AmeriGas Partners LP
Five High-Dividend Stocks You Should Watch
Let’s take a look at five stocks that are trading with high dividend yields and the risks involved with each.
ONEOK and AmeriGas Partners: Target Price Revisions Last Week
On March 1, Stifel raised its target price for ONEOK from $58 to $69. On February 27, Mizuho raised its target price from $70 to $73.
Which High-Yield MLPs Do Analysts Recommend?
Around 40% of the analysts rated Suburban Propane Partners as a “buy.” The stock offers an upside potential of 21% from the current price.
7 MLPs Offering a Yield above 10%
NGL Energy Partners is trading at a yield of ~14.1%. NGL Energy Partners’ distributions have been flat for the last ten quarters.
A Look at Last Week’s Worst Midstream Performances
Hi-Crush Partners (HCLP) fell 5% during the week that ended on August 24. The stock has been on a downward trajectory for over a month.
Gauging Institutional Investors’ Interest in Propane Companies
OppenheimerFunds, Energy Income Partners, and City National Rochdale hold 4.1%, 3.4%, and 1.6%, respectively, of AmeriGas Partners’ outstanding shares.
Ferrellgas Partners’ Leverage Is a Key Concern
Ferrellgas Partners’ ratio remains high. The company will need significant EBITDA growth to bring its leverage down meaningfully.
APU, FGP, SPH, and SGU: What Do Earnings Trends Indicate?
AmeriGas Partners (APU) lowered its adjusted EBITDA guidance range for the fiscal year ending September 30 to $625 million–$645 million.
Wall Street Analysts Aren’t So Bullish on Ferrellgas Partners
Ferrellgas Partners (FGP) stock has fallen 38% over the last year.
Recent Institutional Investor Activity in Ferrellgas Partners
Ferrell Companies, Inc. holds 23.4% of Ferrellgas Partners’ (FGP) outstanding shares. James E. Ferrell owns 4.9% of FGP’s outstanding shares.
Ferrellgas Partners’ Earnings Rose 15% in Fiscal 2Q18
On March 8, 2018, Ferrellgas Partners (FGP) reported its fiscal 2Q18 results. The quarter ended on January 31, 2018.
Top MLP Losers in the Week Ending January 12
Ferrellgas Partners (FGP) was the top MLP loser in the week ending January 12, 2017. The partnership ended the week 11.5% lower.
63% of Analysts Rate AmeriGas Partners as a ‘Hold’
Of the analysts surveyed by Reuters, 12.5% rated AmeriGas Partners (APU) as a “buy,” 62.5% rated it as a “hold,” and 25% rated APU as a “sell.”
APU Is Ranked 4th among MLPs in Terms of 3-Year Total Returns
AmeriGas Partners declared a distribution of $0.95 per unit for 3Q17, which represents a 1.1% increase compared to 3Q16.
Higher oil prices are a potential double whammy for propane sales
Propane distributors such as Amerigas Partners (APU), Ferrellgas (FGP), and Suburban Propane (SPH) sell propane and related equipment to a variety of end markets. Find out what trends could hurt propane names this winter.
Top MLP Losers in the Week Ending September 22
Ferrellgas Partners (FGP), which is involved in propane logistics and distribution, was the top MLP loser in the week ending September 22.
Can Suburban Propane Partners Grow in the Long Term?
Suburban Propane Partners (SPH) distributes propane, fuel oil, and refined fuels.
How Wall Street Analysts View Propane MLPs
Of the analysts surveyed by Reuters, 10% rated AmeriGas Partners (APU) a “buy,” 50% rated it a “hold,” and 40% rated it a “sell.”
SGU, SPH, FGP: Are Institutional Investors Bullish?
The top ten institutional investors in Star Gas Partners (SGU) own nearly 38.9% of its outstanding shares.
Short Interest in AmeriGas Partners Fell Recently
The total number of Star Gas Partners shares shorted was 27,797 on August 15, 2017—30% higher than the 21,342 million shorted shares on July 31, 2017.
APU, FGP, and SPH: What Do the Current Valuations Indicate?
