RECENT MLPs RESEARCH
On November 20, the Nebraska Public Service Commission approved TransCanada’s (TRP) Keystone XL Pipeline project. The pipeline would transport oil from Alberta’s oil sands reserves to Nebraska.
MLPs went through some carnage last week. The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, saw a new 52-week low of 258.45.
Kinder Morgan (KMI) fell 3.7% during the week ended November 17, 2017. KMI underperformed the broader energy sector during the week.
William Companies (WMB) is currently trading close to its 15-month low of $27.5. It has lost 4.5% since the start of this month.
Whereas the MLP sector has been mostly down, some MLPs have posted handsome year-to-date gains. In this series, we’ll discuss what’s driven the performance of these MLPs during the year.
Cheniere Energy (LNG) and its subsidiaries reported their 3Q17 earnings on November 14, 2017. Cheniere Energy’s revenue rose to $1.4 billion, a 201.7% YoY rise.
MLPs were weak for most of 3Q17. The Alerain MLP ETF (AMLP), which consists of 25 energy MLPs, lost 6.2% in 3Q17, despite strong gains in crude prices.
Of the total 95 MLPs, 62 ended last week in the red, 30 ended in the green, and the remaining three ended flat. Energy Transfer Partners (ETP) fell 5.5%.
Cheniere Energy (LNG) has been on an upward trend since the start of November, having risen 5.4%. At the same time, Alerian MLP ETF (AMLP) has fallen 3.6%.
Kinder Morgan (KMI) stock fell 0.4% in the week ending November 10, 2017. ONEOK fell 0.5%, while Enterprise Products Partners (EPD) ended the week flat.
In this series, we’ll review 3Q17 earnings results for some mid-to-large cap limited partnerships.
AmeriGas Partners (APU) reported its results for fiscal 2017 on November 8 after the markets closed.
On November 8, 2017, Alon USA Partners (ALDW) announced a merger agreement with Delek US Holdings (DK) in which Delek will acquire all the ALDW shares it doesn’t already own.
Targa Resources (TRGP) reported its 3Q17 results on November 2. Targa Resources’ distributable cash flow for 3Q17 was $186.6 million.
Enterprise Products Partners (EPD) reported its 3Q17 results on November 2. Its adjusted EBITDA rose 5% to ~$1.32 billion from ~$1.26 billion in 3Q16.
Williams Companies (WMB) and its MLP subsidiary, Williams Partners (WPZ), reported their 3Q17 earnings on November 1, 2017.
EnLink Midstream Partners (ENLK) and EnLink Midstream (ENLC) reported their 3Q17 earnings on October 31, 2017. ENLK’s adjusted EBITDA rose to $216.8 million from $197.5 million in 3Q16.
Buckeye Partners (BPL) stock is trading close to its four-year lows. BPL saw a new 52-week low of $50.90 on October 25.
CVR Refining (CVRR) reported its 3Q17 results on November 1, 2017. Its adjusted EBITDA for the quarter rose to $138.6 million from $75.3 million in 3Q16.
The analysts’ 3Q17 consensus EBITDA estimate for ETP is ~$1.6 billion—14.1% higher than its 3Q16 adjusted EBITDA and 0.8% lower than in 2Q17.