More From Kurt Gallon
An Overview of Genesis Energy’s Offshore Pipeline Segment
Until recently, Genesis Energy’s Offshore Pipeline segment owned interest in ~1200 miles of offshore pipelines spread across five pipeline systems.
Why Sunoco Logistics Has the Lowest Profit Margins
Sunoco Logistics has the lowest profit margin and ROE among its peers. Its profit margin and ROE of 1.6% and 1.7%, respectively, are well below the group average.
Genesis Energy’s Segment Margin Breakdown by Segment
A segment margin breakdown of Genesis Energy’s Onshore Transport, Offshore Transport, Marine Transport, Refinery Services, and Supply and Logistics segments.
4 Methods of Investing in MLPs
There are four methods of investing in MLPs. The MLP funds’ market cap reached $54 billion as of April 30, 2014. The number of MLP-focused funds reached 49.
Chesapeake Bankruptcy Rumors Take a Toll on Williams Companies
Chesapeake Energy (CHK) opened 50% lower in yesterday’s early trading on the rumor that the company is working with advisors to pursue bankruptcy.
MLPs: How They Operate in the Midstream Energy Industry
Most MLPs operate in the midstream energy industry. They’re mainly involved in gathering, processing, storing, and transporting energy commodities.
Top MLP Gainers in the Week Ending April 6
Sanchez Midstream Partners was the top MLP gainer in the week ending April 6, 2018. Sanchez Midstream Partners rallied 16.4%.
Why Sunoco Logistics Remains Bullish on Natural Gas Liquids
Sunoco Logistics Partners (SXL) Mariner NGL (natural gas liquids) systems have not performed according to expectations in recent quarters.
Why Chesapeake Energy’s Correlation with Crude Oil Has Increased
The three-month correlation between Chesapeake Energy (CHK) and crude oil was 0.53 as of August 27.
Hurricane Harvey Impacted Energy MLPs
Hurricane Harvey hit the US Gulf Coast last week. The US Gulf Coast is a major destination for US refineries and energy infrastructure.
Why Western Gas’s Strong Balance Sheet Position Is a Major Plus
Western Gas’s outstanding debt Western Gas Partners (WES) ended 2Q17 with a total outstanding debt of $3.2 billion, which was 5.2% higher than its debt at the end of 2016. The slight increase in the partnership’s outstanding debt could be attributed to a recent increase in capital spending and acquisitions. How Western Gas’s debt compares Western Gas […]
What Do Wall Street Analysts Say About ETP in 2015?
About 57% of analysts rate Energy Transfer Partners as “buy,” and ~43% rate it as “hold.”
What Does Energy Transfer Equity’s Current Valuation Suggest?
Energy Transfer Equity (ETE) was trading at a price-to-distributable cash flow of 17.9x as of December 22, 2017, which is slightly below the last ten-quarter average of 18.0x.
When Will Energy Transfer Partners Resume Distribution Growth?
Energy Transfer Partners (ETP) declared a distribution of $1.06 per unit in 2Q16. This represented a 1.9% YoY rise compared to 2Q15.
What WMB’s Current Valuation Tells Us
Williams Companies (WMB) was trading at an EV-to- EBITDA multiple of 11.0x on November 15, 2017.
Why Buckeye Partners Is Outperforming Its Peers in 2017
In this series, we’ll do a comparative analysis of four MLPs that provide crude oil and refined products transportation and terminaling services.
Analysts’ Ratings: APC Wins the Most ‘Buy’ Recommendations
Among the four upstream companies we’re looking at in this series, Anadarko Petroleum (APC) has received the most “buy” (82.9%) recommendations from analysts covering the stock.
What Boardwalk Pipeline’s Valuation Indicates ahead of 3Q Results
Boardwalk Pipeline Partners has risen 30.3% since the beginning of 2016. At the same time, the Alerian MLP ETF has risen 4.0%.
How BPL Could Continue to Cover Its Distribution in 4Q16
Buckeye Partners (BPL) is expected to grow its distribution at the fixed rate of $0.0125 per unit in 4Q16.
Marathon Oil Has Risen ~27% in 2018
Marathon Oil (MRO) has seen a strong rally in the past month. The company has risen ~15% from its lows of $19 in August.
