EnLink Midstream LLC

Several midstream stocks hit their respective 52-week lows in the last five days. Crude oil prices took a hit yesterday amid concerns over trade talks.

Let’s take a look at five stocks that are trading with high dividend yields and the risks involved with each.

Last week (ended July 5), midstream stock EnLink Midstream LLC (ENLC) outperformed the energy space. Here’s a summary of midstream stocks’ performance.

NGL Energy Partners (NGL) generated total returns, including price appreciation and dividends, of ~50% in the first quarter.

On February 19, TD Securities raised its target price for Enbridge (ENB) from 56 Canadian dollars to 57 Canadian dollars.

EnLink Midstream Partners and EnLink Midstream (ENLC) fell 11.3% and 10.2%, respectively, last week.

Hi-Crush Partners (HCLP), Viper Energy Partners (VNOM), and Dorchester Minerals (DMLP) were among the top MLP gainers last week.

Around 40% of the analysts rated Suburban Propane Partners as a “buy.” The stock offers an upside potential of 21% from the current price.

EnLink Midstream Partners (ENLK) stock offers an upside potential of 39%—compared to its current market price of $12.82.

On October 23, Raymond James cut its rating for EnLink Midstream Partners (ENLK) from “outperform” to “market perform.”

Last week, EnLink Midstream (ENLC) announced an agreement to acquire EnLink Midstream Partners (ENLK).

EnLink Midstream Partners (ENLK) rose 7.7% last week. The stock has gained substantially since its strong second-quarter results.

A total of 63.0% of analysts surveyed by Reuters have rated EnLink Midstream Partners (ENLK) as a “buy” as of June 28.

In this series, we’ll look at the historical outliers in midstream energy, which have generated massive wealth amid turbulent times.

In the week ending June 8, Viper Energy Partners continued to be among the top MLP losses for the second consecutive week.

EnLink Midstream (ENLC), the GP of EnLink Midstream Partners (ENLK), is ranked second among MLPs in term of its correlation with crude oil.

EnLink Midstream Partners’ (ENLK) adjusted EBITDA rose to $243.7 million in 1Q18 from $211.2 million in 1Q17, a YoY (year-over-year) increase of 15.4%.

Western Gas Equity Partners (WGP), the MLP GP (general partner) of Western Gas Partners (WES), has fallen 11.1% since the start of this year.

Summit Midstream Partners (SMLP), a midstream MLP mainly involved in crude oil gathering and processing and crude oil gathering, was the biggest MLP loser last week.

EnLink Midstream, the general partner of EnLink Midstream Partners (ENLK), ranks fifth among midstream companies in terms of the correlation with crude oil.

Hi-Crush Partners has low direct commodity price exposure. The one-year correlation between Hi-Crush Partners and crude oil was 0.47 as of February 6.

CVR Refining (CVRR), a downstream MLP involved in crude oil refining and refined products marketing, saw ratings updates and target price revisions from Barclays and UBS last week.

About 56% of analysts rate EnLink Midstream Partners (ENLK) a “hold,” while 38.0% rate it a “buy.”

EnLink Midstream Partners (ENLK) continues to expand its processing capacity in the Delaware and STACK regions with the announcement of new processing plants in both regions.

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

For EnLink Midstream Partners, 56.3% of the analysts rate it as a “hold,” 37.5% rate it as a “buy,” and 6.3% rate it as a “sell” as of October 24, 2017.

DCP Midstream DCP Midstream (DCP) has the second-highest correlation with crude oil, after EnLink Midstream (ENLC). The one-year correlation between DCP and crude oil was 0.51 on October 6, 2017. DCP Midstream’s high correlation with crude oil reflects its high direct commodity price exposure, mainly through its natural gas processing and NGL (natural gas liquid) business. The […]

In this series, we’ll look at the ten MLPs most correlated with crude oil amid crude oil price volatility.

EnLink Midstream Partners (ENLK) and EnLink Midstream (ENLC) reported their 3Q17 earnings on October 31, 2017. ENLK’s adjusted EBITDA rose to $216.8 million from $197.5 million in 3Q16.

EV Energy Partners (EVEP) and Mid-Con Energy Partners (MCEP) were the top two MLP losers last week.

Energy Transfer Equity (ETE) has risen 4.7% in the last three trading sessions due to the recovery in crude oil prices.

Energy Transfer Partners (ETP) announced a public offering of 54 million common units on August 14. ETE, which owns the IDRs (incentive distribution rights) in ETP, is expected to benefit from the equity offering.

EnLink Midstream Partners (ENLK) and its GP (general partner), EnLink Midstream (ENLC), are scheduled to release their 2Q17 earnings on August 1, 2017.

Energy Transfer Equity (ETE) had a sluggish start to the month. It has risen 0.2% since the beginning of July.

