MPLX Energy Logistics Swallows Mark West - Wait For Gas And NGL Pricing To Firm Before Jumping In
Michael Fitzsimmons • 30 Comments
Michael Fitzsimmons • 30 Comments
MPLX Energy Logistics: An MLP Very Much Like 2014 #1 Performer Phillips 66 Partners
Michael Fitzsimmons • 16 Comments
Michael Fitzsimmons • 16 Comments
Tue, Jul. 19, 2:47 PM
- MPLX LP (MPLX +0.3%) is resumed with an Overweight rating and a $42 price target at Barclays, which cites solid growth visibility underpinned by dropdowns and organic projects offered at discount to large cap MLP peers.
- Barclays believes MPLX can grow at a five-year 10.5% compound annual growth rate through 2020 based on currently available dropdown inventory and organic projects.
- The firm's assumption includes only 35% of opportunity set presented by the company, which translates into 65% of investment backlog available in 2020, providing continued growth visibility post 2020.
Mon, May 2, 11:58 AM
- MPLX (MPLX -2%) is initiated with an Outperform rating and $45 price target at RBC Capital, which says it is encouraged by the supportive multiple following the company's most recent dropdown and the $1B preferred equity raise that keeps MPLX out of markets until 2017.
- The firm says MPLX's valuation screens attractive and thinks the key to outperformance will be in building investor confidence through delivering on organic growth through Marcellus/Utica utilization and pro-active sponsor support.
- Now read The best of the best in the refining industry
Thu, Apr. 28, 3:48 PM
- Marathon Petroleum (MPC -0.6%), which operates the 1.2M bbl/day Louisiana-to-Illinois Capline crude oil pipeline, likely will reverse the pipeline to move heavy Canadian crude south to Louisiana after oil prices recover from the current rout, Marathon Petroleum CEO Gary Heminger says.
- Volumes for the Capline pipeline, the largest in the U.S. and once a major artery to deliver imports and Gulf of Mexico crude to the U.S. midwest, have dropped sharply as U.S. shale output boomed before prices plunged.
- Plains All American Pipeline (PAA -3.9%), the line's majority owner, has said that its 600K bbl/day portion of Capline moved an average of 170K bbl/day last year; MPC and PAA support reversing Capline, but minority owner BP, which relies in part on the line to supply its massive Indiana refinery, has not signed off.
- Heminger says a reversed Capline would need to move a minimum of 500K bbl/day of Canadian heavy crude, but producers struggling with profit losses have cut spending and deferred projects.
- MPC shares are lower after Q1 earnings fell on weaker refining margins and revenue, as well as writedown at MPC’s MPLX (MPLX -0.4%) pipeline subsidiary.
- Now read Hidden gems that make Marathon Petroleum a buy
Thu, Apr. 28, 7:22 AM
Wed, Apr. 27, 5:30 PM
- AB, ABBV, ACOR, ADP, AEP, AET, AIT, ALKS, ALLE, ALXN, AME, APD, ASPS, AUO, AVT, AXTA, BC, BCOR, BG, BLL, BMS, BMY, BOFI, BWA, BWEN, BXLT, BZH, CAB, CAH, CBG, CCE, CELG, CHTR, CIT, CL, CLF, CLFD, CME, CMS, COMM, COP, COR, CRCM, CRI, CRR, CSH, CVI, CVRR, CWT, CY, DBD, DFT, DLX, DNKN, DOW, DPZ, EME, EPD, EQM, EQT, F, FCFS, FCN, GEO, GLOP, GNC, GOV, GTLS, GWR, HAR, HEES, HHS, HMC, HUN, I, IDA, IDCC, INGR, INSY, INT, IPGP, IQNT, IRDM, IRM, ITC, ITCI, IVC, IVZ, KERX, LANC, LBY, LKQ, LVLT, MA, MD, MDP, MHO, MINI, MITK, MJN, MMC, MO, MPC, MPLX, MSCI, MTH, NEE, NEWM, NOV, OAK, ODFL, ORI, OSK, PF, PJC, POT, PPL, PRLB, PTEN, QSR, RGS, RTIX, RTN, RUTH, SABR, SCG, SEE, SFE, SIRI, SNAK, SNE, SPB, SPIL, SQNS, TFX, THRM, TMO, TOWR, TPX, TWC, TZOO, UAN, UBSI, UFS, UPS, UTHR, VA, VAC, VC, VIAB, VIVO, WCC, WM, WNS, WST, XRS, YNDX, ZBH
Wed, Mar. 30, 7:09 AM
- February monthly performance was: +1%
- 52-week performance vs. the S&P 500 is: -38%
- No dividends were paid in February
- Top 10 Holdings as of 12/31/2015: Enterprise Products Partners LP (EPD): 18.36%, Energy Transfer Partners LP (ETP): 10.13%, Magellan Midstream Partners LP (MMP): 8.69%, MPLX LP (MPLX): 5.14%, Buckeye Partners LP (BPL): 4.11%, Plains All American Pipeline LP (PAA): 3.95%, Sunoco Logistics Partners LP (SXL): 3.86%, EQT Midstream Partners LP (EQM): 3.84%, Enbridge Energy Partners LP (EEP): 3.57%, Williams Partners LP (WPZ): 3.49%
Mon, Mar. 14, 7:14 PM
- Marathon Petroleum (NYSE:MPC) agrees to drop down its fee-based inland marine assets to MPLX in exchange for issuing equity to MPC valued at $600M.
- MPLX expects 98% of the equity to be issued in the form of common units and the remainder in general partner units, at ~$26.09/unit.
