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TNRH: The MLP Digest - Issue Of 2/14/2018, Brought To You By Laurentian Research


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The MLP Digest intends to inform the income-oriented members of the TNRH community of the latest development in the space.

The following activities of the MLPs are followed: press and presentations, distribution, operations, access to the capital markets, capital investments and M&A, and the management.

Earnings Report

  • Antero Resources (AR) reported on Feb 14, 2018, beating Q4 earnings expectations, as production averaged a record 2.35 Bcfe/d, an 18% increase yoy. 4Q liquids production averaged 107,433 b/d, up 24%. Proved reserves increased 12% to 17.3 Tcfe at YE2017 (36% liquids) compared to YE2016. AR expects Q1 net production to come in flat Q/Q, citing the timing of completions throughout 2018, severe winter weather on Sherwood processing plant operations in the West Virginia Marcellus in early January, and a shutdown for several days at the Seneca plant in the Ohio Utica due to a third-party downstream pipeline rupture; AR continues to expect to meet its full-year net production guidance of ~2.7 Bcfe/d. AR says it recognized a $428M deferred tax benefit in Q4 related to the reduction in the U.S. statutory tax rate to 21% from 35%. The production growth bodes well for Antero Midstream Partners (AM) and Antero Midstream GP LP (AMGP).

  • Antero Midstream Partners (AM) reported Q4 EPS of $0.34 misses by $0.01. Revenue of $210.3M (+26.0% Y/Y) beats by $8.94M. Press Release.

  • DCP Midstream (DCP) reported Q4 EPS of $0.10 misses by $0.18. Revenue of $2.34B (+18.2% Y/Y) misses by $230M. Press Release.

  • Tallgrass Energy Partners (TEP) reported Q4 EPS of $0.67 misses by $0.13. Revenue of $174.77M (+7.7% Y/Y) misses by $10.51M. Press Release.

  • Boardwalk Pipeline Partners (BWP) reported Q4 EPS of $0.33 misses by $0.06. Revenue of $337.5M (-4.3% Y/Y) misses by $15.68M. Press Release. The Q4 earnings fell to $0.33/share from $0.35 during the year-ago quarter and revenues also slip more than 4% YoY, with both lagging analyst expectations. BWP says distributable cash flow of $110M for Q4 and $600M for the full year represented a respective 14% decrease and an 18% increase from $128M and $507M a year earlier; excluding the impact of the Flag City sale, distributable cash flow would have totaled $537M for FY 2017. BWP says Q4 results were hurt by the restructuring of contracts with Southwestern Energy on its Fayetteville and Greenville laterals and lower revenues in storage and parking and lending. Growth capex for the full year came in at $570.5M.

  • USA Compression Partners (USAC) reported Q4 EPS of $0.07 misses by $0.05. Revenue of $75.39M (+0.6% Y/Y) beats by $0.65M. Press Release.

  • Buckeye Partners (BPL) reported mixed Q4 results that fell short of earnings estimates but beat expectations for revenues. BPL says distributable cash flow for Q4 totaled $189M vs. $171M for the year-ago quarter, with distribution coverage of 1.01x. Adjusted EBITDA for the quarter was $290M vs. $255M for the year-ago quarter; for FY 2017, adjusted EBITDA totaled $1.11B vs. $1.03B for 2016.


  • The Mountain Valley Pipeline receives approval from the Federal Energy Regulatory Commission to begin work on 13 miles of additional segments of the 2B cf/d natural gas project in West Virginia, citing operator EQT Midstream Partners (EQM) implementation plan met environmental guidelines. The Mountain Valley project, designed to move more gas from the Appalachian Basin to demand markets, has been inching along amid strong opposition from conservation groups and local property owners. In Virginia, the project remains locked in litigation in federal court in Roanoke with ~300 property owners over eminent domain. The 303-mile pipeline is a joint venture by EQM, NextEra Energy (NEE), Con Edison (ED), WGL Midstream (WGL) and RGC Midstream (RGCO).

  • Boardwalk Pipeline Partners (BWP) said on Feb 13, 2018, it continues to pursue plans to transport Permian Basin natural gas to the Gulf Coast via a second pipeline but has not yet made a final investment decision. During its earnings conference call yesterday, CEO Stanley Horton said BWP is “progressing in discussions” with potential shippers for its proposed Permian-to-Katy pipeline, a joint venture with Sempra Energy (SRE). The 1.9 Bcf/d Gulf Coast Express natural gas transportation project, a joint venture of Kinder Morgan, DCP Midstream, and Targa Resources, recently was given the go-ahead, but Horton says BWP continues to "believe there will be demand for at least two natural gas pipelines from the Permian to the Texas Gulf Coast area... Based on our conversations with producers and end-use customers, we remain optimistic about the project." On move forward with the P2K project, Horton said pipeline capacity “could be from 1.7B cf/d all the way up to 2.2 Bcf/d, and you’d like to see firm commitments on that for the majority of the capacity before you would authorize the FID.”

