The Right Time For Crosstex Energy
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, 12:58 PM
- EnLink Midstream Partners (ENLK -3.6%) and EnLink Midstream LLC (ENLC -3.5%) announce plans to construct a crude oil gathering system in Texas' Permian Basin.
- The partners say they will invest $70M-$80M in the Greater Chickadee crude oil gathering project, which will include more than 150 miles of high- and low-pressure pipelines that will transport crude volumes to several major market outlets and other hub centers in the Midland, Tex., area.
- The companies say the initial phase of the project will be operational in H2 of this year with full service expected early next year.
Fri, Feb. 26, 1:10 PM
- Chevron's (CVX -0.1%) Aa1 credit rating is placed on review for a downgrade at Moody's, which predicts negative free cash flow this year and next, and possibly even into 2018.
- Moody’s expects CVX's negative free cash flow exceeding $15B in 2016, despite the company's planned 25% capex cut, after recording negative free cash flow of ~$16B in 2015.
- Newly downgraded at Moody's: Occidental Petroleum (OXY +1.2%) to A3, EOG Resources (EOG -2.3%) to Baa1, ConocoPhillips (COP +4.5%) to Baa2, Apache (APA +5.1%) to Baa3, Marathon Oil (MRO +5.5%) to Ba1, Devon Energy (DVN +4.6%) to Ba2 and EnLink Midstream Partners (ENLK +4.9%) to Ba2.
- Earlier: Exxon's AAA rating affirmed by Moody's but outlook turns negative (Feb. 25)
Wed, Feb. 17, 3:57 PM
- EnLink Midstream (ENLC -19.4%) and EnLink Midstream Partners (ENLK -6.8%) are sharply lower near the close after both companies reported big Q4 losses (I, II).
- ENLC reported Q4 cash available for distribution of $47.8M, down from $66.3M in the year-ago quarter, but the coverage ratio was a still adequate 1.04x; Motley Fool's Matt DiLallo says the problem stems from ENLK's 2016 guidance assuming an average oil price of $43.75/bbl - well above current prices - which would provide just enough cash flow to maintain its current distribution rate with no margin for error.
- The results also weighed on Devon Energy (DVN -4.3%) stock, since it has a big ownership stake in the EnLink companies.
- ENLC and ENLK were downgraded to Underperform and Neutral, respectively, at BofA Merrill, which believes ENLK will come under further scrutiny by credit agencies.
Dec. 21, 2015, 11:46 AM
- EnLink Midstream (ENLC -7.4%) is downgraded to Neutral from Buy with an $18 price target, reduced from $28, at BofA/Merrill, which forecasts flat distributions through 2017 at ENLC and EnLink Midstream Partners (ENLK +2.4%), believing management will be prudent in building coverage instead of prioritizing distribution growth.
- The firm notes the $1.5B acquisition of Tall Oak Midstream is expected to generate $80M in EBITDA 2016 and expanding to $300M by 2018, as EnLink deploys $650M in capex over three years.
- Meanwhile, BofA upgrades TC Pipelines (TCP +2.8) to Buy from Underperform with a $50 price target, citing a fee-based cash flow profile, which “should bode well in a persistent MLP environment of high volatility, capital market concerns, and focus on leverage.”
Sep. 16, 2015, 2:40 PM
- Matador Resources (MTDR +12.1%) is on the move after yesterday's sale of its pipeline and processing assets in the Delaware Basin in western Texas to EnLink Midstream Partners (ENLK +2.6%).
- MTDR will be a major customer for the pipeline and related assets after they change hands, which is expected before the end of the year.
- Wunderlich upped its MTDR price target to $37 from $35, positively surprised by the "excellent valuation" of $143M for the midstream assets, which the firm says should give MTDR plenty of dry powder to finance drilling and more midstream projects in 2016 (Briefing.com).
Aug. 6, 2015, 5:36 PM
Mar. 25, 2015, 9:11 AM
Mar. 24, 2015, 5:35 PM
Nov. 14, 2014, 9:13 AM
Nov. 13, 2014, 5:13 PM
- EnLink Midstream Partners (NYSE:ENLK) -4.8% AH after announcing a public offering of 10.5M common units representing limited partner interests, with an underwriters option to purchase up to 1.575M additional units.
- ENLK intends to use the proceeds for capital expenditures and general partnership purposes.
Mar. 21, 2014, 9:15 AM
Mar. 21, 2014, 8:53 AM
- EnLink Midstream Partners (ENLK) is off 6% in premarket action after insiders unload about 18M shares in an underwritten offering for about $550M in gross proceeds.
Mar. 7, 2014, 2:57 PM
Mar. 5, 2014, 11:59 AM
- Robert W. Baird refreshes its outlook for master limited partnerships with six downgrades: five high-growth partnerships that now look fairly valued - NGL Energy Partners (NGL -1.8%), New Source Energy (NSLP -4%), Plains GP Holdings (PAGP -0.3%), Summit Midstream Partners (SMLP -0.6%) and Tallgrass Energy Partners (TEP -2.7%) - and are cut to Neutral from Outperform, and a reduction for Whiting USA Trust II (WHZ -0.7%) to Underperform from Neutral on elevated commodity risk.
- The firm recommends recycling capital into its top investment ideas: ONEOK Partners (OKS -1.2%), Plains All American Pipeline (PAA +0.9%), Rose Rock Midstream (RRMS +0.2%) and Crosstex Energy LP (XTEX -1.5%)
- Despite downgrading multiple high-quality MLPs, Baird says its long-term bullish view on the sector remains unchanged (Briefing.com).
Mar. 5, 2014, 10:56 AM
- Crosstex Energy LP (XTEX -1.7%) is downgraded to Hold from Buy with a $33 target price at Wunderlich, as it believes near-term yield compression from synergies and growth development may be limited.
- For investors with higher risk tolerance, the firm prefers to play the story through general partner Crosstex Energy Inc. (XTXI -1.2%), which offers sector-leading dividend growth estimated at 53% in 2014 and 43% in 2015.
- The legacy businesses remain challenged, which could be a risk to 2014 guidance and 2015-16 double-digit distribution growth, the firm adds.
EnLink Midstream Partners LP operates as an integrated midstream company, which focuses on providing midstream energy services, including gathering, transmission, processing, fractionation and marketing, to producers of natural gas, NGLs, crude oil and condensate. It also provides crude oil,... More
Sector: Basic Materials
Country: United States
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