88% of Analysts Recommend Ferrellgas Partners as a “Sell”
Of the analysts surveyed by Bloomberg after Ferrellgas Partners’s fiscal 4Q16 results, 88% recommended a “sell” and the remaining 12% recommended a “hold.” None of the surveyed analysts rated FGP as a “buy.”
Ferrellgas Partners has terminated a ten-year transportation and logistics agreement with Jamex Marketing.
On September 28, Ferrellgas Partners (FGP) announced earnings for its fiscal year ended July 31, 2016. For fiscal 4Q16, FGP reported adjusted EBITDA of $49.5 million, which is 52% higher compared to $32.6 million for fiscal 4Q15.
As of September 28, 2016, 61.1% of analysts rate Energy Transfer Equity (ETE) a “buy,” and the remaining 38.9% rate it as “hold.”
The number of holders in Energy Transfer Equity (ETE) has fallen to 458 as of September 28, 2016, as compared to 496 at the end of 2015.
ETE’s and its subsidiaries’ total outstanding debt by the end of 2Q16 was a $39.5 billion—$2.5 billion more than its debt outstanding at the end of 2015.
ETE currently trades at a price-to-distributable-cash-flow ratio of 13.4x, which is quite low compared to its ten-quarter average of 24.7x.
Energy Transfer Equity, which is dependent upon distribution income from its MLP subsidiaries, saw a 21.1% YoY fall in distributable cash flow in 2Q16.
ETE’s cash flow growth is indirectly related to its subsidiaries’ ability to grow distributable cash flow through successful completion of organic projects.
Energy Transfer Equity (ETE) has risen 29.6% YTD (year-to-date), despite touching multiyear lows in the beginning of 2016.
The number of institutional holders in BWP increased to 228 on September 25, 2016, compared to 219 by the end of 2015.
At a broader level, 58.3% of analysts rate Boardwalk Pipeline a “buy,” 33.3% rate it as “hold,” and the remaining 8.4% rate it as a “sell.”
Boardwalk Pipeline Partners (BWP) has the lowest distribution yield of 2.4% among the selected peers.
The correlation between BWP’s stock price and crude oil (USO) resulted in a correlation coefficient of 0.46 over the past year.
Boardwalk Pipeline Partners (BWP) is currently trading at a price-to-distributable cash flow of 8.8x. The partnership is trading slightly above the ten quarters’ historical average of 8.5x.
Boardwalk Pipeline’s net debt-to-EBITDA multiple stood at 4.5x by the end of 2Q16. This is slightly above industry standards.
According to the recent Short-Term Energy Outlook report by the EIA, natural gas consumption is expected to increase to 76.6 billion cubic feet per day in 2016 and 77.8 Bcfpd in 2017.
According to Boardwalk Pipeline Partners’s (BWP) investor presentation, it expects US natural gas production to increase 23% in the next five years.
Boardwalk Pipeline Partners’s (BWP) distributable cash flow increased to $160.1 million in 2Q16 compared to $132.3 million during 1Q15.
Boardwalk Pipeline Partners (BWP), which essentially operates as a toll road, generates 92% of its revenue from firm contracts. The remaining 8% of its revenue comes from interruptible contracts.