More than 70% of the Analysts Rate ONEOK as a ‘Hold’
Of the analysts surveyed by Reuters, 71% rated ONEOK (OKE) as a “hold.” Nearly 23% rated ONEOK as a “buy,” while 6% rated it as a “sell.”
ONEOK’s (OKE) 50-day moving average crossed above its 200-day moving average on September 14, 2017. It’s considered a bullish sign.
ONEOK is trading at dividend yield of ~5.3%—higher compared to ~2.6% for Kinder Morgan (KMI) and ~4.9% for Magellan Midstream Partners (MMP).
Alon USA Partners owns and operates a crude oil refinery. Based on the annualized distributions for the latest quarter, Alon USA Partners is currently trading at a yield of more than 12%.
Suburban Propane Partners (SPH) distributes propane, fuel oil, and refined fuels.
Two compression services MLPs, USA Compression Partners (USAC) and CSI Compressco (CCLP), are on our top ten list of highest-yielding MLPs.
Energy Transfer Partners (ETP) mainly provides natural gas midstream services including transportation and storage.
In this part, we’ll analyze the distribution growth and coverage of five of the ten MLPs that we are discussing in this series.
In this series, we’ll discuss the ten MLPs with the highest yields. We’ll compare the yields they offer, the reasons for the high yields, and if the yields are attractive considering the risks involved for each of these MLPs.
ETE has seen six rating updates so far in 2017, including four upgrades, one downgrade, and one new coverage.
Energy Transfer Equity (ETE) saw a total addition of 40.8 million positions in 2Q17, while 26.7 million positions were sold.
WMB was trading 2.6% above its 200-day moving average on September 18, while ETE, PAGP, and WGP were trading 3.2%, 20.9%, and 6.9%, respectively, below.
Energy Transfer Partners (ETP) has a capital budget of $3.9 billion for 2017, of which $1.7 billion was spent in the first half of the year.
WMB was trading at a forward EV-to-EBITDA multiple of 11.5x as of September 17—the lowest valuation multiple in the peer group.
ETE’s net-debt-to-EBITDA ratio stood at 6.9x at the end of 2Q17, followed by WMB’s and PAGP’s ratios of 5.1x and 4.8x, respectively, as of June 30.
Plains GP Holdings (PAGP) declared a flat distribution of $0.55 per unit for 2Q17, which represents a 10.6% YoY (year-over-year) decline from 2Q16.
Williams Companies (WMB) has the lowest dividend yield (4.0%) in our select group. WMB’s dividend yield fell after its dividend cuts.
Energy Transfer Equity’s (ETE) net income fell to $212 million in 2Q17, compared with $241 million in 2Q16, representing a 12.0% year-over-year fall.
Plains GP Holdings (PAGP) was the most battered last month of the four in our peer group, witnessing a new YTD (year-to-date) low of $19.8 in August.
The four MLP partners we’ll compare in this series are Energy Transfer Equity, Western Gas Equity Partners, Plains GP Holdings, and Williams Companies.