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%
Tue, Mar. 8, 6:58 PM
- Much of the recent upturn in energy MLPs may stem from the publicized purchases in the Alerian index and former MLP Kinder Morgan by Berkshire Hathaway and the Oklahoma Teachers Retirement System, but insiders also have been supporting at least a handful of the bigger MLPs.
- A recent report from RBC focuses on insider buying in the group, highlighting four companies that have enjoyed insider purchases of millions of shares YTD.
- Insiders have bought more than 5M units of Crestwood Equity Partners (NYSE:CEQP) even as many observers see the MLP struggling to maintain its massive 63% distribution yield.
- Energy Transfer Equity (NYSE:ETE) saw 4.12M units bought by insiders even amid the questions swirling around its proposed purchase of Williams Cos.; Summit Midstream Partners (NYSE:SMLP) and Plains GP Holdings (NYSE:PAGP) have enjoyed respective insider buys of nearly 3M and 2.2M units YTD.
- SL Advisors also notes that Plains All America (NYSE:PAA) issued $1.6B in convertible preferred units to a group of P-E investors that were already invested in PAA and thus know the business well; Targa Resources (NYSE:TRGP) issued $500M in similar securities.
Tue, Mar. 8, 5:17 PM
- A U.S. bankruptcy judge says Sabine Oil & Gas (OTCPK:SOGCQ) can reject contracts with midstream companies it made before oil and gas prices plunged.
- But the judge says her ruling is not binding, potentially setting the stage for another legal battle over the pipeline operators' argument that the agreements cannot be broken because they are inextricably tied to the land on which Sabine operates.
- The ruling covers agreements with two companies, including an affiliate of Cheniere Energy (NYSEMKT:LNG), that gather natural gas for Sabine in specific geographic locations; Sabine has said that rejecting the contracts could save as much as $115M for the bankruptcy estate.
- Restructuring and energy experts have warned that a loss for Sabine's pipeline operators could inspire other bankrupt oil and gas producers to seek similar relief, spreading the distress that has plagued them to the midstream companies that process and transport oil and natural gas.
- Similar requests are pending in the chapter 11 cases of companies including Quicksilver Resources (OTCPK:KWKAQ) and Magnum Hunter Resources (OTCPK:MHRCQ); a Delaware judge is expected to rule on KWK's request by the end of the month.
- Pipeline stocks include: KMI, ENB, EEP, SE, SEP, WMB, ETE, ETP, OKS, PAA, PBA, MMP, CQP, BWP, BPL, WES, SXL, NS, NSH, TCP, NGL, DPM, GEL, HEP, APL, SEMG, TLLP, MMLP, TLP, SGU, BKEP
Wed, Mar. 2, 2:28 PM
- While energy supply and demand dynamics may be about to start improving, the benefits are not yet evident in the profit picture for midstream MLPs, Wunderlich's Jeff Birnbaum writes, as declining onshore crude production will continue to challenge midstream operators.
- E&P guidance and more recent EIA data indicates more significant declines may come in 2016 than expected several months ago, according to Birnbaum.
- Among individual MLPs, the analyst expects Plains All American (PAA +2.3%) to use its scale, downstream operations and lack of 2016 financing needs as weapons to take share from smaller competitors, and sees a rebound in Gulf of Mexico production as a positive for Genesis Energy (GEL +5.8%).
- With additional liquified petroleum gas export capacity online in 2016 and the prospect for a more normalized 2016-17 winter, the propane market should tighten relative to a sloppy 2015, which Birnbaum believes will benefit Enterprise Products Partners (EPD +3.5%), Targa Resources (TRGP +1.1%), DCP Midstream Partners (DPM +6.8%) and NGL Energy Partners (NGL -0.1%).
- ETFs: AMLP, AMJ, KYN, 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, SMM, MIE, DSE, FPL, ENFR, ATMP, JMLP, MLPC, MLPW, IMLP
Thu, Feb. 18, 4:58 PM
- External corrosion under the insulation was the root cause behind last May's rupture of a Plains All American (NYSE:PAA) crude oil pipeline along the California coast near Santa Barbara, according to a preliminary report from U.S. regulators.
