Kurt Gallon

MLPs had a strong start to the new year. The Alerian MLP Index rose 5% in the first week of 2018.

Cheniere Energy (LNG) has risen 9.7% in the last six trading sessions. It rose 12.1% in December 2017 alone.

MLPs were strong in the week ending December 15, 2017. The Alerian MLP Index (^AMZ) had a strong start last week although it fell slightly on Friday.

Most MLPs (master limited partnerships) closed the week ended December 1 in the red, after seeing some gains earlier in the week.

In this series, we’ll assess the performances of the MLPs with the highest EBITDA (earnings before interest, tax, depreciation, and amortization) margins.

Dorchester Minerals, a mineral interest MLP (master limited partnership), has the third-best EBITDA margin among MLPs today.

MLPs (master limited partnerships) recovered slightly last week (ended December 1, 2017), after three weeks of sluggishness.

In this article, we’ll look into the commodity price exposure of the MLP at the seventh spot, Enterprise Products Partners (EPD).

Boardwalk Pipeline Partners (BWP), a midstream MLP mainly involved in natural gas and NGLs transportation and storage, ranks second among MLPs in terms of correlation with natural gas.

Dorchester Minerals (DMLP), a royalty interest owner MLP, is in third place in terms of its correlation with natural gas.

Despite strong crude oil, MLPs’ sluggishness continued last week. The Alerian MLP Index (^AMZ) saw a new 52-week low of $256.7 last week.

EnLink Midstream LLC (ENLC), the GP (general partner) of EnLink Midstream Partners (ENLK), was raised by UBS to a “buy.”

CVR Partners (UAN), the MLP mainly involved in the production of nitrogen fertilizers, was the top MLP gainer last week. CVR Partners rose 7.7%.

Sanchez Production Partners (SNMP), the midstream MLP involved mainly in natural gas gathering, compression, and processing, was the biggest MLP loser last week.

Antero Midstream Partners (AM) expects its business mix to evolve from current gathering and compression activities to the inclusion of natural gas processing and fractionation activities over the coming years.

MLP funds’ capital inflow has recovered slightly in recent quarters compared to the second half of 2015.

Crestwood Equity Partners (CEQP) reported its 4Q16 earnings on February 21, 2017. Its 4Q16 adjusted EBITDA increased to $125.6 million from $118.9 million in 4Q15, a year-over-year increase of 5.6%.

Western Gas Partners’ (WES) growth capital spending started to decline at the beginning of the rout in energy prices.

MLP funds’ capital inflow recovered slightly in 2016 compared to their levels during the second half of 2015.

MLP funds’ capital inflows have recovered slightly in 2016 compared to 2H15. However, their overall capital inflow is still lower than their seven-year average.

Liquids pipelines and terminaling MLPs, as the name suggests, are involved in crude oil, refined product, and NGLs (natural gas liquids) transportation and storage.

MLPs generally have an LP-GP (limited partner and general partner) model structure in which the LP is a publicly traded entity and owns the majority of the operating assets.

In this article, we’ll look at types of MLP contracts for midstream MLPs. Midstream MLPs generally have fixed-fee contracts.

The number of MLPs has risen from a mere 32 in 2003 to 117 as of November 2016. 83% of total MLPs are energy and natural resources–related.

MLP funds’ capital inflows have recovered in 2016 from levels in 2H15. But overall capital inflows are lower than the seven-year average of $2.8 billion.

ONEOK (OKE) reported its 3Q16 results on November 1, 2016, after the market closed. Its 3Q16 analyst-adjusted earnings before interest, tax, depreciation, and amortization rose 14.4% from 3Q15.

Cheniere Energy (LNG) is looking to simplify its organizational structure by acquiring its remaining stake in Cheniere Energy Partners LP Holdings (CQH).

NuStar Energy is expected to release its 1Q16 earnings on April 27. Wall Street analysts’ 1Q16 consensus EBITDA estimate for NuStar Energy is $144.3 million.

Kinder Morgan (KMI) is the largest company in the peer group by enterprise value (or EV).

JP Energy Partners (JPEP) was the top loser among midstream MLPs at the end of trading on September 2, falling 8.08%. JPEP stock has been on a roller coaster ride for the past few days.

Breitburn Energy completed a few acquisitions in late 2014 to boost its total production. In November 2014, the partnership completed its merger with QR Energy.

According to Wall Street analysts’ consensus outlook, Kinder Morgan’s (KMI) dividend is expected to grow by ~15.3% year-over-year by the end of 2015.

In a press release published on July 13, 2015, MarkWest Energy Partners (MWE) and MPLX LP (MPLX) announced that the two MLPs have agreed to merge.

Considering the rock solid performance of ETP during the slump in energy prices, it is clear that ETP has more fee-based contracts.

Energy Transfer Partners (ETP) is one of the largest publicly traded master limited partnerships in the US in terms of equity market capitalization.

IDRs entitle the GP to receive a higher percentage of incremental cash distributions after certain target distribution levels have been achieved for the LP unitholders.

MLPs’ tax structure is the major difference that separates them from C Corps. MLPs’ earnings aren’t taxed at the partnership level. The taxes are passed to the unitholders.

MLPs’ valuations are different from other stocks. To value MLPs, the widely used PE ratio isn’t as useful as the PDCF ratio.

MLPs are engaged in the production, transportation, storage, and processing of natural resources like oil, natural gas, and NGLs. They’re public companies.