Magellan Midstream Partners, L.P.
Latest Magellan Midstream Partners, L.P. News and Updates
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.
USO Is a Better Trade Compared to XOP in Week of July 2
Shares of USO trade on the NYSE like company stock. The fund lost ~5.3% in the week ended July 2.
EPD’s 3Q16 Results: Is a Recovery in Energy Coming Soon?
On the current state of the energy industry, EPD’s CEO Jim Teague said, “We are optimistic that the energy industry has weathered the harshest part of this cycle.”
Magellan Midstream: Analyzing How Its Segments Performed
Magellan Midstream Partners’ (MMP) Refined Products segment, which primarily transports gasoline and diesel, earned 61% of its EBITDA for 2Q17.
What to Make of Magellan Midstream Partners’ Segment Performances
Magellan Midstream Partners’ (MMP) operational segments are Refined Products, Crude Oil, and Marine Storage.
MLP Rating Updates during the Week Ending December 15
During the week ending December 15, BMO Capital Markets upgraded Magellan Midstream Partners (MMP) to “outperform,” which is equivalent to “buy.”
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.
Are Rising Treasury Yields behind the Higher MLP Yields?
The Alerian MLP Index is trading at a yield of ~7.9%, which is ~5% higher than US ten-year Treasury yields.
Top Three MLPs for Income Investors
There’s a widespread consensus that the worst is over for the MLP sector. Savvy investors seem to be willing to give the sector a second chance.
Analyzing Trends in Top Midstream Companies’ Price Targets
Six out of the top ten midstream companies currently have a lower mean price target than they had a year ago.
Highlights from Kinder Morgan’s Fourth-Quarter Earnings
Kinder Morgan reported its fourth-quarter earnings on January 16 after the markets closed. Kinder Morgan’s adjusted EPS grew ~19% YoY.
Capital Projects Should Fuel Enterprise Products’ Earnings Growth
Enterprise Products Partners (EPD) spent $1.2 billion on capital projects in the first quarter.
April Cushing Inventories Move in on Capacity
If inventories at Cushing reach capacity, oil prices could tumble further. That would hurt oil producing companies such as Hess (HES), ExxonMobil (XOM), Chevron (CVX), and Apache (APA).
Why the Permian Basin is a key focus for Magellan Midstream Partners
Magellan Midstream Partners (MMP) has made significant investments in pipelines in the Permian region to deliver crude oil from the Permian Basin in west Texas to markets along the U.S. Gulf Coast.
Why the long-term declining trend at Cushing may not continue
Crude stocks at Cushing, Oklahoma increased by 716,000 barrels to 19.6 million barrels (or MMbbls) in the week ending October 10.
Crude Oil Prices Should Drive Plains All American’s Stock Price in 2016
The correlation between WTI prices and Plains All American’s shares has been even higher at 0.8 since the start of 2014.
Crude Oil Inventories Up in Week Ended August 28: Effect on MLPs
According to data released on September 2, US crude oil inventories rose 1.0% in the week ended August 28 compared to the previous week.
What Buckeye Partners’ Current Valuation Indicates
On October 31, 2017, Buckeye Partners (BPL) was trading at a price-to-distributable-cash-flow multiple of 10.4x, which is significantly below the historical ten-quarter average of 13.8x.
Magellan Midstream Reported 15% Growth in 2Q17 Earnings
Magellan Midstream Partners (MMP) reported its 2Q17 earnings on August 2, 2017.
Inventory Gains at Cushing Slowed the Week Ending April 17
Unlike 2015, inventories in 2014 consistently fell before turning upward toward the latter part of the year.
Why Is ONEOK Outperforming Its Peers in 2018?
ONEOK (OKE) stock is up nearly 4% so far in 2018.
Introducing the UBS ETRACS Alerian MLP Infrastructure ETN AMZIX
The UBS ETRACS 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN (MLPS) tracks the Alerian MLP Infrastructure Total Return Index (AMZIX).
A closeup of Plains All American Pipeline’s stock performance
After its 4Q14 earnings announcement, Plains All American Pipeline’s (PAA) stock performance improved, jumping slightly by 1.6%.
