Colder-than-normal temperatures caused strong propane demand over this winter heating season and caused propane prices to spike at points.
On the week of April 18, natural gas spot prices traded 2% lower, finishing at $4.50 per MMBtu compared to $4.59 per MMBtu the previous week.
Weather conditions have a significant impact on demand for propane, as the volume of propane used is affected by the severity of the winter weather, which may vary substantially.
Propane is typically extracted from natural gas or separated during crude oil refining. Residential and commercial customers use propane primarily for heating and cooking purposes.
Prior to the Heritage deal, APU had an average EBITDA in the range of $340 million. For fiscal 2013 (ended September 30), the company delivered an EBITDA of $628 million.
AmeriGas Partners LP (APU) is a master limited partnership and the nation’s largest retail propane marketer, serving customers in all 50 states from approximately 2,500 distribution locations.
Kinder Morgan expects to increase cash distributions per unit by 5% 2013 level. The company also expects to exceed its distributable cash flow per unit target.
Kinder Morgan operates a vast, diversified portfolio mainly consisting of fee-based energy assets across North America that have traditionally generated considerable cash flow in almost all types of market conditions.
Kinder Morgan has positioned its growth portfolio to capitalize on drilling hotspots and major discoveries like Marcellus and Utica Shale and a trans-Canada pipeline that will become revenue earners over the next five years.
Subject to appropriate board approvals, Kinder Morgan expects to drop down its 50% interest in Ruby Pipeline, its 50% interest in Gulf LNG, and its 47.5% interest in Young Gas Storage to El Paso during 2014.
Kinder Morgan’s business model is primarily based on volume increase. It has experienced higher throughput over the years in almost all segments of operation.
On April 16, 2014, Kinder Morgan Energy Partners, L.P. increased its quarterly cash distribution per common unit to $1.38 ($5.52 annualized)
In 2013, Tesoro Logistics (TLLP) spent $65 million in growth capex and $7 million in maintenance capex. TLLP has given guidance for growth capital expenditures of $100 million in 2014.
On April 16, 2014, El Paso declared its results for the first quarter of 2014. EPB announced its quarterly cash distribution per common unit of $0.65 ($2.60 annualized) payable on May 15, 2014, to unitholders.
The Yorkville High Income Infrastructure MLP ETF (YMLI) tracks the Solactive High Income Infrastructure MLP.
Kinder Morgan’s revenues increased by 5.2% in 1Q14 to $3.6 billion compared to $3.4 billion recorded in 4Q13.
TLLP recently announced its financial results for 4Q13 and full-year 2013. Adjusted EBITDA for FY2013 was $129 million, up 66% compared to fiscal year 2012, but lower than the consensus estimate of $163 million.
El Paso Pipeline Partners is an MLP that owns and operates natural gas transportation pipelines, storage and other midstream assets. EPB was acquired by Kinder Morgan, Inc. for ~$38.0 billion in May 2012.
The tracking error of MLPA is 3.96%. This means the standard deviation for excess average weekly returns for the benchmark index over MLPA for the past year is 3.96.
Kinder Morgan is one of the largest independent transporters of petroleum products in the U.S., transporting about 1.9 million barrels of product per day.