Alerian MLP ETF
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.
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.
Introduction to the Permian Basin — Part 2: Geography of the Permian Basin
The Permian Basin is one of the US’s primary drivers of oil production growth. Market Realist provides an overview of this prolific hydrocarbon asset with a primer piece: “Introduction to the Permian Basin”.
An investor’s guide to Spectra Energy Corp. and its earnings
Spectra Energy Corp. (SE), headquartered in Houston, Texas, owns and operates a large and diversified portfolio of natural gas–related assets in North America.
Overview: ONEOK Partners and its 3 operating segments
ONEOK Partners (OKS) is a master limited partnership (or MLP) engaged in gathering, processing, storing, and transporting natural gas and natural gas liquids (or NGLs) in the U.S.
Comparison of exchange-traded funds and exchange-traded notes
ETFs (exchange-traded funds) have stock-like characteristics, while ETNs (exchange-traded notes) possess bond-like traits.
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.
An investor’s guide to MLPX and its holdings, like Spectra Energy
The Global X MLP & Infrastructure ETF (MLPX) tracks the Solactive MLP & Energy Infrastructure Index. The index consists of midstream energy infrastructure MLPs and corporations.
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.
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.”
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.
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%.
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.
Broader Market Might Have Limited the Upside in Energy ETFs
US crude oil February futures rose 5.6% in the trailing week.
Correlations between Energy ETFs and the Broader Market’s Moves
In the seven calendar days to February 8, 2018, OIH, XOP, XLE, and AMLP fell 13.6%, 12.7%, 11.8%, and 8.2%, respectively.
What Oil’s Rising Contango Tells Traders
On May 9, 2017, June 2017 crude oil futures were trading at a discount of $2.4 to June 2018 futures contracts—the highest discount since March 22, 2017.
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.
How Institutions Played Kinder Morgan in Q4 2018
The Vanguard Group was the top institutional investor in midstream C corporation Kinder Morgan (KMI) during the fourth quarter.
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.
Why some MLPs are benefitting from increased propane exports
Significantly higher rates of propane exports have helped to boost propane prices—and the margins of some MLP names.
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.
Why Energy Transfer Partners’ enterprise value is encouraging
Energy Transfer Partners’ enterprise value more than quadrupled between 2007 and 3Q14.
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.
Outlook for Plains All American Pipeline: 4Q15 and Beyond
Plains All American Pipeline has revised its mid-point EBITDA guidance for full year 2015 to $2.2 billion, 3% below the $2.3 billion guidance it had previously provided.
Why Is Dominion Midstream Underperforming the MLP Sector in 2016?
About 64% of the analysts surveyed have rated Dominion Midstream Partners (DM) a “buy,” 27% have rated it a “hold,” and 9% of the surveyed analysts have rated DM a “sell.”
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.
Must-know: An introduction to Buckeye Partners
Buckeye Partners L.P. (BPL) is a master limited partnership operating in the midstream oil and gas industry in the United States.
Energy Transfer Stock Is at a 52-Week Low
Energy Transfer (ET) stock continues to trade weak. The stock hit a new 52-week low of $12.75 on December 18.
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.
EPD’s Crude Oil Pipeline Has Been Increasing since 2010
The operating margin of EPD’s crude oil pipeline segment has been increasing since 2010 due to increases in volume, average tariffs, and other fees.
Energy ETFs Could Be More Aligned to Equity Markets than Oil
In the trailing week, OIH rose 0.5%—the only energy ETF on our list that closed in the green. US crude oil futures rose 2.6%.
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.
Why debt is now a less attractive financing source for master limited partnerships
Master limited partnerships rely highly on external capital to fund growth Master limited partnerships or MLPs are specially structured entities that must pay out most of the cash they generate to unitholders. So MLPs rely especially on external funding sources (as opposed to internally generated cash) to execute growth projects and acquisitions. Because of this […]
Will 1Q18 Earnings Support Enterprise Products Partners Stock?
