- Best Income Stocks to Buy for May 13th
May 13, 2026 · zacks.com
HTHT, NKSH and KMI made it to the Zacks Rank #1 (Strong Buy) income stocks list on May 13th, 2026.
- MGY Q1 Earnings Beat Estimates on Higher Volumes and Bolt-On Deals
May 12, 2026
Magnolia Oil & Gas Corporation MGY posted first-quarter 2026 net profit of 54 cents per share, beating the Zacks Consensus Estimate of 51 cents by 5.9%. This outperformance can be attributed to higher production, led by Giddings, alongside disciplined spending that supported sizable free cash flow generation. Total output increased 6% year over year to 102.6 thousand barrels of oil equivalent per day (Mboe/d), which also exceeded the consensus estimate by 0.44%, providing a key operating tailwind. However, the bottom line declined from the year-ago quarter’s 55 cents mainly because operating expenses increased nearly 8% during the quarter, compressing margins.
The oil and gas exploration and production company’s total revenues of $358.5 million rose 2.3% from the year-ago quarter and topped the consensus mark of $335 million by about 7%, driven by a higher year-over-year contribution from oil revenues.
Magnolia Oil & Gas Corp Price, Consensus and EPS SurpriseMagnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
MGY's Volumes Rise on Giddings Strength
Magnolia reported the average daily total output of 102,564 barrels of oil equivalent per day (boe/d), increasing 6.2% from the year-ago quarter’s 96,549 boe/d. The figure also beat the model estimate of 102,000 boe/d.
Magnolia’s oil volumes averaged 40,678 barrels per day (bpd) in the quarter, up from 39,078 bpd a year ago. Moreover, the figure topped our estimate of 40,500 bpd. Natural gas volumes improved to 193,143 thousand cubic feet (Mcf) per day from 183,248 Mcf/d. The figure also surpassed our estimate of 192,700 Mcf/d. NGL volumes increased to 29,696 bpd from 26,930 bpd. Moreover, the figure beat our estimate of 29,300 bpd.
Management highlighted that Giddings continued to drive the company’s growth profile, with its production representing 82% of total volumes during the quarter. Giddings total production increased 9% year over year, with oil volumes up 8%, supported by strong well performance.
Magnolia's Revenue Mix Reflects Strong Oil Pricing
Oil remained the largest revenue contributor, with oil revenues of $257.3 million compared with $245.5 million in the year-ago period. Natural gas revenues were $51.8 million, modestly higher year over year, while NGL revenues declined to $49.4 million from $53.4 million.
Realizations were mixed across products. The average realized crude oil price was $70.29 per barrel, indicating a 0.7% increase from the year-ago period’s $69.81 and beating our estimate of $55.49. The average realized natural gas price of $2.98 per Mcf decreased from the year-ago period’s $3.11. However, it beat our estimate of $2.77 per Mcf. Additionally, the average realized natural gas liquids price was $18.48 per barrel, implying a 16.1% decrease from the year-ago period’s figure and missing our estimate of $19.75.
Story Continues
MGY recorded an average sales price of $38.84 per boe, unchanged from the year-ago level and beating our estimate of $32.97. Oil realized 97% of WTI, while natural gas realized 60% of Henry Hub, indicating weaker relative gas pricing capture in the quarter.
MGY's Costs, Firm and Operating Margin Headwinds
Operating expenses increased to $230.7 million from $214.5 million a year ago, reflecting higher general and administrative expense and higher gathering, transportation and processing costs. Lease operating expense was $47.8 million, essentially flat year over year, while gathering, transportation and processing rose to $18.2 million from $15 million.
Operating income was $127.8 million compared with $135.8 million in the prior-year quarter. The company’s pre-tax operating income margin was 36% in the quarter, down from 39% a year ago, alongside total adjusted cash operating costs of $11.57 per boe, which decreased slightly from $11.74.
Magnolia Converts Cash Flow Into Shareholder Returns
Net cash provided by operating activities totaled $197.6 million. Free cash flow was $145.6 million, supported by a drilling and completion capital program of $128.7 million, which represented about 51% of adjusted EBITDAX.
Magnolia returned $83.3 million to its shareholders during the quarter, or 57% of free cash flow, through a combination of dividends and share repurchases. The company repurchased 2 million shares across Class A and Class B for $51.9 million, and it declared a quarterly dividend of 16.5 cents per Class A share payable June 1, 2026.
