Fri, Jul. 22, 5:37 PM
Wed, Jul. 6, 11:58 AM
- Investors may find it difficult to capitalize on propane's big rally, as the rally has come so quick and so fast that it may be too late to hop on board, WSJ reports.
- Jefferies analyst Christopher Sighinolfi had been bullish on many propane pipeline and processing companies when others were skeptical, but recently downgraded Oneok (OKE -1.2%), DCP Midstream Partners (DPM +0.8%), EnLink Midstream Partners (ENLK +0.1%) and Targa Resources (TRGP -0.1%) largely because they became too expensive.
- “We were also concerned with how confident and convicted clients seemed about the prospect for prices to just continue climbing and simultaneously dismissive they are” about declining volumes, Sighinolfi said.
- Others think propane could still rise quickly in the near term from exports and domestic heating and agriculture demand; Greg Sharenow of Pacific Investment Management says "propane is a significantly better value with inventories falling below last year’s level and exports already at a pretty substantial level.”
Fri, Jun. 17, 3:39 PM
- ONEOK (OKE +1.8%) pushes higher despite getting downgraded to Hold from Buy at Argus, which cites valuation following the stock's nearly 95% surge since January and the modest recovery in oil prices that is now reflected in the share price.
- While OKE has restructured several of its contracts to fee-based from percent-of-proceeds, which are expected to make it less sensitive to fluctuations in energy prices and volumes, but the firm is concerned about the debt levels and capital spending at ONEOK Partners (OKE +0.3%), given that the MLP accounts for 100% of OKE’s cash flow.
- OKE management has noted that OKS may need to issue new stock in late 2017, which Argus says would be dilutive to EPS.
Mon, May 9, 2:58 PM
- ONEOK (OKE -1.5%) is lower but by less than many of its peers after Barclays upgrades shares to Overweight from Equal Weight with a $49 price target, raised from $27, at Barclays, which says it has a line of sight into the company's growth because of its valuable asset footprint.
- The company has said it has $200M of extra earnings potential from reduced ethane rejection on its natural gas liquids segment that it can generate with minimal capital spending.
- The firm sees opportunity for OKE in the form of higher realizations for the ethane in the Mid-Continent where contracts are still primarily POP, volume growth in the Mid-Continent that will kick up due to rising prices for natural gas and natural gas liquids, the potential to raise bundled rates as capacity on the system gets tight, and the ability for low-cost expansions.
- Also: OKS -2.1%.
- Now read ONEOK Partners upgraded at Credit Suisse
Thu, May 5, 2:47 PM
- ONEOK Partners (OKS +0.8%) is upgraded to Neutral from Underperform with a $40 price target, raised from $33, at Credit Suisse, which believes OKS is now in position to meet or beat 2016 EBITDA guidance of $1.88B given higher ethane demand estimates, higher margins from re-contracting in the Williston Basin, and strong progress on well connects.
- Credit Suisse notes that OKS expects a $200M earnings boost from ethane transportation and fractionation services without the need for additional capex, and expects processing plants will move into full ethane recovery in early 2017, bringing 175K-200K bbl/day of ethane rejection back on to the OKS system.
- OKS is well-positioned in the Williston basin going forward, the firm says, as 38%-43% of total North Dakota flared gas is on OKS systems, and incremental processing capacity from Bear Creek in H2 should drive further volume upside.
- The firm maintains a Neutral rating on ONEOK (OKE +2.6%), general partner and owner of ~41% of OKS; it raises its price target to $42 from $34.
Tue, May 3, 4:28 PM
Mon, May 2, 5:35 PM
- AGU, AMED, AMSG, ARC, AVD, BFAM, BGFV, BKH, BPI, CAI, CALD, CALX, CAR, CBS, CERS, CHEF, CHUY, CRAY, CSU, DVN, ENLK, ENPH, EPIQ, ETSY, FANG, FARO, FMI, GLUU, GMED, GNMK, HCI, HI, HRZN, IAG, IL, ILMN, INN, JKHY, KAMN, KAR, KFRC, LCI, LYV, MAC, MDU, MTCH, MTDR, MXWL, MYGN, NDLS, NFX, NKTR, NTRI, NYMT, OCLR, OKE, OKS, OMI, PAYC, PBPB, PKD, PLT, PRMW, PRO, PZZA, QUAD, QUOT, REG, REGI, RIGL, RLOC, RPXC, RSYS, RTRX, RUBI, SM, SPA, STAG, SUPN, TAHO, TNAV, TXMD, USNA, VIAV, VNOM, VRSK, VVUS, WES, WGP, WR, WTR, WU, XCO, XPO, XXIA, ZEN
Thu, Apr. 21, 4:30 PM
Mon, Feb. 22, 4:29 PM
Sun, Feb. 21, 5:35 PM
Mon, Feb. 8, 3:22 PM
- MLP sentiment is deteriorating, driven most recently by the unexpected and unexplained departure of Energy Transfer Equity's (ETE -39.1%) CFO, and the situation will remain bearish for the group until crude oil and high yield bottom, says Baird analyst Ethan Bellamy.
