Alon USA Partners LP
CVR Partners: Top MLP Loser in the Week Ending January 26
CVR Partners, the MLP involved in nitrogen fertilizer production, was the top MLP loser in the week ending January 26. The partnership fell 7.1% last week.
How Do These MLPs Look in 2018?
MLPs had a strong start to the new year. The Alerian MLP Index rose 5% in the first week of 2018.
The Top MLP Winners of 2017
The top three MLP gainers in 2017 were downstream MLPs Calumet Specialty Products Partners (CLMT), Alon USA Partners (ALDW), and CVR Refining (CVRR).
These 10 MLPs Offer a Maximum Upside from Current Levels
So far in 2017, most MLPs are trading in negative territory despite strong crude oil prices. The Alerian MLP ETF (AMLP), which comprises 25 energy MLPs, has lost 16.3% year-to-date.
Why Only 9 MLPs Ended in the Green Last Week
Alon USA Partners (ALDW), a downstream MLP involved in crude oil refining and refined products marketing, was the top MLP gainer last week.
Alon USA Partners Is the Third Top MLP Gainer This Year
Acquisition by Delek Alon USA Partners (ALDW), the MLP formed by Alon USA Energy, stands third among top MLP gainers in 2017. ALDW has risen more than 40% year-to-date. Delek US Holdings (DK) completed the acquisition of Alon USA Energy in July 2017. On November 8, 2017, Delek announced the acquisition of all outstanding Alon […]
Top MLP Gainers for Week Ended November 10
CSI Compressco (CCLP), a midstream MLP involved mainly in natural gas compression, was the biggest MLP gainer last week, which ended November 10, 2017.
Delek US Holdings to Acquire Alon USA Partners in All-Stock Deal
On November 8, 2017, Alon USA Partners (ALDW) announced a merger agreement with Delek US Holdings (DK) in which Delek will acquire all the ALDW shares it doesn’t already own.
EV Energy Partners Was the Top MLP Gainer Last Week
EV Energy Partners (EVEP), Mid-Con Energy Partners MCEP), and Legacy Reserves (LGCY) led the MLP top gainers last week ending November 3.
Last Week’s Top MLP Gainers
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%.
Can Suburban Propane Partners Grow in the Long Term?
Suburban Propane Partners (SPH) distributes propane, fuel oil, and refined fuels.
Leading MLP Losers in Week Ended September 8
USD Partners (USDP), which owns, acquires, and develops crude oil by rail terminals, was the top MLP loser last week. It fell 17.4%.
Downstream MLPs among Top MLP Gainers Last Week
US downstream MLPs, including Calumet Specialty Products Partners (CLMT), Alon USA Partners (ALDW), and CVR Refining (CVRR), were among the top five MLP gainers last week.
These MLPs Fell More Than 7% Last Week
EV Energy Partners (EVEP) was the worst-performing MLP last week. It fell a massive 20.9% during the week.
These Energy Stocks Rose the Most Last Week
Oil field services stock CARBO Ceramics (CRR) was the biggest gainer among the energy sector stocks last week.
CVR Refining Fell 15% after 2Q17 Results, Refining Margin Hit
Refining MLP CVR Refining (CVRR) reported its 2Q17 results on July 27. CVRR’s total crude oil throughput barrels per day increased to 213,841 in 2Q17 from 202,536 in 2Q16.
Why CLMT and ALDW Have Risen despite Sector Weakness
Price performance Shares of Calumet Specialty Products Partners (CLMT) and Alon USA Partners (ALDW) have risen nearly 5% year-to-date. In comparison, the Alerian MLP ETF (AMLP) has fallen 5% and the Energy Select Sector SPDR ETF (XLE), which represents the broader energy sector, has fallen 13%. CVR Refining (CVRR) has fallen 6% year-to-date. As the […]
ALDW and CLMT Are Expected to Report Higher 2Q17 Earnings
Refining MLPs Alon USA Partners (ALDW) and CVR Refining (CVRR) are both scheduled to report their 2Q17 earnings on July 27, 2017. Calumet Specialty Products Partners (CLMT) is scheduled to report its 2Q17 earnings on August 4.
ALDW, DKL, HCLP: Last Week’s Key MLP Rating Updates
On July 5, 2017, Barclays reinstated an “equal weight” rating for Alon USA Partners (ALDW).
A Look at the Top-Performing MLPs in May 2017
Alon USA Partners (ALDW), a downstream MLP involved in crude oil refining, was the best-performing MLP in May.
Which MLP Subgroups Were the Biggest Losers during May 2017?
Marine transportation MLPs fell ~13.5% during May 2017.
Why Alon USA Partners Is Back on the High Volatility List
On February 23, 2017, Alon USA Partners had the highest implied volatility among the integrated energy and refining companies under review in this series.
Will CVR Refining Pay Distributions in 2017?
Nearly 70% of analysts have rated CVR Refining (CVRR) as a “hold,” 20% rated it as a “buy,” and 10% rated CVRR as a “sell.”
What to Expect from CVR Refining’s 4Q16 Results
CVR Refining (CVRR) is scheduled to report its 4Q16 results on February 16, 2017. The refining MLP’s performance over the last few quarters had been severely hit by low crack spreads and high RIN costs.
