Wall Street Recommendations for Cheniere Energy Partners
It’s important to note that 66.7% of analysts rated Cheniere Energy Partners as “buy,” while the remaining 33.3% rated the company as “hold.”
Cheniere Energy Partners’ (CQP) March presentation stated that Trains 1 and 2 were ~83% complete. It expects Train 1 to come online later this year.
For 1Q15, analysts are expecting Cheniere Energy Partners’ revenue to come in at $67.1 million. The loss per share estimates have been pegged at -$0.113.
Cheniere Energy Partners (CQP) is scheduled to release its earnings for 1Q2015 on April 29. Its stock closed at $31.93 as of April 22.
For our analysis of midstream movers, we’ve selected only midstream companies with market capitalizations of over $1 billion and 30-day average daily volumes over 500,000 shares.
Midstream movers last week included top gainer Targa Resources Partners (NGLS), with a ~7.4% increase, and top loser, MarkWest Energy Partners (MWE).
Looking at Wall Street analysts’ calls on Boardwalk Pipeline stock, 64% of analysts rate it a “buy,” 27% rate it a “hold,” and 9% rate it a “sell.”
Boardwalk Pipeline’s distribution decreased to $0.40 per unit on an annualized basis in 2014, compared to $1.69 per unit in 2013.
Boardwalk’s 4Q14 revenues decreased 2.7%, while net income attributable to controlling interests increased 88%.
In 4Q14, Boardwalk Pipeline Partners’ adjusted revenues exceeded estimates by 6%. Boardwalk Pipeline’s 4Q14 earnings were 18% lower than analysts’ estimates.
In 2014, Boardwalk Pipeline’s net income decreased 7.9% to $233.6 million, compared to $253.7 million in 2013. The fall in 2013 net income was even sharper at 17%.
In 2014, Boardwalk Pipeline’s revenues increased 2.3% to $1.23 billion, compared to $1.2 billion in 2013. Growth was higher than 2013 when revenues increased 1.7%.
Boardwalk Pipeline Partners’ (BWP) unit price increased 15% in the past one year, while Sunoco Logistics’ (SXL) fell 5% and DCP Midstream Partners’ (DPM) dropped 27%.
ONEOK (OKE) was the top midstream gainer in March, with a return of ~9%. But it’s lost ~23% in the last six months.
On November 26, 2014, Kinder Morgan acquired all of its equity interests in Kinder Morgan Partners, El Paso, and Kinder Morgan Management.
There are four methods of investing in MLPs. The MLP funds’ market cap reached $54 billion as of April 30, 2014. The number of MLP-focused funds reached 49.
Since MLP returns have a larger yield component than most securities, they’re more sensitive to movements in interest rates.
MLPs depend on outside financing sources, like raising debt and equity in the capital markets, to fund growth—they pay out most of their excess cash to unitholders.
Currently, AMZ is yielding ~6% while the yield on the US ten-year Treasury is ~2%. As a result, the spread between AMZ and the Treasury yield is ~400 basis points.
MLPs’ valuations are different from other stocks. To value MLPs, the widely used PE ratio isn’t as useful as the PDCF ratio.
But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.