- The spill originally was estimated to be up to 100K gallons, but it is revised in the latest finding to more than 142K gallons.
- The Pipeline and Hazardous Materials Safety Administration says it is still investigating the incident, and will issue a final report later this year.
Wed, Feb. 10, 11:57 AM
- Plains GP Holdings (PAGP +9.4%) is downgraded to Neutral from Outperform with an $8 price target, cut from $14, at Credit Suisse, after shares already dropped ~25% this week after disappointing Q4 results at PAGP and at Plains All American Pipeline (PAA -0.2%).
- The firm believes management’s 2016 guidance is ~4% too high since it assumes $47.50/bbl crude, noting that storage continues to build, which means crude prices and volumes would deteriorate further.
- Credit Suisse expects flat distributions until 2019 when it expects coverage to return to management's targeted 1.05x-1.10x, but notes that further deterioration could pressure PAA to re-examine the distribution to take added steps to strengthen the balance sheet.
- Credit Suisse maintains its Neutral rating for PAA while slashing the price target to $19 from $33.
Tue, Feb. 9, 6:29 PM
- Plains All American (PAA, PAGP) execs spent a good chunk of their earnings conference call today talking about the creditworthiness of their customers.
- PAA said its exposure to at-risk producers is small, with only ~2% of its adjusted EBITDA guidance at risk due to struggling producers who have signed onto its pipelines.
- Surely it is hard to imagine an E&P firm struggling to raise cash defaulting to the firm it relies on to ship its oil and gas... but not impossible, as shown by the very fact that MLPs are having to address this issue on their quarterly calls, Bloomberg's Liam Denning writes.
- Denning notes that PAA's guidance for 2016 diluted net income/unit is in a wide range of $1.00-$1.61, which illustrates oil's very cloudy outlook.
- PAA also revealed that Moody's would not be giving the company's recently issued convertibles 50% equity treatment, as had been assumed, but 25% instead.
- Earlier: Plains All American Pipeline misses expectations (Feb. 8)
Mon, Feb. 8, 6:18 PM
- Plains All American Pipeline (NYSE:PAA) -1.5% AH, following a 13.2% plunge in today's regular session, as it fell short of expectations for both Q4 earnings and revenues.
- PAA reports Q4 adjusted EBITDA of $563M, down 5% Y/Y, while FY 2015 adjusted EBITDA was $2.17B; in November, the company had forecast a range with a midpoint of $595M in Q4 EBITDA and $2.2B in full-year EBITDA.
- PAA says Q4 results were pushed $15M lower by broken commitments from producers, another $15M was shifted from Q4 2015 to Q1 2016 after unseasonably warm weather delayed inventory draws from natural gas liquids storage, and severe weather in west Texas and the Mid-continent cut volumes and cost the company another $5M.
- Distributable cash flow fell to $383M in Q4 from $415M in the year-ago quarter.
- Plains GP Holdings (NYSE:PAGP) reports a quarterly distribution of $0.231/unit, unchanged Q/Q.
Mon, Feb. 8, 4:16 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
Sun, Feb. 7, 5:35 PM
Wed, Feb. 3, 11:46 AM
- PBF Energy's (PBF, PBFX) logistics arm said yesterday it would purchase four refined product terminals from Plains All American Pipeline (NYSE:PAA) for $100M, in a move that doubles PBF's nationwide fuel storage capacity with more than 4M barrels of tanks in the Philadelphia area, giving it greater freedom to trade in a key market.
- Analysts say the terminals - which provide connections to major pipelines such as Colonial and Buckeye, truck racks and marine facilities - will give PBF more flexibility to swap, blend and market products in a broader geography, which may be more important following PBF's purchase last year of the Chalmette, La., refinery.
- The deal also offers some immediate revenue upside as storage lease rates have risen sharply in recent months alongside inventories; storage companies on the east coast reportedly are getting $0.50/bbl per month or more on storage contracts, up from $0.20 a few years ago.
