Wed, Oct. 7, 12:14 PM
- Energy MLPs have rebounded recently following September's panic selling, but that does not mean there all headwinds facing MLPs going forward have disappeared.
- Wunderlich's Jeff Birnbaum looks at consensus 2016 capex estimates for more than 80 midstream MLPs and thinks many will need to reduce or eliminate their capital spending plans.
- Yet Birnbaum says many MLPs are attractive; his top picks include Magellan Midstream Partners (MMP +1.2%), Enterprise Products Partners (EPD +1.5%), Western Gas Partners (WES +2.1%) and Genesis Energy (GEL +2.2%).
- ETFs: AMLP, AMJ, KYN, MLPL, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPX, GMZ, EMO, MLPS, TTP, CTR, AMU, CEN, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPW, IMLP
Tue, Aug. 11, 12:25 PM
- Magellan Midstream Partners (MMP -0.1%) is upgraded to Buy from Hold with a $77 price target at Stifel, citing MMP's continued strong performance, top-tier balance sheet and attractive current valuation.
- The firm notes MMP's Q2 beat was driven by a 15% Y/Y increase in volumes shipped to 53.8M bbl/day, and the earnings call reiterated previous distribution growth guidance of 15% in FY 2015 and at least 10% in FY 2016 and raised 2015 distributable cash flow guidance to $880M from $870M previously.
- However, Stifel downgrades Rose Rock Midstream (RRMS -8.2%) to Hold from Buy, noting the recently tempered view of volumes from the White Cliffs pipeline at the DJ Basin and increased competition to marketing operations.
Mon, Aug. 10, 12:59 PM
- ONEOK Partners (OKS +1.9%) is upgraded to Outperform from Neutral with a $48 price target, raised from $45, at Credit Suisse, which believes that the worst is over for the company.
- OKS' Q2 EBITDA of $387M and distributed cash flow of $277M came in higher than estimates, and raised EBITDA and DCF estimates for 2015 by a respective 3% to $1.6B and by 4% to $1,15B; Credit Suisse expects coverage to stabilize at ~1.05x for the remainder of the year and distribution growth to resume in Q2 2016.
- The firm also upgrades Magellan Midstream Partners (MMP +6.7%)to Outperform from Neutral, with an $89 price target after MMP raised its 2015 distributable cash flow guidance by $10M to $880M and reiterated its distribution growth of 15% in 2015 and at least 10% in 2016.
Mon, Jun. 29, 12:47 PM
- Magellan Midstream Partners (MMP -1.7%) and LBC Tank Terminals announce plans to build a $95M, 700K barrel crude oil storage and transportation project along Houston’s Gulf Coast, to be connected into the area’s existing oil transportation infrastructure.
- The companies say the project is supported by long-term contracts with a major partner, and expect both the pipeline and the storage facility to be online by 2017.
- The new infrastructure will be operated by a JV company called Seabrook Logistics, owned 50-50 by MMP and Belgium-based LBC.
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%.
Dec. 17, 2014, 11:55 AM
- The fundamentals underlying oil and gas pipeline MLPs have fallen much less than energy stocks in recent days, acording to Forbes' John Dobosz, who suggests seeking out MLPs with a long history of rising distributions, payouts well covered by cash flow, a strong balance sheet and an investment-grade credit rating.
- Two MLPs that fit these criteria, Dobosz writes, are Enterprise Products Partners (EPD +3.2%) and Magellan Midstream Partners (MMP +3.9%); he also likes Sunoco Logistics Partners (SXL +5.2%), which is expected to increase revenue 15% to $22B in 2015, with EBITDA rising 20% and distributions growing 18% this year.
- Spectra Energy Partners (SEP +2.3%), Western Gas Partners (WES +2.7%) and Energy Transfer Partners (ETP +2.4%) are appealing because of consistently rising distributions and revenues, Dobosz adds.
