The Word on the Street: How Analysts See Plains All American ahead of Its 2Q16 Results
Of the analysts surveyed by Bloomberg, about 28% have rated Plains All American a “buy,” while 68% have rated it a “hold.” About 4% have rated it a “sell.”
According to Plains All American Pipeline (PAA), a significant amount of undrilled inventory in North America should benefit it in the long term.
Plains All American Pipeline (PAA) has generated total returns of 34% so far in 2016, though the MLP got beaten down badly in 2015.
Growth capital Plains All American Pipeline (PAA) plans to spend $ 1.5 billion on growth capital projects in 2016. The company’s pipelines have increased from nearly 16,000 miles in 2009…
Plains All American’s Facilities segment’s 2016 volumes are expected to be 130 MMbmo (million barrels per month), as compared to 126 MMbmo for 2015.
Plains All American’s Transportation segment contributed nearly 43% of the company’s total adjusted EBITDA in 1Q16. The segment’s 1Q16 profit rose 9% YoY.
Plains All American Pipeline is scheduled to report its 2Q16 results on August 2. Analysts expect its EBITDA to be $448 million—a YoY decrease of 7.8%.
As of July 25, 2016, EnLink Midstream (ENLC) had the highest short interest-to-equity float ratio among midstream stocks at 11.3%.
Spectra Energy Partners (SEP) had the lowest implied volatility among all of the midstream companies as of July 25, 2016.
The reason for low yields lies outside the United States. Global yields have been heading south over the last ten years.
The US GDP growth rate is on a somewhat solid footing compared to the rest of the world. The stronger dollar has been a drag on exports and, by extension, on GDP growth.
Home prices in the Pacific and Mountain states have outperformed prices in the rest of the country over the past two years.
May’s 5.6% year-over-year gain in home prices has put the FHFA (Federal Housing Finance Agency) House Price Index at about 4% above its April 2007 level.
In May 2016, the FHFA (Federal Housing Finance Agency) reported that house prices rose by 0.2% month-over-month and 5.6% year-over-year.
Of the Wall Street analysts rating EQT Midstream Partners, 76.3% recommend “buys,” and 23.1% recommend “holds.” The MLP has no “sell” recommendations.
EQT Midstream Partners’ implied volatility has fallen significantly after increasing to over 81.5% in early 2016. Its current implied volatility is 27.3%.
EQT Midstream Partners’ short interest as a percentage ratio has fallen to 1.1% after hitting 4.0% in March. The ratio is lower than the three-year average.
EQT Midstream Partners has gained 5.2% in the past year, while the Alerian MLP ETF (AMLP), which invests in 24 midstream energy MLPs, has returned -13.7%.
According to the monthly EIA report, the three-month average for Marcellus Shale natural gas production increased by 10% to ~18 Bcf per day in 2Q16.
EQT Midstream Partners (EQM) and its general partner, EQT GP Holdings (EQGP), are scheduled to release 2Q16 earnings on July 28, 2016.