Wed, Feb. 25, 4:57 PM
Tue, Feb. 24, 5:35 PM
- AEGN, AGO, AMSG, ANIK, AR, AREX, ARI, AVGO, AWR, BLDP, BMRN, BWC, CEMP, CHDN, CHMT, CLUB, CLVS, CRM, CSGP, CWT, CXO, DRYS, DXCM, EAC, EHTH, ELGX, EPAM, ESRT, ESV, FARO, FOE, GMED, GPOR, GXP, HK, IL, KW, LB, LGCY, LHCG, MCHX, MDVN, MELI, MMLP, OAS, ORIG, PGTI, PLKI, PRSS, PVA, RGR, RIG, RIGP, SBY, SFM, STAA, SYNC, TEG, TTEC, WDAY, WLL, WMGI, WPX, WR
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.
Wed, Feb. 4, 2:44 PM
- Barclays warns that MLPs focused on exploration and production, pressured by high debt levels and weak operating margins, could cut distributions as well as capital spending, with particular concern for oil and gas royalty trusts.
- The firm revises its estimates to reflect lower oil price assumptions in 2015-16, cutting ratings on Enduro Royalty Trust (NYSE:NDRO), Pacific Coast Oil Trust (NYSE:ROYT) and Vanguard Natural Resources (NASDAQ:VNR) to Equal Weight from Overweight; it reinstates Legacy Reserves (NASDAQ:LGCY) at Equal Weight, and reiterates Breitburn Energy (NASDAQ:BBEP), Linn Energy (NASDAQ:LINE), and Memorial Production Partners (NASDAQ:MEMP) at Equal Weight and Viper Energy Partners (NASDAQ:VNOM) at Overweight.
- Barclays notes that average yields for BBEP, LGCY, LINE, MEMP, and VNR have generally ranged from 9%-11% for most of the past five years but are now 14% based on the latest annualized distributions; based on lower oil prices, its distributable cash flow estimates imply average yields of 8%-9% in 2016.
Wed, Feb. 4, 9:16 AM
- Legacy Reserves (NASDAQ:LGCY) appoints Paul Horne as CEO replacing Cary Brown, who is resigning effective March 1.
- Horne is currently LGCY's COO and executive VP, and has managed operations at the company and its predecessor companies since 2000.
- Brown will continue to serve as Chairman.
- LGCY -3.3% premarket.
Fri, Jan. 23, 9:20 AM
Fri, Jan. 23, 9:12 AM
- Legacy Reserves (NASDAQ:LGCY) says it is planning a 2015 capital budget of $30M, a 77% reduction from $130M spent in 2014, saying it makes no economic sense to pursue new drilling products in the current oil market.
- Says it will maintain its distribution of $0.61/unit for Q4 but warns reductions would be necessary if the current price environment is a longer term cycle.
- LGCY fell 7% yesterday as Raymond James downgraded the stock.
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. 16, 2014, 8:31 AM
Dec. 8, 2014, 12:45 PM
Dec. 3, 2014, 2:09 PM
- Legacy Reserves (LGCY +2.2%) says Cary Brown plans to resign from his roles as CEO and President of the general partner of LGCY in H1 2015; he will continue to serve as Chairman.
- Upon the resignation, the Board intends to appoint COO and executive VP Paul Horne as the new CEO and President; the number of directors will rise to eight from seven, with Horne filling the additional seat.
Oct. 29, 2014, 4:44 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
Oct. 2, 2014, 5:38 PM
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