MMP, KMI, OKE, and ET: How Top Midstream Stocks Fared Last Week
The top midstream sector stocks ended mixed last week. Magellan Midstream Partners (MMP) and Kinder Morgan (KMI) rose 4.6% and 2.2%.
KMI, OKE, WMB: Midstream Stocks Tumbled Last Week
Top midstream stocks including Kinder Morgan (KMI), Williams Companies (WMB), and ONEOK (OKE) fell last week.
These Midstream Players Have Created Maximum Wealth for Investors
In this series, we’ll look at the historical outliers in midstream energy, which have generated massive wealth amid turbulent times.
Must-know: Occidental’s midstream and marketing segment
The Dolphin Pipeline contributes significantly to Occidental’s pipeline transportation results through Occidental’s 24.5% interest in Dolphin Energy.
AMLP: What’s Next for Midstream MLPs after a Rebound?
Midstream MLPs have recovered after hitting multiyear lows early this month. The ALPS Alerian MLP ETF (AMLP) is up more than 10% in the last two weeks.
AMLP: What’s Next for Midstream MLPs after a Big Fall?
The ALPS Alerian MLP ETF (AMLP), the representative of the top MLPs in the US, plunged to record lows last week. It’s trading near its all-time low of $7.7.
Why oil and natural gas production in the Permian should increase
According to the Energy Information Administration’s short-term energy outlook published in June 2014, crude oil production will average 8.4 million barrels per day in 2014.
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.
Must know: Why is the West Texas crude trading at a discount?
The prices for West Texas Intermediate (WTI) crude at Midland, TX traded at a discount of $10.50/Bbl to WTI at Cushing, OK on Thursday, last week.
The WTI-Midland spread: The short-term and long-term viewpoints
Permian crude is an attractive enough resource for many companies to have long-term plans to continue to grow in the region.
Why a spike in Treasury yields could affect your master limited partnership portfolio
The yield on Treasury rates spiked last week on hawkish Fed comments.
10-year Treasury yields continue to back out, MLP names could be hurt if trend continues
Yields on Treasurys have continued to creep up, however, from a long-term perspective rates still remain near historical lows which has been a positive for MLPs.
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.
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.
Treasury rates increased by 16 bps last week, could hurt MLP names
Treasury yields increased last week, and a continued movement upward could hurt the valuation of rate-sensitive instruments such as MLPs. However, from a long-term context rates remain very low.
EPD, ETE, PAA, and MMP: What Do Analysts Recommend?
All of the analysts surveyed by Reuters covering Enterprise Products Partners (EPD) and MPLX (MPLX) rated the stocks as “buy.”
EPD Expects to Complete $4.5 Billion of New Projects in 2019
Enterprise Products Partners (EPD) spent ~$4.2 billion on growth projects in 2018.
Does Magellan Midstream Partners’ 6.5% Yield Look Attractive?
Magellan Midstream Partners (MMP) is currently trading at a yield of ~6.5%.
Enterprise Products’ Q1 Earnings Beat Estimates
Enterprise Products Partners (EPD) reported 18% growth in its first-quarter earnings today.
Recent Changes in Enterprise Products Partners’ Short Interest
The short interest in Enterprise Products Partners (EPD) stock rose from 24.9 million shares on March 15 to 25.7 million shares on March 29.
How EPD Is Expected to Perform ahead of Its Earnings
In this article, we’ll take a look at how Enterprise Products Partners (EPD) stock may perform leading up to its earnings release on May 1.
Enterprise Products’ Attractive Spread over Treasury Yield
Enterprise Products Partners (EPD) is trading at a yield of ~6.2%, which is ~380 basis points higher than the US ten-year Treasury yield.
Enterprise Products Partners Stock Is Trading Range-Bound
Enterprise Products Partners has risen ~15% in 2019.
Midstream Stocks Outperformed Broader Markets Last Week
Midstream stocks and MLPs broadly outperformed the broader markets last week. The Alerian MLP Index was flat while the S&P 500 Index fell 2.2% for the week.
