Mon, May 18, 5:51 PM
- While Deutsche Bank starts coverage of several energy MLPs with Buy ratings, the firm initiates ONEOK (NYSE:OKE) and ONEOK Partners (NYSE:OKS) at Sell with respective $43 and $38 price targets, citing the risk of another guidance cut at the company.
- Deutsche Bank says the commodity downturn has highlighted OKE’s commodity sensitivity, resulting in breaking the track record of 22 consecutive quarterly distribution increases and an outlook of sub-1x coverage for 2015.
- Without an improvement in prices, OKS is positioned to come in at the low end of current guidance of 3%-5% distribution/unit growth, with the risk of a further guidance cut to nominal or no growth going into 2016, the firm says.
Tue, May 5, 4:22 PM
Wed, Apr. 1, 4:35 PM
- ONEOK Partners (OKS, OKE) says it is forming a 50-50 joint venture with a subsidiary of Mexico's Fermaca Infrastructure to construct a pipeline that will transport natural gas from the Permian Basin in west Texas to Mexico.
- The first phase of the project for 170MM cf/day of available capacity is scheduled for completion by Q1 2016; final completion is expected by 2019 and will increase available capacity on the pipeline to 640MM cf/day.
- OKS will manage project construction and become operator of the pipeline upon completion; the project is estimated to cost $450M-$500M.
Wed, Feb. 25, 11:59 AM
- ONEOK Partners (OKS +0.7%) is downgraded to Neutral from Outperform with a $48 price target at Credit Suisse following the recent uptick in OKS shares and the continuing weak commodity price backdrop.
- The firm says OKS' reduced guidance appears realistic in light of ongoing uncertainty in commodity prices, but guidance cuts were more draconian than expected, particularly the 57% capex cuts for 2015 to ~$1.2B.
- Credit Suisse says the deep capex cuts slows its distribution growth outlook on the assumption that the suspended plants are pushed back about a year.
Mon, Feb. 23, 4:08 PM
Sun, Feb. 22, 5:35 PM
Wed, Jan. 21, 5:35 PM
Dec. 10, 2014, 7:15 PM
- Some energy limited partnerships - pipeline operators or wholesale distributors, with less risky business models than oil E&P companies - have escaped much of the carnage in energy stocks and may make attractive investments, MarketWatch's Philip Van Doorn writes.
- These 12 energy LPs, most of which fell today amid the energy sector rout, actually have posted gains since Nov. 1: TCP, EEQ, EEP, DM, BPL, SHLX, SGU, BIP, SRLP, APU, SEP, SPH.
- Credit Suisse analyst John Edwards recently said many energy LPs look oversold; his top picks in the sector include EEP as well as NGLS, GEL, OKS, CNNX, PAA, BWP and AM.
Dec. 2, 2014, 4:59 PM
- ONEOK (NYSE:OKE) +1% AH after saying it expects 2015 cash flow available for dividends in the range of $580M-$660M, reflecting higher anticipated cash distributions received from its general and limited partner interests in ONEOK Partners (NYSE:OKS).
- Guidance includes a 14% Y/Y increase in shareholder dividends declared; OKE also expects average annual dividend declared increases of 12%-15% between 2014-17.
- Also, ONEOK Partners announces higher 2015 financial guidance, expecting adjusted EBITDA to increase 19% Y/Y to a range of $1.77B-$1.99B and 2015 distributable cash flow to increase 18% to a range of $1.31B-$1.49B.
Nov. 28, 2014, 10:20 AM| 17 Comments
Nov. 11, 2014, 3:21 PM
- Prospects for energy MLPs remain bright despite lower crude oil prices, Credit Suisse’s John Edwards says, as Q3 distribution growth in the sector has averaged ~11% Y/Y and direct cash flow per unit rose 20% Y/Y on average.
- The analyst says he saw little change in capex plans from energy MLPs in Q3 reports: Kinder Morgan (KMI, KMP) said it had seen no impact to business, Enterprise Products Partners (NYSE:EPD) continues to expect to invest $3.7B-$4.2B for 2015 and 2016 - the same as indicated before the oil price pullback - and Spectra Energy Partners (NYSE:SEP) remains on track in its drive to a $35B program.
- Credit Suisse upgrades Midcoast Energy Partners (NYSE:MEP), ONEOK Partners (NYSE:OKS), Targa Resources Partners (NYSE:NGLS) and Western Gas Partners (NYSE:WES) to Outperform from Neutral, while reducing Magellan Midstream Partners (NYSE:MMP) to Neutral from Outperform.
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPG, MLPX, MLPS, MLPY
Nov. 4, 2014, 4:24 PM
Nov. 3, 2014, 5:35 PM
- ADEP, AMRS, ATVI, AWAY, AXLL, BIO, BIOL, BIRT, CALD, CBSO, CDXS, CERS, CHUY, CKEC, COHR, CORT, COUP, CRTO, CSU, DOX, DVN, ENPH, EXAM, EXEL, FANG, FEYE, FOXA, FRGI, GAS, GHDX, HR, ITRI, IVR, JAZZ, JIVE, JKHY, JMBA, KAR, MITT, MOSY, MPO, MYGN, NP, NRP, NSTG, NYMT, OAS, OCLR, OKE, OKS, PACD, PAYC, PBPB, PCYC, PEGA, PHH, PRI, PXD, PZZA, REGI, REXX, RLOC, RNR, RP, SBAC, SN, SPA, SQNM, TMH, TNET, TRIP, TTGT, TWO, TWOU, TX, UIL, WPX, XEC, XNPT, ZAGG, ZU
Oct. 27, 2014, 4:30 PM
- ONEOK Partners (OKS, OKE) agrees to acquire natural gas liquids pipelines and related assets in the Permian Basin of west Texas and southeast New Mexico from Chevron (NYSE:CVX) for ~$800M.
- The deal includes an 80% interest in the West Texas LPG Pipeline Limited Partnership and 100% interest in the Mesquite Pipeline, which collectively consist of ~2,600 miles of NGL gathering pipelines.
- With these projects, ONEOK says it has announced total investments of $8.3B-$9B during 2010-16 for acquisitions and capital growth projects related to natural gas gathering and processing, and NGLs.
Oct. 22, 2014, 7:38 PM| 1 Comment
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
OKS vs. ETF Alternatives
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