So far, Enterprise Products Partners (EPD) stock has risen ~1% in 2018. The stock has outperformed the Alerian MLP ETF (AMLP).
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 […]
How US Oil Production Impacts MLPs
Oil production in the US has increased drastically due to new technologies and the application of hydraulic fracturing and horizontal drilling.
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.
Why investors can expect synergies from the combined assets
ETP’s interest in Sunoco Logistics (SXL) gives ETE acccess to SXL’s geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets.
Why Are Oil and Equity Indexes Diverging?
Last week, the S&P Mid-Cap 400 (IVOO), the S&P 500 (SPY), and the Dow Jones Industrial Average (DIA) fell 5.2%, 4.6%, and 4.5%, respectively.
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.
Energy ETFs: What Drove Their Performances?
Among the top energy ETFs, the Energy Select Sector SPDR ETF (XLE) had the highest correlation of 70.4% with US crude oil in the trailing month to June 9, 2016.
Key for Investors: Will Propane Prices Rise?
In its “Weekly Petroleum Status Report” released on October 21, the EIA stated that residential propane prices averaged just under ~$1.90 per gallon.
Must-know: Atlas Pipeline’s first quarter earnings analysis
Atlas Pipeline Partners (APL) released its financial information for 1Q14 on May 5, 2014.
Boardwalk Pipeline Partners: 2014 guidance and 2013 results
On February 10, 2014, Boardwalk Pipeline Partners (BWP) announced 4Q13 and FY2013 results. The company reported 4Q13 adjusted EBITDA of $129.6 million.
Enterprise Products Is Expected to Increase Distributions in 2015
Enterprise Products trades at a distribution yield of ~4.9%. One of the reasons for EPD’s relatively lower distribution yield might be its distribution coverage ratio.
Is Energy Transfer a Good Bargain?
Energy Transfer looks relatively expensive compared to its peers. Energy Transfer is trading at a forward EV-to-EBITDA multiple close to 11x.
What Could Drive Energy ETFs?
Among the energy ETFs, the Energy Select Sector SPDR ETF (XLE) had the highest correlation with US oil (UCO) (USO) prices at 78.7% between May 11 and May 18, 2017.
Why price differential and rail competition challenge Bakken
Although pipelines are the cost-effective way to transport crude oil, they require huge initial investment and are often impeded by regulations from the government agencies.
What Are Analysts’ Thoughts on Vanguard Natural Resources?
Considering its high leverage and unhedged volumes, Vanguard Natural Resources’ short-term outlook seems bleak.
How will Chesapeake’s recent asset sales affect the company?
Chesapeake also is seeking strategic alternatives for its oilfield services business. The announcement of these divestitures is likely positive for Chesapeake in the long term.
Spectra Energy sees volume gains and losses
Spectra Energy’s Western Canada segment saw volume increase ~20% in 2014 over the previous year. In 4Q14, volume increased 14% over 3Q14.
Why Genesis Energy and Buckeye Partners rely on Eagle Ford and the Permian
Genesis Energy L.P. (GEL) is a master limited partnership (or MLP) that operates in the midstream segment of the oil and gas industry in the Gulf Coast region of the United States.
Why MLPs Didn’t Participate in Crude Oil’s Rally Last Week
US crude oil rose 3.2% last week and ended the week at a 28-month high of $55.6 per barrel. However, MLPs didn’t participate in crude oil’s rally.
Why Targa Resources’ segment operating margins changed in 1Q14
In 2013, the company processed an average of 780.1 million cubic feet per day of natural gas and produced an average of 91.9 thousand barrels per day of NGLs.
Cushing inventories increase for the third week in a row
Cushing, Oklahoma, is the delivery point for NYMEX crude futures contracts. It’s where a lot of supply sources of crude meet a lot of demand sources for that crude.
How Energy Transfer Stock Is Placed for the Future
After sailing through rough seas for the past few years, Energy Transfer Equity (ETE) seems to have attractive prospects going forward.
