Fri, Oct. 2, 12:34 PM
- The bloom is off the rose for energy MLPs, as the Alerian MLP index hit its lowest level in more than five years this week and is down 30% YTD, far underperforming other yield-oriented indexes such as the MSCI REIT Index, which is down only 6%.
- Negative sentiment around commodities has overwhelmed the old narrative that MLPs fund generous payouts from pipelines backed by fee-based contracts, unsullied by the vagaries of energy prices; even if price risk is mitigated, revenue still takes a hit when less oil or gas flows through a pipeline whether due to increased competition or less drilling.
- Meanwhile, with debt markets increasingly difficult for energy firms, more borrowing comes at a steep price; Enbridge Energy Partners (NYSE:EEP) yesterday closed on $1.6B of new bonds at what S&P called “some of the highest absolute costs in recent years for investment-grade funds."
- MLPs have not bottomed yet, says Cumberland Advisors, noting that banks soon will take a fresh look at the value of energy assets for the purpose of renewing credit lines, which could prompt a washout in the overall energy industry.
- MKM Partners‘ chief market technician Jonathan Krinsky is starting to find some "downside extremes," and says he's buying EPD, ENB, SE, MMP and CQP, but he's selling OKS, DPM, SMLP, GMLP and GLOG.
- Earlier: MLP investors, worried over Williams deal, head for the exits (Sept. 28)
- 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
Thu, Aug. 6, 7:13 AM
Wed, Aug. 5, 5:30 PM
- AAON, ACTA, AGIO, AGN, AGO, AINV, AMCX, APA, AXAS, AYR, BBEP, BBW, BCE, BDBD, BDX, BECN, CC, CCC, CCOI, CECE, CNK, CNQ, CNSL, CRIS, CRZO, CTB, DDD, DUK, DX, EAT, EBS, EMES, ENOC, ENR, EXK, EXTR, FSV, FSYS, GCAP, GLOG, GLP, GNRC, GOGO, GTXI, GWPH, HCLP, HGG, HII, HILL, HL, HSNI, INFI, INSY, IRC, KOP, KORS, LAMR, LEAF, LPI, LQDT, MBLY, MEG, MFC, MITL, MMP, MMS, MPEL, MYL, NGS, NRF, NRP, NRZ, NVO, NXST, NXTM, NYT, OA, OGE, ONE, OTIV, OWW, PBH, PGNX, PLUG, PRIM, RDEN, RGEN, RICE, RSTI, RVLT, RWLK, SATS, SBH, SEAS, SFY, SGM, SNH, SPH, SRPT, SSTK, STN, SUNE, TA, TAP, TDC, TECH, TESO, THS, TK, TLP, TNK, VER, VIAB, WIN, WPP, YORW, ZEUS
Mon, Jun. 22, 4:33 PM
- GasLog Partners (NYSE:GLOP) -4.7% AH after agreeing to acquire three liquefied natural gas vessels from GasLog Ltd. (NYSE:GLOG) for $483M.
- GLOP says the acquisition is immediately accretive and consistent with its strategy to grow cash distributions for unitholders through accretive drop downs and third-party acquisitions, and estimates the vessels will generate ~$72M/year of incremental contracted revenue over their initial charter terms.
- To fund the deal, GLOP launches a public offering of 7.5M common units, with an underwriters option to purchase up to an additional 1.125M units.
Sat, May 9, 11:27 AM
- The broadly-defined shipping sector continues to be volatile over the impact of oil price fluctuations and concerns over carrier/tanker supply along with charter rates.
- The Baltic Dry Index stands at 574 vs. a 52-week trading range of 509 to 1,484.
- The Guggenheim Shipping ETF (NYSEARCA:SEA) is down 9.4% over the last 52 weeks, although it trades with smoother peaks and troughs than the underlying stocks in the fund.
- Analysts are convinced that some value picks exist in the sector, although consensus is tricky to find. A few rough screens are listed below (add your own in the comments).
- Best YTD performance: Navios Maritime (NYSE:NAP) +37%, Scorpio Bulkers (NYSE:SALT) +35%, Tsakos Energy (NYSE:TNP) +31%, Golar LNG (NASDAQ:GLNG) +28%.
- Lowest price-to book value: DryShips (NASDAQ:DRYS) 0.14, Safe Bulkers (NASDAQ:SBLK) 0.32, Scorpio Bulkers 0.33, Navios Maritime Holdings (NYSE:NM) 0.34, GasLog (NYSE:GLOG) 0.39.
- Lowest forward P/E ratio: Danaos (NYSE:DAC) 4.43, Tsakos Energy 7.15, Navios Maritime Acquisition (NYSE:NNA) 7.25, Dorian (NYSE:LPG) 7.43, Dry Ships 7.57.
- Dividend yield: Navios Maritime Partners (NYSE:NMM) 15.2%, Capital Product Partners (NASDAQ:CPLP) 10.8%, Ship Finance International (NYSE:SFL) 10.8%, Teekay Offshore Partners (NYSE:TOO) 9.7%, Dynagas LNG Partners (NYSE:DLNG) 8.8%.
