Michael Fitzsimmons • 40 Comments
Clayton Rulli • 12 Comments
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
Oct. 7, 2015, 12:14 PM
- Energy MLPs have rebounded recently following September's panic selling, but that does not mean there all headwinds facing MLPs going forward have disappeared.
- Wunderlich's Jeff Birnbaum looks at consensus 2016 capex estimates for more than 80 midstream MLPs and thinks many will need to reduce or eliminate their capital spending plans.
- Yet Birnbaum says many MLPs are attractive; his top picks include Magellan Midstream Partners (MMP +1.2%), Enterprise Products Partners (EPD +1.5%), Western Gas Partners (WES +2.1%) and Genesis Energy (GEL +2.2%).
- ETFs: AMLP, AMJ, KYN, MLPL, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPX, GMZ, EMO, MLPS, TTP, CTR, AMU, CEN, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPW, IMLP
May 1, 2015, 11:58 AM
- Genesis Energy (GEL -3.7%) is downgraded to Neutral from Outperform with a $52 price target at Baird, citing GEL's 12% rally since the April 6 secondary on the back of a 14% gain for crude.
- Baird remains convinced of the solid long-term story at GEL and looks for 17% Y/Y EBITDA growth, but sees units approaching full value at current levels.
- The firm also remains skeptical of the recent crude rally on expectations for better than expected supply resiliency over the balance of the year, which it believes would be a headwind for GEL.
Apr. 7, 2015, 9:13 AM
Apr. 6, 2015, 5:35 PM
Apr. 6, 2015, 4:32 PM
- Genesis Energy (NYSE:GEL) -5.9% AH after announcing a public offering of 4M common units, with an underwriters option to purchase up to an additional 600K units.
- GEL says it plans to use the proceeds for general partnership purposes, including funding acquisitions or repaying a portion of borrowings outstanding under its revolving credit facility.
- Also: Genesis Energy declares $0.61 dividend
Sep. 22, 2014, 5:51 PM
- Genesis Energy (NYSE:GEL) -4.9% AH on news of a public offering of 4M common units, with an underwriters option to purchase another 600K units.
- GEL plans to use the proceeds for general partnership purposes, including funding acquisitions including organic growth projects or repaying a portion of the borrowings outstanding under its revolving credit facility.
Sep. 22, 2014, 5:35 PM
Sep. 11, 2013, 5:41 PM
Sep. 10, 2013, 5:35 PM
Sep. 10, 2013, 4:26 PM
- Genesis Energy (GEL) -3.7% AH after announcing a public offering of 4.5M common units.
- GEL expects to use the net proceeds for general partnership purposes, including the repayment of outstanding borrowings under its revolving credit facility.
Sep. 4, 2013, 10:48 AM
- Oppenheimer restarts coverage of energy MLPs, bullish on the asset class as a whole; the firm shows a bias in favor of investing in higher distribution growth, even if the yields are lower, and for owning general partners due to their incentive distribution rights structure.
- Started at Outperform: EQT Midstream (EQM +2.1%), Seadrill Partners (SDLP +0.7%), Tesoro Logistics (TLLP +1.6%), Memorial Production Partners (MEMP +2.4%), Western Gas Partners (WES +0.4%), Western Gas Equity Partners (WGP +0.7%).
- Started at Market Perform: Williams Partners (WPZ), Crosstex Energy (XTEX), ONEOK Partners (OKS), Genesis Energy (GEL).
- Also: New Source Energy (NSLP), Breitbrun Energy Partners (BBEP), LRR Energy (LRE), Mid-Con Energy Partners (MCEP).
Oct. 2, 2012, 11:56 AM
Midstream energy-service company Genesis Energy (GEL -4.1%) trades lower after pricing its 6M-unit offering at $32.15, a 6.9% discount to Monday's close. The company says the offering represented limited partner interests held by Quintana Capital Group, as well as various other sellers.| Oct. 2, 2012, 11:56 AM
Oct. 2, 2012, 9:10 AM
Oct. 1, 2012, 4:49 PM
Genesis Energy (GEL) -5.9% AH after announcing a secondary offering of 6M common units representing limited partner interests by Quintana Capital Group and certain affiliates and other selling unitholders. GEL will not receive any of the proceeds from the sale.| Oct. 1, 2012, 4:49 PM
Mar. 23, 2012, 9:00 AM