Why Are EPD, MMP, and MPLX’s Yields Attractive?
Enterprise Products Partners, Magellan Midstream Partners, and MPLX are trading at attractive yields of 6.4%, 6.5%, and 7.6%.
PAA, ET, and KMI: Which Top Midstream Stocks Fell Last Week?
MLPs fell marginally in the week ending January 25. The Alerian MLP Index fell 0.6% last week.
Enterprise Products’ Earnings Are Expected to Rise 20% in Q4
Enterprise Products Partners (EPD) is scheduled to report its fourth-quarter results on January 31.
Key MLP and Midstream Rating Updates Last Week
On January 16, Barclays raised its rating for Williams Companies (WMB) from “equal weight” to “overweight.”
MPLX Stock: Analysts Expect 22% Upside
MPLX’s mean target price is $42. The target price implies an upside potential of ~22% from MPLX’s current price of $34.5.
MMP, NS, VNOM, and CQP: Which MLPs Fell the Most?
NuStar Energy (NS), Viper Energy Partners (VNOM), and CVR Refining (CVRR) fell 8.9%, 8.6%, and 7.7%, respectively, last week.
MLPs Ended Positive for the Second Straight Quarter
MLPs outperformed the broader energy sector in the third quarter of 2018.
Fund Flows into Top MLP ETFs Fell in the Third Quarter
Fund flows into top MLP ETFs fell significantly in the third quarter.
Weekly Wrap-Up: Last Week’s Key Midstream Sector Updates
Crude oil prices rose ~4.3% last week, and the Energy Select Sector SPDR ETF (XLE) rose 2.7%. How did top midstream stocks fare?
Buckeye Partners Stock Could React to a Distribution Cut
Buckeye Partners’ 30-day implied volatility was 28.9% as of July 30—slightly below the 15-day average of 29.3%.
Should Investors Chase Buckeye Partners’ Monstrous Yield?
Buckeye Partners (BPL) was trading at a very high distribution yield of 14.6% on July 5.
ONEOK: A Top S&P 500 Dividend Stock
With a dividend yield of ~4.6%, ONEOK (OKE) is one of the 39 companies in the S&P 500 Index with a yield greater than 4%.
Richard Kinder: From Enron to Kinder Morgan
Currently, Richard Kinder owns nearly 11% of Kinder Morgan’s outstanding shares. The stock has underperformed the midstream sector.
How Midstream Stocks Fared over the Last Three Years
With strengthening oil prices, investor interest in the energy sector is on the rise. Many wonder if now is the right time to invest.
New Permian Pipeline Projects: Corpus Christi Key Destination
As production in the Permian increases, pipeline capacity should become more crucial for Permian producers.
How Flows into Top MLP ETFs Are Trending
The total net fund flow into the top five MLP ETFs by asset under management in February 2018 was -$466 million.
The MLP-Treasury Yield Spread Widens
The yield spread between the Alerian MLP Index (^AMZ) and the ten-year Treasury has widened due to the recent correction.
Magellan Midstream Partners: A Brief History
Magellan’s history Magellan Midstream Partners (MMP), which began trading in 2001, has grown through various asset acquisitions and expansion projects over the years. Magellan was formerly a part of Williams Companies (WMB). The company started trading as Williams Energy Partners in 2001, and changed its name to Magellan Midstream Partners in 2003. In 2004, the […]
AMLP, MLPA, AMZA: Fund Flows in Top MLP ETFs Surged in 2017
The Alerian MLP ETF, the First Trust North American Energy Infrastructure Fund, the Global X MLP ETF, the Infracap MLP ETF, and the Global X MLP & Energy Infrastructure ETF are the top five MLP ETFs by assets under management.
Permian Basin and the Need for Increasing Takeaway Capacity
Several pipelines have come online to accommodate rising Permian production in recent years, including the BridgeTex pipeline.
What’s Been Impacting MLP Performances as of December 8?
Most MLPs (master limited partnerships) closed the week ended December 1 in the red, after seeing some gains earlier in the week.
