Tue, Aug. 25, 6:45 PM
- Rose Rock Midstream (NYSE:RRMS) is downgraded to Hold from Buy with a $35 price target, cut from $57, by the MLP analyst team at U.S. Capital Advisors, which also reduces its price target for Semgroup (NYSE:SEMG) to $60 from $84.
- The firm says dropdowns are a major part of the RRMS story, as it struggles to see how SEMG can make accretive dropdowns into RRMS without taking meaningful asset writedowns; it also expects the White Cliffs pipeline to face margin and/or volume pressure once the new DJ Basin pipelines come online in 2016.
- The firm also cuts price targets on 11 other stocks: KMI, MMP, CPPL, SMLP, PAA, PAGP, SE, WPZ, NGLS, TRGP, NFG.
- Top picks include EPD, CQP, TEP and RMP.
Mon, Aug. 17, 10:45 AM
- A deteriorating macro energy macro environment is posing challenges to growth, writes Baird's Ethan Bellamy, downgrading Summit Midstream Partners (SMLP -2.4%) to Neutral, with price target cut to $26 from $39.
- The company, says Bellamy just revised its 2015 drop down guidance to the low end or even below the low end of previous guidance. While management believes 2016 could be a big year for the drop down program, conference call comments noted "wide bid/ask spreads," suggesting lower-than-hoped "accretion economics" should macro headlines persist.
Fri, Aug. 7, 3:47 PM
- Summit Midstream Partners (SMLP -7.3%) is sharply lower despite "decent" Q2 results with adjusted EBITDA of $54M and distributable cash flow of $40M in line with consensus, and declaring a $0.57 distribution/unit for Q2 (+9.6% Y/Y) which puts SMLP on track to meet its 7%-8% DPU growth guidance.
- Today's drop echoes concerns that slammed Plains All American this week over distribution growth, as SMLP said in its earnings call that is lowering forward guidance for distribution growth to 4%-6% in the year ahead compared to previous guidance of 7%-8% growth.
- Wunderlich's Jeff Birnbaum says SMLP is not covering 100% of its distributions with cash flow, calculating that the company is covering 95% in H2; the analyst lowers his price target to $34 from $37 but keeps his Buy rating.
Thu, Aug. 6, 4:42 PM
Wed, Jul. 22, 4:46 PM
Wed, Jul. 1, 11:31 AM
- Summit Midstream Partners (SMLP -1.5%) is initiated with a Buy rating and $42 fair value estimate at Janney, which sees distributions growing at 10%-plus/year, faster than investors appear to expect.
- The firm also predicts SMLP will increase its exposure to the higher valued northeast region, which could help its valuation expand.
- Janney says SMLP is highly contracted and thus a lower risk than many MLP peers, with limited downside to cash flow in the near term thanks to a combination of fee-based contracts and minimum volume commitments.
Fri, Jun. 26, 10:55 AM
- Summit Midstream Partners (SMLP +2.8%) is initiated with a Buy rating and $37 price target at Wunderlich, which says concerns of "orphan risk" are overdone, although the firm admits it is impossible to rule out a sale of the GP, Summit Investments, in the current environment.
- Wunderlich expects Utica to be the next leg of SMLP's growth, seeing the first dropdown of Utica assets in H2 with more to come in 2016; the firm believes management may structure drops to improve accretion to the LP, which could improve sentiment, as could any new acreage dedications in the Utica.
Tue, Jun. 16, 8:54 PM
- SunTrust launches coverage on seven companies in the midstream energy sector, rating four players at Buy and three at Neutral, preferring companies with imminent and realistic plans for capital spending and that offer storage and export services.
- Among MLPs, the firm favors "a clear path to distribution growth from visible assets at a sponsor that are operational with a track record."
- SunTrust recommends buying Kinder Morgan (NYSE:KMI) and Enterprise Products Partners (NYSE:EPD) for their substantial backlog of projects backed by customer commitments, plus Rice Midstream Partners (NYSE:RMP) and MarkWest Energy (NYSE:MWE) for their focus on the Utica and Marcellus basins which have seen fewer rig count reductions than other regions.
- The firm offers Neutral ratings for Valero Energy Partners (NYSE:VLP), Blueknight Energy Partners (NASDAQ:BKEP) and Summit Midstream Partners (NYSE:SMLP).
- Earlier: Kinder Morgan earns Buy rating at SunTrust
Mon, May 18, 5:32 PM
- Deutsche Bank initiates some energy MLPs with Buy ratings, as well as Kinder Morgan (NYSE:KMI), which the firm says "has the footprint, financial scale and management team to capitalize on the nation's need for midstream."
- KMI, rated Buy with a $49 price target, has a presence across every midstream vertical and in every major basin, which Deutsche Bank says means that investors should use it to buy into the buildout of U.S. energy infrastructure rather than merely to gain exposure to a certain asset type or shale play.
- Among MLPs, Enterprise Products Partners (NYSE:EPD) "is a stock to own, not trade," with its integrated business model, visible growth backlog, low cost of capital, and management's track record of successful innovation; EPD is rated Buy with a $38 price target.
- Energy Transfer Partners (NYSE:ETP) is rated Buy with a $67 target because of visibility on an $11B organic backlog, which the firm believes will support high single-digit distribution/unit growth through 2017; near-term, the firm expects synergies following the recently closed merger with Regency to provide upside.
- Summit Midstream Partners (NYSE:SMLP) is rated Buy with a $34 target, as contract structures provide more near-term cash flow protection than peers while drop-down from P-E backed parent Summit Investments and ramping organic spending should drive high single-digit DPU growth near-term.
- The firm says it has a "high conviction" in its new Buy rating and $95 target for MPLX, citing multi-year visibility into 25%-plus distribution growth guidance - which the firm sees as conservative - and a stable fee-based earnings profile.
- Also started at Buy: SXL, PSXP
Wed, May 6, 4:52 PM
- Summit Midstream Partners (NYSE:SMLP) -4.3% AH after announcing a public offering of 6.5M common units, with an underwriters option to purchase up to an additional 975K units.
- SMLP says it plans to use the proceeds to fund part of the purchase price of its pending acquisition of all membership interests in Polar Midstream and Epping Transmission Co.
Wed, May 6, 4:31 PM
Thu, Apr. 23, 5:49 PM
Thu, Feb. 26, 5:34 PM
Fri, Jan. 23, 5:25 PM
- North Dakota’s top environmental official says water testing shows that saltwater contamination from the recent pipeline spill has reached the Missouri River, but he does not expect harm to wildlife or drinking water supplies as the contaminants quickly diluted, thanks to the size of the river and volume of water.
- Summit Midstream Partners (NYSE:SMLP) is pumping water out of Blacktail Creek and constructing barriers to prevent water from reaching the Little Muddy River, which empties into the Missouri.
Thu, Jan. 22, 4:44 PM
Thu, Jan. 22, 8:03 AM
- Nearly 3M gallons of saltwater generated by oil drilling have leaked from a Summit Midstream Partners (NYSE:SMLP) pipeline in North Dakota in the state's largest such spill since the start of the oil boom.
- Two creeks have been affected, but the full environmental effect might not be clear for months; some previous saltwater spills have taken years to clean up.
- SMLP said yesterday that ~65K barrels of a mix of freshwater and brine have been pumped out from Blacktail Creek, and brine also reached the bigger Little Muddy Creek and potentially the Missouri River.
SMLP vs. ETF Alternatives
Summit Midstream Partners LP is engaged in developing, owning and operating midstream energy infrastructure assets that are located in the areas of unconventional resource basins, primarily shale formations, in North America.
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