MGY Expands Position With Bolt-On Acquisitions
A notable corporate development in the quarter was a series of bolt-on acquisitions in both Karnes area and Giddings. The company spent approximately $155 million in cash to add about 6,200 net acres and roughly 500 boe/d of low-decline production, about 45% oil, with the majority closing late in the quarter.
On the earnings call, management framed the Karnes purchase as creating a largely contiguous 10,000-gross-acre block that adds multiple years of drilling inventory at Magnolia’s pace, while the Giddings deals increased working and royalty interests around existing operations.
MGY’s Balance Sheet
The balance sheet remained conservative following the quarter’s capital returns and acquisitions. Cash and cash equivalents ended at $124.4 million. The company had long-term debt of $393.4 million, reflecting a debt-to-capitalization of 16.2%. Magnolia noted an undrawn $450 million revolving credit facility, supporting total liquidity of about $574 million.
Guidance
For second-quarter 2026, the company expects production of approximately 105 Mboe/d. Drilling and Completion (D&C) capital spending is anticipated to be in the range of $120-$125 million. Fully diluted share count is projected to be approximately 185 million.
This Zacks Rank #1 (Strong Buy) company reiterated its two-rig and one-completion-crew operating cadence and expects total production growth of about 5% in 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking ahead, the company expects fiscal 2026 total production growth of approximately 5%. For 2026, D&C capital expenditures are projected in the range of $440-$480 million. The 2026 operating plan includes running approximately two rigs and one completion crew. Regarding the 2026 capital allocation plan, roughly 75-80% of capital is expected to be directed toward Giddings, while approximately 20-25% is allocated to Karnes.
Important Earnings at a Glance
While we have discussed MGY’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation RRC, a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- Helmerich & Payne Q2 Earnings & Revenues Miss Estimates, Both Down Y/Y
May 12, 2026
Helmerich & Payne, Inc. HP reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.
The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.
Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.
Helmerich & Payne, Inc. Price, Consensus and EPS SurpriseHelmerich & Payne, Inc. Price, Consensus and EPS Surprise
Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote
The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.
Q2 Segmental Performance
North America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year. Moreover, the top line missed our projection of $519.1 million.
The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.
Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period. However, the reported figure beat our estimate of $93.9 million.
HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.
International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.
The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.
Story Continues
HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.
Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.
The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.
HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.
Financial Position
As of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).
Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.
Q3 & 2026 Guidance
The company expects steady operational performance in the third quarter of fiscal 2026. Within North America Solutions, direct margins are projected at $230-$240 million, supported by average rig activity of 137-143. International Solutions is expected to operate 58-68 rigs, generating direct margins of $12-$32 million. In Offshore Solutions, management forecasts 30-35 rigs, contributing $24-$28 million in direct margin. Other operations are expected to deliver up to $3 million in direct margin during the quarter.
For fiscal 2026, this Zacks Rank #3 (Hold) company anticipates average rig activity of 138-144 in North America and 58-68 internationally, while offshore operations are expected to contribute $100-$115 million in direct margin with 30-35 rigs under management. Broader financial guidance includes gross capital expenditures of $270-$310 million, depreciation of approximately $700 million, research and development expenses of about $28 million and selling, general and administrative costs of $265-$285 million. Additionally, cash taxes are projected at $125-$150 million, while interest expense is forecasted at roughly $100 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed HP’s second-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company,Kinder Morgan Inc. KMI, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation RRC, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- Kinder Morgan jumps 3% after six straight sessions of losses
May 11, 2026
[Crude oil storage tanks at the Kinder Morgan terminal in Abbotsford British Columbia]
todamo
Kinder Morgan (KMI [https://seekingalpha.com/symbol/KMI]) was on track to snap six straight sessions of losses on Monday as its shares rose 2.29% to trade at $32.13, in tandem with rising oil prices.
Oil stocks, including Exxon Mobil (XOM [https://seekingalpha.com/symbol/XOM]), Chevron (CVX [https://seekingalpha.com/symbol/CVX]), ConocoPhillips (COP [https://seekingalpha.com/symbol/COP]), and SLB (SLB [https://seekingalpha.com/symbol/SLB]), also gained after U.S. President Donald Trump said the ceasefire with Iran was "on life support." Their prices were up around 2% to 3% each during afternoon trading.
