Wed, May 13, 3:49 PM
- Energy MLPs are trading with mixed results, which is not in line with an analyst's expectation that several names in the space may be outperformers today after Williams Cos. (WMB +6.2%) agreed to buy Williams Partners (WPZ +22.7%).
- In an earlier note to investors, Credit Suisse named Plains GP Holdings (PAGP +1%), Targa Resources (TRGP +1.1%), NuStar GP Holdings (NSH -0.1%) and Western Gas Equity (WGP -0.7%) as MLPs that could climb on the news.
- Meanwhile, Wells Fargo says the deal is positive, since it reduces the WMB's cost of capital, will immediately increase its profits, and enhances its dividend growth outlook.
- Among major energy MLPs: EPD -1.5%, ETP +0.9%, PAA +0.2%, EEP -0.2%, MWE +2.2%, MMP -0.3%.
Mon, Mar. 9, 6:04 PM| Mon, Mar. 9, 6:04 PM | 3 Comments
Dec. 4, 2014, 3:25 PM
- Enbridge (ENB +10.8%) soars to all-time highs on heavy volume following news of its sweeping plan to raise its dividend by 33% and transfer ownership of its Canadian pipelines to affiliates in a bid to lower funding costs for future expansion and new projects.
- The dropdown allows ENB “to accelerate dividend growth immediately and for the next four-plus years,” ScotiaBank analyst Matthew Akman says.
- "It's another attempt to remove the conglomerate discount by streamlining its businesses," says Colin Cieszynski of CMC Markets.
- The move comes as rival TransCanada (TRP +1.6%) faces pressure from activist investors to overhaul its business, including accelerating dropdowns into its U.S.-based affiliate TC Pipelines (TCP +0.6%) and a spinoff of its power business.
- EEP +6.6%, EEQ +7.3%.
Dec. 4, 2014, 8:41 AM
- Enbridge (NYSE:ENB) +9.6% premarket after saying it will increase its dividend by 33% and transfer ownership of its Canadian pipelines to affiliates in an attempt to lower funding costs for future expansion and new projects.
- ENB plans to drop down its Canadian pipeline assets to its Enbridge Income Fund subsidiary and then raise up to C$800M in equity over the next three years through another affiliate, Enbridge Income Fund Holdings (OTC:EBGUF).
- The combined value of the pipeline assets involved in the transfer totals C$17B and includes the Canadian segment of the Alberta Clipper pipeline.
- ENB says it also is considering a similar move to restructure its U.S. assets by transferring them to its Enbridge Energy Partners (NYSE:EEP) affiliate.
Oct. 15, 2014, 3:18 PM
- MLPs have been crushed this week, and today Citi warns that the rapid drop in oil prices has created a "negative feedback loop on spending” and that a 15% drop in oil-directed drilling activity would result in a 50% drop in oil production growth.
- It Brent oil prices stabilize at $85-$90, Citi thinks the MLPs exposed mostly to oil and natural gas liquids would rebound modestly as a new equilibrium is developed between producers and midstream companies on spending; if crude continues to slide, Citi says MLPs exposed to natural gas would outperform.
- Miller Howard, a money manager specializing in income-producing stocks, is blaming newbie investors who don't fully understand MLPs and are "in it for the yield."
- Most MLP contracts are very long term, meaning that a temporary change in the oil price has no effect on those sources of revenue, Howard says, adding that "there is far from enough infrastructure to serve the domestic energy industry, even if it slows a bit."
- Some big MLPs have turned higher even as most stocks plunge: KMI +1.8%, KMP +1.5%, EPD +4.8%, PAA +3.7%, ETP +4%, ETE +8.6%, RGP +7.2%, CQP +6.6%, TEP +5.2%, PSXP +4.1%, MMP +7.1%, PAGP +4.9%, EEP +2.1%.
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, AMZA, IMLP, OSMS
Oct. 6, 2014, 3:58 PM
- Midcoast Energy Partners (MEP -3.2%) is downgraded to Neutral from Buy with a $23 price target, down from $24, at UBS.
- MEP has performed well, up ~15% in the last three months in part fueled by drops from its general partner Enbridge Energy Partners (NYSE:EEP) and should continue to benefit from drops; however, MEP has inherent commodity exposure, and the UBS energy team is lowering its commodity deck assumptions.