- In addition to ETE and Energy Transfer Partners (ETP -22.3%), Baird downgrades EnLink Midstream (ENLC -21.9%), ONEOK Partners (OKS -6%), Plains All American (PAA -11%) and Plains GP Holdings (PAGP -14%) to Underperform, and cuts Antero Midstream (AM +1.3%), ONEOK (OKE -9.4%) and Tallgrass Energy GP (TEGP -13.1%) to Neutral from Outperform.
- ETFs: AMLP, AMJ, KYN, MLPL, 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, MLPJ, SMM, MIE, DSE, FPL, ENFR, ATMP, JMLP, MLPC, MLPW
Mon, Jan. 25, 12:21 PM
- ONEOK Partners (OKS -0.9%) is downgraded to Neutral from Outperform with a $25 price target, cut from $40, at Baird; the firm also lower its price target on ONEOK Inc. (OKE -3.3%) to $28 after incorporating a lower commodity outlook and the reduced 2016 capex budget announced last month.
- Baird says OKS should benefit from fundamental tailwinds such as increased flared gas capture in 2016, but the firm models conservatively given the ugly tape; with the still-deteriorating oilfield outlook, the firm sees units as efficiently priced but maintains a preference for OKE.
Thu, Jan. 21, 4:53 PM
- ONEOK (NYSE:OKE) declares $0.615/share quarterly dividend, in line with previous.
- Forward yield 10.88%
- Payable Feb. 12; for shareholders of record Feb. 1; ex-div Jan. 28.
Sat, Jan. 16, 8:25 AM
- Short selling in S&P 500 energy companies in December hit levels not seen since 2003, as average short interest rose to 7.28% at the end of the month from 6.59% at mid-month, Reuters reports.
- Companies that saw notable bets against their stocks in late December include Southwestern Energy (NYSE:SWN), with short interest up to 24.8% of its float from 17.1% just two weeks earlier, and Consol Energy (NYSE:CNX), whose short interest rose to 24.9% from 21% in mid-December; short interest in ONEOK (NYSE:OKE) rose to 6.9% from 3.9% at mid-month.
- Companies that short sellers reduced bets against during the period include Cimarex Energy (NYSE:XEC), Halliburton (NYSE:HAL) and Kinder Morgan (NYSE:KMI); among industry giants, short interest in Chevron (NYSE:CVX) edged up to 1.4% at the end of December from 1.2% while Exxon Mobil (NYSE:XOM) held steady at 1.2%.
- But with crude oil prices hitting 12-year lows and the energy sector down ~10% in the first two weeks of the new year, some short sellers are said to have become more selective about the companies they bet against, thinking further losses may be limited.
Mon, Jan. 11, 11:27 AM
- ONEOK (OKE -1.5%) is lower despite receiving an upgrade to Buy from Hold with a $27 price target at Argus, which says the company is benefiting from positive volume and contract trends.
- Argus says it had been concerned about debt levels and capital spending at ONEOK Partners (OKS -2%), which accounts for 100% of OKE's cash flow, but management allayed some of its concerns about potentially dilutive equity issuance at OKS after announcing that new stock would not be issued until late 2017.
- OKE also has been restructuring its contracts from percent of proceeds to fee-based, which makes it less sensitive to fluctuating volumes and energy prices -an advantage in an already volatile 2016.
Dec. 31, 2015, 9:57 AM
- A week after Oppenheimer upgraded ONEOK (OKS +1.6%, OKE +1.2%) in response to its 2016 outlook (included plans to maintain ONEOK's current distribution), Credit Suisse's John Edwards has upgraded to Outperform, while hiking his targets for OKS and OKE by $4 apiece, to $38 and $40.
- Edwards has upped his 2016 estimates by 2% - he now respectively expects 2016 EBITDA and discounted cash flow of $1.81B and $1.34B. "We have revised estimates on the NatGas G&P segment higher offset by a lowered NGL segment ... We assume margins for fractionation to run ~$0.05/gal blended and about $0.055/gal blended for transportation. For 2016, OKS said it expects 800-870Mbbl/d of gathering volumes and 540-590MBbl/d of fractionation volumes,"
- He's also now assigning the natural gas firm a lower discount rate to reflect the G&P contract restructuring, lower sensitivity to commodity prices, and zero equity needs until mid-2017. "With these changes our valuation for OKS/OKE moves up by $4 each."
- ONEOK is up moderately in spite of a 0.6% S&P drop. It joined many other energy names in selling off on Monday and Wednesday.
ONEOK, Inc. engages in gathering, processing, storage and transportation of natural gas. The company operates through the following segments: Natural Gas Gathering and Processing, Natural Gas Liquids and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment provides... More
Industry: Gas Utilities
Country: United States
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