- Other shipping stocks: PRGN, FRO, NAT, OSK, TNK, FREE, ESEA, TOPS, DSX, SHIP, NM.
Wed, May 6, 7:27 AM
Tue, May 5, 5:30 PM
- ANSS, ARQL, ATHM, AVA, AYR, BAM, BUD, CEQP, CHH, CHK, CKSW, CLH, CMLP, CRNT, CRZO, CSTE, DAVE, DDD, DNR, EE, EGAN, ENB, EXK, GDP, GLOG, HAIN, HCLP, HFC, HSC, HSNI, HTA, IMN, INFI, KELYA, LAMR, LG, LINC, MEMP, MPO, MSI, MWE, NOR, NXTM, OXY, PERI, PGNX, POWR, RDC, RHP, SBGI, SCMP, SE, SNH, SODA, STRA, SUP, SWC, TMHC, TRXC, VG, VOYA, VSI, WCG, WD, WEN, WIX, WMC, WPX, XLS, XRAY
Tue, Apr. 21, 12:55 PM
- GasLog (GLOG +7.5%) is surging after agreeing to charter three uncontracted newbuilds currently under construction to BG Group unit Methane Services, which also has an option to charter an additional six newbuilds provided a decision is reached in 2015.
- GLOG says the three charters will add ~$845M of fixed rate revenue to its existing contracted revenue backlog, and will commence in mid-2018 and early 2019 for average initial terms of ~9.5 years at "attractive rates."
- GLOP +6.6%.
Thu, Apr. 9, 2:59 PM
- Royal Dutch Shell's (RDS.A, RDS.B) planned acquisition of BG Group (OTCPK:BRGXF, OTCQX:BRGYY) would create a giant operator of liquefied natural gas ships, offering owners that charter the ships more opportunities for lucrative, long-term contracts in an otherwise depressed shipping industry.
- Energy producers such as Shell and BG lease rather than own most of the ships moving their products, and the leases go to a handful of trusted owners, generating ~$75K/day for a ship that carries 160K cm of LNG; the break-even point for such a ship is $50K at most.
- A main beneficiary is GasLog (GLOG, GLOP), which has chartered its vessels to Shell, BG and other energy producers for nearly 15 years; GLOG, whose shares gained 4% yesterday on news of the merger, charters 15 LNG carriers to BG and two to Shell from a total fleet of 27 carriers.
- The deal is "a strong signal from Shell that they see their future in LNG... [it] shows their desire to grow the business and puts us in a good place to grow with them," says GLOG CEO Paul Wogan.
- Teekay LNG Partners (NYSE:TGP) is another LNG vessel operator expected to benefit from LNG demand.
Mon, Apr. 6, 6:28 PM
- GasLog Partners (NYSE:GLOP) jumped 8.1% in today's trade following a favorable analysis from Liam Denning in a Heard On The Street column over the weekend, citing GLOP's limited exposure to commodity prices in the near term and strong growth outlook for the years beyond its current contracts.
- As China’s recent decision to shut down its major coal-fired power plants around Beijing shows, there are structural forces pushing natural gas to take market share from higher-carbon fossil fuels, Denning writes.
- The column notes that the consensus forecast is for GLOP's earnings to rise by 46% this year, almost 10x the growth rate predicted for the MLP sector overall, yet while the Alerian MLP index’s forward dividend yield is 6.44%, GLOG yields almost 8%.
Fri, Feb. 27, 7:02 AM
Thu, Feb. 26, 5:30 PM
Fri, Feb. 20, 10:23 AM
- Canada's government is planning tax breaks for developers of liquefied natural gas export projects in an effort to kick-start investment amid a low energy price environment.
- The government says the changes will allow LNG companies to deduct a higher share of capital costs, and expects the move to reduce corporate tax revenue by ~C$50M over the next five years.
- British Columbia, which is counting on LNG development and shipments to stimulate future growth, had lobbied for such tax breaks, as did the LNG industry.
- Potential LNG stocks include LNG, GLNG, SRE, GTLS, TGP, GMLP, GLOG, CQP, GLOP, DLNG.
Dec. 22, 2014, 8:58 AM
- GasLog (NYSE:GLOG) agrees to acquire two modern tri-fuel diesel electric liquefied natural gas carriers from BG Group (OTCPK:BRGXF, OTCQX:BRGYY) affiliate Methane Services for $460M.
- The two vessels will be chartered back to BG for periods of nine and eleven years, which GLOG says will add $580M of contracted revenue over the charter period and should to provide a combined annual EBITDA of $46M.
- Upon completion of the acquisition, the GasLog group, including GasLog Partners (NYSE:GLOP), will have total contracted revenues of $3.3B.
Dec. 8, 2014, 12:43 PM
- GasLog (GLOG -4.3%) has not been helped by Stifel's upgrade to Buy from Hold with a $24 price target, as the firm believes shares are unjustifiably weak.
- GLOG's chairman indicated last week that he expects the company to announce a substantial contract before the end of the year, which firm believes could be employment for the four 2017 built vessels on order or a new sale leaseback agreement with an oil major for existing vessels.
Dec. 3, 2014, 12:45 PM
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