The forward EV-to-EBITDA ratios for AmeriGas Partners (APU), Suburban Propane Partners (SPH), Ferrellgas Partners (FGP), and Star Gas Partners (SGU) are 10.4x, 9.4x, 8.3x, and 5.5x, respectively.
Factors behind the Propane MLPs’ High Yields
Suburban Propane Partners (SPH) is currently trading at a distribution yield of 14.7%.
FGP, SPH, APU, and SGU: Analyzing Capex Trends
Ferrellgas Partners’ (FGP) capex for the nine months ended April 30, 2017, fell 70% compared to the same period in 2016.
Ferrellgas Partners’ Leverage: A Key Concern
Ferrellgas Partners’ (FGP) capex for the nine months ended April 30, 2017, fell 70% compared to the same period in 2016.
FGP, SPH, APU: Factors Impacting the Performance of Propane MLPs
Ferrellgas Partners’ (FGP) EBITDA fell 29% in the quarter ended April 30, 2017.
APU, FGP, SPH: Will This Year’s Winter Support Propane MLPs?
According to forecasts by NOAA, the upcoming 2017–2018 winter is expected to be colder than last year’s mild winter.
Ferrellgas Partners Underperformed Its Peers Year-to-Date
Of the four propane distribution MLPs—AmeriGas Partners (APU), Ferrellgas Partners (FGP), Star Gas Partners (SGU), and Suburban Propane Partners (SPH)—only Star Gas Partners stock is in the green so far in 2017.
Wall Street Analysts Don’t See an Upside for Ferrellgas Partners
Of the analysts surveyed by Reuters, 57% rated Ferrellgas Partners (FGP) a “sell,” 29% rated it a “hold,” and 14% rated it a “buy.”
Are Efforts to Bring Ferrellgas Partners Back on Track Working?
Ferrellgas Partners’ (FGP) performance has been under severe pressure in the last few quarters.
Ferrellgas Partners’ Fiscal 1Q17 Results: Debt Reduction Is a Priority
At the end of its latest fiscal quarter, Ferrellgas Partners’ (FGP) leverage ratio was 5.81x—higher than the ~4.5x that MLPs usually target.
Star Gas Partners Stock Has Risen 33% in 2016: What’s Next?
Star Gas Partners (SGU) stock has risen 33% in 2016. In comparison, Suburban Propane Partners (SPH) and AmeriGas Partners (APU) have risen 23% and 30%, respectively.
88% of Analysts Recommend Ferrellgas Partners as a “Sell”
Of the analysts surveyed by Bloomberg after Ferrellgas Partners’s fiscal 4Q16 results, 88% recommended a “sell” and the remaining 12% recommended a “hold.” None of the surveyed analysts rated FGP as a “buy.”
What Do Analysts Recommend for Suburban Propane Partners?
Of the analysts surveyed by Bloomberg, 89% rated Suburban Propane Partners (SPH) a “hold.” The consensus one-year target price for SPH is $32.80.
What Drove Suburban Propane Partners’ Fiscal 3Q16 Earnings?
Suburban Propane Partners (SPH) reported its results for the quarter ending June 25, 2016, on August 4. The company reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $18.4 million for the quarter.
AmeriGas Partners Was the Only Issuer of Junk Bonds Last Week
AmeriGas Partners (APU) is a publicly traded MLP. It issued Ba3- rated junk bonds worth $1.35 billion on June 20.
What Do Analysts Recommend for NGL Energy Partners?
62.5% of analysts rate NGL Energy Partners a “buy,” 12.5% rate it as a “hold,” and the remaining 25.0% rate it as a “sell.”
Where Does NGL Energy Stand Compared with Its Peers?
NGL Energy Partners (NGL) has an enterprise value of $5.0 billion.
What Hurt Ferrellgas Partners’ Fiscal 3Q16 Earnings?
On June 8, Ferrellgas Partners reported earnings for the quarter ending April 30, 2016. It reported a YoY (year-over-year) increase in adjusted EBITDA of 12%.
What Do the Analyst Ratings for APU, FGP, SPH, and SGU Tell Us?
