8% Yield, No K-1, Strong Cash Flow

As we detailed in our most recent article yesterday, the energy sector has finally shown signs of life. It's the leading sector so far in 2021, up by ~20%, supported by a 20%-plus rise for WTI Crude, natural gas, gasoline, and heating oil futures. This stock yields 7.93%, with good 1.37X free cash flow dividend coverage. Free cash flow should boom in 2021 - major capex already is invested - this will further strengthen dividend coverage. Management began a $100M buyback program in Q4 '20 - that's over 20% of RTLR's float.

Rattler Midstream LP IPO'd in May 2019. It owns, operates, develops, and acquires midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin in West Texas. The company provides crude oil, natural gas, and water-related midstream services to Diamondback Energy, Inc. It owns and operates 528 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system on acreage that overlays Diamondback's six core Midland and Delaware Basin development areas.

Source: Seeking Alpha

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