Which MLP Stocks Were the Biggest Losers of 2016?
Memorial Production Partners (MEMP), an upstream MLP, was the top MLP loser in 2016. The partnership is set to announce bankruptcy very soon.
Why Midstream Companies Continue to Dominate the MLP Sector
The fixed-fee-based revenue generated under long-term contracts protects MLPs from volatility in commodity prices, resulting in stable cash flow.
How CLMT’s Distributions Differ from CVRR’s and ALDW’s
CVR Refining (CVRR) and Alon USA Partners (ALDW) have variable distribution policies.
How Do CVR Refining’s Operational Metrics Look?
CVR Refining’s (CVRR) Coffeyville and Wynnewood refineries saw a decline in refining margins in 3Q16 compared to the corresponding quarter last year.
Which Product Generates the Highest Margin for ALDW?
Gasoline generates the highest refining operating margin per barrel for Alon USA Partners (ALDW) followed by diesel.
Refining MLPs Surge after Trump’s Victory: Which One Looks Best?
Alon USA Partners (ALDW), CVR Refining (CVRR), and Calumet Specialty Products Partners (CLMT) have surged 17%, 22%, and 31%, respectively, since the start of November 2016.
Integrated Energy and Refiner Stocks with High Implied Volatility
As of November 8, 2016, Alon USA Partners (ALDW) had the highest implied volatility among the integrated energy and refining companies in this series.
Why These 3 MLPs Could Benefit Most from Trump’s Presidency
Donald Trump plans to reduce and eliminate barriers to US energy production. He would like to remove environmental blocks to pipeline projects such as TransCanada’s (TRP) Keystone.
Why Is the Crack Spread Fueling Volatility in Refining Stocks?
As of October 6, 2016, Calumet Specialty Products Partners had the highest implied volatility among our list of integrated energy and refining companies.
Why CVR Rose 24% and Alon USA Fell 22% on September 16
On September 16, CVR Refining (CVRR) closed 24% higher than its previous close. On the other hand, Alon USA Partners (ALDW) fell 22% the same day.
What Will Drive Calumet Specialty’s Stock after Its 2Q16 Results?
Of the analysts surveyed by Bloomberg, 73% rated Calumet Specialty Products Partners (CLMT) as a “hold” and 27% rated it as a “sell.” None of the surveyed analysts rated it as a “buy.”
Why Calumet Specialty Has Underperformed Its Peers in 2016
Refining MLPs generated positive returns in 2015 when the broader energy sector was in the red.
How a Fall in Crack Spreads Impacted Calumet Specialty
How do crack spreads impact refining MLPs? The average Gulf Coast 3-2-1 crack spread in 2Q16 was $11.30 per barrel. This is higher compared to an average of $8.90 per barrel in 1Q16 and $9.30 per barrel in 4Q15. The spread in 2Q16 was, however, lower compared to that in 2Q15. The average spread was $15.00 […]
Returns of Energy Companies with High Implied Volatility
Calumet Specialty Products Partners (CLMT) has the highest implied volatility figure among all of the integrated energy companies and refiners, as of July 28, 2016. Its stock has fallen 75.9% on a YTD (year-to-date) basis.
Integrated Energy Companies and Refiners with High Volatility
As of July 28, 2016, Calumet Specialty Products Partners (CLMT) has the highest implied volatility among integrated energy companies and refiners. Its implied volatility is 72.23%.
What Will Drive Alon USA Partners’ Stock in the Future?
Alon USA Partners (ALDW) has had a correlation of 0.16 with the Gulf Coast 3-2-1 crack spread over the last year.
What Does Alon USA Partners’ Short Interest Indicate?
Alon USA Partners’ short interest as a percentage of its float is 7.2% compared to the average of 2.6% for all Alerian MLP Index members.
Is Alon USA Partners’ Leverage a Concern for Investors?
Alon USA Partners’ net debt-to-equity ratio currently stands at 1.4x. It had total outstanding debt of $292 million at the end of 1Q16.
What Does ALDW’s Cash Available for Distribution Indicate?
Alon USA Partners’ (ALDW) capital expenditures in 1Q16 were $8.1 million compared to $2.3 million in 1Q15.
Will US Gasoline Demand Favor Alon USA Partners?
Refining MLPs such as Alon USA Partners (ALDW) and CVR Refining (CVRR) should benefit if gasoline demand remains strong.
How a Fall in the Crack Spread Impacted Alon USA Partners
The Gulf Coast 3-2-1 crack spread was $10.3 per barrel on July 11, 2016. The average spread in 2Q16 was $11.3 per barrel.
What Does Calumet’s Current Valuation Indicate?
Currently, Calumet Specialty Products Partners (CLMT) is trading at a forward distribution yield of 0%. Its five-year average distribution yield is 11.5%.
Calumet’s High Leverage: A Key Concern for Investors
Currently, Calumet Specialty Products Partners’ (CLMT) net debt-to-equity ratio stands at an alarmingly high level of 4.1x.
What Will Drive CVR Refining’s Stock Price in the Future?