Energy Transfer Equity’s 7% Distribution Yield Looks Attractive
Energy Transfer Equity (ETE) was trading at a distribution yield of 6.9% as of July 11. Recently, Energy Transfer Equity’s stock price increased.
Why Treasury, MLP Yield Spread Fell Last Week
Generally, MLP yields move in the same direction as Treasury yields in the long term. MLP yields trade at a spread over Treasuries.
Wall Street Analyst Ratings: TRGP’s ‘Buys’ and OKE ‘Holds’
Targa Resources (TRGP) has the most “buy” among the four peers we’re analyzing in this series.
Why EQT Midstream Trades at a Premium to Its Peers
EQT Midstream (EQM) is the second-largest company according to EV (enterprise value) in the peer group described in this part.
10-Year Treasury-MLP Yield Spread Rose: Here’s Why
The Alerian MLP ETF (AMLP) was trading at a yield of 8.9% at the end of the week ending July 1, 2016.
Cheniere Energy’s Shares Look Strong
Currently, Cheniere Energy is trading 3.4% above its 50-day simple moving average and 13.2% above its 200-day simple moving average.
Legacy Reserves Has Announced a $300 Million Term Loan
Legacy Reserves’ (LGCY) shares rallied 27.2% on Wednesday, following its announcement that it has executed a second lien term loan credit agreement with GSO Capital Partners.
What Does NuStar Energy’s Current Valuation Say?
NuStar Energy’s undervaluation relative to its own historical valuation might indicate a buying opportunity.
Pipeline Segment Will Drive NuStar Energy’s 4Q15 Performance
The pipeline segment is NuStar’s largest business segment in terms of the EBITDA. It accounted for 50% of the total segment EBITDA in the first nine months of 2015.
ETP Beat Analysts’ Estimate, Posted 28.2% Earnings Growth
Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) announced their second-quarter earnings on August 8 after the market closed.
What Analysts Recommend for EnLink Midstream after 3Q16 Earnings
At a broader level, 52.9% of analysts rate EnLink Midstream Partners (ENLK) a “hold,” 41.2% rate it a “buy,” and the remaining 5.9% rate it a “sell.”
EnLink Midstream’s Leverage Situation: Key Analysis
EnLink Midstream Partners (ENLK) ended 2Q16 with total outstanding debt of $3.3 billion, which is 8.4% higher than the debt outstanding by the end of 2015.
These Were the Top-Performing MLPs in April 2017
Sunoco (SUN), an MLP involved in wholesale and retail distribution and marketing of refined products, was the top gainer among MLPs in April 2017.
Will Energy Transfer Equity Build on Last Week’s Gains This Week?
Energy Transfer Equity (ETE) recently went below its 50-day simple moving average driven by the decline in the last two trading sessions of last week.
Is Williams Companies a ‘Buy’ at Current Price Levels?
Williams Companies’ forward EV-to-EBITDA multiple was 11.7x as of July 18, 2017—below the historical five-year average of 13.2x.
The WTI-Brent Spread Narrowed in the Week Ending July 29
NYMEX (New York Mercantile Exchange) near-month WTI (West Texas Intermediate) crude oil (USO) futures prices fell by 5.9% in the week ending July 29, 2016.
Why Short Interest in ETE Could Mean Bearish Sentiment
Short interest in Energy Transfer Equity (ETE) as percentage of its float ratio has risen to 7.4%.
Why Kinder Morgan’s 2Q15 Earnings per Share Estimate Is Low Again
Kinder Morgan (KMI) beat analysts’ 1Q15 earnings per share estimate, but Wall Street lowered its 2Q15 estimate to $0.191 compared to $0.216 in 1Q15. That’s a decrease of 11.6%.
How Does DCP Midstream’s Leverage Situation Look?
DCP Midstream Partners (DPM) ended 2Q16 with a total outstanding debt of $2.4 billion, which is 1.9% lower than its debt in the previous quarter.
What Drove Andeavor Logistics’ Strong Earnings Growth in 1Q18?
Andeavor Logistics (ANDX), a midstream MLP subsidiary of Andeavor (ANDV), reported adjusted EBITDA of $273 million in 1Q18.
How Last Week’s Rise in Ethane Prices Affected MLPs
Mont Belvieu ethane prices rose 4.4% to $0.21 per gallon in the week ending June 3, 2016.
