Sun, Mar. 1, 5:30 PM
Tue, Feb. 24, 2:58 PM
- MLP performance YTD looks encouraging, but J.P. Morgan's Gabriel Daoud has a cautious outlook on the group, noting structural headwinds and the potential for more distribution cuts to come.
- Atlas Resource Partners (NYSE:ARP), Breitburn Energy Partners (NASDAQ:BBEP), EV Energy Partners (NASDAQ:EVEP), Linn Energy (NASDAQ:LINE) and Vanguard Natural Resources (NASDAQ:VNR) have significantly reduced distributions as the sub-sector enters preservation mode amid ongoing volatility in commodity prices, and Daoud sees more distribution cuts ahead; he believes Legacy Reserves (NASDAQ:LGCY) will cut its 2015 distribution by 51%, and thinks BBEP and LINE will suspend payouts in 2016 and 2017, respectively, absent a significant rebound in commodity prices.
- However, the analyst sees little chance of a distribution cut for Memorial Production Partners (NASDAQ:MEMP), given its strong hedge book and liquidity position, and he upgrades the stock to Overweight from Neutral with an $18 price target.
- Daoud also initiates coverage of BP Prudhoe Bay Royalty Trust (NYSE:BPT) with an Underweight rating and a $40 price target.
Tue, Feb. 17, 2:59 PM
- Upstream MLPs have outperformed to start 2015, generating average total returns of 10%, but yields have also come down from their peak to ~20% YTD, and Wunderlich analyst Abhishek Sinha thinks the average yield will continue to slip to 12%-14%, as more companies are forced to cut distributions.
- The analyst expects cuts to come from Vanguard Natural Resources (NASDAQ:VNR), Legacy Reserves (NASDAQ:LGCY) and LRR Energy (NYSE:LRE), following the likes of EV Energy Partners (NASDAQ:EVEP), Breitburn Energy Partners (NASDAQ:BBEP) and New Source Energy Partners (NYSE:NSLP).
- Sinha also says he is less concerned that Viper Energy Partners (NASDAQ:VNOM) could be hurt by rig count reductions after parent Diamondback Energy (NASDAQ:FANG) reaffirmed its intentions to continue to run its two-rig program on VNOM’s acreage.
Tue, Feb. 10, 4:31 PM
- EV Energy Partners (NASDAQ:EVEP) says President and CEO Mark Houser will resign at the end of this month, and will appoint Michael Mercer as its new President and CEO.
- Mercer has been Senior VP and CFO since EVEP's IPO in 2006, and had been an investment banker and a consultant to EnerVest.
- Houser will remain on EVEP's board.
Mon, Feb. 2, 2:58 PM
- EV Energy Partners (EVEP +10.1%) is strongly higher despite its announcement earlier it was cutting its Q4 cash distribution to $0.50/unit from its $0.774 payout for Q3, and estimates a 2015 distribution coverage ratio of more than 1.15x.
- EVEP says coverage could improve if it is able to divest its midstream assets, Utica acreage or Eagle Ford acreage.
- EVEP also said it expects Q4 daily production to average ~171M cf/day, down 2.7% from Q3 levels, which lifted overall 2014 production to ~63.55B cf, up 3% Y/Y; EVEP foresees 59.34B-64.94B cf of natural gas during 2015.
- Reduces 2015 E&P capex plans to $55M-$65M vs. ~$100M for 2014.
Mon, Feb. 2, 7:48 AM
Mon, Jan. 26, 7:15 PM
- It was a great day for energy stocks in at least one group of high-yield dividend dogs, as the five energy names making up the top six stocks in David Fish's Dec. 31 composite list of Champions, Contenders and Challengers list all enjoyed substantial gains: EVEP +10.7%, BBEP +21.5%, VNR +12%, CLMT +6.1% and WPZ +0.4%.
- So far in January, most results for the energy stocks in the group are still lower: EVEP -24%, BBEP -6.3%, VNR -0.7%, CLMT +16.2%, WPZ -2.5%.
Dec. 26, 2014, 4:23 PM
- Though most large-cap energy stocks closed the day with modest gains or losses, a slew of small-cap and mid-cap U.S. oil and gas plays sold off on a day that saw WTI crude once more fall below $55/barrel, and Henry Hub natural gas drop below $3/mmBtu for the first time since 2012, before bouncing a little.
- Decliners: EXXI -4.4%. SGY -4.5%. HK -4.1%. EVEP -2.3%. NFX -3.2%. SDR -3.3%. SN -5.2%. SD -5.9%. LGCY -2.2%. CHKR -3.3%.
Dec. 8, 2014, 6:45 PM
- Citigroup says it is beginning to see value in bonds of a few energy companies it considers oversold due to the “disconnect between valuations and fundamentals,” including Concho Resources (NYSE:CXO), SandRidge Energy (NYSE:SD), Magnum Hunter Resources (NYSE:MHR) and EV Energy Partners (NASDAQ:EVEP).
- Citi says on average those bonds now offer spread pickup of almost 300 bp and yield pickup of 2.9%, while the equity of those companies is down 34% since September, which is "important because equity valuations are likely to determine the extent to which strong balance sheets can acquire weaker operators on the cheap.”
Nov. 10, 2014, 6:35 AM
Nov. 9, 2014, 5:30 PM
Oct. 16, 2014, 5:37 PM
Oct. 11, 2014, 8:25 AM
- Energy MLPs have been subject to indiscriminate selling this week as crude oil prices plunge, and while RBC Capital analyst John Ragozzino would not step into the sector in a big way right now, he thinks investors already in the group should ride out the storm - depending on their oil price exposure.
- Many energy MLPs, especially pipelines, are less correlated to commodity prices than other energy investments, but more MLPs with cyclical oil and gas price exposure are now part of the mix, and some investors have been selling without regard for the relative quality of specific stocks, Ragozzino says.
- The analyst believes there is minimal risk to reduction in 2015 distributions; with commodity price hedging, he thinks MLPs on average will feel some pain, but can handle oil prices as low as $80/bbl.
- Ragozzino says the MLPs most highly levered to a sustained drop in crude prices are MidCon Energy Partners (NASDAQ:MCEP), LRR Energy (NYSE:LRE) and Legacy Reserves (NASDAQ:LGCY); names least exposed include Atlas Resource Partners (NYSE:ARP), Vanguard Natural Resources (NASDAQ:VNR) and EV Energy Partners (NASDAQ:EVEP).
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, IMLP
Oct. 10, 2014, 10:55 AM
- In what's looking like at least a short-term capitulation move, investors are bailing out of upstream MLPs.
- Linn Energy (LINE -7.1%), BreitBurn Energy (BBEP -8.8%), EV Energy (EVEP -7.8%), Eagle Rock Energy (EROC -4.7%), QR Energy (QRE -8.1%), Legacy Reserves (LGCY -6.5%), Vanguard Natural Resources (VNR -10.3%).
- The JPMorgan Alerian MLP ETN (AMJ -2.9%) is down 12.4% over the last month.
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, IMLP, AMZA, OSMS
- Previously: Breitburn Energy shelves $400M high-yield bond offering
Sep. 23, 2014, 8:14 AM| Sep. 23, 2014, 8:14 AM | 1 Comment
Aug. 11, 2014, 6:33 AM
EVEP vs. ETF Alternatives
EV Energy Partners LP is engaged in the acquisition, development and production of oil and natural gas properties. Its midstream segment is engaged in the construction and operation of natural gas processing and natural gas liquids fractionation.
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