CVR Refining (CVRR) had a correlation of 0.28 with the Gulf Coast 3-2-1 crack spread over the last one-year period.
What Do Institutional Investors Think about CVR Refining?
Nearly 8.7% of CVR Refining’s (CVRR) floating shares are currently held by ~120 institutional investors.
CVR Refining’s Yield Is Higher than Peer Average
CVR Refining (CVRR) trades at a forward distribution yield of ~18%. This is higher than the average 4.5% yield of its peers.
What Does CVR Refining’s Current Valuation Indicate?
CVR Refining (CVRR) is currently trading at a forward distribution yield of ~18%. This is higher than its five-year average distribution yield of 11.5%.
Why Half of Surveyed Analysts Rate CVR Refining a ‘Hold’
CVR Refining (CVRR) has generated total returns, including dividends, of -55% so far in 2016.
How a Fall in Crack Spreads Is Hurting Refining MLPs
The Gulf Coast 3-2-1 crack spread was $10.4 per barrel on June 16, 2016.
Crude Oil Futures Contracts’ Open Interest Is near Record Highs
On February 19, 2016, the CFTC released its weekly Commitment of Traders report. US crude oil futures contracts’ open interest is close to record highs.
US Crude Oil Imports Led to a Record Rise in Crude Oil Stocks
On February 18, 2016, the EIA reported that US crude oil imports rose by 0.8 MMbpd to 7.9 MMbpd for the week ending February 12, 2016.
Why Calumet Specialty Products Partners Has Fallen 38% in 2016
Calumet Specialty Products Partners (CLMT) has fallen 38% so far in 2016. It has generated total returns of -46% over the last year.
Why Is Brent-WTI Crude Oil Spread Widening in 2016?
US crude oil production has not slowed down in 2016 as expected, so prices started to fall more than expected in 2016. The Brent-WTI spread widened in February.
Gulf Coast Crude Oil Inventory Hit New Highs, Drove Storage Costs
The current Gulf Coast crude oil inventory is at 252.9 MMbbls (million barrels) for the week ending January 29, 2016. It’s the highest level since 1990.
US Crude Imports Pile Worries on Inventories
The record US crude oil imports are due to the low price of crude but also to the ties between large independent US refiners and Middle Eastern producers.
What Does the Decline in Distillate Inventories Mean?
On January 27, 2016, the EIA stated that US distillate fuel inventories fell by ~4.0 MMbbls (million barrels) to settle at 160.5 MMbbls for the week ended January 22, 2016.
Why OPEC Is Increasing Crude Oil Production
Data compiled by Bloomberg suggest that OPEC’s (Organization of the Petroleum Exporting Countries) monthly crude oil production increased by 18,000 bpd (barrels per day) to 32.1 MMbpd (million barrels per day) in December 2015.
Crack Spread Fell despite Lower Crude Oil Prices
The NYMEX front month 3:2:1 crack spread fell by 3.1% on a weekly basis. It fell from $12.82 per barrel on January 18 to $12.43 per barrel on January 25, 2016.
WTI and Brent Crude Oil Prices in 2015, Lowest since 2009
US benchmark WTI crude oil prices averaged at $49 per barrel in 2015. WTI and Brent crude oil prices closed below $40 per barrel in 2015.
Will the Gasoline and Distillate Inventory Pressure Crude Oil Prices?
The API (American Petroleum Institute) published its weekly crude oil, gasoline, and distillate inventory report on January 12, 2016.
Gasoline and Distillate Inventory Estimates Imply Market Carnage
Let’s discuss gasoline and distillate inventory estimates. Surveys estimate gasoline and distillate stocks to rise by 2 MMbbls for the week ending January 1.
Why Calumet Specialty Products Partners’ Distributions Are Flat
On October 23, 2015, Calumet Specialty Products Partners declared a quarterly distribution of $0.69 per unit.
Slowing US Crude Oil Output Could Impact US Refiners
US crude oil production fell for the eighth time in the last ten weeks. Crude oil prices rose almost 10% during the second week of October.
Seth Klarman’s Baupost Group raises its stake in PBF Energy
The Baupost Group raised its stake in PBF Energy Inc. (PBF) by 1,021,466 shares to own 1,976,606 shares at the end of the fourth quarter.
The Baupost Group ups its stake in Idenix Pharmaceuticals
Idenix Pharmaceuticals (IDIX) accounted for a 6.25% position in Baupost’s fourth quarter portfolio. The hedge fund increased its stock holdings in Idenix last month.
Seth Klarman’s Baupost Group buys stake in Kindred Biosciences
The Baupost Group opened a new position in animal health company Kindred Biosciences Inc. (KIN) that accounts for 0.92% of the fund’s $3.5 billion portfolio.
The Baupost Group buys a small position in Alon USA Partners
The Baupost Group added a small stake in Alon USA Partners LP (ALDW) that accounted for 0.16% of the fund’s total portfolio.
The Baupost Group’s 4Q13 positions: An investor’s must-know guide
Seth Klarman’s Baupost Group, LLC was ranked the fourth best-performing hedge fund manager of all time for generating $21.5 billion in returns over its history.