  • Williams Cos. (WMBWPZ) and the consortium behind the proposed Constitution natural gas pipeline asks the Federal Energy Regulatory Commission for a rehearing of its order related to a water quality permit that had been denied for the project, saying New York state regulators failed to act within "a reasonable period of time" on its application. New York rejected Constitution’s application in 2016, saying the company failed to provide sufficient information to determine whether the project would comply with the state’s water quality standards; a federal appeals court upheld the state's decision last year, and the FERC last month rejected the request to overturn New York’s denial. The Constitution pipeline is owned by subsidiaries of Williams, Cabot Oil & Gas (COG), Duke Energy (DUK) and WGL Holdings (WGL).

Capital Market

  • Navios Maritime Partners (NMM) announced on Feb 13, 2018, a public offering of as much as $35M of common units. NMM says it plans to use the proceeds for general working capital purposes, including vessel acquisitions.


  • Breitburn Energy Partners (OTCPK:BBEPQwill not pursue an unsolicited $1.8B cash offer for the company from Lime Rock Resources, Reuters reports, citing court filings. In a filing late Friday with U.S. Bankruptcy Court in Manhattan, BBEP said it was not required to “pursue conditional offers thrown across the transom, particularly after the close of a contested confirmation hearing.” BBEP equity holders want the Lime Rock bid to be entered into the record of the bankruptcy case, a move they believe would sway the court to reject the reorganization for undervaluing the company.


Company Ticker Dividends Up Forward yield Payable On record ex-div
CSI Compressco (CCLP) $0.1875 quarterly 0% 11.03% Feb. 14 Feb. 1
Western Gas Partners (WES) $0.92 quarterly 1.7% 7.03% Feb. 13 Feb. 1
Archrock Partners (APLP) $0.285 quarterly 0% 8.15% Feb. 13 Feb. 8
EQT GP Holdings (EQGP) $0.244 quarterly 7% 3.41% Feb. 23 Feb. 2
EQT Midstream Partners (EQM) $1.025 quarterly 4.6% 5.37% Feb. 14 Feb. 2
EnLink Midstream Partners (ENLK) $0.39 quarterly 0% 9.13% Feb. 13 Jan. 31
Martin Midstream Partners (MMLP) $0.50 quarterly 0% 13.11% Feb. 14 Feb. 7
Hoegh LNG Partners LP (HMLP) $0.43 quarterly 0% 9.01% Feb. 14 Feb. 1
Crestwood Equity (CEQP) $0.60 quarterly 0% 8.73% Feb. 14 Feb. 7
Star Gas (SGU) $0.11 quarterly 0% 4.07% Feb. 6 Jan. 29
Dorchester Minerals (DMLP) $0.386915 quarterly 35.9% 10.02% Feb. 8 Jan. 29
BP Midstream Partners (BPMP) $0.1798 quarterly 0% 4.77% Feb. 15 Feb. 1
Phillips 66 Partners (PSXP) $0.678 quarterly 5% 4.95% Feb. 13 Jan. 31
Capital Product Partners (CPLP) $0.08 quarterly 0% 9.17% Feb. 13 Feb. 2
Antero Midstream (AM)

$0.365 quarterly

30% 4.61% February 13 February 1
AMGP GP LLC (AMGP) $0.075 quarterly 27% 1.45% February 20 February 1
Trans Montaigne Partners L.P. (TLP)

$0.77 quarterly

2.0% 7.34% February 8 January 31
USA Compression Partners (USAC) $0.525 quarterly 0% 11.44% Feb. 14 Feb. 2
Western Gas Partners, LP (WES)