Speaking from the Oval Office, Trump dismissed Iran’s response to last week’s U.S. proposal as “garbage,” saying he “didn’t even finish reading it.” Reports suggest Tehran sought sanctions relief and an end to Washington’s naval blockade while aiming to retain some influence over traffic through the Strait of Hormuz.
Prior to Monday’s gains, Kinder Morgan shares had been falling since May 1. It lost more than 3% in between May 1 and May 8. On a YTD basis, however, shares of the oil company have risen 16% in stark comparison to a nearly 8% rise in the wider S&P 500 index.
Looking at Seeking Alpha’s quant rating, KMI has been rated a Hold with a score of 3.30 out of 5. It has been rated an A- for its profitability but a D for its valuation and growth. Seeking Alpha analysts, on the other hand, were bullish on the stock and recommended to Buy it. Wall Street analysts mirrored a similar sentiment with a Buy call.
Seeking Alpha analyst The Asian Investor [https://seekingalpha.com/article/4894317-kinder-morgan-a-top-income-pick-for-2026] rated the stock as a Strong Buy following its strong Q1 earnings, driven by robust natural gas demand.
The analyst expects KMI to remain a top pick for income investors, with dividend safety and upside tied to natural gas demand and U.S. data center expansion.
“…growing natural gas demand, in part driven by a growing U.S.-based data center footprint, translates into attractive earnings prospects for investors seeking recurring dividend income from an investment-grade-rated midstream platform that is tilted towards natural gas deliveries,” the analyst wrote about Kinder Morgan.
MORE ON KINDER MORGAN
* Kinder Morgan, Inc. (KMI) Presents at Barclays 18th Annual Americas Select Conference Transcript [https://seekingalpha.com/article/4898327-kinder-morgan-inc-kmi-presents-at-barclays-18th-annual-americas-select-conference-transcript]
* Kinder Morgan: A Top Income Pick For 2026 [https://seekingalpha.com/article/4894317-kinder-morgan-a-top-income-pick-for-2026]
* Kinder Morgan: Thank Storm Fern And All Of The Cold Weather After That [https://seekingalpha.com/article/4893772-kinder-morgan-thank-storm-fern-and-all-of-the-cold-weather-after-that]
* Earnings Scoreboard: 82% of S&P 500 early reporters top EPS estimates ahead of big tech wave [https://seekingalpha.com/news/4579185-earnings-scoreboard-82-of-sp-500-early-reporters-top-eps-estimates-ahead-of-big-tech-wave]
* Kinder Morgan tops Q1 estimates as gas demand surge offsets lower fuel volumes [https://seekingalpha.com/news/4578374-kinder-morgan-tops-q1-estimates-as-gas-demand-surge-offsets-lower-fuel-volumes]
- Suncor Energy Q1 Earnings Miss Estimates, Revenues Beat, Both Up Y/Y
May 11, 2026
Suncor Energy Inc. SU reported first-quarter 2026 adjusted operating earnings of $1.41 per share, which missed the Zacks Consensus Estimate of $1.45 by 3%. This underperformance can be attributed to a 16.5% increase in total expenses and higher commodity input costs during the quarter. However, the bottom line increased from the year-ago quarter’s reported figure of 91 cents due to stronger downstream margins, higher upstream price realizations and increased sales volumes.
Calgary-based integrated oil and gas company’s operating revenues of $10.7 billion beat the Zacks Consensus Estimate of $8.9 billion by 19.53%. The top line increased approximately 23.2% year over year, aided by record refined product sales, higher refinery production and stronger benchmark crack spreads.
Suncor Energy Inc. Price, Consensus and EPS SurpriseSuncor Energy Inc. Price, Consensus and EPS Surprise
Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote
Suncor delivered a strong operating quarter, with record first-quarter upstream production of 875,200 barrels per day (bbls/d), up from 853,200 bbls/d in the year-ago quarter. Refining throughput also reached a first-quarter record of 497,800 bbls/d, compared with 482,700 bbls/d a year earlier, while refined product sales rose to a quarterly record of 680,900 bbls/d from 604,900 bbls/d in the prior-year period.
Management highlighted that the quarter reflected continued momentum from 2025, supported by record first-quarter upstream output, strong refinery performance and expanded product sales through domestic retail growth and global export opportunities.
Q1 Segmental Performance
Upstream: Suncor delivered a strong operating quarter, with record first-quarter upstream production of 875,200 bbls/d, up from 853,200 bbls/d in the year-ago quarter. Moreover, the figure beat the consensus estimate of 868,000 bbls/d.
