Tue, Jun. 16, 12:25 PM
- Niska Gas Storage (NKA -4.8%) enjoys three analyst upgrades a day after agreeing to sell the partnership, including the managing member and incentive distribution rights, to Brookfield Infrastructure for total consideration of ~$912M.
- Credit Suisse upgrades NKA to Neutral from Underperform while raising the price target to $4 from $3, noting that "importantly, for an undisclosed limited period, NKA can discuss and negotiate alternative acquisition proposals with third parties, subject to Brookfield having the right to match the offer or receiving a termination fee."
- Under the deal, Brookfield agreed to lend $50M to NKA, which Credit Suisse says addresses concerns surrounding NKA's ability to support working capital requirements.
- NKA also was upgraded to Hold from Sell at Stifel and to Market Perform from Underperform at Raymond James.
Mon, Jun. 15, 9:14 AM
Thu, Apr. 23, 12:45 PM
Wed, Apr. 22, 3:33 PM
- Niska Gas Storage Partners (NKA +8.6%), whose value has collapsed from more than $1B to just $80M and who stopped distributions to shareholders in February to preserve cash, is exploring a sale, Bloomberg reports.
- NKA, controlled by P-E funds Riverstone Holdings and Carlyle Group, is said to be working with Evercore Partners to find a buyer, as part of a broader restructuring effort as it struggles to revive its prospects amid the natural gas glut.
- Boardwalk Pipeline Partners (NYSE:BWP) and Crestwood Midstream Partners (NYSE:CMLP) also provide gas storage services and have struggled, but they are considered less vulnerable than NKA because they are more diversified.
Wed, Feb. 18, 12:51 PM
Fri, Feb. 6, 12:45 PM
Thu, Feb. 5, 2:48 PM
- Niska Gas Storage (NKA -9.2%) sinks following a downgrade to Sell at Citigroup, where analyst Faisel Khan sees a potential credit event and the stock valued at zero.
- While NKA's gas storage assets will be valuable over the long-run, "the business does not support the capital structure today, and a credit event now seems likely," Khan writes.
- He also sees increased risk that the public equity will be diluted substantially in a restructuring, and that it will be challenging to refinance the debt because the cash flow is not likely to support the financing costs.
Mon, Feb. 2, 12:49 PM
Mon, Feb. 2, 8:43 AM
- Niska Gas Storage Partners (NYSE:NKA) -8.1% premarket after announcing the suspension of its common unit distribution to conserve cash and preserve liquidity in the difficult market environment.
- NKA explains "very disappointing" FQ3 results, saying increases in natural gas supply across North America coupled with relatively warm weather patterns in its markets - which have continued into FQ4 - resulted in extremely low seasonal spreads and little of the expected volatility as the winter withdrawal season approached.
Fri, Jan. 2, 12:50 PM
Nov. 25, 2014, 12:45 PM
Oct. 31, 2014, 12:47 PM
Oct. 31, 2014, 10:59 AM
- Niska Gas Storage (NKA -11.6%) is downgraded to Sell from Hold with a $3.30 price target at Stifel, as the partnership continues to face a challenging natural gas storage market.
- Amid narrow summer-winter differentials and minimal volatility in the natural gas market, NKA withdrew guidance and indicated a likelihood of lower or the elimination of distributions.
- Stifel believes raising capital would be a challenge given NKA's equity value decline and a limited ability to borrow given a lower fixed charge ratio (Briefing.com).
Oct. 30, 2014, 12:47 PM
Apr. 11, 2014, 2:34 PM
- "The best MLP you've never heard of" is Niska Gas Storage Partners (NKA +3.5%), according to a favorable profile by StreetAuthority's Daniel Cross, who says NKA stands out with a price-to-free cash flow ratio of ~14 while vs. a negative average for the industry, and a 9.6% dividend yield.
- This strength gives NKA the ability to make acquisitions and capital expenditures to grow at a much faster pace than other utility companies, Cross writes.
- Competitors such as Buckeye Partners (BPL) and TransCanada (TRP) also should also benefit from the rising tide in natural gas production since both companies trade at roughly NKA's P/E, but neither offers NKA's potential for double digit growth, according to Cross.
Feb. 11, 2014, 3:12 PM
- Boardwalk Pipeline Partners (BWP +7.1%) lost nearly half its value yesterday after slashing its payout by more than 80%, but some analysts see a buying opportunity amid the carnage.
- Citigroup upgrades shares to Buy from Neutral, urging value investors to note the severity of yesterday’s move relative to where other midstream MLPs trade on a cash flow multiple basis; the firm figures BWP trades at 10.3x 2015 EBITDA and 9.4x 2016 EBITDA, more favorable than other midstream MLPs with similar challenges such as TC Pipelines (TCP) and Niska Gas Storage Partners (NKA).
- Given the weaker outlook, Morgan Stanley says BWP/Loews (L) made the wisest choice to substantially reduce the distribution rate while remaining able to fund the capital plan internally, preserving maximum value.
- Deutsche Bank is staying away, however, maintaining its Sell rating with a $12 price target (from $20), expecting a longer, slower restoration of distribution.
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