Tue, Aug. 11, 10:25 AM
- Credit Suisse upgrades the MLP sector to Overweight following the recent sharp selloff, saying reversion to mean yield ranges suggest a total return outlook of more than 40%.
- The firm notes that the overwhelming majority of distributions have been made, and MLPs are tracking to 7.8% Y/Y growth (excluding upstream and coal), above last year and at the high end of its 5%-8% forecast range for this year.
- Credit Suisse says its top picks in the group are Genesis Energy (NYSE:GEL), Tallgrass Energy Partners (NYSE:TEP) and Energy Transfer Equity (NYSE:ETE).
- The firm also says defensive names with low commodity exposure make the most sense going forward and have held up best in the current bear market, including pipeline-oriented MLPs such as Spectra Energy (NYSE:SE) and Kinder Morgan (NYSE:KMI), and the just-upgraded ONEOK Partners (NYSE:OKS) and Magellan Midstream (NYSE:MMP).
- Small cap Midcoast Energy Partners (NYSE:MEP) is vastly oversold, the firm says, noting it has garnered parental support for 2.5 years.
- Also viewed favorably: WES, CNNX, ENLK, EQM, PBFX, PSXP, WNRL, VLP
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR
Mon, Jul. 27, 2:39 PM
- It’s understandable that energy MLPs would trade lower along with the broader energy sector, but they should not fall as far as direct plays on oil and they should not be performing even worse - but by some measures, that is exactly what is happening, Barron's Amey Stone writes.
- Raymond James analysts believe MLP's correlation with high-yield bonds in a rising rate environment is a big reason for the group's underperformance, and that the current pricing action may be an overreaction.
- The analysts believe MLPs will trade considerably higher than current levels over the next 12-plus months, as both organic and inorganic growth in the midstream/MLP sector drives investors to allocate capital to the companies and partnerships with the most visible pathway to creating long-term value.
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR, YMLI, AMU, CEN, MLPJ, ZMLP, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPC, MLPW, IMLP
Tue, May 19, 7:15 PM
- A recent court ruling could result in lower prices for drop-down assets sold to MLPs, which could turn into a win for MLP investors, WSJ's Corrie Driebusch writes.
- The ruling involved El Paso Pipeline Partners - now part of Kinder Morgan (NYSE:KMI) - and the $1.1B it paid in 2010 for stakes in two businesses from its parent company; the judge decided it paid too much, and awarded investors $171M.
- Some money managers say the cost of drop-down transactions could begin to come down; with the ruling, perhaps sponsors of MLPs will “take a little extra time to evaluate the price” of the drop-downs, says the president of Salient Partners’ MLP Complex.
- 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, OSMS
Nov. 26, 2013, 8:54 AM
- Open for trade from Goldman Sachs Asset Management (GS) is the GS MLP Income Opportunities Fund (GMZ), the first closed-end fund ever launched by the firm. The fund raised $826.3M in its IPO.
- MLP ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPS, MLPG, MLPY, MLPJ, MLPX, YMLI, AMU, ATMP, MLPW, IMLP, ENFR, MLPC
- MLP CEFs: CEM, FMO, JMF, KYE, KYN, NTG, SRV, TYG, TYN, TYY
Feb. 21, 2013, 10:34 AMBofA Merrill joins the growing list of Wall Street firms jumping on the MLP bandwagon (also) for investors seeking solid, dependable income streams, while noting a greater portion of total MLP return potential could result from capital appreciation driven by production growth and associated cash distribution growth. The firm's top three names: MEMP, LGCY, BBEP. | Feb. 21, 2013, 10:34 AM | Comment!
Feb. 4, 2013, 10:28 AMDespite a strong start to the year, the MLP analysts at Credit Suisse forecast a continued MLP catch-up trade that could lead to significant outperformance by MLPs vs. the S&P 500. The firm's top names have strong exposure to what it sees as the coming oil boom: PAA, MMP, EEP, EPD, GEL, KMR, KMP and KMI, plus ETFs KYN and SRV. | Feb. 4, 2013, 10:28 AM | 5 Comments
Oct. 10, 2012, 12:41 PMNot limited to mortgage REITs, panic grips another favorite of income investors, closed-end investment funds - notably those trading far above NAV for seemingly no other reason than their fat yield. The payouts on many of these are sustained by digging into capital rather than by earning a return on it. PGP -7.5%, PHK -7.8%, PHT -5.5%. | Oct. 10, 2012, 12:41 PM | 8 Comments
Oct. 8, 2012, 3:25 PMBlinded by fat yields, investors continue to bid closed-end funds far higher than their NAVs. 66% of taxable and 73% of muni-bond funds trade above NAV now, compared to just 30% a year ago, with often the funds with the highest distributions having the highest premiums. "We believe that an excessive premium for the fund is not likely to be sustainable," says Gabelli of one of its funds. Are investors listening? | Oct. 8, 2012, 3:25 PM | 35 Comments
Aug. 20, 2012, 3:56 PMYield hungry investors playing in the MLP space may take caution as the sector's merits rate a Barron's cover and investor roundtable discussion. Among the selections is the popular JPMorgan Alerian MLP Index ETN (AMJ), up 17% Y/Y while yielding north of 9%, and trading at a 36% premium to NAV. | Aug. 20, 2012, 3:56 PM | 6 Comments
May 30, 2012, 5:20 PMAs crude oil prices tank, more concerns arise for MLPs, even as many have virtually no direct exposure to Europe's troubles. Even at huge Enterprise Products Partners (EPD), macro concerns seem to be outweighing solid earnings. Sustained low Treasury yields may send more income investors to MLPs, but uncertainty over the future of dividend tax structures clouds the picture. | May 30, 2012, 5:20 PM | 23 Comments
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