ONEOK Partners, L.P.NYSE
ONEOK Partners Looks Undervalued, But There Are Reasons Why
Stephen Simpson, CFA • 10 Comments
Stephen Simpson, CFA • 10 Comments
ONEOK Partners: Pronounce It 'One Oak' Or 'Oh-Knee-Oak', It's Still A BUY
Michael Fitzsimmons • 22 Comments
Michael Fitzsimmons • 22 Comments
Wed, Oct. 19, 4:52 PM
Wed, Sep. 14, 3:57 PM
- World Point Terminals (WPT +2.7%) is upgraded to Buy from Hold with a $16 price target at Stifel, which believes WPT provides stable assets and distributions at an attractive price.
- Stifel says WPT's asset base, while small and scattered, is steady and largely fee-based, and the partnership has a solid track record of paying $0.30/quarter with coverage typically at 1.2x-1.3x, for a current 8.3% yield.
- The firm also upgrades NuStar Energy (NS +0.7%), ONEOK Partners (OKS +1.2%) and Dominion Midstream Partners (DM -0.5%) to Buy from Hold, citing current valuations and yields that provide strong risk/return profiles.
Sat, Sep. 10, 8:25 AM
- Energy MLPs enjoyed a lift this week (at least until yesterday) following news of the Enbridge-Spectra merger, particularly those lacking sponsorship by producers that may be targets for consolidation.
- Credit Suisse sees logical players to be involved in combinations to secure access to opportunities and capital including ETE/ETP, EPD, MMP, PAA/PAGP, OKE/OKS, WPZ, PSX/PSXP, MPC/MPLX, TRGP, NS/NSH, GEL and TEP/TEGP.
- FBR Capital says MLP valuations have improved ~45% from lows reached early this year, and expects macro trends to lift the sector; the firm thinks CAPL could enjoy double-digit growth for nearly seven years, and says MMLP is another notable outperformer whose valuation reflects more than enough discount for a distribution cut (which the firm is forecasting) - it also likes ENLK, EEP, TLP, SRLP, USAC, WLKP and USDP,
- RBC notes favorable sentiment in the MLP realm, highlighting attractive valuations particularly at ETP, BWP and AMID, and sees dropdown stories - out of favor YTD - such as VLP and SHLX offering visible growth that can support the stocks over the next 12 months.
- ETFs: AMLP, AMJ, KYN, TYG, KYE, SRV, CEM, MLPI, NML, FEN, NTG, KMF, MLPA, EMLP, FMO, AMZA, FEI, JMF, SRF, CBA, MLPN, GMZ, MLPX, GER, EMO, TTP, CTR, MLPS, CEN, SMM, DSE, FPL, AMU, MIE, JMLP, ENFR, ATMP, IMLP
Fri, Aug. 26, 1:54 PM
- Sentiment is improving and "recovery emerging” around energy MLPs, Citi's Faisel Khan says, citing Improving commodity prices and tighter credit spreads as the main reasons, as some companies are positioning for volume growth.
- The analyst offers six "value picks": TRGP, OKS, NS, BWP, TLLP and CQP.
- Khan's "key thematic picks" are Energy Products Partners (NYSE:EPD), as a play on growth in natural gas liquids, Plains All American Pipeline (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP) on growth in the Permian basin, and EnLink Midstream (NYSE:ENLC), as a play on Oklahoma expansion.
Fri, Aug. 12, 3:56 PM
- Summit Midstream Partners (SMLP +3.2%) is higher after Baird upgrades shares to Outperform from Neutral with a $33 price target, raised from $24, citing compelling valuation, medium-term upside for the Barnett system after the Chesapeake acreage sale and a low probability of successful anti-oil and gas ballot initiatives in Colorado.
- ONEOK Partners (OKS +1.8%) also is higher after Baird's upgrade to Neutral from Underperform with a $45 price target, lifted from $24, following a solid Q2 and believing that the worst is over in crude oil cyclicality; however, the firm has reservations about Bakken volume growth in 2017 and later given the weak rig count and still anemic crude oil prices.
