What Analysts Recommend for Western Gas Partners
On a broader level, 58.8% of analysts rate Western Gas a “buy,” and the remaining 41.2% rate it a “hold.”
Western Gas Partners’ (WES) implied volatility has fallen significantly after rising to more than 90.0% at the beginning of 2016.
Western Gas Partners (WES) has a short interest as percentage of float ratio of 1.8%. It’s lower than the historical three-year average of 2.0% and the industry average of 2.8%.
The number of holders in WES has increased to 279 as of September 21, 2016, compared to 274 at the end of 2015. However, the percentage of float held fell 2.6%.
The correlation between WES’s stock price and crude oil (USO) resulted in a correlation coefficient of 0.56 over the past year.
Western Gas Partners (WES) has the highest enterprise value among its select peers, at $10.4 billion. WES is followed by EQT Midstream Partners (EQM).
WES’s forward EV-to-adjusted-EBITDA multiple is 10.1x. This might indicate expectations of a rise in WES’s EBITDA in the coming quarters.
Western Gas Partners (WES) ended 2Q16 with a total outstanding debt of $2.9 billion, which is 7.7% higher than the debt outstanding at the end of 2015.
APC and other upstream producers are benefiting from declining DC&E (drilling, completion, & exploration) costs in the Delaware Basin. This scenario indirectly benefits WES.
Western Gas Partners’ (WES) gross margin for natural gas assets was $0.84 per Mcf in 2Q16 compared to $0.73 per Mcf in 2Q15, which represents a rise of 15.1% YoY.
Western Gas Partners’ (WES) distributable cash flow for 2Q16 was $199.3 million compared to $211.7 million in the second quarter of 2015, a YoY fall of 5.9%.
The YoY decline in WES’s natural gas volumes is due to lower drilling activity in some regions, including Eagle Ford and Marcellus.
Western Gas Partners (WES), which mainly provides natural gas gathering and processing and NGL fractionation services, has risen 6.2% YTD (year-to-date).
Nearly 71% of Midcoast Energy Partners’s (MEP) floating shares are currently held by 48 institutional investors. The percentage of float held has decreased from nearly 73% at the end of 2Q16.
Midcoast Energy Partners’s (MEP) forward distribution yield at 11.7% is higher compared to its peer average of 6.4%.
Midcoast Energy Partners’s (MEP) implied volatility for its stock on September 19, 2016, was 51.1%. This is 10% below its 15-day average implied volatility of 57.1%.
Midcoast Energy Partners’s (MEP) short interest as a percentage of its float is 1.2%. This is lower than the average of 2.9% for all Alerian MLP Index (AMZ) members and 3% for the energy sector.
The EIA (U.S. Energy Information Administration) expects natural gas prices to gradually rise through the rest of 2016 and 2017.
Midcoast Energy Partners’s (MEP) stock had a correlation of 0.42 with the near-month WTI (West Texas Intermediate) crude oil futures price over the last 12-month period.
In 2016, nearly 40% of the gross margin of Midcoast Energy Partners (MEP) is expected to come from contracts exposed to commodity prices. Of this, nearly 35% are hedged by MEP.