Enterprise Products Partners plans to spend ~$2.7 billion–$3.0 billion in growth capital projects and nearly $250 million in maintenance capital in 2017. That’s flat compared to its 2016 capex.
A recovery in commodity prices contributed to positive year-over-year revenue growth for all four companies in 1Q17.
Kinder Morgan’s EBITDA fell 5% year-over-year in 1Q17.
This series analyzes the earnings and financial profiles of the four midstream giants: Enterprise Products Partners (EPD), Energy Transfer Equity (ETE), Kinder Morgan (KMI), and Williams Companies (WMB). All four companies are down so far in 2017.
Short interest in ETE as a percentage of float has now risen to 7.9%—higher than its past one-year and three-year averages of 6.0% and 5.1%, respectively.
At a broader level, 65.0% of analysts rate ETE as a “buy,” while the remaining 35.0% rate it as a “hold.”
ETE has fallen below its 50-day simple moving average, driven by its decline last week (ended May 19). The stock is now trading 0.2% below its 50-day SMA.
ETE is currently trading at a price-to-distributable cash flow of 18.8x, which is higher than the company’s ten-quarter average of 17.9x.
Energy Transfer Equity (ETE) fell 2.0% last week (ended May 19), while the Alerian MLP ETF (AMLP), which consists of 25 energy MLPs, fell 0.8%.
Enterprise Products Partners’ short interest is ~23.4 million shares, while the average daily trading volume is ~4.6 million shares.
Currently, Enterprise Products Partners (EPD) is trading 0.3% above its 200-day moving average and 0.8% below its 50-day moving average.
Enterprise Products Partners (EPD) stock had an implied volatility of 15.8% as of May 19, 2017, lower than its 15-day average implied volatility of 16.5%.
Enterprise Products Partners (EPD) was up just 0.1% in the week ended May 19, 2017.
US Treasuries (SCHO) rallied all through the previous week supported by heavy safe-haven inflows into US bonds.
For Kinder Morgan, the short interest is ~19.7 million shares, while the average daily trading volume over the last 30 days is ~11.3 million shares.
Kinder Morgan (KMI) stock had an implied volatility of 21.8% as of May 19, 2017—higher than its 15-day average implied volatility of 21.2%.
Of the analysts surveyed by Reuters, ~70% rated Kinder Morgan as a “buy,” ~30% rated it as a “hold,” and none of the surveyed analysts rated it as a “sell.”
Kinder Morgan fell 2% for the week ending May 19. It fell 1.4% in the previous week ending May 12, 2017. Kinder Morgan fell for the third straight week.
The mean broker target price of $30.9 for Energy Transfer Partners implies a 34.9% price return in the next 12 months from its current price level of $22.9.
After the merger, Energy Transfer Partners’ (ETP) correlation with crude oil and natural gas rose compared to legacy Sunoco Logistics Partners.