Midcoast Energy Partners: 3 Different Insiders Have Purchased Shares During The Last 30 Days

| About: Midcoast Energy (MEP)

Summary

Three insiders purchased the stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

All three of these insiders increased their holdings by more than 10%.

Midcoast Energy Partners LP (NYSE:MEP) is engaged in gathering, processing, treating, transporting, and marketing natural gas and natural gas liquids in the Gulf Coast and Mid-Continent regions of the United States.

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Insider buying during the last 30 days

Here is a table of Midcoast Energy Partners' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Gregory Harper PEO March 7 2,590 2,590 shares from 0 to 2,590
Edmund Segner Director Feb 27 12,000 12,000 shares from 0 to 12,000
James Ivey Director Feb 26 2,500 2,500 shares from 0 to 2,500
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There have been 17,090 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Midcoast Energy Partners' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2014 2,590 0
February 2014 14,500 0
January 2014 0 0
December 2013 0 0
November 2013 58,800 0
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There have been 75,890 shares purchased, and there have been zero shares sold by insiders since November 2013. Midcoast Energy Partners had its IPO in November 2013.

Financials

Midcoast Energy Partners reported the full-year 2013 financial results on February 11 with the following highlights:

Revenue $5.6 billion
Net income $19.7 million
Net debt $330.1 million
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The three insiders purchased their shares after these results.

Outlook

Midcoast Energy Partners' 2014 guidance is as follows.

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(Source: Investor presentation)

Competition

Midcoast Energy Partners' competitors include Atlas Pipeline Partners LP (NYSE:APL), Crestwood Midstream Partners LP (NYSE:CMLP), and Regency Energy Partners LP (NYSE:RGP). Here is a table comparing these companies.

Company MEP APL CMLP RGP
Market Cap: 945.10M 2.34B 4.24B 5.91B
Qtrly Rev Growth (yoy): 0.07 0.68 5.58 0.17
Revenue: 5.59B 2.13B 658.60M 2.53B
Gross Margin: 0.05 0.16 0.55 0.30
EBITDA: 208.00M 260.08M 208.90M 344.00M
Operating Margin: 0.01 0.04 0.13 0.04
Net Income: 19.70M -165.92M -81.70M 34.00M
EPS: 0.68 -2.23 -0.82 0.17
P/E: 30.93 N/A N/A 161.59
PEG (5 yr expected): 2.51 6.84 N/A 8.01
P/S: 0.16 1.12 6.54 2.31
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Midcoast Energy Partners has the lowest P/S ratio among these four companies. Midcoast Energy Partners also has an attractive dividend yield.

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(Source: Investor presentation)

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
APL 63,000 0
CMLP 0 0
RGP 0 0
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Only Midcoast Energy Partners has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Midcoast Energy Partners, and there have not been any insiders selling Midcoast Energy Partners during the last 30 days. All three of these insiders increased their holdings by more than 10%. Midcoast Energy Partners has an insider ownership of 0.30%.

The three insiders purchased their shares at prices ranging from $20.18 to $21.19. I believe Midcoast Energy Partners could be a good pick below $21 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MEP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.