Tue, Aug. 2, 4:29 PM
Mon, Aug. 1, 5:35 PM
- ACLS, AFG, AGII, AIG, AMED, AMSG, AR, ARC, AVD, BEAT, BECN, BGFV, BPI, BRKR, CALD, CALX, CAR, CENT, CERN, CHEF, CHUY, CLI, CLUB, CRAY, CSU, CXO, CZR, DEI, DVN, DXCM, EA, ELGX, ENLK, ENPH, ESE, ESIO, EXAM, FANG, FARO, FGL, FISV, FIT, FMC, FMI, FNGN, FORM, FTAI, FTV, FUEL, GHDX, GLUU, GNW, GUID, HBI, HCI, HIW, HRZN, INN, JIVE, KAR, KFRC, LOCK, LQ, MATX, MDU, MOD, MRC, MRCY, MXWL, NBR, NEWR, NFX, NOVT, NPO, NYMT, OCLR, OESX, OHI, OKE, OKS, OMI, ORA, PAA, PAGP, PAYC, PBPB, PLT, PRMW, PRO, PZZA, QRVO, QUOT, REXX, RGR, RIGL, RLOC, RPAI, RPXC, RUBI, SF, SGY, SLCA, SM, STAG, SUPN, SYRG, TMH, TNAV, TPC, TRQ, TRUP, TSRA, TX, VNOM, VRSK, VTAE, WMGI, WR, WTR, XXIA, Y, ZAGG, ZEN
Thu, Jul. 28, 5:50 PM
Tue, May 31, 6:55 PM
- Energy Transfer Partners (NYSE:ETP) offers "safe yield and growth prospects" for 2018 and beyond, Barclays says as it reiterates its Outperform rating and raises its price target to $48.
- ETP will benefit from $10B of organic projects under execution, which Barclays sees adding close to $1B of distributable cash flow by 2019; "while we forecast debt to EBITDA to remain ~4.5x in 2016, we see this falling to low 4x in 2017-plus, which we think will help valuation," the firm writes.
- The start-up of the Lone Star Express project in 2016 will bring 180K-280K bbl/day of new NGL pipeline capacity, and new projects "position ETP well in capturing volume upside from ethane recovery expected when new crackers come on line in 2017-2019," the firm says.
- Barclays also notes that ETP continues to trade at a discount to key NGL players such as ONEOK Partners (NYSE:OKS), DCP Midstream Partners (NYSE:DPM) and Targa Resources (NYSE:TRGP); the firm thinks ETP's current yield of 11.82% reflects a 320 bps discount to the group.
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.
Wed, May 4, 5:18 PM
- Oneok Partners (NYSE:OKS) says it could earn $200M more from ethane transportation and fractionation services with no additional investment if producers increase ethane recoveries from the gas stream.
- OKS executives said in today's earnings conference call that the company could transport an additional 140K bbl/day of ethane on its systems from the Midwest, 35K bbl/day from the Williston, and 10K bbl/day from the Permian, if recoveries pick up (Q1 earnings).
- OKS also says it expects to see an additional 93K bbl/day of incremental petrochemical demand for ethane during Q2 through Q1 2017, which could jump to 308K bbl/day by Q2 2017.
- Shares finished +8.6% in today's trade.
Tue, May 3, 4:27 PM
- Oneok Partners (NYSE:OKS): Q1 EPS of $0.52 beats by $0.04.
- Revenue of $1.8B (flat Y/Y) misses by $380M.
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, 5:11 PM
- Oneok Partners (NYSE:OKS) declares $0.79/share quarterly dividend, in line with previous.
- Forward yield 8.75%
- Payable May 13; for shareholders of record May 2; ex-div April 28.
Fri, Apr. 1, 6:54 PM
- The huge investor outflow from MLPs has created a handful of major value opportunities in the space, Simmons analysts say, naming Enterprise Products Partners (NYSE:EPD) and Holly Energy Partners (NYSE:HEP) as their top Buy ideas.
- The firm believes that not all MLPs are as financially solid as they claim, preferring names that can fully cover current distribution payments and have financed growth projects in 2016 and EBITDA outlook clarity.
- Simmons also names EnLink Midstream Partners (NYSE:ENLK) as a higher risk/higher reward play for more aggressive investors; the firm rates ENLK, EPD, HEP and Delek Logistics Partners (NYSE:DKL) at Outperform.
- Rated Neutral: KMI, JPEP, NS, EEP, PAA, PAGP, OKS, ENLC.
- Now read High dividend stock has 46 dividend hikes, earnings estimates rising, insiders are buying