Western Gas Partners: An Excellent MLP With A 3.4% Yield And DJ Basin Growth Potential
Michael Fitzsimmons • 11 Comments
Michael Fitzsimmons • 11 Comments
Thu, Mar. 17, 3:27 PM
- Credit Suisse analyst John Edwards issues a dozen downgrades - and one upgrade - among MLPs following the group's recent rally, believing the severity of the oil downturn has called into question the entire MLP model.
- "The prolonged downturn has challenged the robustness assumption on account of counterparty risks and contract renegotiation risks," Edwards writes.
- Downgraded to Underperform from Neutral: Columbia Pipeline (CPGX +2.4%), Magellan Midstream Partners (MMP -0.6%), ONEOK Partners (OKS +0.8%).
- Downgraded to Neutral from Outperform: Antero Midstream Partners (AM +0.8%), Enterprise Products Partners (EPD +2.7%), Enbridge Energy Partners (EEP +3.8%), EnLink Midstream Partners (ENLC +1.7%), Kinder Morgan (KMI +0.3%), Spectra Energy LP (SEP -0.1%), VTTI Energy Partners (VTTI +1.9%), Western Gas Equity Partners (WGP -0.1%), Western Gas Partners (WES +5%).
- Upgraded to Outperform from Neutral: Enable Midstream Partners (ENBL +14.6%).
Wed, Feb. 24, 6:34 PM
- Anadarko Petroleum (NYSE:APC) +4.3% AH after announcing it has closed or signed agreements to sell ~$1.3B worth of assets YTD, and saying it will actively pursue other sales opportunities this year.
- APC says the divestments include a $750M sale of its 100% interest in Springfield Pipeline, whose sole asset is a 50.1% stake in the Maverick Basin gathering system in south Texas, to Western Gas Partners (NYSE:WES).
- APC says it also sold future royalty income from its soda ash and coal leases in Wyoming to an unnamed party for $420M, as well as the sale of its East Chalk asset in Texas to Zarvona Energy for $105M.
Oct. 7, 2015, 12:14 PM
- Energy MLPs have rebounded recently following September's panic selling, but that does not mean there all headwinds facing MLPs going forward have disappeared.
- Wunderlich's Jeff Birnbaum looks at consensus 2016 capex estimates for more than 80 midstream MLPs and thinks many will need to reduce or eliminate their capital spending plans.
- Yet Birnbaum says many MLPs are attractive; his top picks include Magellan Midstream Partners (MMP +1.2%), Enterprise Products Partners (EPD +1.5%), Western Gas Partners (WES +2.1%) and Genesis Energy (GEL +2.2%).
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Jun. 4, 2015, 3:58 PM
- Western Gas Equity Partners (WGP -8.2%) tumbles following Anadarko Petroleum's (APC -0.5%) plans, announced late yesterday, for a secondary offering of 2M WGP common equity units.
- APC also said it will concurrently sell 6.5M of its tangible equity units at $50 a piece, with each consisting of a prepaid equity purchase contract and a senior amortizing note.
- WGP is an APC subsidiary that was formed to hold partnership interests in Western Gas Partners (WES -2.8%), another APC subsidiary that owns and operates pipeline and other midstream energy assets; APC owns 193.4M WGP units, or 88.3% of its outstanding stock, which would fall to ~87.4% after the upcoming offering is completed.
Dec. 17, 2014, 11:55 AM
- The fundamentals underlying oil and gas pipeline MLPs have fallen much less than energy stocks in recent days, acording to Forbes' John Dobosz, who suggests seeking out MLPs with a long history of rising distributions, payouts well covered by cash flow, a strong balance sheet and an investment-grade credit rating.
- Two MLPs that fit these criteria, Dobosz writes, are Enterprise Products Partners (EPD +3.2%) and Magellan Midstream Partners (MMP +3.9%); he also likes Sunoco Logistics Partners (SXL +5.2%), which is expected to increase revenue 15% to $22B in 2015, with EBITDA rising 20% and distributions growing 18% this year.
- Spectra Energy Partners (SEP +2.3%), Western Gas Partners (WES +2.7%) and Energy Transfer Partners (ETP +2.4%) are appealing because of consistently rising distributions and revenues, Dobosz adds.
Oct. 29, 2014, 4:35 PM
- Western Gas Partners (NYSE:WES) -3.5% AH announces a public offering of 7.5M common units, with an underwriters option to purchase up to 1.125M additional common units.
- WES plans to use the proceeds to fund part of its pending acquisition of Nuevo Midstream; if the acquisition is not completed, WES would use the proceeds for general partnership purposes, including the repayment of borrowings under its revolving credit facility.
Oct. 28, 2014, 5:16 PM
- Western Gas Partners (NYSE:WES): Q3 EPS of $0.60 beats by $0.01.
- Revenue of $346.5M (+24.6% Y/Y) misses by $2.19M.
- Shares +1.3% AH.
Dec. 2, 2013, 5:44 PM
Dec. 2, 2013, 4:40 PM
- Western Gas Partners (WES) -3.3% AH after announcing a public offering of 4.5M common units.
- WES expects to use the proceeds to repay all outstanding borrowings under its revolving credit facility and for general partnership purposes, including the funding of capital expenditures.
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).
May 13, 2013, 5:45 PM
May 13, 2013, 4:26 PM
Western Gas Partners (WES) -3.5% AH after announcing a public offering of 6.1M common units. WES expects to use the proceeds to pay down debt and for general partnership purposes, including the funding of capital expenditures.| May 13, 2013, 4:26 PM
Jan. 2, 2013, 12:49 PMWestern Gas Equity Partners (WGP +6.8%) surges after at least two firms start coverage with strong ratings. Barclays initiates at Overweight, forecasting WGP will be able to grow distribution by 41% in 2013 and 30% in 2014. Citigroup comes in at Buy, saying units remain attractive given the visibility to multiple years of double-digit growth supported by strong midstream fundamentals. | Jan. 2, 2013, 12:49 PM
Jun. 19, 2012, 8:38 AM
May 2, 2012, 5:58 PMWestern Gas Partners (WES): Q1 EPS of $0.48 in-line. Revenue of $212.2M (+17.4% Y/Y). Shares +1.2% AH. (PR) | May 2, 2012, 5:58 PM
Sep. 20, 2011, 9:00 AM
Western Gas Partners LP operates as a limited partnership, which owns, operates, acquires and develops midstream energy assets. It engages in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil. The company was... More
Sector: Basic Materials
Industry: Oil & Gas Pipelines
Country: United States
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