Ferrellgas Partners (FGP) has a “hold” rating from 67% of the analysts and a “sell” rating from the remaining 33%. None surveyed rated FGP a “buy.”
A Closer Look at Propane MLP Yields
Suburban Propane currently trades at a distribution yield of 11.1%. This compares to 8.6%, 10.5%, and 4.5% for APU, FGP, and SGU, respectively.
How Milder Winter Impacted Fiscal 2Q16 Results for APU, SPH, and SGU
AmeriGas Partners (APU) and Star Gas Partners (SGU) reported a 14% and 31% YoY drop, respectively, in their EBITDAs in the quarter ended March 31, 2016.
What Factors Impact US Propane Demand Most?
Above-normal temperatures in the United States in the 2015–2016 winter season lowered heating demand. This resulted in a 16% lower propane demand.
How Have Suburban Propane Partners Stood up to Peers in 2016?
Suburban Propane Partners’ YTD returns have exceeded those of peers APU, FGP, and SGU. The Alerian MLP Index (AMZ) has generated total returns of 6% YTD.
NOOA Forecasts Mild Weather, but Will Propane Demand Slide Further?
US residential propane demand was at 1.03 MMbpd for the week ending January 15. Propane demand was 0.39 MMbpd less than the prior week’s demand.
A Surge in Propane Demand: Will the Trend Continue?
The rise in propane demand pushed the price of propane up $0.01 per gallon. Since propane is used for heat in some US households, propane demand generally rises in mid-winter months.
Propane Inventories Decreased, Propane Production Rose
In its weekly petroleum status report released on January 13, 2016, the EIA stated that US propane inventories decreased by 4.5 MMbbls to 91.9 MMbbls for the week ended January 8, 2016.
Propane Demand and Cold Forecasts Pushed Propane Prices
The EIA’s weekly propane and heating oil update reported that US residential propane demand is 1.3 MMbpd (million barrels per day) for the week ended January 1.
Propane Prices Rose a Bit despite Strong Inventory Builds
US residential propane prices averaged $1.98 per gallon for the week ended December 14, or $0.02 per gallon higher than the prices on December 7, 2015.
Propane Inventories and Production Moved in Opposite Directions
As of the week ended December 11, propane inventories were at 98.9 MMbbls. These levels were 26.2% more than they were in the corresponding period last year.
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.
Ferrellgas Partners Trades at a High EV-EBITDA Multiple
The EV-EBITDA ratios for Ferrellgas Partners (FGP), AmeriGas Partners (APU), Suburban Propane Partners (SPH), and Star Gas Partners (AGU) are 16.1x, 10.5x, 8.8x, and 3.2x, respectively.
Propane: What’s Impacting Demand in the United States?
Propane demand for home heating purpose is directly affected by the severity of the winter. In any given region, colder-than-normal temperatures in the winter season tend to result in greater usage.
Why Propane Prices Gained despite Inventory Builds
US residential propane prices were $1.93 per gallon for the week ended November 13, or $0.02 per gallon higher than prices for the week ended November 6.
US Propane Inventories Rise along with Weekly Prices
In the week ended October 30, 2015, US propane inventories rose by 0.8 MMbbls to 102.4 MMbbls. This is 27.8% greater than in the corresponding period last year.
How Does Buckeye Partners Compare to Its Peers?
ETFs have outperformed Buckeye Partners based on PE ratio. However, Buckeye Partners is way ahead of its ETFs based on price movement and PBV ratio.
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.
US Propane Inventories Up, Residential Prices Down versus 2014
In the week ended October 9, 2015, US propane inventories rose by 1.8 MMbbls (million barrels) to 102.2 MMbbls.
US Propane Inventories Slow in Some Regions, Weekly Prices Up
In the week ended September 11, US propane inventories rose 1.1 MMbbls to 97.7 MMbbls. These levels are 20.3 MMbbls greater, or 26.2% higher, than they were in the corresponding period last year.
