Mon, Jan. 26, 9:26 AM
Mon, Jan. 26, 9:15 AM
- Energy Transfer Partners (NYSE:ETP) agrees to acquire Regency Energy Partners (NYSE:RGP) for ~$18B, including the assumption of $6.8B in debt.
- RGP unitholders will receive 0.4066 ETP common units and $0.32/unit, implying an all-in price for RGP of $26.89/unit, representing a ~13% premium to RGP's Friday closing price.
- The merger bringing together two companies both controlled by parent company Energy Transfer Equity (NYSE:ETE) would make ETP the second largest MLP, with operations in substantially all major producing areas in the U.S.,
- RGP +13.4% premarket.
Fri, Jan. 16, 6:55 PM
- Miller Howard Investments veteran portfolio manager Roger Young has been buying energy stocks for 40 years, and he expects more bad news ahead for the sector but also sees certain MLPs providing long-term value to investors.
- MLPs haven’t escaped the energy wreckage due to worries that lower oil prices will lead drillers to cut back on production, but Young sees MLPs as a way to invest without having to rely on “if you build it, they will come” business models popular elsewhere throughout the energy E&P and services groups.
- With a backlog of projects just being completed or starting construction, all with contracts, “you would have growth of distributions for the next three years" even if no new projects were started, according to Young.
- Among his favorite MLP investments: EPD, ETE, MMP.
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPG, MLPX, MLPS, MLPY, AMU, YMLI, ZMLP, AMZA, ENFR
Thu, Jan. 15, 3:39 PM
- Eagle Ford pipeline operator EFS Midstream, owned by Pioneer Natural Resources (PXD +0.1%) and Reliance Industries, has attracted bids from Enterprise Products Partners (EPD +1.4%), Energy Transfer Equity (ETE -1.2%) and Williams Cos. (WMB +0.4%), Bloomberg reports.
- EFS has 460 miles of pipelines and 10 gathering plants, and is forecast to generate more than $100M in cash flow this year; the unit would be expected to sell for more than $3B, according to the report.
Dec. 8, 2014, 5:41 PM
Dec. 8, 2014, 11:58 AM
- Falling oil prices have damaged energy stock prices, but Credit Suisse still recommends four energy MLPs it believes are in far better shape to survive the downturn than E&P companies.
- Among the four favorites is Energy Transfer Equity (ETE -4.9%), which recently saw a director step up and purchase a combined ~1.18M shares at $49.01-$53.55.
- The firm also likes Kinder Morgan (KMI -2.2%), Plains GP Holdings (PAGP -6.2%) and Williams Cos. (WMB -4.8%)
Dec. 4, 2014, 11:59 AM
- Energy Transfer Partners (ETP -0.3%) is upgraded to Outperform from Neutral with a $77 price target, up from $65, at Baird, which cites progress made at the partnership and beating the firm's estimates for three straight quarters.
- After another mega-model rebuild, Baird revises forecasts and valuations for the Energy Transfer family of partnerships - ETP, ETE, RGP, SUN and SXL - with SXL likely boasting the best fundamentals tailwinds with a return to crude oil contango.
Nov. 28, 2014, 10:20 AM| Nov. 28, 2014, 10:20 AM | 17 Comments
Nov. 18, 2014, 10:58 AM
- Energy Transfer Partners (ETP +0.7%) agrees to acquire a 45% interest in the Bakken pipeline project from Energy Transfer Equity (ETE +3.5%) via an asset swap the companies value at ~$3.75B, according to an SEC filing.
- The deal will increase ETP’s stake in the Bakken pipeline to 75% from 30%; ETP also plans to retire 30.8M of its common units currently held by ETE, which will reduce ETP’s outstanding units to ~322M, reducing its quarterly distributions and incentive distribution obligations to ETE.
- ETE will receive additional Class H units that will entitle it to receive 90% of the underlying economics of the general partner interest and incentive distribution rights of Sunoco Logistics Partners (NYSE:SXL); ETE says the deal also is part of its long-term strategy to become a pure-play general partner.
Nov. 18, 2014, 9:13 AM
Nov. 5, 2014, 5:26 PM
Nov. 4, 2014, 5:35 PM
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Oct. 31, 2014, 6:50 PM
- The recent wild behavior in the energy MLP sector - tumbling nearly 3x more than the S&P 500 during the first 10 trading days of October before rallying this week, with an assist from Shell Midstream Partners (NYSE:SHLX), which went public in a $1.1B offering and gained 46% - should not weaken the investment case for those who are choosy and hold for the long term, analysts say.
- Investors worry that some E&P companies won’t be able to make money in a low oil price environment, and MLPs in the same business face tough times, but those upstream MLPs make up only ~5% of the total value of the sector, perhaps suggesting that the across-the-board decline was too extreme.
- MLPs may remain expensive relative to their own history, but their average distribution of 5.5% in annual income - which should grow at ~7%/year in the next few years to 12%-plus - is plenty attractive relative to everything else.
- To steer clear of the risk that lower energy prices will crimp profits, analysts advise concentrating on midstream operators; among the most stable are ETP, ETE, EQM, MMP, PAA, PAGP and SXL.
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPG, MLPX, MLPS, MLPY
Oct. 21, 2014, 5:18 PM
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. 15, 2014, 12:58 PM
- Energy Transfer Equity (ETE +4.2%) is among the energy sector's biggest gainers after a company director discloses the purchase of more than 1.17M shares at $49.01-$53.55, worth ~$60.5M, during Oct. 9-14.
- ETE also has been gaining some favorable analyst comment this week: Morgan Stanley reiterates its Overweight rating on the stock and believes recent price weakness has created a buying opportunity, and Baird yesterday upgraded ETE to Outperform as the marketing business is less exposed to falling crude prices than its underlying limited partnership.
ETE vs. ETF Alternatives
Energy Transfer Equity LP is a limited partnership company. The Company through its subsidiaries, owns and operates, natural gas gathering systems, natural gas intrastate pipeline systems and gas processing plants.
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