Global X MLP ETF
An Overview of Genesis Energy’s Offshore Pipeline Segment
Until recently, Genesis Energy’s Offshore Pipeline segment owned interest in ~1200 miles of offshore pipelines spread across five pipeline systems.
Genesis Energy’s Segment Margin Breakdown by Segment
A segment margin breakdown of Genesis Energy’s Onshore Transport, Offshore Transport, Marine Transport, Refinery Services, and Supply and Logistics segments.
Overview: How Suburban measures up among its competitors
Over the past 12 months the group has had mixed results.
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.
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.
Why EQT Midstream Trades at a Premium to Its Peers
EQT Midstream (EQM) is the second-largest company according to EV (enterprise value) in the peer group described in this part.
Pipeline Segment Will Drive NuStar Energy’s 4Q15 Performance
The pipeline segment is NuStar’s largest business segment in terms of the EBITDA. It accounted for 50% of the total segment EBITDA in the first nine months of 2015.
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.
Where Does Sunoco Logistics Stand Compared to Its Peers?
Sunoco Logistics (SXL) has the lowest operating margin of 5.4% among the selected peer group. This is because SXL’s crude oil acquisition and marketing business has very thin operating margins.
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.
How the Rise in Brent Oil and the Fall in WTI Impact MLPs
The NYMEX (New York Mercantile Exchange) near-month WTI (West Texas Intermediate) crude oil futures prices fell 0.9% in the week ending November 20. WTI prices closed at $40.4 per barrel on Friday.
Should You Include EQT Midstream Partners in Your Portfolio?
Here, we’ll look at what Wall Street analysts recommend for EQT Midstream Partners (EQM). Around 90.9% of analysts rate EQT Midstream a “buy.”
How a Fall in Fractionation Spread Affected MLPs Last Week
The Henry Hub-Mont Belvieu fractionation spread fell to $10.1 per barrel for the week ended October 16, 2015.
Expansion Projects Might Drive Sunoco Logistics’ 4Q15 EBITDA
Wall Street analysts’ 4Q15 consensus EBITDA estimate for SXL is ~$305.8 million. Sunoco’s 4Q15 estimate is 29% more than the reported 4Q14 adjusted EBITDA.
Downside: Higher propane prices could hurt these names
More expensive propane costs could cause residential customers to buy less, hurting certain MLP names.
Will Enterprise Products Beat Its 3Q15 Consensus Revenue Estimates?
EPD’s revenue estimate for 3Q15 The consensus revenue estimate for Enterprise Products Partners (EPD) for the third quarter of 2015 is $9.1 billion. EPD missed revenue estimates by 20% in the second quarter of 2015. On the other hand, peers Spectra Energy Partners (SEP) and Energy Transfer Partners (ETP) beat 2Q15 revenue estimates by 1.2% […]
Must-know: Atlas Pipeline’s first quarter earnings analysis
Atlas Pipeline Partners (APL) released its financial information for 1Q14 on May 5, 2014.
How Last Week’s Rise in Natural Gas Prices Impacted MLPs
Natural gas prices rose to close at $2.5 per MMBtu on October 9. Natural gas prices had hit a three-year low of $2.45 per MMBtu on October 2.
What Drives Genesis Energy’s Marine Segment’s Performance?
Genesis Energy’s Marine Transportation segment is involved in the marine transportation of crude oil and refined products.
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 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.
Natural Gas Prices Dipped Last Week: Impact on MLPs
NYMEX (New York Mercantile Exchange) near-month Henry Hub natural gas futures contracts fell last week compared to the previous week.
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.
Week Ended September 18: Rise in Fractionation Spread Affects MLPs
The Henry Hub–Mont Belvieu fractionation spread rose to $9.12 per barrel for the week ended September 18, 2015. The spread was $8.86 per barrel in the previous week.
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.
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.
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).
Buckeye Partners Has a Consensus “Hold” Rating from Analysts
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.
Why lower crude oil price estimates impact the midstream industry
A falling inventory indicates that WTI crude oil is moving out of the inland U.S. towards end refining markets with help from new infrastructure coming online.
Why Last Week’s Fall in Fractionation Spread Affects MLPs
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.
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.
Commodity Prices Impact Midcoast Energy’s Operations
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.
Where Does DCP Midstream Stand Compared to Its Peers?
DCP Midstream Partners (DPM) has an enterprise value of $2.7 billion.
Why continuous cold winter helps propane distributors like FGP
Propane distributors like FGP will benefit from the season’s cold weather so far.
Must-know: ONEOK Partners’ segment-wise contract mix
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.
NuStar Energy’s 1Q14 earnings’ analysis: Higher revenues recorded
NuStar Energy recorded total revenues of $849.2 million, or 8.1% higher than $785.3 million the company recorded in 4Q13.
