- Energy sector MLPs are rallying, likely reacting to positive guidance given yesterday by Oneok (OKE +6.2%; OKS +9.7%).
- Baird analysts say ONEOK’s “robust” guidance slightly exceeded their expectations for “healthy coverage” on next year's payouts.
- Tudor Pickering says ONEOK's dividend outlook may have positive implications for Enable Midstream Partners (ENBL +26.6%), as investors have been skeptical that the MLP will be able to hold its distribution in 2016.
- Meanwhile, Morgan Stanley says it is still too early to buy the MLPs amid concerns about bankruptcies coming in the energy sector, noting that many yield-seeking investors are very overweight the group, which could mean substantial selling may await.
- So far today: KMI +2.9%, EPD +2.3%, WMB +2.8%, ETP +7.7%, ETE +4.4%, MMP +2.5%, SEP +1.1%, PAA +5.8%.
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR, YMLI, AMU, CEN, ZMLP, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPC, MLPW, IMLP