Mon, Sep. 14, 2:56 PM
- ONEOK (OKE -2.2%) is initiated with a Neutral rating at Credit Suisse, but 24/7's Jon Ogg thinks the call seems almost like a Buy rating in that the $41 price target implies a nearly 20% upside from today's price, plus a ~7% dividend yield.
- The firm says OKE's prospects are improving sequentially, with a modest but improving distribution coverage ratio, and contract renegotiations could provide an added boost by year-end; another positive is a $4B-$5B capex backlog, on top of the $3B-$4B in execution.
- OKE is the pure-play general partner of ONEOK Partners (OKS -2.1%), which Credit Suisse rates at Outperform with a $40 price target.
Wed, Aug. 12, 5:59 PM
- ONEOK Partners (NYSE:OKS) agrees to sell ~21.5M common units representing limited partner interests at a price of $30.17/unit in a private placement to parent company ONEOK (NYSE:OKE).
- OKS also will sell ~3.3M common units at the same price to funds managed by Kayne Anderson.
- To pay for its purchase, OKE plans to sell $500M of senior notes.
- OKS -3.1%, OKE -1.9% AH.
Mon, Aug. 10, 12:59 PM
- ONEOK Partners (OKS +1.9%) is upgraded to Outperform from Neutral with a $48 price target, raised from $45, at Credit Suisse, which believes that the worst is over for the company.
- OKS' Q2 EBITDA of $387M and distributed cash flow of $277M came in higher than estimates, and raised EBITDA and DCF estimates for 2015 by a respective 3% to $1.6B and by 4% to $1,15B; Credit Suisse expects coverage to stabilize at ~1.05x for the remainder of the year and distribution growth to resume in Q2 2016.
- The firm also upgrades Magellan Midstream Partners (MMP +6.7%)to Outperform from Neutral, with an $89 price target after MMP raised its 2015 distributable cash flow guidance by $10M to $880M and reiterated its distribution growth of 15% in 2015 and at least 10% in 2016.
Mon, Jun. 22, 3:30 PM
- Williams Cos. (WMB +23.8%) must either show its ability to stand on its own merit or accept a better takeout offer, analysts say after the company rejected a $48B buyout bid from Energy Transfer Equity (ETE -3.8%).
- Analysts suggest that given the limited number of potential buyers, ETE stands a good chance of eventual success, perhaps after raising its offer; Raymond James analyst Darren Horowitz, for one, expects a higher offer to come in, since pipelines remain a coveted, high-value infrastructure that is attractive to own even though oil and gas prices have plunged.
- Jefferies' Christopher Sighinolfi says disclosing the bid was a "defensive move" by WMB, and says he is waiting to learn of WMB's timetable for completing its strategic review.
- Argus says WMB management has demonstrated its ability to create shareholder value through both acquisitions and divestitures; the firm believes that the rejection of ETE's all-stock offer is prudent, and that ETE will need to raise its offer if it wishes to pursue the deal (Briefing.com).
- While WMB surges, Williams Partners (WPZ -6.9%) is sharply lower, since ETE's offer was contingent on the termination of WMB's pending absorption of WPZ.
- Analysts say other companies that run big pipelines may be merger candidates, including Oneok (OKE, OKS) and regional specialists such as Targa Resources (TRGP, NGLS).
Wed, Jan. 21, 5:35 PM
Nov. 28, 2014, 10:20 AM| Nov. 28, 2014, 10:20 AM | 17 Comments
Oct. 14, 2014, 12:33 PM
- MLPs have been brutalized lately, with the benchmark Alerian MLP Index (AMJ +0.5%) plunging 13% in the past week and down another 3% earlier today, but at least some in the group have been trying to bounce back in the past hour or so.
- J.P. Morgan strategists are sticking with their bullish central thesis on MLPs, saying prolific production from unconventional energy plays will keep demand high for new energy infrastructure; the firm believes most core acreage in leading shale plays continues to be economic at current commodity prices, which should drive strong long-term growth prospects for MLPs.
- JPM favors MLPs owning high-quality, diversified assets with strong management teams and proven track records, naming Kinder Morgan (KMI -1.5%), Enterprise Products Partners (EPD +2.5%) and Plains All American Pipeline (PAA -1%).
- ETP +3.7% and OKS +2.5%, LINE +1.4%, but EROC -5.3%, CQP -4.5%, BBEP -2.5%, MMP -2.5%, TEP -2.1%, PSXP -2%, WPZ -1.1%, ACMP -0.5%.
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, IMLP, AMZA, OSMS
May 12, 2014, 5:49 PM
May 12, 2014, 4:34 PM| May 12, 2014, 4:34 PM | 3 Comments
Mar. 5, 2014, 11:59 AM
- Robert W. Baird refreshes its outlook for master limited partnerships with six downgrades: five high-growth partnerships that now look fairly valued - NGL Energy Partners (NGL -1.8%), New Source Energy (NSLP -4%), Plains GP Holdings (PAGP -0.3%), Summit Midstream Partners (SMLP -0.6%) and Tallgrass Energy Partners (TEP -2.7%) - and are cut to Neutral from Outperform, and a reduction for Whiting USA Trust II (WHZ -0.7%) to Underperform from Neutral on elevated commodity risk.
- The firm recommends recycling capital into its top investment ideas: ONEOK Partners (OKS -1.2%), Plains All American Pipeline (PAA +0.9%), Rose Rock Midstream (RRMS +0.2%) and Crosstex Energy LP (XTEX -1.5%)
- Despite downgrading multiple high-quality MLPs, Baird says its long-term bullish view on the sector remains unchanged (Briefing.com).
Feb. 3, 2014, 2:18 PM
- ONEOK (OKE -2.8%) completes the spinoff of its natural gas distribution business into a separate, publicly traded company to begin trading on the NYSE with the symbol OGS.
- The new company, One Gas, includes Kansas Gas Service, Oklahoma Natural Gas and Texas Gas Service.
- Current OKE shareholders will receive one share of the new company for every four shares of OKE they possess.
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).
Aug. 23, 2013, 11:42 AM
- Oneok Partners (OKS +2.6%) is upgraded to Buy from Underperform with a $55 price target (up from $45) at BofA Merrill Lynch based on improved natural gas liquid fundamentals, the removal of OKS' equity overhang, and YTD underperformance.
- While the firm doesn't say the worst is over for NGL pricing, it is encouraged by the recent recoupling with crude oil prices and the likely positive impact from more NGL exports.
- In addition to a rebound in NGL prices, the firm is more constructive on OKS following its recent offering to help fund its $2.4B 2013 capital budget.
Aug. 6, 2013, 4:23 PM
May 3, 2013, 12:55 PMONEOK Partners (OKS +2.7%) is downgraded to Neutral at Global Hunter after disappointing Q1 results. Management reiterated 2013 guidance despite the miss, but the firm sees further risk given its view that base business fundamentals are not likely to recover this year; OKS likely faces a continued adjustment to its lower distribution growth outlook in the face of weak NGL fundamentals. | May 3, 2013, 12:55 PM | Comment!
Apr. 10, 2013, 11:19 AMONEOK Partners (OKS -1.7%) is cut to Sell at Goldman Sachs, which believes natural gas price and spread headwinds will weigh on earnings in its gathering and processing and natural liquids segments, driving distribution growth below the group average vs. a recent history of above-average growth. The firm also sees risk of further equity dilution given OKS's large capex program and high leverage. | Apr. 10, 2013, 11:19 AM | Comment!
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