60% of Analysts Rate AmeriGas Partners a ‘Hold’
Among surveyed analysts, 20% rate AmeriGas Partners (APU) a “buy,” 60% rate it a “hold,” and 20% rate it a “sell.” The consensus target price for AmeriGas Partners is $47.40.
Warmer temperatures and lower propane consumption are bearish for propane MLPs. The EIA expects households heating with propane in the Midwest and Northeast to consume 9% and 11% less propane, respectively.
The EV-EBITDA ratios for Ferrellgas Partners (FGP), AmeriGas Partners (APU), Suburban Propane Partners (SPH), and Star Gas Partners (AGU) are 16.1x, 10.5x, 8.8x, and 3.2x, respectively.
Suburban Propane Partners’ historical yields averaged near 8.8% over the last four years. It’s trading at a significantly higher yield compared to its historical average.
Ferrellgas Partners’ (FGP) growth capital expenditure for fiscal 2015, which ended July 31, 2015, increased 53% compared to its fiscal 2014 expenditures.
One of the primary reasons for Ferrellgas Partners’ high leverage level is its high capital expenditure. Its growth capital expenditure for fiscal 2015 ended July 31, 2015, increased 53%.
Suburban Propane Partners’ (SPH) adjusted EBITDA grew 48% to $6.7 million in the quarter ended September 26, 2015. This compares to $4.5 million in the year-ago quarter.
Propane demand for home heating purpose is directly affected by the severity of the winter. In any given region, colder-than-normal temperatures in the winter season tend to result in greater usage.
Star Gas Partners’ (SGU) year-to-date total returns exceeded those of the three largest MLPs in the propane distribution industry—AmeriGas Partners, Ferrellgas Partners, and Suburban Propane Partners.
During the week ending November 25, 2015, the US offshore rig count didn’t change compared to the previous week’s total. It stayed at 30 rigs.
During the week ending November 25, 2015, the US onshore rig count fell by 13. In the week ending November 25, there were 714 land-based, or onshore, rigs.
According to Baker Hughes, the US horizontal rig count fell by 12 in the week ending November 25, 2015—compared to the count in the week ending November 20.
As of November 25, 2015, there were 555 working oil rigs in the US. The Permian Basin accounts for 214 of these rigs—more than any other region.
During the week ending November 25, the Permian Shale lost five crude oil rigs. The Eagle Ford, Williston, and DJ-Niobrara shales each lost one rig.
In the week ending November 25, there were 189 operating US natural gas rigs. Since the beginning of 2015, the natural gas rigs fell by 139 as of November 25.
Baker Hughes (BHI) reported that the weekly US crude oil rig count fell by nine rigs—from 564 to 555—in the week ending November 25.
According to Baker Hughes (BHI), in the week ending November 25, the total US rig count lost nine crude oil rigs, while the natural gas rig count fell by four.
The four-week average fall in the US rig count was at eight for the week ending November 25. Four-week averages offer a broader view of the rig counts.
After the FOMC’s meeting on October 28, the probability of a rate hike in December grew. Midstream companies’ stock fell by 7% as of November 24.
Oil and gas pipeline firms are struggling to cross their respective 100-day moving averages. Moving averages are used to confirm an existing trend.