WMB’s Trading below Historical Levels: Reading the Clues
Williams Companies’ current EV-to-adjusted-EBITDA is below the past-eight-quarter average of 14.8x.
Inside ENLK’s Implied Volatility before the 3Q16 Earnings
ENLK’s current implied volatility is 40.2%—3.3% higher than its 15-day average of 38.9% but much lower than the 100.0% it reached at the beginning of 2016.
How Has NuStar Energy’s Stock Performed So Far in 2016?
NuStar Energy (NS) has gained 25.9% YTD (year-to-date) despite touching multiyear lows in the beginning of 2016.
Antero Midstream’s Commodity Price Exposure: Key for Investors
The earnings of midstream companies, including small ones such as Antero Midstream Partners, are believed to not have much direct commodity price exposure.
What Analysts Recommend for Summit Midstream Partners
50.0% of analysts rate Summit Midstream a “buy,” 40.0% rate it a “hold,” and the remaining 10.0% rate it a “sell.”
What to Look for in Boardwalk Pipeline’s 4Q16 Earnings
Boardwalk Pipeline’s net-debt-to-adjusted EBITDA multiple stood at 4.5x at the end of 3Q16.
How Dividend Increase Could Affect Williams Companies Stock
Williams Companies (WMB) opened ~2% higher on Tuesday, February 21, 2017, after it announced a 50% increase in dividends from $0.20 per share to $0.30 per share.
How Energy Transfer Equity Could Trade in the Next 7 Days
Energy Transfer Equity’s implied volatility Energy Transfer Equity’s (ETE) 30-day implied volatility was 29.6% on March 9, 2018, significantly lower than its 15-day average of 32.3%. At the same time, peers Kinder Morgan (KMI) and Williams Companies (WMB) had implied volatility of 21.0% and 20.5%, respectively, and the Alerian MLP ETF (AMLP) had implied volatility of 21.3%. […]
Boardwalk Pipeline’s 1Q16 Earnings: What Do Analysts Expect?
Boardwalk Pipeline’s 1Q16 earnings release is scheduled for May 2. Wall Street analysts’ consensus 1Q16 EBITDA estimate for Boardwalk Pipeline is $215 million.
Inside the MLP Yield Spread and 10-Year Treasury Yields: Key Investor Data
The Alerian MLP ETF was trading at a yield of 11.4% at the end of the week ending March 25, 2016. The yield rose from 10.7% at the end of the previous week.
How Rice Midstream’s Stock Has Performed So Far in 2016
Rice Midstream Partners, Rice Energy’s natural gas and water service, has gained 45.6% YTD, despite touching multiyear lows early in 2016.
Why Cheniere Energy Is Weak ahead of 2Q17 Earnings
Cheniere Energy (LNG) had a weak month in July. It fell a huge 7.2%, and the weakness continues in August.
What Dragged Down MLPs Last Week?
MLP sluggishness continued last week. The Alerian MLP Index, which tracks the performance of 50 energy infrastructure MLPs, ended the week 4.4% lower.
Spectra Energy Partners Rallies Due to a Rise in 3Q15 Distribution
Spectra Energy Partners declared a distribution per unit of $0.62 in a press release published on October 19. This is a 1.3% rise compared to 2Q15.
What Cheniere’s Indicators Suggest ahead of Its 1Q18 Results
Cheniere Energy (LNG) recently crossed above its short-term 50-day moving average, indicating bullish sentiments in the stock.
Ethane Prices Continue to Rally: How It Impacted MLPs
Ethane prices rallied for the second consecutive week ending April 15. Mont Belvieu ethane prices rose 11.3% to $0.20 per gallon in the same week.
Where Williams Companies Could Trade in the Next 7 Days
Williams Companies is expected to trade at $29.18–$30.78 in the next seven days based on its closing price of $29.98 on September 27.
WTI-Brent Spread Widened Last Week: Which Rose More?
NYMEX near-month WTI (West Texas Intermediate) crude oil futures prices rose 2.8% in the week ending July 1, 2016.
Which MLPs Rose More than 6% Last Week?
Seadrill Partners (SDLP), the MLP involved mainly in offshore drilling, continued to be among the top MLP gainers for the second consecutive week.