Antero Midstream GP (AMGP) recently completed its IPO (initial public offering). AMGP gives investors a second option to invest in the high-distribution-growth Antero Midstream Partners (AM).

Short interest in EnLink Midstream LLC (ENLC) as a percentage of its float is the highest among its peers. ENLC’s 8.9% is followed by Energy Transfer Equity’s (ETE) 7.1%.

Western Gas Equity Partners (WGP) has the lowest distribution yield among its peers at 4.5%. This low yield can be attributed to its strong historical distribution growth and robust guidance.

Plains GP Holdings (PAGP) announced a distribution cut in 3Q16. Based on this distribution cut, PAGP declared a distribution of $0.55 per unit for 1Q17, an 11.3% fall YoY (year-over-year).

In this series, we’ll perform a comparative analysis of four MLPs’ general partners: Energy Transfer Equity, Plains GP Holdings, Western Gas Equity Partners, and EnLink Midstream LLC.

In the past week, EnLink Midstream (ENLC) fell the most. On May 2, 2017, it reported negative 1Q17 diluted earnings of $0.01 per common share.

On March 13, EnLink Midstream had a short-interest-to-equity float ratio of 10.1%—the highest among the midstream stocks in the Alerian MLP ETF (AMLP).

Energy Transfer Equity (ETE) currently trades at a price-to-distributable cash flow of 16.6x. This is lower than its ten-quarter average of 19.5x.

On March 6, EnLink Midstream Partners had a short-interest-to-equity float ratio of 10.1%—the highest among the midstream companies in AMLP.

Energy Transfer Equity (ETE) currently trades at a price-to-distributable cash flow of 17.1x. This is low compared to its ten-quarter average of 19.8x.

In the past three months, EnLink Midstream has risen 8.9%, while its short-interest-to-equity-float ratio has risen 30.9%.

Wall Street analysts’ 4Q16 consensus EBITDA estimate for ENLK is $197.7 million—5.7% higher than in 4Q15.

EnLink Midstream rose 63.2% in the past year ending on February 6. It has the highest implied volatility of all the midstream companies that make up AMLP.

On January 27, Enbridge Energy Partners announced its financial outlook and strategic update. Its implied volatility rose 34.5%, while its stock fell 17.6%.

EnLink Midstream Partners (ENLK) is expected to keep its quarterly distribution flat at $0.39 per unit for all of 2017.

While NGL Energy Partners rose the most among midstream stocks with high implied volatility in the past five days, EnLink Midstream (ENLC) lost the most.

On January 3, 2017, EnLink Midstream (ENLC) had a short interest-to-equity float ratio of 8.9%, the highest among all midstream companies that are part of AMLP.

EnLink Midstream Partners (ENLK) has risen 11.0% year-to-date. In this series, we’ll analyze ENLK’s balance position, cash flow measures, operating results, and analyst projections.

On December 12, 2016, EnLink Midstream (ENLC) had a short-interest-to-equity float ratio of 9.5%, the highest among all the midstream companies that are part of the Alerian MLP ETF (AMLP).

On November 22, 2016, Energy Transfer Equity (ETE) had an implied volatility of 49.6%—the highest among the midstream companies that are part of AMLP.

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.”

On October 10, 2016, EnLink Midstream (ENLC) had a short interest-to-equity float ratio of 10.7%, the highest among all midstream companies that are part of AMLP.

On October 3, 2016, EnLink Midstream (ENLC) had a short interest-to-equity float ratio of 10.7%—the highest among all of the midstream stocks.

On October 3, EnLink Midstream had an implied volatility of 47%—the highest among midstream companies. Its 15-day average implied volatility was 44.7%.

On September 19, 2016, Teekay LNG Partners (TGP) had an implied volatility of 43.3%, the highest among the midstream companies. Its 15-day average implied volatility was 45.6%, and its current volatility was 5% below its 15-day average.

As of August 29, 2016, EnLink Midstream (ENLC) had the highest short interest-to-equity float ratio among midstream stocks at 10.1%.

EnLink Midstream’s 2Q16 adjusted EBITDA decreased to $189.5 million from $190.4 million in 2Q15, which represents a YoY (year-over-year) decline of 0.5%.

Energy Transfer Equity has lost 79.9% in the past year. Williams Companies, Western Gas Equity, and EnLink Midstream have lost significantly as well.

EnLink Midstream Partners (ENLK) declared distributions of $0.39 per share for 4Q15. This represents a flat distribution over the previous quarter and a 4.0% YoY increase over 4Q14.

Point72 lowered its stake in Devon Energy by selling 1,664,900 shares. It held 1,044,900 Devon Energy shares—0.45% of the fund’s total 4Q14 portfolio.