US Propane Inventories and Prices Rise in Week Ended September 4
In the week ended September 4, US propane inventories rose 0.2 MMbbls to 96.6 MMbbls. These levels are 20.5 MMbbls greater, or 27% higher, than they were in the corresponding period last year.
US Propane Inventories Rose in Week Ending August 28
Propane production is outstripping demand by a considerable margin. This explains the steady build in propane inventories.
JP Morgan’s AMJ ETN Outperformed the MLPI ETN Last Week
The J.P. Morgan Alerian MLP Index ETN (AMJ) rose 5.2% in the week ended August 28, 2015. The Alerian MLP Index (AMZ), AMJ’s underlying index, also rose 5.1% during the week.
Propane Inventories off the Chart: Prices Fell ~8% Last Week
In the week ended August 21, US propane inventories rose by 1.9 MMbbls (million barrels) to 95.7 MMbbls.
Propane Stocks Continued Skyward in Week Ended August 14
US propane production fell from 1.651 MMbpd (million barrels per day) in the week ended August 7 to ~1.620 MMbpd in the week ended August 14.
EPD’s Natural Gas Liquids Pipeline Segment Shows Marginal Increase
EPD’s natural gas processing subsegment has been declining since 2013 due to low natural gas prices in 2013 and 2014.
Changes in Propane Inventories and Prices
US propane inventories increased 0.5 million barrels to 54.3 million barrels in the week ended March 13. Inventories are now 106.9% higher than last year.
Key update on propane inventories – prices are lower and steadier
In the week ending February 13, US propane inventories decreased by 3.5 MMbbls to 61.5 MMbbls. They were ~130% than the same period last year.
Propane prices remain lower and steadier in 2015
Propane prices depend on inventory, which in turn depends on the winter’s severity. Last winter, propane prices spiked.
Key update on this week’s propane inventory movements
As of this date, propane inventories are 33.2 million barrels greater, or 78.3 % higher, than they were in the corresponding period last year.
Why propane prices are impacted by weather forecasts
U.S. propane stocks decreased by 0.1 million barrels to 80.1 million barrels as of October 31. Now, they’re 29.1% higher than the levels last year.
Energy outlook: Weather forecasts also affect propane prices
Propane is a natural gas liquid (or NGLs). NGLs are hydrocarbons—in the same family of molecules as natural gas and crude oil. Other NGLs include Ethane, butane, and pentane.
Why you can expect propane prices to depend on 2 things
Last winter, propane prices spiked as inventories saw record lows, thanks to severe winter. Prices touched a record high of ~$5 per gallon last winter.
Why weather is a wild card for propane prices
Last year, propane prices spiked as a result of a shortage in propane inventories. Propane shortages depend on the severity of the weather.
Why the outlook for propane prices is uncertain
Propane is an essential heating fuel. Propane demand increases in the winter. Last winter, propane prices spiked because inventories saw record lows.
Must-know: Why propane prices may be bullish in the future
Propane is an essential heating fuel. Its demand increases during the winter months. Much like natural gas, April through September is considered to be the “injection season” for propane. Last winter, propane prices spiked. Inventories saw record lows because of the severe winter. Prices touched a record high of ~$5 per gallon last winter.
Overview: How Suburban measures up among its competitors
Over the past 12 months the group has had mixed results.
Must-know: Suburban Propane’s 1Q14 earnings
SPH noted that weather during this period in its service territories was normal and 9% colder than the prior year.
Must-know: Suburban Propane Partners’ company trends
Prior to the Inergy deal, SPH had an average earnings before interest, taxes, depreciation, and amortization (or EBITDA) in the range of $185 million.
Must-know: Correlation between weather and propane demand
Heating degree days measure the difference between the outside temperature and room temperature to help calculate the demand for energy needed to heat a given area.
Overview: Suburban Propane Partners
Suburban Energy Finance Corp., is a 100%-owned finance subsidiaries of Suburban Propane Partners.
Must-know: How does AmeriGas stack up against its competition?
APU competes with Suburban Propane (SPH) and Ferrellgas Partners (FGP). APU is the country’s largest retail propane marketer, serving 2 million customers in all 50 states.