Why the MLPJ ETF shows tracking error versus its benchmark index
The effect of sampling—the difference in the holdings between MLPJ and its benchmark index—is another cause of the tracking error.
Should You Include Energy Transfer Equity in Your Portfolio?
Investors should consider the positives and negatives before they decide to include Energy Transfer Equity in their portfolio.
Overview: Plains All American Pipeline’s growth capital projects
Plains All American Pipeline (PAA) increased its 2014 expansion capital by approximately $100 million from $1.850 billion (see chart below) to a revised target of $1.95 billion. The company noted that this increase is not attributable to any single project.
Is preferred equity a trend for master limited partnerships?
Recently, two master limited partnerships issued preferred equity, which is a relatively rare avenue of financing for MLPs.
An introduction to TransCanada Corp.
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.
Crestwood Midstream’s Outlook for the Rest of 2015
According to Wall Street analysts’ estimates, Crestwood Midstream Partners’ (CMLP) distributions are expected to stay flat for the rest of 2015.
An overview of the Targa Resources and Atlas Pipeline deal
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.
TC PipeLines—TransCanada’s important subsidiary
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.
An Analysis of Energy Transfer Equity’s EBITDA Growth
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.
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.
Tesoro Logistics overview: A master limited partnership analysis
Tesoro Logistics LP is a master limited partnership (or MLP) which was formed by Tesoro Corporation in 2011.
Overview: Regency Energy Partners
Regency Energy Partners L.P. (RGP) is a midstream operator of natural gas pipelines, gathering systems, and processing facilities.
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.
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.
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.
Atlas Pipeline Partners taps preferred equity for over $100 million
Earlier in March, Atlas Pipeline Partners (APL)—a gathering and processing master limited partnership (or MLP)—announced an offering of preferred equity.
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.
EQT Midstream Partners: Most Analysts Rate the Stock a ‘Buy’
In this part of our series, we’ll look at Wall Street analysts’ recommendations for EQT Midstream Partners (EQM).
Must-know: Why ONEOK restructured its business, creating ONE Gas
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.
Overview: Regency’s growth projects in 2014
For the full year of 2014, Regency announced growth capex expenditures of $1.2 billion.
Overview: Kinder Morgan’s acquisition of El Paso Pipeline Partners
El Paso Pipeline Partners (EPB) is a master limited partnership (or MLP) that owns and operates natural gas transportation pipelines, storage, and other midstream assets.
Broad economic woes and slow housing starts affect 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.
Why Western Canada and Bakken development help TC PipeLines
In 2013, TCP’s Northern Border pipeline delivered steady results despite its lower rates, which were instituted on January 1, 2013. Demand for its service has remained strong.
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: Plains All American Pipeline’s product platform
The product platforms that PAA conducts its business in include crude oil, natural gas liquids (or NGL), and natural gas. PAA’s assets are located throughout North America in major crude oil producing areas and liquids rich areas.
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.
Enterprise Products’ Distribution: Growth Expectations in 2015?
On October 1, Enterprise Products declared a 1.30% quarter-over-quarter rise in its distributions to $0.385 per unit—a rise for the 45th quarter in a row.
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.
PBF Logistics Records High EBITDA Growth in 2Q15
PBF Logistics’ (PBFX) 2Q15 EBITDA increased more than six times its 2Q14 level of $4 million. PBF Logistics’ high EBITDA growth is due to regular asset acquisitions from PBF.
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.
Part 2 of Targa Resources’ acquisition deal with Atlas
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.
Why Targa Resources sees a benefit to acquiring Atlas
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.
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.
Recommendation: Compare YMLI versus the ETF’s benchmark index
The Yorkville High Income Infrastructure MLP ETF (YMLI) tracks the Solactive High Income Infrastructure MLP.
NuStar’s Fuels Marketing segment benefits from asphalt sale-off
Following the sale of the remaining 50% ownership interest in asphalt JV to Lindsay Goldberg in February 2014, NuStar is on course to improve its margin from the Fuels Marketing segment.
Why investors are excited about the proposed Susser–ETP deal
Following the news of the proposed transaction, SUSP’s share price spiked 22%. ETP, in contrast, had a muted response, with its share price falling marginally by 1%.
Overview: ONEOK Partners’ natural gas liquids segment
ONEOK Partners’ (OKS) natural gas liquids segment provides natural gas liquid gathering, fractionation, transportation, marketing, and storage services to its producers.
Must-know: ONEOK Partners’ growth trends and strategies
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.
