Enable Midstream Partners: A 4% Dividend And Excellent SCOOP Prospects
Michael Fitzsimmons • 51 Comments
Michael Fitzsimmons • 51 Comments
Mon, Sep. 19, 3:28 PM
- Goldman Sachs upgrades its coverage on energy midstream partnerships to Attractive from Neutral, expecting a return of volume growth in 2017 and further growth in natural gas liquids, oil and natural gas helping to generate better margins.
- The firm foresees few risks of any additional dividend cuts, as leverage and coverage should show improvements in 2017 and 2018, and believes financial risks from capital markets have begun to recede.
- Goldman upgrades two names - Targa Resources (TRGP +3%) and Buckeye Partners (BPL +1.8%) - to Buy from Neutral, and lifts two more - Enable Midstream Partners (ENBL +3%) and Enbridge Energy Partners (EEP +0.9%) - to Neutral from Sell; however, EnLink Midstream (ENLC -0.5%) is downgraded to Sell.
Fri, Aug. 5, 11:45 AM
- CenterPoint Energy (CNP -2.5%) says it will no longer pursue forming a REIT structure for its utility business, deciding that the potential to create long-term shareholder value via a REIT is "very limited and does not justify exposure to the associated risks."
- In reporting smaller than expected Q2 earnings, CNP says its natural gas business was hurt by a mild winter that reduced gas demand, and results were weighed down by its Enable Midstream Partners (ENBL +2.5%) joint venture, which also posted below consensus Q2 earnings.
- Fellow ENBL partner OGE Energy (OGE -0.9%) said yesterday that CNP is offering to sell its ENBL stake to OGE.
- CNP also reaffirms guidance FY 2016 EPS guidance of $1.12-$1.20 vs. $1.15 analyst consensus estimate.
Wed, Aug. 3, 6:46 AM
Fri, Jul. 29, 5:58 PM
- Noting that many MLPs have climbed after announcing distribution reductions this year, Baird analysts compile a list of 14 10%-plus yielding MLPs they believe could enjoy a quick price boost after announcing a cut.
- The Baird group does not necessarily recommend investors buy all the MLPs on the list, but "ample market evidence exists a) to justify a cut, and b) to believe it will drive short run returns, though not without material implications to investors’ cash flow."
- The 14 MLPs: AMID, ARCX, CCLP, CELP, CEQP, EEP, ENBL, ETP, JPEP, MEP, MMLP, SMLP, USAC, USDP
Mon, Jun. 20, 3:48 PM
- Barclays downgrades some MLP names on valuation, cutting Enable Midstream Partners (ENBL -2.1%) and TC Pipelines (TCP +1.6%) to Underweight from Equal Weight and lowering PennTex Midstream Partners (PTXP +0.5%) and EnLink Midstream (ENLC -3.2%) to Equal Weight from Overweight.
- The firm notes that ENBL has gained 56% YTD and is cautious about re-contracting risk on certain assets that could be a headwind to the company’s growth, and worries that TCP's prospects for dropdowns have become less certain given parent TransCanada’s pending acquisition of Columbia Pipeline.
- Barclays believes PTXP has a favorable organic growth opportunity given the location of its assets where drilling economics are positive and producers have transportation advantages, but that the positive aspects are fully priced in.
- The firm also notes ENLC's 350 bps premium to its LP, EnLink Midstream Partners (ENLK -1.5%), and is not forecasting distribution growth in 2016-17.
Wed, Jun. 8, 2:00 PM
Wed, Jun. 8, 12:46 PM
Wed, May 4, 2:58 PM
- Enable Midstream Partners (ENBL +1.2%) is higher after beating Q1 earnings estimates and forecasting FY 2016 net income also exceeding Wall Street projections.
- ENBL says Q1 net income attributable to common unitholders fell to $86M from $91M during the year-ago period, as total revenue fell 17% to $509M from $616M last year.
- ENBL says it expects net income attributable to unitholders at $240M-$310M, or $1.02-$1.32/unit, based on ~235M common units; the analyst consensus looked for the company to earn $0.75/unit.
Wed, May 4, 6:52 AM
Tue, Apr. 26, 5:46 PM
Thu, Mar. 17, 3:27 PM
- Credit Suisse analyst John Edwards issues a dozen downgrades - and one upgrade - among MLPs following the group's recent rally, believing the severity of the oil downturn has called into question the entire MLP model.
- "The prolonged downturn has challenged the robustness assumption on account of counterparty risks and contract renegotiation risks," Edwards writes.
- Downgraded to Underperform from Neutral: Columbia Pipeline (CPGX +2.4%), Magellan Midstream Partners (MMP -0.6%), ONEOK Partners (OKS +0.8%).
- Downgraded to Neutral from Outperform: Antero Midstream Partners (AM +0.8%), Enterprise Products Partners (EPD +2.7%), Enbridge Energy Partners (EEP +3.8%), EnLink Midstream Partners (ENLC +1.7%), Kinder Morgan (KMI +0.3%), Spectra Energy LP (SEP -0.1%), VTTI Energy Partners (VTTI +1.9%), Western Gas Equity Partners (WGP -0.1%), Western Gas Partners (WES +5%).
- Upgraded to Outperform from Neutral: Enable Midstream Partners (ENBL +14.6%).
Thu, Feb. 25, 7:25 PM
- Morgan Stanley analyst Tom Abrams sees improvement in the MLP multiple compression that has weighed on the group throughout the oil downturn, and the firm expands its MLP coverage by initiating ratings on several midstream names.
- While MLP prices could yet fall to new lows, Abrams believes progress has been made in approaching a bottom; however, he says investors should continue to avoid MLPs with overly-levered balance sheets, funding issues, weak cash flows and high distribution risk.
- Initiated with an Overweight rating: BPL, PSXP, VLP, DM, CPPL.
- Initiated at Equal Weight: MMP, CPGX, EQGP, EQM, WGP, WES, NS, NSH.
- Initiated at Underweight: EEP, ENBL, EEQ, MEP.
Wed, Feb. 17, 6:49 AM
- Enable Midstream (NYSE:ENBL): Q4 net income of $94M
- Revenue of $566M (-23.0% Y/Y) misses by $131.68M.
Mon, Feb. 1, 8:59 AM
- CenterPoint Energy (NYSE:CNP) says it is considering strategic options for its investment in Enable Midstream Partners (NYSE:ENBL), including a sale or a spinoff.
- CNP owns a 50% GP interest and a 55.4% LP interest in ENBL, which it jointly controls with OGE Energy (NYSE:OGE).
- CNP also guides FY 2016 earnings above analyst consensus, seeing EPS of $1.12-$1.20 vs. $1.10 consensus, which includes a target of 4%-6% EPS growth from existing businesses and investments; also reaffirms 2015 EPS $1.05-$1.10 vs. $1.07 consensus.
- On Friday, CNP announced a $363M investment in ENBL's preferred securities.
- CNP +2.1% premarket.
Fri, Jan. 22, 4:36 PM
- Enable Midstream (NYSE:ENBL) declares $0.318/share quarterly dividend, in line with previous.
- Forward yield 17.38%
- Payable Feb. 12; for shareholders of record Feb. 2; ex-div Jan. 29.
Dec. 22, 2015, 1:30 PM
- 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