New Source Energy Partners 23% Yield With Coverage To Spare
- NSLP Shares are down 60% despite a recent record quarter.
- The company's move into oil and gas services makes them less susceptible to daily commodity fluctuations.
- Their production division is well hedged next year.
This High Dividend Stock Yields 9%+, Has Big Dividend And EBITDA Growth Ahead; Goes Ex-Dividend Soon
- The Energy services industry is poised for sustained growth: US Energy producers are predicted to spend over $2 trillion in drill-out and completion services over the next decade.
- New Source Energy Partners has made recent services acquisitions which should double its EBITDA in 2nd half 2014 - services contributed 31% of revenue in Q1 2014.
- The company's 9%-plus dividend yield is amply supported by EBITDA, which grew by 39% in Q1 2014.
Although Small, New Source Energy Partners LP Worth A Look
- New Source Energy Partners has put forced pooling to good use and has operational expertise in the water-saturated Hunton formation.
- New Source's balance sheet is under-levered today and the partnership should have the opportunity to execute attractive drop-down transactions in the future.
- New Source is small and geographically concentrated, but the shares look undervalued on this side of the mid-$20s.
New Source Energy Partners: High-Reward, Low-Risk MLP With 10% Yield
- The high 10% yield and aggressive growth strategy make New Source Energy Partners a high-reward investment.
- The downside risk is protected by the stability of oil prices, hedging, and a strategic acquisition strategy.
- Success is likely for investors as management is dedicated to delivering profitable and stable growth for unitholders.
Protected Principal Retirement Strategy: Hunton For A Bargain
Dec. 23, 2014, 12:49 PM
- Stifel downgrades Breitburn Energy Partners (BBEP -1.7%), LRR Energy (LRE -4.4%) and New Source Energy Partners (NSLP -1.4%) to Hold from Buy due to pressure in the commodity markets and near-term concerns over credit facilities.
- The firm believes BBEP's ability to fund its reduced organic spending while funding the near-term shortfall in DPU coverage will be challenged, but it continues to believe the long-term outlook is attractive because of BBEP’s diversified geographic footprint.
- On LRE, Stifel says it is moving to the sidelines given near-term financing issues, even though LRE does not pose operational risk and the firm thinks the market likely is pricing in at least a DPU cut.
Mar. 5, 2014, 11:59 AM
- Robert W. Baird refreshes its outlook for master limited partnerships with six downgrades: five high-growth partnerships that now look fairly valued - NGL Energy Partners (NGL -1.8%), New Source Energy (NSLP -4%), Plains GP Holdings (PAGP -0.3%), Summit Midstream Partners (SMLP -0.6%) and Tallgrass Energy Partners (TEP -2.7%) - and are cut to Neutral from Outperform, and a reduction for Whiting USA Trust II (WHZ -0.7%) to Underperform from Neutral on elevated commodity risk.
- The firm recommends recycling capital into its top investment ideas: ONEOK Partners (OKS -1.2%), Plains All American Pipeline (PAA +0.9%), Rose Rock Midstream (RRMS +0.2%) and Crosstex Energy LP (XTEX -1.5%)
- Despite downgrading multiple high-quality MLPs, Baird says its long-term bullish view on the sector remains unchanged (Briefing.com).
Sep. 4, 2013, 10:48 AM
- Oppenheimer restarts coverage of energy MLPs, bullish on the asset class as a whole; the firm shows a bias in favor of investing in higher distribution growth, even if the yields are lower, and for owning general partners due to their incentive distribution rights structure.
- Started at Outperform: EQT Midstream (EQM +2.1%), Seadrill Partners (SDLP +0.7%), Tesoro Logistics (TLLP +1.6%), Memorial Production Partners (MEMP +2.4%), Western Gas Partners (WES +0.4%), Western Gas Equity Partners (WGP +0.7%).
- Started at Market Perform: Williams Partners (WPZ), Crosstex Energy (XTEX), ONEOK Partners (OKS), Genesis Energy (GEL).
- Also: New Source Energy (NSLP), Breitbrun Energy Partners (BBEP), LRR Energy (LRE), Mid-Con Energy Partners (MCEP).
NSLP vs. ETF Alternatives
New Source Energy Partners LP is engaged in acquiring oil and natural gas properties in the United States. The Company operates in two segments: Exploration & Production segment and Oilfied services segment.
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