What’s in Store for Spectra Energy’s 2016 and Beyond
Of the analysts surveyed by Bloomberg, 39% rate Spectra Energy’s (SE) stock as a “buy,” and 55.5% rate it as a “hold.” Only 5.5% rate it as a “sell.”
Nearly 83% of Spectra Energy’s (SE) floating shares are currently being held by more than 1,200 institutional investors.
Spectra Energy’s short interest as a percentage of its float is 3.5% compared to the average of 2.8% for all Alerian MLP Index members.
The implied volatility of Spectra Energy’s (SE) stock was 18.4% on August 22, 2016. This was 4% below its 15-day average implied volatility of 19.2%.
One factor affecting SE’s stock price is the value of the Canadian dollar. More than 50% of Spectra Energy’s 2015 revenue came from its Canadian operations.
Spectra Energy’s expected dividend growth over the next two years is the highest among its selected peers.
Spectra Energy (SE) is currently trading at a forward dividend yield of ~4.5%. This is lower than its three-year average dividend yield of 4.8%.
Spectra Energy’s (SE) distributable cash flow was $271 million in 2Q16, compared to $285 million in the same quarter last year.
A substantial chunk of Spectra Energy’s (SE) planned growth capital expenditure for the next two years is for its US Transmission segment.
Spectra Energy’s debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 6.8x ratio remained stable in 2Q16 compared to 1Q16.
Spectra Energy’s (SEP) liquids business, owned by Spectra Energy Partners, provides steady EBITDA growth.
Spectra Energy’s (SE) Texas Eastern Transmission system connects Texas and the Gulf Coast with markets in the northeastern United States.
Spectra Energy Partners (SEP), Spectra Energy’s (SE) largest segment, has two segments—US Transmission and Liquids.
Spectra Energy Partners contributed nearly 70% of SE’s 2Q16 EBITDA (earnings before interest, tax, depreciation, and amortization).
Spectra Energy (SE) has risen by 51% so far in 2016. In comparison, the Energy Select Sector SPDR ETF (XLE) has risen by 16%.
At a broader level, 84.6% of analysts rate Antero Midstream (AM) as a “buy” and the remaining 15.4% rate it as a “hold.” This MLP has no “sell” recommendations.
Antero Midstream Partners’s (AM) short interest as a percentage has remained relatively stable since the beginning of 2016 despite the volatility in commodity prices.
Antero Midstream Partners’s (AM) implied volatility has come down significantly after increasing to over 76.4% in the beginning of 2016.
The Marcellus and Utica well costs have continued to decline in recent years. Both shale plays are among the lowest cost shale plays in the US.
The number of holders in Antero Midstream Partners (AM) increased to 131 on August 23, 2016, compared to 110 at the end of 2015.