Tue, Aug. 11, 10:25 AM
- Credit Suisse upgrades the MLP sector to Overweight following the recent sharp selloff, saying reversion to mean yield ranges suggest a total return outlook of more than 40%.
- The firm notes that the overwhelming majority of distributions have been made, and MLPs are tracking to 7.8% Y/Y growth (excluding upstream and coal), above last year and at the high end of its 5%-8% forecast range for this year.
- Credit Suisse says its top picks in the group are Genesis Energy (NYSE:GEL), Tallgrass Energy Partners (NYSE:TEP) and Energy Transfer Equity (NYSE:ETE).
- The firm also says defensive names with low commodity exposure make the most sense going forward and have held up best in the current bear market, including pipeline-oriented MLPs such as Spectra Energy (NYSE:SE) and Kinder Morgan (NYSE:KMI), and the just-upgraded ONEOK Partners (NYSE:OKS) and Magellan Midstream (NYSE:MMP).
- Small cap Midcoast Energy Partners (NYSE:MEP) is vastly oversold, the firm says, noting it has garnered parental support for 2.5 years.
- Also viewed favorably: WES, CNNX, ENLK, EQM, PBFX, PSXP, WNRL, VLP
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR
Thu, Jul. 23, 5:18 PM
- Despite a mixed Q2 performance, EQT Corp. (NYSE:EQT) pushed to a 5.4% gain in today's trade after reporting strong test results in its first well in the dry gas window of the deep Utica Shale play.
- The well came on at a rate of 72.9M cf/day of gas during a 24-hour test, reportedly the highest initial production rate for any well in the play and possibly the highest rate ever for any shale gas well.
- EQT's well result extends the technical boundary of the deep dry gas Utica play and implies the play's economic sweet spot may be much larger in size than initially believed, according to industry analyst Richard Zeits.
Thu, Jul. 23, 8:55 AM
- EQT Midstream Partners (NYSE:EQM) says it will construct a natural gas header pipeline in southwestern Pennsylvania to support Range Resources' (NYSE:RRC) dry Marcellus and Utica development.
- The partnership will invest ~$250M for the construction of 32 miles of pipeline and installation of ~32K horsepower of compression.
- EQM and RRC say they plan to complete the project in two phases, with phase one expected to be in-service by Q3 2016 and phase two by mid-year 2017.
- Earlier: EQT Midstream misses by $0.03, misses on revenue
Thu, Jul. 23, 7:39 AM
Wed, Jul. 22, 5:30 PM
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Tue, Jul. 21, 4:46 PM
Mon, Jun. 22, 11:45 AM
- EQT Corp. (EQT -0.2%) is reinstated with a Buy rating and $100 price target at Barclays, as the formation of EQT GP Holdings (EQGP +0.2%) provides a benchmark for market expectations of what the general partner is worth.
- The firm says EQT's balance sheet is strong following the IPO of EQGP, and revised drilling plans indicate EQT likely will see E&P growth in the mid-teens in 2016 with 26% growth in 2015.
- If the stock continues to trade at a discount to peers, the firm expects EQT management to evaluate strategic alternatives for a potential split in the future, especially as the team has always been focused on creating shareholder value and has discussed this option on recent earnings conference calls.
- Barclays rates both EQGP and EQT Midstream (EQM +3.5%) at Overweight.
Thu, May 28, 6:19 PM
- Morgan Stanley’s MLP analysts initiate coverage of eight major dropdown MLPs, citing attractive attributes such as high-quality asset bases, magnitude and sustainability of growth, and strong and supportive sponsorship.
- Lead analyst Brian Lasky's top pick in the group is Dominion Midstream Partners (NYSE:DM), which he says warrants a premium valuation to midstream industry and sponsor-backed dropdown peers based on its top-tier distribution growth rate, strong sponsor commitment, depth of inventory, and - most important - strategic asset positioning, with an ability to replenish its inventory.
- Lasky says these MLPs and their sponsors also have surprised to the upside, positioning the companies for attractive growth and visibility: AM, CNNX, CPPL, EQM, SUN, TLLP, VLP.
Tue, May 12, 8:22 AM
- EQT GP Holdings (Pending:EQGP) prices its upsized 23M-unit IPO at $27/unit, above the $21-24 expected price range, raising $621M in total gross proceeds.
- EQGP is a limited partnership formed in January to own partnership interests in EQT Midstream Partners (NYSE:EQM); upon completion of the offering, EQGP will own 30.2% of the outstanding LP interests in EQM, a 2% general partner interest in EQM and all of the incentive distribution rights in EQM.
- Public ownership will represent an 8.6% LP interest in EQGP, or 9.9% if the underwriters exercise their overallotment option in full; EQT Corp. (NYSE:EQT) will hold a 91.4% LP interest and a non-economic general partner interest in EQGP, or 90.1% if the underwriters exercise their overallotment option in full.
- EQGP expects to pay an annualized distribution at an initial rate of $0.367, or an annual dividend yield of 1.6%, assuming the mid-point of the expected pricing range.
Thu, Apr. 23, 7:18 AM
Thu, Apr. 23, 6:29 AM
Wed, Apr. 22, 5:30 PM
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Tue, Apr. 21, 3:57 PM
Wed, Mar. 11, 11:19 AM
- WGL Holdings (WGL +0.6%) says it has acquired a 7% stake in the proposed Mountain Valley Pipeline that is being built by EQT Corp. (NYSE:EQT), NextEra Energy (NYSE:NEE) and other partners; financial terms are not disclosed.
- The $3B-$3.5B pipeline is expected to connect EQT's Equitrans system with the southeastern U.S. through West Virginia and Virginia.
- NEE will hold a 35% interest in the venture, and EQT Midstream Partners (NYSE:EQM) is expected to assume EQT's 55% majority interest and to operate the pipeline.
Tue, Mar. 10, 4:39 PM
- EQT Midstream Partners (NYSE:EQM) agrees to acquire EQT Corp.'s (NYSE:EQT) Northern West Virginia Marcellus Gathering System, along with a preferred interest in an EQT subsidiary, for $1.05B.
- As of year-end 2014, 199 Marcellus wells and 20 Upper Devonian wells were being serviced by the gathering system, with an average daily gathered volume of ~410M cf/day.
- EQM expects to invest $370M over the next several years to complete planned expansion projects, including the installation of ~100 miles of gathering pipeline and five compressor units.
- EQM says the deal to be immediately accretive to its distributable cash flow per unit.
- To help fund part of the deal, EQM will launch a public offering of 8.25M common units, with an underwriters option to purchase up to an additional 1.237M units.
- EQM -1.4%, EQT -0.5% AH.
Thu, Feb. 5, 7:12 AM
EQM vs. ETF Alternatives
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