Nov. 28, 2014, 10:20 AM| Nov. 28, 2014, 10:20 AM | 17 Comments
Oct. 31, 2014, 3:58 PM
- Magellan Midstream Partners (MMP +2.9%) is up nicely after reporting a 58% Y/Y increase in Q3 earnings and offering upside Q4 EPS guidance for $0.92 vs. $0.91 analyst consensus estimate.
- Distributable cash flow totaled $183.4M, up 30% Y/Y, with the impact of the BridgeTex pipeline not expected to occur until 2015; and total revenue rose 17% to $521M.
- Says it plans to proceed with the recently-announced Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara play in Colorado to MMP's storage facilities in Cushing, Okla.
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. 14, 2014, 12:33 PM
- MLPs have been brutalized lately, with the benchmark Alerian MLP Index (AMJ +0.5%) plunging 13% in the past week and down another 3% earlier today, but at least some in the group have been trying to bounce back in the past hour or so.
- J.P. Morgan strategists are sticking with their bullish central thesis on MLPs, saying prolific production from unconventional energy plays will keep demand high for new energy infrastructure; the firm believes most core acreage in leading shale plays continues to be economic at current commodity prices, which should drive strong long-term growth prospects for MLPs.
- JPM favors MLPs owning high-quality, diversified assets with strong management teams and proven track records, naming Kinder Morgan (KMI -1.5%), Enterprise Products Partners (EPD +2.5%) and Plains All American Pipeline (PAA -1%).
- ETP +3.7% and OKS +2.5%, LINE +1.4%, but EROC -5.3%, CQP -4.5%, BBEP -2.5%, MMP -2.5%, TEP -2.1%, PSXP -2%, WPZ -1.1%, ACMP -0.5%.
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, IMLP, AMZA, OSMS
May 6, 2014, 9:59 AM
- Magellan Midstream Partners (MMP +1.6%) opens higher after Q1 earnings more than doubled Y/Y on 43% higher revenues.
- MMP says Q1 distributable cash flow increased to a quarterly record of $253.2M, more than double Q1 2013 DCF of $123.9M; raises 2014 DCF guidance by $80M to $810M and reaffirms its commitment to the goal of increasing annual cash distributions by 20% for 2014 and 15% for 2015.
- Issues upside earnings guidance for FY 2014, seeing EPS of $3.25 vs. $2.89 analyst consensus estimate.
- Plans to spend ~$700M in 2014 with additional spending of $325M in 2015 and $75M in 2016 to complete its current slate of construction projects; also continues to evaluate $500M-plus of potential growth projects in earlier stages of development as well as possible acquisitions.
- Also says it is proceeding with its pipeline project to deliver refined petroleum products to Little Rock, Ark., supported by commitments from its recent open season.
Feb. 7, 2014, 3:58 PM
- Magellan Midstream Partners (MMP +2.1%) is upgraded to Outperform from Market Perform with a $74 price target at Wells Fargo following strong Q4 results.
- Management provided higher than expected distribution growth guidance of 20% for 2014 and 15% for 2015, a forecast the firm says is supported by MMP's primarily fee-based businesses and contributions from organic growth projects.
- MMP is well positioned to benefit from a resurgence in U.S. crude oil drilling activity, the firm says, and has undertaken significant growth initiatives, some of which are near completion.
Feb. 5, 2014, 9:08 AM
- Magellan Midstream Partners (MMP) +3.1% premarket after beatings expectations for Q4 earnings and revenue.
- Issues upside guidance for Q1 and FY 2014; sees Q1 EPS of $0.70 vs. $0.66 analyst consensus estimate, and sees 2014 EPS of $2.90 vs. $2.83 consensus.
- Expects to generate record annual distributable cash flow of $730M in 2014 and raises annual distribution growth target to 20% for 2014, resulting in 1.2x the amount needed to pay cash distributions for 2014; targets 15% annual distribution growth for 2015.
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.
Aug. 1, 2011, 11:25 AM
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