Why AmeriGas beat estimates but maintained guidance in 1Q14
APU reported 1Q14 adjusted EBITDA for the three months ended December 31, 2013, as $230 million, compared to consensus EBITDA of $202 million and compared to $193 million for the same period last year.
Why propane price volatility affects names like AmeriGas Partners
Colder-than-normal temperatures caused strong propane demand over this winter heating season and caused propane prices to spike at points.
Assessing AmeriGas’ 2013 growth trends and 2014 outlook
Prior to the Heritage deal, APU had an average EBITDA in the range of $340 million. For fiscal 2013 (ended September 30), the company delivered an EBITDA of $628 million.
A must-know overview of AmeriGas Partners’ business and structure
AmeriGas Partners LP (APU) is a master limited partnership and the nation’s largest retail propane marketer, serving customers in all 50 states from approximately 2,500 distribution locations.
How propane prices can affect names like Ferrellgas Partners
Extreme volatility in propane prices could negatively affect the margins of distributors such as Ferrellgas, as the company may not be able to immediately pass on the cost of more expensive propane to its customers. From many reports, this winter season was especially tough to manage given extreme weather resulting in high demand, spikes in price, and logistical problems getting propane to end customers.
Correlation between weather and propane demand
Weather conditions have a significant impact on demand for propane as the volume of propane used is affected by the severity of the winter weather which may vary substantially from year to year. A warmer-than-normal temperatures will result in reduced propane usage, while a colder-than-normal temperatures will result in greater usage. This winter’s weather has […]
Ferrellgas Partners FY2Q14 Earnings Overview
The fiscal year for FGP is calculated August 1 through July 31. FGP reported FY2Q14 adjusted EBITDA of $136 million, for the three months ended January 31, a 17% increase compared to the same period, the previous year and above the consensus forecasts of $118 million. LTM adjusted EBITDA was $287 million compared to $237 […]
Ferrellgas Partners (FGP): An investor’s must-know overview
Ferrellgas Partners, L.P. (FGP), a master limited partnership (MLP), is the second largest retail propane distributor in the U.S. serving all 50 states, the District of Columbia and Puerto Rico, as measured by the volume of retail sales in fiscal 2013, and the largest national provider of propane by portable tank exchange.
Winter’s cold end supports propane demand and stocks like AmeriGas
Last week saw slightly colder-than-normal weather, a positive for propane companies such as AmeriGas Partners (APU), Ferrellgas Partners (FGP), and Suburban Propane Partners (SPH).
The important effects of higher liquefied petroleum gas exports
The influx of supply of natural gas liquids had caused ethane and propane prices in particular to collapse in late 2012 and early 2013.
An investor’s must-know guide to liquefied petroleum gas
The definition of “liquefied petroleum gas” or “LPG” can vary depending on context, but it’s commonly used to refer to the hydrocarbons propane and butane.
AmeriGas Partners and Suburban Propane fiscal 1Q14 earnings analysis
Recently, AmeriGas Partners (APU) and Suburban Propane (SPH) reported results for October, November, and December of 2013.
Why this winter has been positive for propane distributor MLPs
Cold winter weather is one of the major drivers of propane distributors’ earnings, as the fuel is used for home heating in many areas in the U.S.
Why continuous cold winter helps propane distributors like FGP
Propane distributors like FGP will benefit from the season’s cold weather so far.
Downside: Higher propane prices could hurt these names
More expensive propane costs could cause residential customers to buy less, hurting certain MLP names.
This fall’s bumper crops pushed up propane demand
Higher propane demand from the agricultural sector has helped to buoy propane prices.
Why winter weather could affect some MLP names in your portfolio
Propane distributors benefit from cold weather, which spurs increased propane demand for home heating.
Must-know: Why higher propane prices could hurt some MLPs
Propane prices increased last week, which could cut into the sales volumes of distributors such as AmeriGas and Ferrellgas.
Why higher propane prices this winter could hurt some MLP names
Last week, propane prices (as priced at Mont Belvieu) increased 9%. Higher propane prices this winter could negatively affect propane companies’ earnings.
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.