DCP Midstream Partners: Yielding 5.6% And Perfectly Positioned For The Shale Gas Renaissance
Michael Fitzsimmons • 25 Comments
Michael Fitzsimmons • 25 Comments
Thu, Jul. 21, 2:59 PM
- DCP Midstream Partners (DPM -2.4%) is downgraded to Neutral from Buy with a $36 price target at Ladenburg Thalmann, which says the stock appears fairly valued until future potential catalysts come to fruition.
- The firm thinks DPM likely will continue to benefit from its ~$200M capex and significant cost cutting initiatives, and is well positioned to benefit from an increase in ethane demand, a "strategic asset position [that] will allow DCP’s NGL pipelines to benefit from volume/margin uplift of roughly $75M-100M with gathering and processing contracts following suit."
- Ladenburg says the potential benefits already seem to be recognized by investors, and recommends investors to “wait for a more favorable entry point."
Wed, Jun. 8, 3:49 PM
- DCP Midstream Partners (DPM -2.5%) is downgraded to Hold from Buy with a $35 price target at Jefferies on valuation, as units have appreciated 53% YTD, including a 140% surge from February lows.
- DPM's Q1 distributable cash flow exceeded estimates at $165M, driven by lower than expected maintenance capex, higher than expected unconsolidated affiliate distributions and MVC receipts worth $2M.
- The firm also does not expect DPM to be able to cover its distribution to the end of the year.
Wed, Mar. 2, 2:28 PM
- While energy supply and demand dynamics may be about to start improving, the benefits are not yet evident in the profit picture for midstream MLPs, Wunderlich's Jeff Birnbaum writes, as declining onshore crude production will continue to challenge midstream operators.
- E&P guidance and more recent EIA data indicates more significant declines may come in 2016 than expected several months ago, according to Birnbaum.
- Among individual MLPs, the analyst expects Plains All American (PAA +2.3%) to use its scale, downstream operations and lack of 2016 financing needs as weapons to take share from smaller competitors, and sees a rebound in Gulf of Mexico production as a positive for Genesis Energy (GEL +5.8%).
- With additional liquified petroleum gas export capacity online in 2016 and the prospect for a more normalized 2016-17 winter, the propane market should tighten relative to a sloppy 2015, which Birnbaum believes will benefit Enterprise Products Partners (EPD +3.5%), Targa Resources (TRGP +1.1%), DCP Midstream Partners (DPM +6.8%) and NGL Energy Partners (NGL -0.1%).
- ETFs: AMLP, AMJ, KYN, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, FEI, JMF, MLPN, SRF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR, AMZA, GER, ZMLP, CEN, YMLI, AMU, SMM, MIE, DSE, FPL, ENFR, ATMP, JMLP, MLPC, MLPW, IMLP
Jun. 25, 2015, 2:52 PM
- DCP Midstream Partners (DPM -2.4%) is downgraded to Sell from Neutral with a $31 price target, cut from $41, at UBS on the back of the firm's natural gas liquids pricing revision, which prompted a similar downgrade of Chesapeake Energy.
- UBS expects weakness in propane/butane to continue in the near term before staging a recovery in Q4, and thus will continue to pressure DPM's credit profile.
- The firm lowers its 2015, 2016 and 2017 EBITDA estimates to a respective $629M, $621M and $692M from $641M, $665M and $744M to reflect the impact of changes to its forecasts and acknowledge that further slowdowns in drilling activity could pressure volumes.
Nov. 28, 2014, 10:20 AM| Nov. 28, 2014, 10:20 AM | 17 Comments
Feb. 26, 2014, 5:03 PM| Feb. 26, 2014, 5:03 PM
Oct. 28, 2013, 10:53 AM
- Sandell Asset Management is urging Spectra Energy (SE +0.3%) to present to the market a road map for value creation by the end of the year, Reuters reports.
- One way to unlock shareholder value, the activist investor says, is to swap its 50% interest in DCP Midstream Partners (DPM -0.2%) for equity in Phillips 66's MLP (PSXP +3%) in a deal that could improve the valuation of both companies.
- Sandell reportedly said in an Oct. 2 letter that it believes DCP's assets are a better fit with Phillips 66 Partners; it had pressed SE for changes in a June letter, when it said it believes SE is undervalued and should trade at ~$48//share.
Sep. 18, 2013, 2:32 PM
- Energy MLPs are spiking higher after the Fed decides not to taper, ensuring a longer period of lower-cost capital: KMP +2.9%, KMI +4.1%, ETP +2.1%, WPZ +1.2%, WMB +1.1%, EPD +1.9%, PAA +1.2%, EEP +1.3%, MWE +3.1%, MMP +2.4%, ACMP +2.9%, APL +1.8%, DPM +2.4%, SXL +1.5%, BPL +1.1%, PBA +2.3%, TLLP +1.7%.
- Relevant ETFs: AMJ, AMLP, MLPG, MLPI, MLPN, MLPY, MLPL, MLPW, MLPS, YMLP, MLPA, EMLP, AMU, IMLP, MLPJ, ATMP, YMLI.
Aug. 6, 2013, 3:45 PM
- Spectra Energy (SE -1.6%) rejects calls from activist shareholder Sandell to sell or spin off its western Canadian pipelines or its stake in DCP Midstream (DPM); selling shares in the Canadian unit would create tax problems and DCP’s rising cash flow will boost SE’s stock price, CEO Greg Ebel says.
- Sandell said last month it considered a sale of assets to the partnership - which SE valued today at ~$9.68B - about a third of its plan for Spectra.
Jul. 16, 2013, 10:19 AMDCP Midstream (DPM -2.9%) slides after Credit Suisse cuts shares to Underperform. The gas pipeline owner delivers its Q2 report on Aug. 6. | Jul. 16, 2013, 10:19 AM
Apr. 26, 2013, 3:57 PMCredit Suisse upgrades EQT Midstream Partners (EQM +4.7%) to Outperform after issuing Q1 results well ahead of the firm's expectations and increasing its FY 2013 guidance on EBITDA and distribution cash flow, and cuts Exterran Partners (EXLP) and DCP Midstream (DPM) on valuation (I, II). EQM is enjoying higher throughput on its assets as Marcellus shale activity remains robust. | Apr. 26, 2013, 3:57 PM
Mar. 1, 2012, 5:08 PM
DCP Midstream Partners LP is engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling natural gas liquids (NGLs) and condensate; and transporting, storing and selling... More
Sector: Basic Materials
Industry: Oil & Gas Pipelines
Country: United States
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