Total Oil Sands production was 798,800 bbls/d, up from 790,900 bbls/d in the year-ago quarter. Total Oil Sands bitumen production was 933,900 bbls/d, broadly comparable with 937,300 bbls/d in the prior-year period, and featured record quarterly production at Fort Hills. However, Syncrude maintenance and a third-party natural gas input pipeline curtailment weighed on production.
Net synthetic crude oil and diesel production declined to 519,300 bbls/d from 536,600 bbls/d a year earlier due to lower Syncrude upgrader availability. Non-upgraded bitumen production increased to 279,500 bbls/d from 254,300 bbls/d, primarily due to decreased upgrader availability.
Oil Sands adjusted operating earnings were C$1.57 billion, down from C$1.62 billion in the prior-year quarter, as higher operating expenses, share-based compensation, commodity input costs and asset advancement expenses more than offset improved price realizations and sales volumes.
Story Continues
Exploration and Production (E&P) production rose to 76,400 bbls/d from 62,300 bbls/d in the year-ago period, driven by strong production across assets. Adjusted operating earnings in the segment increased to C$382 million from C$158 million, primarily due to higher sales volumes and stronger price realizations.
Downstream: The segment was the key driver of the quarter’s strength. Adjusted operating earnings surged to C$1.68 billion from C$667 million in the prior-year quarter, primarily due to a significant FIFO inventory valuation gain, higher benchmark crack spreads and increased refinery production. Refinery utilization was 97%, up from 94% in the prior-year quarter, reflecting Suncor’s increased refining network nameplate capacity of 511,000 bbls/d.
Refined product sales climbed to 680,900 bbls/d, a 12.6% increase from 604,900 bbls/d in the prior-year quarter, supported by global export opportunities, retail growth and strategic partnerships. Moreover, the figure beat the consensus estimate of 594,000 bbls/d. On the earnings call, management noted that Suncor used its export capabilities and trading relationships to capture attractive margins in markets such as the Philippines and Puerto Rico.
SU’s Financial Position
Total expenses increased 16.5% to C$118 billion from the prior-year quarter. Cost of purchases of crude oil and products increased to C$5.2 billion in the first quarter of 2026, compared with C$4.3 billion in the prior-year quarter. Cost and operating, selling and general increased 14.6% to C$3.8 billion from the prior-year quarter.
Suncor generated C$4.03 billion in adjusted funds from operations, up from C$3.05 billion in the prior-year quarter. Free funds flow increased to C$2.91 billion from C$1.90 billion. The company returned more than C$1.5 billion to its shareholders, including C$825 million in share repurchases and over C$700 million in dividends.
Capital expenditures totaled C$1.08 billion, broadly flat with the year-ago quarter. As of March 31, 2026, Suncor had cash and cash equivalents of C$3.27 billion and long-term debt of C$10.1 billion. Its debt-to-capitalization was 18.1%.
SU’s Guidance and Shareholder Returns
Suncor updated its 2026 corporate guidance to reflect the 10% increase in refining network nameplate capacity to 511,000 bbls/d. Refinery throughput guidance has remained unchanged at 460,000-475,000 bbls/d, while refinery utilization guidance has been revised to 90-93% due to the larger capacity base.
This Zacks Rank #1 (Strong Buy) company has also increased its planned monthly share repurchases from C$275 million to C$350 million, implying nearly C$4 billion in total 2026 buybacks, more than 30% up from 2025 repurchases. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company expects 2026 corporate guidance to reflect strong operational performance across its integrated energy portfolio. Total upstream production is projected between 840,000 bbls/d and 870,000 bbls/d, supported by Oil Sands output of 785,000-810,000 bbls/d and E&P production of 55,000-60,000 bbls/d.
Refinery throughput is anticipated to range from 460,000 bbls/d to 475,000 bbls/d, with utilization between 90% and 93%, and refined product sales of 600,000-620,000 bbls/d.
Cash operating costs are forecasted to remain competitive, with Oil Sands Operations at $26-$29 per barrel, Fort Hills at $33-$36 and Syncrude at $34-$37, reflecting continued efficiency improvements and disciplined cost management.
