A Look at Key Trends in M&A Activity in the Permian
Upstream companies Occidental Petroleum (OXY), Carrizo Oil & Gas (CRZO), and Marathon Oil (MRO) all purchased Permian acreage for $600 million, $648 million, and $700 million, respectively.
ExxonMobil’s (XOM) institutional holdings currently stand at ~55%.
In this series, we’ll look at Energy Transfer Partners’ 2Q15 operating results, contrast actual numbers against analyst estimates, and compare individual segment contributions.
Energy Transfer Equity (ETE) and Sonoco Logistics (SXL), which are part of the Energy Transfer group, have “buy” ratings from 88.9% and 73.3% of analysts surveyed, respectively.
Energy Transfer Equity (ETE), which hold the incentive distribution rights in Energy Transfer Partners, is currently trading at a distribution yield of 3.69%.
ETP and its general partner, Energy Transfer Equity (ETE), announced that the latter will acquire the general partner interest and IDRs in Sunoco LP that are currently held by ETP.
Energy Transfer Partner’s Liquids Transportation and Services segment, which provides NGL transportation and fractionation services, grew by 7.1% YoY in 2Q15.
Energy Transfer Partners rose ~3% on the day after its earnings announcement. It has returned -27.11% since the beginning of the year.
At a broader level, ~50% of analysts surveyed by Bloomberg rate Williams Partners a “buy” and the remaining ~50% rate it a “hold.”
The Atlantic Gulf is Williams Partners’ (WPZ) largest business segment in terms of adjusted EBITDA. In 2Q15, it accounted for 39% of the company’s total EBITDA.
After a 20.28% miss in 1Q15, Williams Partners met its 2Q15 revenue estimates. The 2Q15 consensus estimate was ~$1.831 billion.
Williams Partners’ 2Q15 pro forma revenue rose to $1.830 billion from $1.616 billion in the second quarter of the previous year—a YoY rise of ~13.24%.
Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. UNG tracks daily movements in natural gas futures. It rose 0.44% yesterday.
Columbia Pipeline Partners (CPPL) was the top loser among midstream MLPs at the end of trading on Tuesday, August 11. It fell 5.79% yesterday.
Midcoast Energy Partners (MEP) was the top gainer among midstream MLPs at the end of trading on August 11. It rose 6.48% in a single trading session.
Top upstream MLP gainers include EV Energy Partners (EVEP), Mid-Con Energy Partners (MCEP), LRR Energy (LRE), and Linn Energy (LINE).
Cone Midstream Partners (CNNX) was the top loser among midstream MLPs at the end of trading on Monday, August 10. It fell 2.75% yesterday.
DCP Midstream Partners (DMP) was the top gainer among midstream MLPs at the end of trading on August 10. It rose 7.63% in a single trading session.
Most upstream MLP stocks fell in Friday’s trade. The biggest losers were Linn Energy, BreitBurn Energy Partners, LRR Energy, and Eagle Rock Energy Partners.
Summit Midstream Partners (SMLP) was the top loser among midstream MLPs at the end of trading on Friday, August 7. It fell 6.53% on Friday.