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| 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.
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