Energy Transfer Partners: Sharp Decline in Crude Oil Prices
The one-year correlation coefficient between Energy Transfer Equity and crude oil was 0.49 as of July 11.
Cushing inventories continue to trend higher
As new pipelines helped drain crude from Cushing inventories—mostly in the latter part of 2014—new pipelines also brought more crude to replenish them.
Why Was Greater Propane Demand Unable to Push Prices?
US residential propane demand is 1.5 MMbpd for the week ended December 4. This was 0.24 MMbpd more than the demand in the week ended November 27.
Should You Include Tesoro Logistics in Your Portfolio?
Of the analysts surveyed by Bloomberg, 80% rated Tesoro Logistics as a “buy,” and 20% rated it as a “hold.” No analysts rated it as a “sell.”
Key effect: How refiner activity affected Cushing inventories
Increase in crude inventories is likely the result of declining refinery input demand—which decreased by 525,000 bpd—as refineries enter seasonal maintenance to prepare for the upcoming winter.
Why Sunoco Logistics has significant plans for the Permian Basin
Sunoco Logistics Partners L.P. (SXL) is a master limited partnership (or MLP). Its Crude Oil Pipelines segment transport 4,900 miles of crude oil, primarily in Oklahoma and Texas.
A Look at Williams Companies’ Price Forecast amid Uncertainty
Williams Companies’ implied volatility Williams Companies’ (WMB) 30-day implied volatility was 22.8% as of June 14, 2017. Peers Energy Transfer Equity (ETE), ONEOK (OKE), and Kinder Morgan (KMI) had implied volatility of 32.5%, 22.6%, and 20.1%, respectively, as of June 14. In comparison, the Alerian MLP ETF (AMLP) has implied volatility of 17.5%. Williams Companies’ […]
MLPs Are Still a Top Income Investment Option
Yields for MLPs have come down in recent quarters, driven by the slight recovery of investor confidence in the energy sector.
Must-know: The BPL segments that source from liquid-rich areas
Traditionally, the Merchant Services segment provides wholesale distributor service of refined petroleum products in the U.S. and the Caribbean.
A Look at Recent Institutional Activity in Cheniere Energy
Carl Icahn’s Icahn Associates continues to be the biggest institutional shareholder of the energy company even after offloading a big chunk in the second quarter.
Must-know: Sunoco Logistics’ 1Q14 earnings
Sunoco Logistics Partners, L.P. (SXL) released its financial information for 1Q14 on May 6, 2014.
Dominion Midstream: Top Midstream Loser on Friday, July 24
Dominion Midstream Partners (DM) was the top loser among midstream MLPs at the end of trading on Friday, July 24. It fell 3.05%.
Why this week’s winter storms could help propane companies
Propane names such as AmeriGas and Suburban Propane could be helped by this week’s winter storms.
Cheniere Energy Is up ~5% since 1Q18 Earnings: What’s Next?
Cheniere Energy (LNG) has been rallying since its 1Q18 earnings announcement on May 4. The US LNG exporter is up over 5% since then.
What Does the Shift in the Natural Gas Futures Spread Indicate?
On April 5, 2017, active natural gas (UNG) (FCG) (BOIL) (GASL) futures were trading at a premium of $0.33 to futures contracts 12 months forward.
Why the Eagle Ford is a major focus for Pioneer Resources in 2014
Pioneer kicked off full development in the Eagle Ford after signing a joint venture agreement with Reliance Industries (RIL) in June, 2010.
Why ONEOK Might Continue to Outperform the Sector
ONEOK (OKE) has seen a strong rally from its 2016 lows resulting in strong returns over the past seven years.
Why investors should understand EPD’s segment performance
Onshore Natural Gas Pipelines & Services’ operating profit declined to $195.4 million in 3Q14—compared to $213.4 million recorded last year.
Oil Contango: What It Means for Investors
On April 11, 2017, May 2017 crude oil (DBO) (OIIL) (USL) futures were trading at a discount of $1.15 to May 2018 futures contracts.
