- Widespread MLP distribution cuts are "possible but unlikely," Fitch Ratings says, as most MLPs are not as highly leveraged as Kinder Morgan and do not have such large capital funding requirements.
- But some analysts are coming out with MLPs they say are in need of capital market funding options; Morningstar's Josh Peters, for example, "would be worried" about Plains All American Pipeline (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP), as well as ONEOK (NYSE:OKE) and ONEOK Partners (OKS).
- At the same time, Peters says he is "very comfortable and very confident" in Magellan Midstream Partners (NYSE:MMP), Spectra Energy (NYSE:SE), Spectra Energy Partners (NYSE:SEP) and Enterprise Products Partners (NYSE:EPD) - all of which were much more conservative than necessary in the boom days and are now set to benefit in the current environment.
- Christopher Sighinolfi of Jefferies, the analyst who suggested KMI cut its dividend to a penny, tells CNBC that the most imminently similar company to KMI is Targa Resources (NYSE:TRGP), which has a nearly 12% dividend yield and is down 70% YTD; he also raises the possibility of distribution cuts at EnLink Midstream (NYSE:ENLC), OKE, PAGP and SE.
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MLP distribution cuts unlikely to spread too far, Fitch says
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Plains All American Pipeline, L.P. Common Units |