So far in 2017, most MLPs are trading in negative territory despite strong crude oil prices. The Alerian MLP ETF (AMLP), which comprises 25 energy MLPs, has lost 16.3% year-to-date.
VNOM, the MLP subsidiary of Diamondback Energy (FANG), has the highest EBITDA margin among all MLPs today.
In this series, we’ll assess the performances of the MLPs with the highest EBITDA (earnings before interest, tax, depreciation, and amortization) margins.
Valero Energy Partners, the midstream MLP owned by one of US largest refiners, Valero Energy, ranks tenth place in terms of EBITDA margin among top MLPs.
GasLog Partners (GLOP), which owns, acquires, and operates LNG carriers, comes in ninth place in terms of EBITDA margin among top MLPs.
Höegh LNG Partners, which provides floating LNG services, comes in 8th place in terms of EBITDA margin among the top MLPs (master limited partnerships).
Rice Midstream Partners, which is now owned by EQT Corporation, ranks 7th in terms of its EBITDA margin among the top MLPs (master limited partnerships).
TC PipeLines comes in sixth place among the top MLPs (master limited partnerships) in terms of EBITDA margin.
KNOT Offshore Partners, a Marine Transportation MLP involved in shuttle tankers business, ranks fifth among the MLPs with the best EBITDA margins.
EQT Midstream Partners (EQM), the midstream MLP (master limited partnership) owned by EQT Corporation, has the fourth-best EBITDA margin among MLPs today.
Dorchester Minerals, a mineral interest MLP (master limited partnership), has the third-best EBITDA margin among MLPs today.
Golar LNG Partners—an MLP primarily involved in LNG shipping, floating LNG liquefaction, and floating LNG regasification—has the second-best EBITDA margin.
In response to the energy commodities demand and supply dynamics, most energy MLPs have reduced their spending on growth projects over the last few years.
In this part, we’ll see which of the top MLP stocks institutional investors are buying.
The short interest as a percentage of float in Energy Transfer Partners (ETP) stock is 1.8%, lower than 2.3% at the end of October 2017.
Magellan Midstream Partners has the highest EV-to-EBITDA ratio among the MLPs under consideration.
With all of the top four MLPs in the red so far in 2017, investors are wondering how they will perform in 2018.
Energy Transfer Partners’ DCF rose 27.5% YoY to $1,049 million in 3Q17 compared to $823 million in 3Q16.
Energy Transfer Partners increased its third quarter 2017 distributions by 2.7% compared to the previous quarter, the most out of the four MLPs.
Based on annualized adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the latest quarter, Energy Transfer Partners (ETP) had a net debt-to-EBITDA ratio of ~6x as of September 30, 2017.