- MPLX says the inland marine business, which consists of 18 tow boats and 205 barges, accounts for nearly 60% of total volumes MPC ships by inland marine vessels, and will contribute ~$120M in annual EBITDA.
Tue, Feb. 9, 7:39 PM
- Chesapeake Energy’s (NYSE:CHK) problems illustrate the potential for a domino effect in U.S. pipeline companies, and threatens to shatter the assumption of many investors that the companies are insulated from plunging energy prices.
- CHK has commitments to pay ~$2B/year for space on pipelines run by MLPs; Williams Cos. (WMB, WPZ) has the most exposure to CHK after buying the company's logistics assets for $6B in 2014
- CHK's distress threatens the $33B Williams-Energy Transfer (ETE, ETP) tie-up announced last September, and has been a drag on WMB's credit rating, which could cause headaches for ETE if the merger goes through.
- WMB likely will be forced to accept a 50% price cut in its contract price with CHK, either through the courts or mutual renegotiation - which would equal a drop of $300M in annual cash flow - says InfraCap portfolio manager Jay Hatfield.
- Williams and Energy Transfer "would be way better off if they did not merge,” Hatfield says. “I can’t believe that both stocks wouldn’t rocket if the deal was called off.”
- Other companies with CHK contracts include Spectra Energy Partners (NYSE:SEP), Columbia Pipeline Partners (NYSE:CPPL) and Marathon Petroleum's (NYSE:MPC) MPLX unit; a SEP spokesperson tells Reuters that its CHK contract to supply gas out of the Marcellus Shale accounted for less than 3% of its 2015 revenues.
- Kinder Morgan (NYSE:KMI) has not disclosed its exposure to CHK.
Fri, Feb. 5, 2:19 PM
- Marathon Petroleum (MPC -6.7%) plunges to another 52-week low, capping an 18% drubbing in the three days since releasing disappointing Q4 results and guidance for slower distribution growth at MPLX (MPLX -10.3%), the MLP formed by MPC to invest in pipelines.
- MPC is downgraded to Neutral from Overweight with a $44 price target, cut from $62, at J.P. Morgan, which says it did not anticipate that management would halve its 2016 growth outlook and defer all 2017 commitments; making matters worse, MPC may now be on the hook to provide even more support to MPLX - up to $500M in 2016 beyond the marine dropdown - just to keep MPLX at ~4x leverage.
- Cowen’s Sam Margolin says MPLX’s capital requirements to achieve growth targets have created "functional commodity leverage" for MPC, something that would not be the case if MPC were simply a refiner.
Wed, Feb. 3, 12:57 PM
- MPLX (MPLX -22%) plunges to a 52-week low after Marathon Petroleum (MPC -10.1%) says its pipeline unit would increase dividends at a slower than expected pace this year, as cash flow is hurt by declining volumes of natural gas and natural gas liquids.
- MPLX says it now expects a distribution growth rate of 12%-15% for 2016, down from its prior outlook for 25% growth; MPLX says that even with the change, its distribution growth remains to be among the highest for large-cap diversified MLPs.
- Distributable cash flow attributable to MPLX jumped more than 7x to $227M in Q4, but that was lower than the distributable cash flow of $243M that would have been available before the purchase of MarkWest Energy.
- Earlier: MPLX misses by $0.46, beats on revenue
Wed, Feb. 3, 12:49 PM
Wed, Feb. 3, 8:43 AM
- MPLX (NYSE:MPLX): Q4 EPS of -$0.14 misses by $0.46.
- Revenue of $269M (+93.4% Y/Y) beats by $121.73M.
Tue, Feb. 2, 5:30 PM
Mon, Jan. 25, 3:59 PM
Dec. 8, 2015, 5:58 PM
- Just because Kinder Morgan (NYSE:KMI) has cut its dividend, it does not mean all MLPs will - though some could, "because it is prudent that companies evaluate what is their best use of capital" - Tortoise Investment Management portfolio manager Brian Kessens tells Barron's.
- KMI's leverage at 5.8x EBITDA is significantly higher than peers and others’ equity needs are not as great, Kessens says, adding that many pipeline MLPs have a parent company or sponsors that will be supportive in times of capital market dislocation.
- Kessens also thinks fears of production cuts are overblown, as are concerns that capital markets are closed to MLPs, which he says are finding ways to finance growth through private transactions.
- MLPs are suffering from "a fundamental negative feedback loop," Kessens says: The fear is that lower prices will hurt production volumes, driving a concern that is resulting in a higher cost of capital for the sector, raising worries about whether the sector will be able to finance growth in an accretive manner.
- Today, at least, saw a pause in the negative feedback loop: EPD +3.6%, MMP +0.6%, BPL +0.5%, ETP +5%, PAA +9.4%, MPLX +10.4%, EEP +0.9%, SXL -0.7%, OKS -0.1%, WPZ +5.2%.
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Dec. 1, 2015, 2:47 PM
- MarkWest Energy (MWE -4.8%) unitholders vote to approve a merger deal with MPLX (MPLX -13.6%), overcoming opposition from two MWE founders; the deal is now expected to be completed by Dec. 4.
- The agreement will make MWE, the second largest natural gas processor in the U.S., a subsidiary of Marathon Petroleum (MPC +0.9%) pipeline operator MPLX, and create one of the biggest MLPs.
- The overall value of the cash and stock deal originally was pegged at ~$15B in July but had fallen to ~$10B by mid-November amid plunging energy stock prices, when MPC increased the cash portion of the deal to $6.20/unit for MWE shareholders.
MPLX LP is a fee-based, growth-oriented master limited partnership. It was formed to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon-based products. The company's assets consist... More
Sector: Basic Materials
Industry: Oil & Gas Pipelines
Country: United States
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