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Magellan Midstream Partners LP (NYSE:MMP) is scheduled to report its Q2 2012 results on August 2, 2012, before the market opens. The street expects EPS and revenue of $0.88 and $438.22 million, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MMP and the news from its closest competitors.

Magellan Midstream Partners LP Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter, it reported $0.94 EPS, in-line with analyst estimates.

Magellan Midstream Partners LP EPS Historical Results vs Estimates

The consensus EPS estimate is $0.88 based on 14 analysts' estimates, down from $0.91 a year ago. Revenue estimates are $438.22 million, up from $383.33 million a year ago. The median target price by analysts for the stock is $78.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 11, 2012, Ladenburg Thalmann downgraded the company from Buy to Neutral.
  • On March 1, 2012, Wunderlich downgraded the company from Buy to Hold.
  • On February 7, 2012, Ladenburg Thalmann upgraded the company from Neutral to Buy.
  • On February 6, 2012, Morgan Keegan upgraded the company from Mkt Perform to Outperform.

Latest News

  • On July 26, 2012, Magellan Midstream Partners LP announced that it has significantly increased the partnership's quarterly cash distribution to $0.9425 per unit for the period April 1 through June 30, 2012.
  • On May 2, 2012, Magellan Midstream Partners LP announced that net income per limited partner unit is estimated to be $3.75 for fiscal 2012, with second-quarter 2012 guidance of $0.83. Guidance assumes no future NYMEX MTM adjustments on the partnership's commodity-related activities.
  • On April 24, 2012, Magellan Midstream Partners LP announced that the board of directors of the Company have increased the partnership's quarterly cash distribution to $0.84 per unit for the period January 1 through March 31, 2012.
  • On February 7, 2012, Magellan Midstream Partners LP announced that for fiscal 2012, it expects net income per limited partner unit to be $3.75, with first-quarter 2012 net income guidance of $0.98. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $3.65 for fiscal 2012 and EPS of $0.90 for the first quarter of 2012.

Competitors

Boardwalk Pipeline Partners (NYSE:BWP), Enterprise Products Partners (NYSE:EPD), Kinder Morgan Energy Partners (NYSE:KMP), MarkWest Energy Partners (NYSE:MWE), and Plains All American Pipeline (NYSE:PAA) are considered competitors for Magellan Midstream Partners. The table below provides the key metrics for these companies and the industry:

Magellan Midstream Partners LP key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

