lastly, Kinder Morgan is highlighted by Bank of America as one of the key beneficiaries of the long-term U.S. gas demand upswing expected in 2025. With a price target of $27, Kinder Morgan offers nearly 9% upside potential and a dividend yield of 4.7%. As gas demand rises, Kinder Morgan is expected to announce attractive projects that will spur growth in key regions.
In conclusion, investing in companies with ties to transporting and storing natural gas, particularly those linked to data center power demand, could offer substantial growth opportunities for investors. Stay tuned to Extreme Investor Network for more exclusive insights and investment opportunities to help you achieve your financial goals.