How Bullish Are Institutional Investors on Buckeye Partners?
As of December 8, the number of institutional holders in Buckeye Partners has increased to 441, as compared to 371 by the end of 2015—a rise of 5.1%.
Short interest in Buckeye Partners (BPL) as a percentage of shares outstanding has fallen significantly in the past year.
Overall, 64.0% of analysts rate Buckeye Partners a “buy,” and the remaining 36.0% rate it has “hold.”
Buckeye Partners is currently trading at a price-to-DCF (distributable cash flow) of 12.4x—below its last-eight-quarter historical average of 14.9x.
Buckeye Partners’ distributable cash flow for 3Q16 was $194.0 million, as compared to $135.6 million during 3Q15, which represents a YoY rise of 43.1%.
Buckeye Partners (BPL) ended 3Q16 with a total outstanding debt of $3.8 billion, which is 2.5% higher than its debt outstanding by the end of 2015.
The share of terminals as a percentage of BPL’s Domestic Pipelines and Terminals segment has risen to 45% in 2016 from 30% in 2010.
Buckeye Partners (BPL), which mainly provides crude oil, refined products and NGL transportation and terminaling services, has lost 2.2% YTD.
The median broker target price of $32.5 for WMB implies a 4.2% price return in the next 12 months from its December 7 closing price of $31.2.
The number of holders in WMB has fallen to 873 as of December 7, 2016, compared to 1,215 at the end of 2015.
Short interest in Williams Companies (WMB) as a percentage of share outstanding has risen compared to levels in the beginning of 2016.
WMB is trading below its peers, which are currently trading at a peer median multiple of 13.2x.
WMB’s stock price and crude oil (USO) had a correlation coefficient of 0.41 over the past one year.
Williams Companies (WMB) ended 3Q16 with a huge outstanding debt of $24.7 billion, which is 3.0% higher than the outstanding debt at the end of 2015.
WMB’s valuations have picked up since the merger termination with Energy Transfer Equity (ETE) and a few key announcements during recent months.
According to the Energy Information Administration, natural gas consumption is expected to increase to 75.2 billion cubic feet per day in 2016.
Strong natural gas demand in the US Northeast region and other regions is driving strong natural gas supply growth in the Northeast region.
Williams Companies’ (WMB) earnings are mainly dependent on distribution income from Williams Partners (WPZ).
NGLs and Petchem Services was Williams Partners’ (WPZ) and Williams Companies’ (WMB) best-performing segment in 3Q16 driven by higher NGLs and olefins margins.
WMB has risen 163.8% since its February lows and 51.6% since the merger termination announcement with ETE at the end of June 2016.