The company expects total capital expenditures in 2026 to be between $5.6 billion and $5.8 billion. Of this, approximately $2.6-$2.7 billion will be directed toward economic investment capital, funding projects that enhance efficiency, flexibility and resilience. Key allocations include $425-$475 million for Exploration & Production, $430-$460 million for new In Situ well pads and $1.74-$1.76 billion for other economic investments.
In addition, $3-$3.1 billion will be dedicated to asset sustainment and maintenance capital, supporting the base business and regular upkeep. This includes $2.1-$2.15 billion for Oil Sands, $875-$925 million for Downstream operations and $25 million for Corporate. Notable projects within this budget include West White Rose, Firebag and MacKay River well pads, Fort Hills North Pit, Petro-Canada retail growth and Mildred Lake East.
Important Earnings at a Glance
While we have discussed SU’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company HAL, a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. KMI, a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation RRC, a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- USA Compression Q1 Earnings Meet Estimates, Revenues Beat, Both Up Y/Y
May 11, 2026
USA Compression Partners USAC reported first-quarter 2026 adjusted net profit of 27 cents per common unit, matching the Zacks Consensus Estimate. The metric improved from the year-ago quarter’s net profit of 18 cents per common unit, driven by a year-over-year increase in revenue-generating capacity and the contribution from the J-W Power acquisition.
The largest independent provider of natural gas compression services generated revenues of $331.3 million, improving 35.2% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 13.3%. This growth was aided by higher contract operations revenues and the inclusion of J-W Power’s results following the Jan. 12, 2026, acquisition.
USA Compression Partners, LP Price, Consensus and EPS SurpriseUSA Compression Partners, LP Price, Consensus and EPS Surprise
USA Compression Partners, LP price-consensus-eps-surprise-chart | USA Compression Partners, LP Quote
Dallas, TX-based oil and gas equipment and services company’s adjusted EBITDA increased 26.1% to $188.6 million from $149.5 million in the prior-year quarter. Distributable cash flow rose to $130.8 million from $88.7 million in the year-ago period. The company reported net income of $38.3 million compared with $20.5 million in the year-ago quarter.
USAC reported net operating cash flow of $86.1 million in the first quarter, up from the prior-year quarter’s $54.7 million.
USAC’s Operational Performance
The company’s revenue-generating capacity increased year over year to 4.44 million horsepower from 3.56 million horsepower, primarily reflecting the J-W Power acquisition. Moreover, the figure exceeded our estimate of 3.58 million horsepower.
Adjusted gross operating margin of 64.4% marked a decrease from the year-ago period’s 66.7%. Further, the average monthly revenue per horsepower rose to $22.73 from $21.06 in the first quarter of 2025. However, the figure missed our estimate of $25.01 million average monthly revenue per horsepower.
USA Compression’s average quarterly horsepower utilization rate was 91.9%, down from the year-ago quarter’s 94.4%.
USAC’s DCF, Cost, Capex & Balance Sheet
USA Compression’s distributable cash flow available to limited partners totaled $130.8 million, providing 1.72x distribution coverage, up from the year-ago level of 1.44x.
The company reported $239.9 million in costs and expenses, up from $175.8 million in the year-ago quarter. It spent $26.4 million on growth capex. Maintenance capex amounted to $9.2 million.
As of March 31, 2026, USA Compression had net long-term debt of $3 billion. The partnership had $497.8 million of remaining unused availability under its revolving credit facility.
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USAC’s Guidance
USA Compression reaffirmed its full-year 2026 outlook. This Zacks Rank #3 (Hold) company expects adjusted EBITDA to be between $770 million and $800 million. It also expects distributable cash flow to range from $480 million to $510 million, expansion capital expenditures to be between $230 million and $250 million, and maintenance capital expenditures to total in the band of $60 million to $70 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed USAC’s first-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Houston, TX-based oil and gas storage and transportation company, Kinder Morgan Inc. KMI, posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation RRC, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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- AMZA jumped 158% in two years, but the math behind those $0.34 checks is fragile
May 11, 2026 · 247wallst.com
If you own the InfraCap MLP ETF (NYSEARCA:AMZA) for income, the question is simple: can the fund keep cutting those $0.34 monthly checks?
- Is the Vanguard Energy ETF a No-Brainer Buy Right Now Due to Rising Energy Costs?
May 7, 2026
Ever since the war in Iran began on Feb. 28, a chain of events has showcased a tale of two outcomes. Iran closed the Strait of Hormuz, the crude oil supply dropped, and energy prices surged.