MMP Chart

MMP data by YCharts

Competitors' Latest Developments

  • On July 26, 2012, MarkWest Energy Partners LP announced that the Board of Directors of the General Partner of MarkWest Energy Partners, L.P., declared a cash distribution of $0.80 per common unit for the second quarter of 2012, for an implied annual rate of $3.20 per common unit.
  • On July 19, 2012, Kinder Morgan Energy Partners and BP North America announced the execution of long-term commercial agreements to provide BP condensate processing services and storage at Kinder Morgan's terminals located on the Houston Ship Channel.
  • On July 18, 2012, Kinder Morgan Energy Partners increased its quarterly cash distribution per common unit to $1.23 ($4.92 annualized) payable on Aug. 14, 2012, to unit holders of record as of July 31, 2012.
  • On July 17, 2012, Dow Jones reported that Peabody Energy Corp. has entered an agreement with Kinder Morgan Energy Partners to expand the Gulf Coast coal-export platform for Peabody's Colorado, Powder River Basin and Illinois Basin coal products.
  • On July 12, 2012, Enterprise Products Partners LP announced that the board of directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6350 per common unit, or $2.54 per unit on an annualized basis.
  • On July 9, 2012, Plains All American Pipeline, L.P. announced a quarterly cash distribution of $1.065 per unit ($4.26 per unit on an annualized basis) on all of its outstanding limited partner units.
  • On June 19, 2012, Swift Energy Company announced that it has entered into a long term agreement for natural gas gathering and processing services for its LaSalle County, TX natural gas production with Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. and Copano Energy, L.L.C. This agreement is effective as of June 1, 2012.
  • On June 8, 2012, Boardwalk Pipeline Partners LP announced that its indirect wholly-owned subsidiary, Gulf South Pipeline Company, LP, priced a private placement of $300 million aggregate principal amount of 4.00% senior notes due 2022.
  • On June 5, 2012, Kinder Morgan Energy Partners announced that it has completed its acquisition of a 50% interest in a joint venture that owns the Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford Shale in Texas from Kohlberg Kravis Roberts & Co. L.P. for $300 million in Kinder Morgan Energy Partners units.
  • On May 8, 2012, Plains All American Pipeline, L.P. announced that for the second quarter of 2012, it expects adjusted EBITDA to range from $440 million to $480 million, with adjusted net income ranging from $263 million to $312 million, or $1.17 to $1.46 per diluted unit.
  • On April 30, 2012, Boardwalk Pipeline Partners LP announced that it has declared a quarterly cash distribution per common unit of $0.5325 ($2.13 annualized) payable on May 17, 2012, to unit holders of record as of May 10, 2012.
  • On April 17, 2012, Plains All American Pipeline, L.P. announced that it has communicated to the management and Board of Semgroup Corp that Plains All American Pipeline, L.P. has withdrawn its October 2011 proposal to acquire 100% of the issued and outstanding shares of Class A and Class B common stock of SemGroup Corp for $24.00 per share in cash.
  • On April 13, 2012, Enterprise Products Partners LP announced that the Board of Directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6275 per common unit, or $2.51 per unit on an annualized basis.
  • On April 12, 2012, Enterprise Products Partners LP, Anadarko Petroleum Corporation and DCP Midstream, LLC announced an agreement to design and construct a new natural gas liquids (NYSE:NGL) pipeline that will originate in the Denver-Julesburg Basin (DJ Basin) in Weld County, Colorado and extend approximately 435 miles to Skellytown, Texas in Carson County.
  • On April 10, 2012, Plains All American Pipeline, L.P. announced a quarterly cash distribution of $1.045 per unit ($4.18 per unit on an annualized basis) on all of its outstanding limited partner units.
  • On March 22, 2012, Plains All American Pipeline, L.P. announced that it has completed an underwritten public offering of two series of senior notes $750 million aggregate principal amount of 3.65% senior unsecured notes due June 1, 2022, at a public offering price of 99.823% with a yield to maturity of 3.67%; and $500 million aggregate principal amount of 5.15% senior unsecured notes due June 1, 2042, at a public offering price of 99.755% with a yield to maturity of 5.165%. J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, Wells Fargo Securities, LLC, DNB Markets, Inc., and Mizuho Securities USA Inc. acted as joint book running managers of the offering.
  • On March 16, 2012, MarkWest Energy Partners, L.P. announced the closing of its previously announced public offering of 6,785,000 common units at $59.54 per common unit, which includes 885,000 common units purchased pursuant to the full exercise of the underwriters' option to purchase additional common units.
  • On March 13, 2012, MarkWest Energy Partners, L.P. announced that it priced a public offering of 5,900,000 common units at $59.54 per common unit. MarkWest has granted the underwriters a 30-day option to purchase up to 885,000 additional common units to cover the underwriters' sale of additional common units, if any. MarkWest intends to use the net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, of approximately $337.4 million, as well as any exercise of the underwriters' option to partially fund its ongoing capital expenditure program.
  • On March 13, 2012, Plains All American Pipeline, L.P. announced that it has commenced, subject to market conditions, an underwritten public offering of two series of senior notes (the Notes). The Partnership intends to use the net proceeds of the offering to fund a portion of the consideration for the acquisition of all outstanding shares of BP Canada Energy Company, a wholly owned subsidiary of BP Corporation North America Inc. (the BP NGL Acquisition).
  • On March 12, 2012, MarkWest Energy Partners, L.P. announced that it is commencing a public offering of 5,900,000 common units. MarkWest intends to grant the underwriters a 30-day option to purchase a maximum of 885,000 additional common units to cover the underwriters' sale of additional common units, if any. MarkWest intends to use a portion of the net proceeds from the offering and from any exercise of the underwriters' option to partially fund its ongoing capital expenditure program.
  • On March 9, 2012, Plains All American Pipeline, L.P. announced that it has completed its previously announced underwritten public offering of common units representing limited partner interests.
  • On March 6, 2012, Plains All American Pipeline, L.P. announced that it has priced an underwritten public offering of 5,000,000 of its common units representing limited partner interests at $80.03 per common unit.
  • On March 5, 2012, Plains All American Pipeline, L.P. announced that it has commenced, subject to market conditions, an underwritten public offering of 5,000,000 of its common units representing limited partner interests.
  • On February 27, 2012, Kinder Morgan Energy Partners And Martin Midstream Partners LP announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas.
  • On February 13, 2012, Enterprise Products Partners LP announced that it has purchased a 37-acre tract of land adjacent to its Enterprise Crude Houston (NASDAQ:ECHO) crude oil terminal, which is currently under construction, in southeast Harris County.
  • On February 8, 2012, Enterprise Products Partners LP announced that its operating subsidiary, Enterprise Products Operating LLC (EPO), has priced a public offering of $750 million of senior unsecured notes due on August 15, 2042 (August 2042 Notes).
  • On February 7, 2012, Boardwalk Pipeline Partners, LP announced that the underwriters of its previously announced public offering of 8,000,000 common units, which closed on January 25, 2012, have exercised their option to purchase an additional 1,200,000 common units.
  • On February 6, 2012, Boardwalk Pipeline Partners, LP announced that it has declared a quarterly cash distribution per common unit of $0.53 ($2.12 annualized) payable on February 23, 2012, to unit holders of record as of February 16, 2012.

Technical Overview


Magellan Midstream Partners' stock has a market capitalization of $8.83 billion, and is currently trading at $78.08, with a 52 week range of $51.00 - $78.58. The stock's year-to-date performance has been 16.12%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Magellan Midstream Partners