Top E&P Gainers for the Week That Ended on August 24
California Resources (CRC) was the top E&P (exploration and production) gainer in the week that ended on August 24, with a week-over-week rise of 22.2%.
Cheniere Energy Partners: Fourth among MLPs for Earnings Growth
Cheniere Energy Partners (CQP), the MLP subsidiary of Cheniere Energy (LNG), has experienced huge earnings growth in recent quarters.
Where Does Sunoco Logistics Stand Compared to Its Peers?
Sunoco Logistics (SXL) has the lowest operating margin of 5.4% among the selected peer group. This is because SXL’s crude oil acquisition and marketing business has very thin operating margins.
How Changing Energy Demand Impacts MLPs’ Throughput Volumes
US natural gas demand is expected to rise in the coming years, driven by increased consumption by power utilities, industries, and liquefied natural gas exports.
Energy Transfer Partners’ Key Segments to Watch in 1Q15
The Liquids Transportation and Storage segment was Energy Transfer Partners’ best performing segment in the last quarter.
ETE and ETP: What Do Analysts Recommend Post-1Q16?
In this article, we’ll look analyst ratings for Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) after the release of their 1Q16 data.
How Falling D&C Costs in Marcellus Affect RMP, AM, EQM, and CNNX
The D&C (drilling and completion) costs for the Marcellus Shale and the Utica Shale have declined in recent years.
Can Enbridge Energy Partners Gain Upward Momentum from Here?
Enbridge Energy Partners (EEP) came close to its short-term 50-day SMA (simple moving average) during last week’s gain.
What Does EQT Midstream Partners’ Current Valuation Indicate?
EQT Midstream Partners (EQM) is trading at a significant discount to its historical levels, driven by the recent weakness.
A Look into EQT Midstream Partners’ 2017 Capex Plans
EQT Midstream’s 2017 capex guidance In this article, we’ll look at EQT Midstream Partners’ (EQM) capex plans for 2017. The partnership expects to spend between $500 million and $850 million on growth projects in 2017. The midpoint of its 2017 capex guidance is slightly higher than the current forecast for 2016. EQM’s capital expenditure is […]
Memorial Production Partners: Top Upstream Gainer on September 17
The top upstream MLP gainers include Memorial Production Partners (MEMP), Eagle Rock Energy Partners, Mid-Con Energy Partners, and Legacy Reserves.
Why Watch Kinder Morgan’s Commodity Price Exposure in 2Q15?
Kinder Morgan operates like a toll road or fee-based business with limited commodity price exposure. About 85% of KMI’s 2015 budgeted EBDA is fee-based, and 94% is fee-based or hedged.
What Does Buckeye Partners Valuation Indicate?
Buckeye Partners was trading at a price-to-distributable cash flow of 11.1x as of January 31, which is below the average of 13.8x in the last ten quarters.
Why Sunoco Logistics Revised Its 2015 Capital Expenditure Targets
Sunoco Logistics (SXL) will share the proportionate capital expenditure in the Bakken Pipeline project. This led SXL to revise its capital expenditure for 2015.
Should You Include EQT Midstream Partners in Your Portfolio?
Here, we’ll look at what Wall Street analysts recommend for EQT Midstream Partners (EQM). Around 90.9% of analysts rate EQT Midstream a “buy.”
Analyst Ratings for NuStar Energy
The median broker target price of $44 for NuStar Energy implies a ~36.0% price return in the next 12 months from its February 3, 2016, closing price of $33.50.
Expansion Projects Might Drive Sunoco Logistics’ 4Q15 EBITDA
Wall Street analysts’ 4Q15 consensus EBITDA estimate for SXL is ~$305.8 million. Sunoco’s 4Q15 estimate is 29% more than the reported 4Q14 adjusted EBITDA.
Targa Resources Partners: Top Midstream Loser on July 30
Targa Resources Partners (NGLS) was the top loser among midstream MLPs at the end of trading on Thursday, July 30. It fell 4.13% yesterday.
How Buckeye Partners Plans to Finance the VTTI Acquisition
Buckeye Partners’ public offering Buckeye Partners (BPL) plans to finance its VTTI deal with an equity offering. In a press release published on October 24, the partnership announced a public offering of 7.8 million common units. The offering units are priced at $66.05 per unit. BPL’s share closed at $70.60 on the day of the […]
What Analysts Recommend for DCP Midstream Ahead of 2Q16 Results
In this article, we’ll look at what Wall Street analysts recommend for DCP Midstream Partners (DPM).
