Which Segment Will Drive Williams Partners’ 4Q15 Performance?
Williams Companies (WMB) operates as a pure-play GP (general partner) with very few business assets.
WMB and WPZ announced their 2016 capex and financing plans in a recent press release. WPZ expects to spend ~$1 billion, or 32%, less than its previous guidance of ~$3 billion.
In this article, we’ll look at what Wall Street analysts recommend for Williams Companies (WMB) and Williams Partners (WPZ).
Williams Companies (WMB) and its MLP subsidiary, Williams Partners (WPZ), are expected to release their 4Q15 earnings on February 17, 2016.
Of the analysts surveyed by Bloomberg, 50% rated Enbridge Energy Partners (EEP) a “buy” and 50% rated it a “hold.” None of the analysts rated it a “sell.”
On January 29, 2016, Enbridge Energy Partners declared flat quarterly distribution per unit for 4Q15. It announced a quarterly distribution per unit of $0.58.
In 3Q15, Enbridge Energy Partners’ Liquids segment contributed ~89% to its total EBITDA (earnings before interest, tax, depreciation, and amortization).
Analysts expect Enbridge Energy Partners’ (EEP) 4Q15 EBITDA to be $456 million. This is 3% higher than its analyst-adjusted 4Q14 EBITDA of $443 million.
~50% of analysts rate NGL Energy a “hold,” ~40% rate it a “buy,” and the remaining ~10% rate it a “sell.”
NGL crashed most likely due to its weak quarterly numbers and its lowered fiscal 2016 EBITDA guidance.
NGL Energy’s fiscal 3Q16 EBITDA fell to $113.5 million from $144.8 million in fiscal 3Q15, a YoY decline of 21.6%.
~55.6% of analysts rate Boardwalk Pipeline Partners a “buy,” 33.3% rate it a “hold,” and the remaining ~11.1% rate it a “sell.”
Boardwalk Pipeline Partners (BWP) reported its 4Q15 earnings on February 8, 2016. BWP’s 4Q15 EBITDA rose to $189.1 million from $158.7 million in 4Q14.
PAA generated total returns of -62% over the past year. About 32% of the analysts surveyed rated PAA a “buy,” 60% rated it a “hold,” and 8% rated it a “sell.”
Plains All American’s Supply and Logistics segment’s 4Q15 EBITDA fell by 9.2% YoY—driven by lower volumes and margins associated with crude oil lease gathering.
Plains All American Pipeline reported its 4Q15 results on February 8. It held the earnings conference call on February 9. It missed EBITDA estimates by ~4%.
Midstream companies are trading well below their 20-day moving averages except for Kinder Morgan and Spectra Energy Partners.
If CHK needs to restructure, creditors might demand a renegotiation of contracts with CHK’s midstream partners such as Williams Companies (WMB).
Chesapeake Energy (CHK) opened 50% lower in yesterday’s early trading on the rumor that the company is working with advisors to pursue bankruptcy.
The median broker target price of $18 for EnLink Midstream Partners (ENLK) implies a 68.4% price return in the next 12 months from its February 5, 2016, closing price of $10.70.