$0.920 quarterly

2% 6.92% February 13 February 1
Western Gas Equity Partners, LP (WGP) $0.54875 quarterly 2% 5.32% February 22 February 1
Williams Partners (WPZ) $0.60 quarterly 0% 5.5% Feb. 9 Feb. 2
CNX Midstream Partners LP (CNXM) $0.3133 quarterly 3.6% 6.42% February 14 February 5
CSI Compressco LP (CCLP) $0.1875 quarterly 0% 10.90% February 14 February 1
Navios Maritime (NAP) $0.4225 quarterly 0% 17.4% Feb. 14 Feb. 9
Blueknight Energy Partners (BKEP) $0.145 quarterly 0% 10.36% Feb. 14 Feb. 2
Hess Midstream Partners (HESM) $0.3218 quarterly 3.6% 5.92% Feb. 13 Feb. 2
DCP Midstream (DCP) $0.78 quarterly 0% 7.4% Feb. 14 Feb. 7
Delek Logistics Partners (DKL) $0.725 quarterly 1.4% 8.84% Feb. 12 Feb. 2
TC PipeLines (TCP) $1.00 quarterly 0% 7.07% Feb. 13 Feb. 2
Magellan Midstream Partners (MMP) $0.92 quarterly 1.7% 4.89% Feb. 14 Feb. 6
NGL Energy Partners (NGL) $0.39 quarterly 0% 9.07% Feb. 14 Feb. 6
Valero Energy Partners
$0.5075 quarterly 5.7% 4.33% Feb. 13 Feb. 5
AmeriGas Partners (APU) $0.95 quarterly 0% 7.95% Feb. 20 Feb. 9
Sunoco LP (SUN) 0.8255 quarterly 0% 10.15% Feb. 14 Feb. 6
Suburban Propane Partners (SPH) $0.60 quarterly 0% 9.65% Feb. 13 Feb. 6
Shell Midstream Partners (SHLX) $0.333 quarterly 4.7% 4.41% Feb. 14 Feb. 5
Noble Midstream Partners LP (NBLX) $0.4883 quarterly 4.7% 3.53% Feb. 12 Feb. 5
Dominion Midstream (DM) $0.3180 quarterly 5.1% 4.02% Feb. 15 Feb. 5
Summit Midstream (SMLP) $0.575 quarterly 0% 10.27% Feb. 14 Feb. 7
Golar LNG Partners (GMLP) 0.5775 quarterly 0% 10.08% Feb. 14 Feb. 7
Cypress Energy (CELP) $0.21 quarterly 0% 11.76% Feb. 14 Feb. 7
Sprague Resources (SRLP) $0.6375 quarterly 2.4% 9.86% Feb. 12 Feb. 6 Feb. 5
Holly Energy (HEP) $0.65 quarterly 0.8% 8.13% Feb. 14 Feb. 5 Feb. 2
MPLX (MPLX) $0.6075 quarterly 3.4% 6.25% Feb. 14 Feb. 5 Feb. 2
American Midstream Partners (AMID) $0.4125 quarterly 0% 11.0% Feb. 14 Feb 7 Feb 6
Kimbell Royalty Partners (KRP) $0.36 quarterly 16.1% 7.7% Feb. 14 Feb. 7 Feb 6
Westlake Chemical (WLKP) $0.3864 quarterly 2.9% 6.37% Feb. 23 Feb. 8 Feb 7
NuStar GP (NSH) $0.545 quarterly 0% 11.75% Feb. 15 Feb. 8 Feb 7
NuStar (NS) $1.095 quarterly 0% 12.57% Feb. 13 Feb 8 Feb 7
Global Partners (GLP) $0.4625 quarterly 0% 10.28% Feb. 14 Feb. 9 Feb 8
Energy Transfer Equity (ETE) $0.305 quarterly 3.4% 6.59% Feb. 20 Feb. 8 Feb. 7
Energy Transfer Partners L.P. (ETP)

$0.565 quarterly

0% 11.26% Feb. 14 Feb. 8 Feb. 7
GasLog (GLOP) $0.5235 quarterly 1.2% 8.78% Feb. 14 Feb. 9 Feb. 8
Enbridge Energy Partners (EEP) $0.35 quarterly 0% 9.68% Feb. 14 Feb. 7 Feb. 6
Oasis Midstream Partners LP* (OMP) $0.3750 quarterly
7.8% Feb. 26 Feb. 16 Feb. 15
USD Partners (USDP) $0.35 quarterly 1.4% 12.61% Feb. 16 Feb. 12 Feb. 9
Black Stone Minerals (BSM) $0.3125 quarterly 0% 7.31% Feb. 27 Feb. 20 Feb. 16
Spectra Energy Partners (SEP) $0.7388 quarterly 1.7% 7.2% Feb. 28 Feb. 20 Feb. 16
Sanchez Midstream Partners (SNMP) $0.4508 quarterly 0% 15.35% Feb. 28 Feb. 20 Feb. 16
Tallgrass Energy GP (TEGP) $0.12 quarterly 33% 6.06% Feb 14 Jan 30
Viper Energy (VNOM) $0.46 quarterly 36.5% 7.75% Feb. 26 Feb. 19 Feb. 15
Boardwalk Pipeline Partners (BWP) $0.10 quarterly 0% 3.47% March 1 Feb. 22 Feb. 20
Enable Midstream (ENBL) $0.318 quarterly 0% 8.91% Feb. 27 Feb. 20 Feb. 16

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Disclosure: I am/we are long the TNRH model portfolio.

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