On one end, there's the pain that people have been feeling at the gas pump. On the other, there are energy companies positioned for record profits.
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In true Wall Street fashion, the allure of profits caused investors to pour money into energy stocks, making it the best-performing sector through early May this year. The S&P 500's energy sector is up 31%, well ahead of second- and third-place materials and industrials (up around 11% each).
Considering the sector's momentum (and no end to the war in Iran in sight), is it a no-brainer to invest in the Vanguard Energy ETF(NYSEMKT: VDE) to capitalize on it?Image source: Getty Images.
What you're getting when you invest in VDE
VDE is intended to give you broad exposure to the energy sector, covering everything from production and transportation to services, equipment, coal, and more. It holds 106 stocks, but it's very top-heavy. Its top three holdings -- ExxonMobil (22.68%), Chevron (14.97%), and ConocoPhillips (6.09%) -- account for over 43%.
As those three stocks perform, so does VDE. So far this year, that has worked out in its favor, with the ETF up 34% as of May 5.VDE data by YCharts
If you're investing in the energy sector, owning a lot of ExxonMobil and Chevron isn't a bad option. They're both fully integrated, owning the whole pipeline from extraction from the ground to filling up your gas tank. That allows them to benefit from rising prices and have a bit of a crutch if (or when, rather) prices cool off.
ConocoPhillips isn't fully integrated; it only focuses on exploration and production. Its business is more sensitive to oil prices because its profits are directly tied to how much oil barrels cost, so its stock usually swings in that direction.
Those three companies have a significant influence on VDE, but the ETF also includes other notable companies such as Marathon Petroleum, Phillips 66, SLB (formerly Schlumberger), Kinder Morgan, and EOG Resources.
Don't base your investment on the high end of the cycle
It can be easy to see a flourishing sector and want to chase the rally, but it's important to remember how cyclical the energy sector (and, by extension, VDE) is.
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When there's a supply shock and prices rise, investors pour in to chase the higher profits, sending energy stocks up. At some point, high prices cause demand to slow (people drive less, airlines operate fewer routes, etc.), and profits aren't coming in as quickly. The slowdown leads investors to seek value elsewhere, driving energy stocks lower.
The cycles vary in time, and over time, the energy sector's trajectory has been upward. However, there's no denying there will be pullbacks along the way.
Reasons you should invest in VDE
VDE is a good way to diversify your portfolio and complement the tech-heavy S&P 500 and Nasdaq Composite. The tech sector accounts for nearly a third of the S&P 500, while the energy sector accounts for only 4%. In the popular Nasdaq-100 index, tech accounts for over 64%, and energy is only 0.6%.
Needless to say, neither one of those is exactly the best way to get exposure to the energy sector. Investing in VDE gives you a chance to take advantage of cyclical highs in energy (like now), while also helping to hedge a bit against the tech sector.
Energy stocks also pay some of the more attractive dividends, so that usually translates to VDE. Its current yield (2.3%) is relatively low given its stock price growth this year, but it has averaged a 3.3% yield over the past five years.
If you invest in VDE, do so for diversification and the dividend, not because you're anticipating prices and profits to continue rising. Even if you're right, there's no knowing when the party ends, so be around for the long haul.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Kinder Morgan. The Motley Fool recommends ConocoPhillips, EOG Resources, and Phillips 66. The Motley Fool has a disclosure policy.
Is the Vanguard Energy ETF a No-Brainer Buy Right Now Due to Rising Energy Costs? was originally published by The Motley Fool
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- Kinder Morgan Lawsuit Puts Pipeline Safety And Investor Risk In Focus
May 7, 2026
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Kinder Morgan is being sued after a pipeline explosion in Texas that caused severe injuries to a worker. The lawsuit alleges negligence and gross negligence, focusing on safety procedures and maintenance at the site. The case raises questions around Kinder Morgan's operational risk management and potential legal exposure.
Kinder Morgan (NYSE:KMI) is in focus as this legal case develops alongside a current share price of $31.58. The stock has returned 14.0% year to date and 19.1% over the past year, and longer term figures over 3 and 5 years are very large compared with the starting point. For investors, this new lawsuit adds a different angle to the story, centered on safety and operational practices rather than financial metrics alone.