Fri, Jan. 15, 2:30 PM
- Even as downtrodden energy MLPs plunge along with the rest of the sector, RBC Capital's Elvira Scotto upgrades Spectra Energy Partners (SEP -3.4%) to Outperform from Sector Perform with a $58 price target price, seeing the recent decline as an attractive entry point into a well-positioned, defensive MLP with visible cash flow growth potential.
- SEP's cash flow and growth project backlog are underpinned primarily by long-term fee-based contracts with high credit quality counterparties, Scotto notes.
- However, the firm downgrades Plains All American Pipeline (PAA -6.7%) to Sector Perform from Outperform with a $23 target, cut from $36, saying that while it views PAA's recent private placement of convertible preferred units positively, it sees little catalyst to move the units higher over the next 12 months.
Thu, Jan. 14, 3:26 PM
- Energy stocks are broadly higher as U.S. crude oil bounces off $30/bbl to end pit trading at $31.22, +2.6%; the SPDR Energy ETF (XLE +5.1%) soars 5%, with 36 of its 40 equity components trading higher, after closing yesterday at its lowest level since September 2010.
- Exxon Mobil (XOM +5.5%) and Chevron (CVX +5.9%) are the Dow's top two gainers; and pipeline companies sport strong showings with Kinder Morgan (KMI +8.2%), Plains All American Pipeline (PAA +11.7%) and Williams Cos. (WMB +27.4%) among the biggest winners.
- Among other major energy movers: ETE +22.6%, BP +7.6%, MRO +7.5%, OXY +7.1%, PBR +7%, COP +7%, RDS.A +6.7%, SE +6.1%, PSX +6.1%, ETP +6.1%, EPD +5.3%, APA +5%, E +4.6%, HES +4.1%, MPC +4.1%.
- Amid overwhelmingly negative sentiment, a few analysts are venturing out to say the worst may be over or nearly so: Deutsche Bank’s Torsten Slok thinks "we now have the worst behind us in terms of the negative impact of falling oil prices on the economy," and Gluskin Sheff’s David Rosenberg argues that the oil selloff is getting “long in the tooth.”
- ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
Wed, Jan. 13, 6:22 PM
- Troubles at Southcross Energy Partners (NYSE:SXE), which last week said it would suspend cash distributions, offers an example of how distress in the energy industry has begun to flow beyond the production sector, WSJ reports.
- Midstream companies have been viewed as more insulated from commodity price cycles than upstream firms, but pressure on the group has increased as oil and gas prices continue to slump; SXE's revenue relies primarily on the volume of natural gas it gathers and processes, and its revenues have dropped as customers cut back on drilling and production or - in the case of Swift Energy - went out of business.
- "The Eagle Ford is uneconomical-full stop. Our clients are going out of business left and right," a source close to SXE who considers the company a single-shale player, tells WSJ.
- Other midstream companies have experienced varying degrees of stress, but even larger peers that have not shown distress - such as Plains All American Pipeline (NYSE:PAA), which is raising $1.5B - are under pressure to strengthen their balance sheets.
- Companies such as Kinder Morgan (NYSE:KMI) and Tallgrass Energy Partners (NYSE:TEP) that operate large interstate pipeline systems and have signed long-term contracts with a more diverse base of customers are in a better position than smaller processors such as SXE whose businesses are more concentrated, says Baird analyst Frank Murphy.
Wed, Jan. 13, 11:45 AM
- Plains GP Holdings (PAGP -7.5%) is downgraded to Hold from Buy at Stifel after Plains All American Pipeline (PAA -6.5%) announced a private placement of perpetual convertible preferred units expected to generate proceeds of ~$1.5B.
- Stifel views the move as positive for PAA unitholders but negative for PAGP, as the firm had expected PAGP's cash flow growth to be driven by common unit issuance at PAA, so it cuts its rating given the reduced need for common equity at PAA.
- PAA and PAGP were both downgraded to Neutral from Overweight at J.P. Morgan.
Plains All American Pipeline LP is engaged in the transportation, storage, terminal ling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas-related petroleum products. It operates through three business segments: Transportation, Facilities, and Supply... More
Sector: Basic Materials
Industry: Oil & Gas Pipelines
Country: United States
Other News & PR