- In addition to the revised commodity outlook, MEP has missed UBS' volume expectations for the last three quarters, so the firm is lowering volume expectations to the lower end of the guidance range.
Sep. 18, 2014, 3:48 PM
- Enbridge Energy Partners (EEP +2.8%) is reiterated with an Outperform rating and a higher stock price target of $42, up from $39, at Credit Suisse after the dropdown of Alberta Clipper to EEP announced yesterday.
- The firm says the move is consistent with its thesis on EEP that many investors are missing the series of steps management has been taking recently to move EEP from what has been lagging distribution growth to at least average distribution growth in the coming years.
Jul. 14, 2014, 5:37 PM
Jun. 19, 2014, 12:45 PM
Mar. 4, 2014, 10:58 AM
- Enbridge (ENB +1.9%) and Enbridge Energy Partners (EEP +0.2%) say they have received shipper support for a C$7B project to replace segments of its Mainline pipeline system running between Alberta and Wisconsin.
- ENB says the replacement program for Line 3, an oil pipeline that is part of the Mainline system, will complement an existing segment replacement program; no U.S. presidential permit is required.
- The Canadian part of the program is estimated to cost ~$4.2B, while the U.S. side is estimated to cost ~$2.6B; the entire program is targeted for completion by H2 2017.
Sep. 18, 2013, 2:32 PM
- Energy MLPs are spiking higher after the Fed decides not to taper, ensuring a longer period of lower-cost capital: KMP +2.9%, KMI +4.1%, ETP +2.1%, WPZ +1.2%, WMB +1.1%, EPD +1.9%, PAA +1.2%, EEP +1.3%, MWE +3.1%, MMP +2.4%, ACMP +2.9%, APL +1.8%, DPM +2.4%, SXL +1.5%, BPL +1.1%, PBA +2.3%, TLLP +1.7%.
- Relevant ETFs: AMJ, AMLP, MLPG, MLPI, MLPN, MLPY, MLPL, MLPW, MLPS, YMLP, MLPA, EMLP, AMU, IMLP, MLPJ, ATMP, YMLI.
Sep. 9, 2013, 5:11 PM
- Enbridge Energy Management (EEQ) -3.4% AH after saying it commenced a public offering of ~8M of its listed shares.
- Proceeds will be used to invest in an equal number of i-units of Enbridge Energy Partners (EEP), which will pay down debt, finance a portion of its capex program relating to its core liquids and natural gas systems, and for general partnership purposes.
May 8, 2013, 12:31 PMEnbridge (ENB +0.3%) agrees to invest $1.2B in Enbridge Energy Partners (EEP +3.8%) through a private placement of preferred units expected to close later today. EEP says the placement will significantly reduce the amount of third-party funding required and relieve the equity issuance overhang it believes is pressuring its valuation. | May 8, 2013, 12:31 PM | Comment!
Feb. 25, 2013, 5:45 PMEnbridge Energy Management (EEQ) -4.9% AH after announcing a public offering of 9M shares. Proceeds will be used to invest in an equal number of i-units of Enbridge Energy Partners (EEP), who plans to utilize such proceeds to debt, finance a portion of its capital expansion program and for general partnership purposes. EEP +0.8% AH. | Feb. 25, 2013, 5:45 PM | 3 Comments
Dec. 7, 2012, 12:43 PMEnbridge (ENB +3.2%) powers higher on its plans to spend $6.2B on a series of projects to bring growing volumes of Alberta and North Dakota light oil to market. There's enough shipper support to go ahead with the market access program, which will flow an additional 400K bbl/day to refineries in Ontario, Quebec and the U.S. Midwest. BMO lifts its price target on shares to $50 from $47. | Dec. 7, 2012, 12:43 PM | Comment!
Dec. 6, 2012, 5:57 PMEnbridge (ENB) +2.8% AH as it boosts its dividend by 12%, projects a strong growth outlook and reveals plans to invest C$3.4B in a program to expand access to markets for growing volumes of North Dakota and western Canada light oil production. Expansion of the Seaway pipeline to 400K bbl/day will be completed in Q1 2013 as scheduled, CEO Al Monaco says. | Dec. 6, 2012, 5:57 PM | Comment!
EEP vs. ETF Alternatives
Enbridge Energy Partners LPowns and operates crude oil and liquid petroleum transportation and storage assets, and natural gas gathering, treating, processing, transportation and marketing assets in the United States of America.
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