A key overview of Energy Transfer Equity’s earnings
Energy Transfer Equity (ETE) reported its earnings for the second quarter on August 6. ETE reported revenue of $14 billion for the quarter—compared to the Wall Street analysts’ estimate of $13 billion. Revenues were up 17% year-over-year (or YoY). Net income for the quarter was $164 million—29% higher YoY. The distributable cash flow (or DCF) for the quarter was $218 million.
Must-know: An overview of Energy Transfer Partners
Energy Transfer Partners’ (ETP) operations span across major plays in the United States. These include the Eagle Ford, Permian, Bakken, Marcellus, and Haynesville. ETP’s intra-state pipelines receive natural gas from mainline transportation pipelines and gathering systems. They deliver this gas to industrial end users, utilities, and other pipelines.
Must-know : A brief overview of natural gas storage contracts
High volatilities in prices increase the extrinsic value of storage assets because it creates more opportunities for profitable storage optimization.
Overview: Plains All American Pipeline’s gas storage services
PAA’s storage facility falls under its supply and logistics segment, which is primarily a margin based segment, which makes it more volatile.
Must-know: An overview of Crestwood Equity’s natural gas storage services
Storage and transportation segment earnings before interest, taxes, depreciation, and amortization (or EBITDA) totaled $38 million during the 1Q14.
Overview: Suburban Propane Partners
Suburban Energy Finance Corp., is a 100%-owned finance subsidiaries of Suburban Propane Partners.
Must know: An overview of the propane industry
Suburban Propane Partners (SPH) sells propane primarily to six customer markets: residential, commercial, industrial (including engine fuel), agricultural, other retail users, and wholesale.
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.
High contract volume: A steady cash flow for Natural Gas Pipeline
The operating income for the Natural Gas Pipeline segment for 1Q14 was $55.1 million versus an operating income of $48.7 million in 4Q13, an increase of ~13%.
Why the BORCO terminal acts as booster to Global Marine segment
BPL acquired the BORCO terminal facility in the Bahamas in 2011.
Overview: Magellan Midstream Partners L.P.
Magellan Midstream Partners L.P. (MMP), is a master limited partnership (or MLP) that owns and operates a diversified portfolio of energy infrastructure assets.
A must-know introduction to NuStar Energy and its assets
On April 24, 2014, NuStar Energy, a master limited partnership operating in the midstream energy space, presented its earnings for the first quarter of 2014.
Energy Transfer Partners could acquire Susser for $1.8 billion
On March 28, 2014, Energy Transfer Partners LP (ETP) announced that it entered into a definitive merger agreement to acquire 100% of Susser Holdings Corporation (SUSS).
NuStar Energy’s new trends: A track refocused on core competence
Since 2012, NuStar has chartered on a track refocus on its core, fee-based businesses of storage and pipelines and to reduce earnings volatility.
Enterprise Products Partners will increase its LPG export capacity
Other than Targa Resources, the other company investing major sums to participate in LPG exports is Enterprise Products Partners (EPD).
A guide to preferred equity and 2 MLPs that recently issued it
Preferred equity (also called “preferred stock”) is a class of security that has features of both common equity and debt. Preferred equity acts like stock.
Vanguard Natural Resources raises $169 million in preferred equity
Earlier in March, Vanguard Natural Resources (VNR) raised money through the issuance of preferred equity. VNR issued 7 million 7.625% cumulative redeemable perpetual preferred units.
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.
How soaring propane exports affect prices
Propane exports have increased significantly through 2013, and have spiked recently. Increased propane exports are a positive for domestic propane prices.
This fall’s bumper crops pushed up propane demand
Higher propane demand from the agricultural sector has helped to buoy propane prices.
An investor’s guide to YMLI and its holdings, like Targa Resources
The Yorkville High Income Infrastructure MLP ETF (YMLI) launched in February 2013. Major constituents of YMLI include Sunoco Logistics Partners LP (SXL) and Western Gas Equity Partners LP (WGP).
Top MLP Funds Recorded Net Inflows in October
The top MLP funds saw net inflows in October. The Alerian MLP ETF (AMLP) had net inflows of $105.7 million for the month.
Why tracking errors in MLPA make the ETF underperform its index
The tracking error of MLPA is 3.96%. This means the standard deviation for excess average weekly returns for the benchmark index over MLPA for the past year is 3.96.
An investor’s must-know guide to tracking error for MLP ETFs
Tracking error measures how closely a portfolio follows the index it’s benchmarked to—that is, how well a fund manager replicates the performance of a specific index.
Analyzing Enterprise Products Partners’ Distributable Cash Flow
Enterprise Products Partners’ (EPD) DCF (distributable cash flow) for 2018 rose 34% over 2017.
What Do the Fund Flows into Top MLP ETFs Indicate?
So far in 2019, AMLP, AMZA, and EMLP have seen net outflows of $184 million, $5 million, and $53 million, respectively.