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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Gregory HarperPEOMarch 72,5902,590 sharesfrom 0 to 2,590
Edmund SegnerDirectorFeb 2712,00012,000 sharesfrom 0 to 12,000
James IveyDirectorFeb 262,5002,500 sharesfrom 0 to 2,500

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.

MonthInsider buying / sharesInsider selling / shares
March 20142,5900
February 201414,5000
January 201400
December 201300
November 201358,8000

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

The three insiders purchased their shares after these results.

Outlook

Midcoast Energy Partners' 2014 guidance is as follows.

(click to enlarge)

(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.

CompanyMEPAPLCMLPRGP
Market Cap:945.10M2.34B4.24B5.91B
Qtrly Rev Growth (yoy):0.070.685.580.17
Revenue:5.59B2.13B658.60M2.53B
Gross Margin:0.050.160.550.30
EBITDA:208.00M260.08M208.90M344.00M
Operating Margin:0.010.040.130.04
Net Income:19.70M-165.92M-81.70M34.00M
EPS:0.68-2.23-0.820.17
P/E:30.93N/AN/A161.59
PEG (5 yr expected):2.516.84N/A8.01
P/S:0.161.126.542.31

Midcoast Energy Partners has the lowest P/S ratio among these four companies. Midcoast Energy Partners also has an attractive dividend yield.

(click to enlarge)

(Source: Investor presentation)

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

CompanyInsider buying / sharesInsider selling / shares
APL63,0000
CMLP00
RGP00

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.

(click to enlarge)

(Source: Investor presentation)

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