Why rising frac spreads are benefitting select MLP names
Last week, frac spreads traded up slightly, and over the medium term, frac spreads are up significantly. This is a positive catalyst for natural gas processors.
Oil’s Contango: Supply–Demand Fears Could Impact the Market
On October 3, 2017, US crude oil (USL) (OIIL) November 2018 futures settled $0.33 higher than the November 2017 futures.
Are Traders Confident about the Oil Supply-Demand Balance?
Between December 29, 2017, and January 8, 2018, the premium and the oil prices rose. The market expects a tightening supply-demand balance for oil in 2018.
Energy Transfer’s Strong Growth Continued in Q4 2018
Energy Transfer (ET) released its fourth-quarter and full-year 2018 earnings yesterday.
Why Did XOP Outperform Other Energy ETFs?
On August 4, 2016, US crude oil (USO) (OIIL) active futures contracts closed at $41.93. They rose by 2.7% on August 4 compared to the previous trading session.
Are Supply Fears Returning to the Oil Market?
On December 5, 2017, the January 2018 futures contract for US crude oil settled at a premium of $2.5 to January 2019 futures.
Upstream MLPs: Negatively Affected by Yesterday’s Crude Oil Fall
On June 29, crude oil futures fell more than $1 per barrel due to fears of a Greek default. The United States Oil Fund (USO) fell 2.4% yesterday.
Before you invest in master limited partnerships, read about this risk (Part 1)
What risk should you know about that could significantly affect MLP valuation? Read on to find out.
Natural Gas: Are Winter Demand Fears Rising?
On January 2, 2018, natural gas (UNG) (BOIL) (FCG) February 2018 futures settled $0.025 less than February 2019 futures.
Why Did Crude Oil Prices Rise?
On February 9, 2017, US crude oil futures contracts for March delivery closed at $53.00 per barrel—an ~1.3% rise compared to the previous trading session.
Must-know: An overview of Williams Companies
Williams Companies Inc. (WMB) engages in the energy transport and processing infrastructure business. WMB’s assets are mainly located in the U.S. However, it has operations in Canada.
Delek Logistics and Cone: Best Midstream Performers on July 8
Delek Logistics (DKL) was the best performer among midstream MLPs at the end of trading on Wednesday, July 8. It rose 0.11% yesterday.
Overview: ONEOK Partners’ natural gas pipelines segment
ONEOK Partners’ (OKS) natural gas pipelines segment owns and operates regulated interstate and intrastate natural gas pipelines and natural gas storage facilities.
Futures Spread: What It Says about Natural Gas Prices
On March 1, 2017, active natural gas (UNG) (FCG) (BOIL) (GASL) futures were trading at a discount of $0.5 to futures contracts 12 months ahead.
A brief overview on Atlas Pipeline Partners
The company provides natural gas gathering and processing services in the Eagle Ford Shale play in Texas, as well as in the Anadarko, Arkoma, and Permian basins.
Why non-traditional master limited partnerships are growing (Part 1)
In recent years, non-traditional master limited partnerships have become more common. Read on for how this could affect MLPs as an asset class and investors.
Plains All American Pipeline Has Outperformed Its Peers in 2018
So far in 2018, Plains All American Pipeline (PAA) stock has risen nearly 10% and outperformed its peers.
EQM Reports Strong Earnings and Distribution Growth in Q3
EQM Midstream Partners (EQM) reported adjusted EBITDA of $280.1 million in the third quarter, an increase of 65% year-over-year.
MLPs’ Strong Earnings Growth Continued in Q2 2018
Of the top 15 MLPs by market cap, 13 reported YoY (year-over-year) rises in their quarterly revenues and earnings.
Drivers behind Williams Companies’ Recent Market Performance
William Companies (WMB) has recovered slightly after a weak August 2017, and it has risen 2.4% since last week. WMB has fallen 3.3% since the beginning of 2017.