While the immediate financial impact of the case is unclear, you may want to factor in the potential for higher legal, remediation, or compliance costs if the allegations gain traction. This development could also influence how markets view Kinder Morgan's risk profile, especially for those watching pipeline integrity, safety records, and the potential for future incidents.
Stay updated on the most important news stories for Kinder Morgan by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Kinder Morgan.NYSE:KMI 1-Year Stock Price Chart
Is Kinder Morgan's balance sheet strong enough for future acquisitions? Dive into our detailed financial health analysis.
The lawsuit over the Jackson County pipeline explosion puts Kinder Morgan's operational practices under a spotlight at the same time investors are focused on its cash flow and project backlog. Allegations around missing or inadequate safety protocols, hazard recognition and maintenance touch directly on how the company manages day to day risk on an aging asset base. If the court ultimately finds negligence or gross negligence, Kinder Morgan could face not only compensatory and exemplary damages, but also tighter scrutiny from regulators, counterparties and insurers. The agreed temporary restraining order preserving the site for inspection suggests a detailed technical investigation is ahead, which can extend the timeline before there is clarity on liability or potential settlement. For you as an investor, this is less about one case and more about what it says regarding system wide safety culture, required maintenance capital and the possibility of higher compliance or remediation costs across the broader pipeline network.
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How This Fits Into The Kinder Morgan Narrative
The focus on pipeline integrity in this case links directly to the narrative's point that Kinder Morgan operates a large, mature network that supports long term, fee based cash flows. Allegations of gross negligence and an unreasonably dangerous condition challenge the assumption that regulatory improvements and contractual stability are keeping execution risk in check. The potential need for higher safety and maintenance spending after this incident may not be fully reflected in narrative expectations around future free cash flow and margins.
Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Kinder Morgan to help decide what it is worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Legal and financial exposure from the Cantu lawsuit, including potential exemplary damages and higher insurance or compliance costs if the allegations are upheld. ⚠️ Reputational and regulatory risk if the explosion points to broader shortcomings in Kinder Morgan's safety culture and oversight of its extensive pipeline network. 🎁 The court ordered preservation and inspection process could help clarify root causes and provide a framework for system wide safety improvements, which investors can track over time. 🎁 Kinder Morgan's scale in U.S. gas transport and existing project backlog may give it resources and operational flexibility to absorb incremental safety investment if required.
What To Watch Going Forward
From here, watch for updates from the Harris County court on motions, hearings and any indication of settlement discussions, as well as findings from the joint site inspections that could influence regulatory responses. Company commentary around maintenance, inspection programs and capital spending on safety will also be important, particularly in conference presentations or future results updates. Any change in how customers, lenders or rating agencies frame Kinder Morgan's operational risk, especially relative to peers like Williams Companies, Enbridge and TC Energy, will help you gauge whether this incident is viewed as isolated or part of a wider concern.
To ensure you are always in the loop on how the latest news impacts the investment narrative for Kinder Morgan, head to the community page for Kinder Morgan to stay up to date on the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include KMI.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Best Income Stocks to Buy for May 7th
May 7, 2026
Here are two stocks with buy rank and strong income characteristics for investors to consider today, May 7th:
Columbia Sportswear COLM: This company, which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment in the U.S. and internationally, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.6% over the last 60 days.
Columbia Sportswear Company Price and ConsensusColumbia Sportswear Company Price and Consensus
Columbia Sportswear Company price-consensus-chart | Columbia Sportswear Company Quote
This Zacks Rank #1 (Strong Buy) company has a dividend yield of 2%, compared with the industry average of 0.0%.
Columbia Sportswear Company Dividend Yield (TTM)Columbia Sportswear Company Dividend Yield (TTM)
Columbia Sportswear Company dividend-yield-ttm | Columbia Sportswear Company Quote
Kinder Morgan KMI: This company, is a leading midstream energy infrastructure provider in North America, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.3% over the last 60 days.
Kinder Morgan, Inc. Price and ConsensusKinder Morgan, Inc. Price and Consensus
Kinder Morgan, Inc. price-consensus-chart | Kinder Morgan, Inc. Quote
This Zacks Rank #1 company has a dividend yield of 3.7%, compared with the industry average of 3.6%.
Kinder Morgan, Inc. Dividend Yield (TTM)Kinder Morgan, Inc. Dividend Yield (TTM)
Kinder Morgan, Inc. dividend-yield-ttm | Kinder Morgan, Inc. Quote
See the full list of top ranked stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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