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.
In August 2016, PAA announced a 2Q16 quarterly cash distribution of $0.70 per limited partner unit, which was unchanged from its 1Q16 per-unit distribution.
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.
Mont Belvieu ethane prices rose 12.6% to $0.179 per gallon in the week ending March 11. Prices jumped by 13.4% to $0.159 per gallon in the previous week.
Buckeye Partners’ shares rose 8.7% on February 12, 2016, following its 4Q15 earnings announcement. Its growth could be due to its strong 4Q15 earnings.
EnLink Midstream Partners (ENLK) is expected to release its 4Q15 earnings on February 17, 2016. In this series, we’ll cover 4Q15 estimates, segment earnings, performance, and recommendations.
Mont Belvieu ethane prices fell 3% to $0.15 per gallon in the week ending February 5, 2016. Ethane prices had risen 5% to $0.16 per gallon in the previous week.
On January 12, Plains All American announced a quarterly cash distribution of $0.70 per limited partner unit, the same as its 3Q15 per unit distribution.
Buckeye Partners has not provided any financial or capex guidance for 2016. The partnership gave a rough estimate of $300 million–$400 million for its 2016 capex.
Buckeye Partners’ capital expenditures for the first nine months of 2015 were ~$433.1 million. This is 43.9% higher than what it spent during the first nine months of 2014.
Energy Transfer Equity (ETE), which announced its merger agreement with Williams Companies (WMB) last fall, is expected to be negatively impacted by Williams Partners’ (WPZ) rating downgrade.
Low ethane prices, combined with higher costs for storing and transporting ethane, resulted in ethane rejection. Producers leave ethane in the natural gas stream.
The Henry Hub-Mont Belvieu fractionation spread rose to $11.5 per barrel for the week ending October 30, 2015. The spread was $10.5 per barrel in the previous week.
The consensus revenue estimate for ONEOK Partners (OKS) for the third quarter of 2015 is $2.6 billion. OKS missed revenue estimates by 23% in the second quarter of 2015.
Natural gas prices closed at $2.29 per MMBtu (British thermal units in millions) on October 23. The prices had closed at $2.43 per MMBtu in the previous week.
Enbridge Energy Partners will report its third quarter 2015 results on November 2, 2015. It generated a total return of -27.3% since the start of 2015.
Over the next two years, Magellan Midstream Partners’ expected distribution growth is 11.2%. It also posted the highest quarter-over-quarter distribution growth among peers in 2Q15.
Natural Gas Pipelines is Kinder Morgan’s largest business segment in terms of EBDA. In 2Q15, the segment alone accounted for 54% of the company’s total EBDA.
Energy Transfer Corporation would be taxed as corporation for federal tax purposes. Holders of ETC shares would receive an IRS Form 1099 rather than a Schedule K-1.
After months of pursuit, Energy Transfer Equity announced a business combination transaction with Williams Companies on September 28. The transaction is valued at $37.7 billion.
A segment margin breakdown of Genesis Energy’s Onshore Transport, Offshore Transport, Marine Transport, Refinery Services, and Supply and Logistics segments.
Genesis Energy’s Refinery Services segment owns terminals and facilities in the Midwest, the Gulf Coast, Montana, Utah, British Columbia, and South America.
Midcoast Energy Partners’ (MEP) distributable cash flows increased in 2Q15 compared to 1Q15 and 2Q14. Its distributable cash flows have shown a rising trend since listing.
About 47% of MEP’s contracts are commodity price sensitive. These are keep-whole contracts, percent-of-proceeds contracts, and percent-of-liquids contract.
Midcoast Energy Partners’ (MEP) natural gas throughput volumes fell in 2Q15 compared to 1Q15 and 2Q14. The decrease was primarily due to the low commodity price environment for natural gas and NGLs.
For the most recent quarter, Energy Transfer Equity declared a distribution of $0.265 per unit on a post-split adjusted basis. This represents 39.47% growth YoY.
Energy Transfer Equity’s (ETE) 2Q15 distributable cash flow rose to $335 million from $218 million in 2Q14. This is a YoY (year-over-year) increase of 53.60%.
Energy Transfer Equity’s adjusted EBITDA has continued to grow over the recent quarters. For 2Q15, its adjusted EBITDA grew by 15% YoY compared to 2Q14.
In the midst of a sell-off in energy securities, Energy Transfer Equity (ETE) is one of the few MLPs that stands out in terms of the total return performance.
NYMEX near-month Henry Hub natural gas futures contracts rose last week compared to the previous week. Natural gas prices closed at $2.69 per MMBtu on September 11.
Valero Energy Partners’ (VLP) YTD total returns are 22%. It’s 2Q15 EBITDA grew 183% year-over-year, increasing from $21 million in 4Q13 to $42.7 million in 2Q15.
The Henry Hub–Mont Belvieu fractionation spread fell to $6.82 per barrel for the week ended August 28, 2015. The spread was $7.03 per barrel in the previous week.
NYMEX near-month Henry Hub natural gas futures contracts rose marginally last week compared to the previous week. Natural gas prices closed at $2.715 per MMBtu on August 28.
Mont Belvieu ethane prices fell to 18.88 cents per gallon for the week ending August 21, 2015. The price was 20 cents per gallon for the week ending August 14.
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.
The deal with Atlas Pipeline Partners (APL) strengthens Targa Resources Partners’ (NGLS) position In the Permian Basin. The move also broadens the company’s reach in the Eagle Ford and Bakken Shale formations.
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.
After spinning off its non-midstream assets, ATLS’ assets will include its general partner and incentive distribution rights in APL, as well as 5.8 million APL units.
The combined company will create a midstream enterprise with more than 22,500 miles of crude oil and natural gas pipelines across the U.S. The $7.7 billion deal is expected to close in the first quarter of 2015.
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.
TC PipeLines LP (TCP) is a master limited partnership (or MLP) that owns or has ownership in six interstate natural gas pipelines. TransCanada Corp. (TRP) owns ~28.9% equity interest in TCP.
TransCanada Corp. (TRP) is an energy infrastructure company. It owns a network of natural gas and crude pipelines across North America. TransCanada also provides natural gas storage.
Producers currently receive higher market prices for crude oil and NGLs (or natural gas liquids) compared to natural gas. So many producers have focused their drilling activity in NGL-rich shale areas rather than areas that produce dry natural gas.
Now that we’ve looked at various sources of margin across ONEOK Partners’ (OKS) business segments, let’s delve deeper into the margin mix within these segments.
Earlier this year, ONEOK (OKE) created a new stand-alone publicly traded company called ONE Gas (OGS), separating its natural gas distribution business into a separate dedicated company. The company believes that by having two separate companies, each of the companies will have a greater focus on its individual strategy, financial strength, and growth potential.
ONEOK Partners’ (OKS) natural gas pipelines segment owns and operates regulated interstate and intrastate natural gas pipelines and natural gas storage facilities.
ONEOK Partners’ (OKS) natural gas liquids segment provides natural gas liquid gathering, fractionation, transportation, marketing, and storage services to its producers.
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.
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.
