Summary
With free cash flow generation becoming more meaningful since 2020, many companies have used excess cash flow to reduce debt, while EBITDA growth has also contributed to lower leverage ratios.
With improved balance sheets, midstream companies have been able to execute on dividend increases and buybacks as strong free cash flow generation has provided enhanced financial flexibility.
Lower leverage speaks to the overall improved financial health of the space and adds confidence that companies will be able to continue maintaining and growing dividends.
https://etfdb.com/energy-infrastructure-channel/midstream-and-mlps-leveled-up-with-leverage-down/
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