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MarkWest Energy Partners, L.P. (NYSE:MWE) is scheduled to report its Q2 2012 results on August 2, 2012, after the bell. The Street expects EPS and revenue of $0.40 and $355.92M, respectively.

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

MarkWest Energy Partners, L.P. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last two quarters. In the last quarter, it reported $0.14 EPS, failing to meet analyst estimates of $0.56.

MarkWest Energy Partners, L.P. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.40 based on 8 analysts' estimates, down from $1.03 a year ago. Revenue estimates are $355.92M, down from $400.44M a year ago. The median target price by analysts for the stock is $60.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 9, 2012, UBS reiterated Buy rating for the company.

Latest News

  • 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 June 29, 2012, MarkWest Energy Partners, L.P. announced the completion of a $300 million increase to its senior secured revolving credit facility, increasing total borrowing capacity to $1.2 billion.
  • On June 4, 2012, MarkWest Utica EMG, L.L.C. (MarkWest Utica), a joint venture between MarkWest Energy Partners, L.P. and The Energy and Minerals Group (EMG) focused on the development of natural gas gathering, transportation, and processing and natural gas liquid (NGL) transportation, fractionation, and marketing infrastructure in the Utica shale in eastern Ohio, announced the completion of definitive agreements with Gulfport Energy Corporation (NASDAQ:GPOR) to provide gathering, processing, fractionation, and marketing services in the liquids-rich corridor of the Utica.
  • On May 29, 2012, MarkWest Energy Partners announced the closing of the previously announced acquisition of Keystone Midstream Services, LLC (Keystone) from Stonehenge Energy Resources, L.P., and subsidiaries of Rex Energy Corporation (Rex Energy) (NASDAQ:REXX) and Sumitomo Corporation (Sumitomo).
  • On May 7, 2012, MarkWest Energy Partners, LP (the Partnership) reported record quarterly cash available for distribution to common unitholders, or distributable cash flow (DCF), of $109.2 million for the three months ended March 31, 2012, compared to $76.1 million for the three months ended March 31, 2011.
  • 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 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.

Competitors

Boardwalk Pipeline Partners (NYSE:BWP), DCP Midstream Partners (NYSE:DPM), Kinder Morgan Energy Partners (NYSE:KMP), and Linn Energy (NASDAQ:LINE) are considered competitors for MarkWest Energy Partners and the table below provides the key metrics for these companies and the industry.

MarkWest Energy Partners, L.P. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

MWE Chart

MWE data by YCharts

Competitors' Latest Development

  • On July 26, 2012, Linn Energy LLC announced that for fiscal 2012, it expects mid-point of adjusted EBITDA to be approximately $1.35 billion.
  • On July 24, 2012, Linn Energy LLC announced a cash distribution for the second fiscal quarter of 2012 of $0.725 per unit, or $2.90 per unit on an annualized basis, for all of its outstanding units.
  • 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 unitholders 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 5, 2012, DCP Midstream Partners LP announced that it has completed the previously announced $63 million acquisition of the Crossroads system from Penn Virginia Resource Partners, L.P. The Crossroads system acquisition, which is subject to certain customary purchase price adjustments, was financed at closing through borrowings under the Partnership's credit facility.
  • On June 25, 2012, DCP Midstream Partners LP announced it has entered into an agreement with a group of institutional investors led by funds managed by ClearBridge Advisors, FAMCO MLP, a division of Advisory Research, Inc., Kayne Anderson Capital Advisors and Tortoise Capital Advisors to sell $177.4 million of the Partnership's common units in a private placement at a price of $35.55 per unit.
  • On June 25, 2012, Linn Energy LLC announced that it has signed a definitive purchase agreement to acquire properties in the Jonah Field, located in the Green River Basin of southwest Wyoming, from BP America Production Company for a contract price of $1.025 billion.
  • On June 25, 2012, LINN Energy, LLC announced that Linn Co, LLC (LinnCo), a wholly-owned subsidiary of LINN has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to its proposed initial public offering of common shares.
  • On June 19, 2012, DCP Midstream Partners LP announced that it has entered into an agreement with Penn Virginia Resource Partners, L.P. (NYSE:PVR) to acquire the Crossroads processing plant and associated gathering system, for approximately $63 million.
  • 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 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 unitholders of record as of May 10, 2012.
  • On April 27, 2012, DCP Midstream Partners LP announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.66 per unit for the quarter ended March 31, 2012.
  • On April 24, 2012, Linn Energy, LLC announced a cash distribution for the first fiscal quarter of 2012 of $0.725 per unit, or $2.90 per unit on an annualized basis, for all of its outstanding units.
  • On April 12, 2012, DCP Midstream Partners, LP And DCP Midstream, LLC announced that effective May 11, 2012, Angela A. Minas, the Partnership's vice president and Chief Financial Officer (NASDAQ:CFO), has decided to leave the Partnership to pursue other interests and Rose M. Robeson, currently group vice president and CFO of DCP Midstream, will be appointed to the position of senior vice president and CFO of the Partnership.
  • On April 5, 2012, DCP Midstream Partners LP announced it has completed the previously announced dropdown of the remaining 66.67% interest in DCP Southeast Texas Holdings, GP from the owner of its general partner, DCP Midstream, LLC. The $240 million transaction, which is subject to certain customary working capital and other purchase price adjustments, was financed at closing through a portion of the net proceeds from the Partnership's recent 10-year senior notes offering and the issuance of 1,000,417 DPM common units to DCP Midstream, LLC.
  • On April 3, 2012, Linn Energy, LLC announced a joint-venture agreement with an affiliate of Anadarko Petroleum Corporation whereby LINN will participate as a partner in the CO2 enhanced oil recovery development of the Salt Creek field, located in the Powder River Basin of Wyoming.
  • On March 9, 2012, Linn Energy, LLC announced that it signed a definitive purchase agreement to acquire properties located in East Texas for a contract price of $175 million.
  • On March 8, 2012, DCP Midstream Partners LP announced that its wholly owned subsidiary, DCP Midstream Operating, LP (the Operating Partnership), intends to issue $350 million aggregate principal amount of senior notes due 2022.
  • On March 8, 2012, DCP Midstream Partners LP announced that its wholly owned subsidiary, DCP Midstream Operating, LP, has priced an offering of $350 million aggregate principal amount of 4.95% senior notes due 2022 at a price to the public of 99.535% of their face value.
  • On March 2, 2012, DCP Midstream Partners, LP announced that it has priced an underwritten public offering of 4,750,000 common units representing limited partner interests at $47.42 per common unit.
  • On February 29, 2012, Linn Energy, LLC and its wholly owned subsidiary, Linn Energy Finance Corp., announced a private offering to eligible purchasers of $1.8 billion in aggregate principal amount of 6.25% senior unsecured notes due 2019 at an offering price equal to 99.989% of par. LINN Energy intends to use the net proceeds from the notes offering to fund the pending Hugoton Basin acquisition, to repay indebtedness outstanding under its revolving credit facility, and for general corporate purposes.
  • 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 27, 2012, Linn Energy, LLC announced that it signed a definitive purchase agreement to acquire Hugoton Basin properties located in Kansas from BP America Production Company for a contract price of $1.2 billion, subject to closing conditions.
  • 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


The stock has a market capitalization of $3.74B and is currently trading at $52.34 with a 52-week range of $39.00-$61.60. The stock's year-to-date performance has been -2.39%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

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

Source: Earnings Preview: MarkWest Energy Partners