What WES’s Technical Indicators Suggest ahead of 2Q17 Earnings
Western Gas Partners (WES) rose above its 50-day moving average as a result of its recent rally, which might indicate a bullish sentiment in the stock.
What Do Analysts Recommend for NGL Energy?
~50% of analysts rate NGL Energy a “hold,” ~40% rate it a “buy,” and the remaining ~10% rate it a “sell.”
What to Notice in ETE’s and ETP’s 4Q17 Results
ETP ended 3Q17 with total outstanding debt of $34.3 billion, which represents a 4.3% increase compared to its total debt by the end of 2016.
Distribution Yield Might Fall for MarkWest Unitholders
Currently, MarkWest Energy and MPLX trade at distribution yields of 5.33% and 2.95%, respectively—compared to pre-merger announcement yields.
What COP’s, EOG’s, OXY’s, and APC’s Current Valuation Indicates
Anadarko Petroleum (APC) has the lowest forward price-to-CFFO multiple among the selected peers, of 4.9x, which is below its historical average of 7.6x.
After Energy Transfer Equity’s Rally, What’s Next?
Energy Transfer Equity (ETE) recovered slightly last week, after a major crash one week previously, rising 5.5% by Friday, May 12.
Are Institutional Investors Bullish on Williams Partners?
The number of institutional holders in Williams Partners (WPZ), the midstream MLP subsidiary of Williams Companies (WMB), increased to 355 by the end of the fourth quarter compared to 340 in the previous quarter.
Why High Leverage Is No Longer a Concern for Crestwood Equity
Crestwood Equity Partners (CEQP) ended 2Q16 with total outstanding debt of $3.7 billion, 20.7% lower than its total debt outstanding at the end of 2015.
MLPs Continue to Slip after Weak April 2017
MLPs saw a huge decline in prices during the first week of May driven by the sharp decline in crude oil prices.
Evaluating MLPs Performance – Distribution Growth and DCF
Distribution growth is the cornerstone of MLP investing because it provides a hedge against inflation. Its preserves the investment’s purchasing power.
Analysts’ Recommendations for EQT Midstream Partners
The median target price of $95 for EQT Midstream implies a 26.1% price return in the next 12 months from its June 24, 2016, closing price of $75.4.
Key for Investors: The Fractionation Spread Rose Last Week
The Henry Hub–Mont Belvieu fractionation spread rose to $13.0 per barrel in the week ending May 13, 2016. The spread was $12.4 per barrel in the previous week.
Energy Transfer Partners Missed 3Q15 Revenue and EBITDA Estimates
After a 16.8% beat in 2Q15, Energy Transfer Partners missed analysts’ consensus 3Q15 estimate for its revenue by a huge margin of 35.1%.
Why Williams Companies’ Valuation Has Been on the Rise
Williams Companies’ forward EV-EBITDA multiple, which is based on the current fiscal quarter’s EBITDA estimates, is 13.1x.
Anadarko Petroleum Ranks Seventh in Terms of Cash Flow Growth
In this article, we’ll look into the cash flow growth expectations of Anadarko Petroleum (APC).
What Are Analysts’ Thoughts on Vanguard Natural Resources?
Considering its high leverage and unhedged volumes, Vanguard Natural Resources’ short-term outlook seems bleak.
What to Expect from Energy Transfer Partners in Q2 2018
The Crude Oil Transportation and Services segment was Energy Transfer Partners’ (ETP) top performing segment in the first quarter.
WTI Spreads Widened Last Week: Does It Impact MLPs?
The WTI Cushing-WTI Midland spread widened in the week ending June 15—compared to the previous week.
What Does Buckeye Partners’ Current Valuation Indicate?
Until now, we’ve analyzed Buckeye Partners’ (BPL) operating performance, leverage position, and cash flow measures.
What Analysts Expect of ETP, ETE, and SXL after Their Q2 Earnings
In this article, we’ll look at what Wall Street analysts recommend for Energy Transfer Group’s three major MLPs after their 2Q16 earnings announcements.