Summit Midstream PartnersNYSE
Summit Midstream: A 10% Yield With Upside Potential
Crudely Midstream • 16 Comments
Crudely Midstream • 16 Comments
Thu, Nov. 3, 5:27 PM
Thu, Oct. 27, 5:39 PM
Wed, Sep. 7, 9:17 AM
Tue, Sep. 6, 4:43 PM| Tue, Sep. 6, 4:43 PM | 2 Comments
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.
Thu, Aug. 4, 5:18 PM
Fri, Jul. 29, 5:58 PM
- Noting that many MLPs have climbed after announcing distribution reductions this year, Baird analysts compile a list of 14 10%-plus yielding MLPs they believe could enjoy a quick price boost after announcing a cut.
- The Baird group does not necessarily recommend investors buy all the MLPs on the list, but "ample market evidence exists a) to justify a cut, and b) to believe it will drive short run returns, though not without material implications to investors’ cash flow."
- The 14 MLPs: AMID, ARCX, CCLP, CELP, CEQP, EEP, ENBL, ETP, JPEP, MEP, MMLP, SMLP, USAC, USDP
Thu, Jul. 21, 5:38 PM
Thu, May 5, 5:08 PM
- Summit Midstream (NYSE:SMLP): Q1 EPS of -$0.12 misses by $0.36.
- Revenue of $90.6M (+5.3% Y/Y) misses by $2.06M.
Thu, Apr. 21, 5:19 PM
- Summit Midstream (NYSE:SMLP) declares $0.575/share quarterly dividend, in line with previous.
- Forward yield 11.36%
- Payable May 13; for shareholders of record May 6; ex-div May 4.
Fri, Mar. 11, 7:02 PM
- NGL Energy Partners (NYSE:NGL) fell more than 10% in today's trade after Goldman Sachs downgraded units to Sell from Neutral with a $6 price target, slashed from $12, but three other energy MLPs downgraded by the firm fared better.
- Goldman sees material risk to NGL’s distributions given weak historical and projected cash flow conversion, high GAAP leverage of 7.2x vs. a peer average of 4.4x, and poor current coverage of ~0.6x.
- The firm expects volume pressure and limited organic growth opportunities to adversely impact NGL’s ability to conserve liquidity and maintain distributions.
- Cheniere Energy Partners (NYSEMKT:CQP), Summit Midstream Partners (NYSE:SMLP) and Western Gas Equity Partners (NYSE:WGP) posted gains or finished flat despite being downgraded to Neutral from Buy.
- Goldman notes that while CQP offers a total return opportunity of 18%, it is less attractive than that offered by Cheniere Energy (NYSEMKT:LNG) and Cheniere Energy Partners Holdings (NYSEMKT:CQH), which offer respective total return opportunities of 30% and 28%.
Thu, Mar. 10, 3:48 PM
- Summit Midstream Partners (SMLP -0.5%) is downgraded to Neutral from Buy with a $16.50 price target, cut from $22, at Citigroup, which believes SMLP has limited ability to grow distributions while maintaining its leverage.
- Although SMLP’s current distributions are secure, there is limited scope for them increasing in a low commodity price environment, according to Citi analyst Faisel Kahn.
- While the recent acquisition of Utica assets is being structured in a manner to help SMLP avoid paying a high multiple, the company’s leverage will require that associated deferred payments be paid in the form of SMLP units in 2020, which is expected to impact coverage and limit the ability to grow distributions until 2020, Kahn says.
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.
Fri, Feb. 26, 3:55 PM
- Summit Midstream Partners (SMLP +3.6%) maintains strong gains following its deal to acquire outstanding membership interests in Summit Utica, Meadowlark Midstream and Tioga Midstream, dropped down from Summit Investments, for ~$1.2B.
- SMLP says it will take a "measured approach" in the pace of its distribution growth rate in 2016 given the challenging commodity price environment, expecting this year's distribution coverage ratio of 1.1x-1.2x.
- SMLP also increases its revolving credit facility to $1.25B from $700M.
Thu, Feb. 25, 5:12 PM
- Summit Midstream (NYSE:SMLP): Q4 EPS of -$3.28 may not be comparable to consensus of $0.10.
- Revenue of $102.6M (-5.2% Y/Y) beats by $24.31M.
Thu, Feb. 25, 12:48 PM