What’s behind ETP’s Strong Distributable Cash Flow Growth?
Energy Transfer Partners’ DCF rose 27.5% YoY to $1,049 million in 3Q17 compared to $823 million in 3Q16.
Raymond James Cut Enterprise Products Partners’ Price Target
Of the analysts surveyed by Reuters, 92% rated Enterprise Products Partners as a “buy,” and 8% rated it as a “hold.”
Analyzing Magellan Midstream Partners’ Leverage
Magellan Midstream Partners’ (MMP) DE (debt-to-equity) ratio is ~2x. Its DE ratio rose in 2016 and has been stable for two quarters.
Top MLP Gainers in Week Ended September 8
EV Energy Partners (EVEP) was the top MLP gainer last week, which ended on September 8, 2017. It rose 13.9%.
Short Interest in Enterprise Products and Magellan Rose Recently
The short interest as a percentage of float in Enterprise Products Partners’ (EPD) stock is 1.8%—higher than the 1.7% in mid-August.
Enterprise Products Partners’ Revenue Rose 1.7% in 2Q17
Enterprise Products Partners (EPD) reported its 2Q17 results on August 3, 2017. The company’s adjusted EBITDA rose 1.7% to $1.34 billion in 2Q17.
What’s ahead for Enterprise Products Partners Stock?
Currently, Enterprise Products Partners (EPD) is trading 0.1% below its 200-day moving average and 1.3% below its 50-day moving average.
Will Enterprise Products Partners Stock Gain Strength?
Currently, Enterprise Products Partners (EPD) is trading 2% above its 200-day moving average and 0.5% below its 50-day moving average.
Which Master Limited Partnerships Are Institutional Investors Buying?
The top ten institutional investors in Enterprise Products Partners (EPD) stock own nearly 45% of the company’s outstanding shares.
Which MLP Giant Has the Highest Leverage?
PAA had a net debt-to-EBITDA ratio of 6.8x at the end of 3Q16. This is much higher than the 4x–4.5x that MLPs (master limited partnerships) usually target.
Tax Considerations: How Are MLP Investors Taxed?
Now that we’ve learned about MLPs’ distributions, let’s see how distributions, or MLP investors, are taxed. MLPs are pass-through entities that pay no taxes.
Where Magellan Is Trading Compared to Its Historical Average
Magellan Midstream Partners (MMP) currently trades at a forward distribution yield of 4.9%, lower than its five-year average yield of 5.5%.
A Look at Magellan’s Debt Position
MMP’s net debt-to-EBITDA has been below 3.5x for the last five years. MMP has borrowed additional funds for capital expansion in 2016, so its debt liability has risen in 2016.
Why Over Half of Analysts Rate Magellan as a ‘Buy’
Of the analysts surveyed by Bloomberg, 55.5% rated Magellan Midstream Partners (MMP) as a “buy,” 39% rated MMP as a “hold,” and 5.5% rated it as a “sell.”
Why Magellan Midstream Partners Focuses on Organic Growth
A major chunk of Magellan Midstream Partners’ (MMP) expansion capital spending since 2006 has been on organic projects.
How Are EPD’s Segments Expected to Perform in 2Q16?
EPD carries out its operations through five reportable segments. NGL Pipelines & Services is its biggest segment and contributed 59% of EPD’s EBITDA.
Plains All American Trades at a Much Higher Forward Yield than Its Historical Average
Plains All American Pipeline currently trades at a forward distribution yield of about 14%—more than double of its five-year average of 6.6%.
Market Dynamics Impact Plains All American’s Supply and Logistics Segment
The contribution of its Supply and Logistics segment to Plains All American Pipeline’s EBITDA fell from 27% in 3Q14 to 19% in 3Q15.
Analyzing the Sales and Gross Profit of Midstream Companies
In fiscal 3Q15, the gross profit of frontline midstream operator Williams Companies (WMB) fell 28.6% on a YoY (year-over-year) basis.
Magellan Midstream Generally Resilient to Commodity Prices in 3Q15
Magellan Midstream’s stock price is currently driven by crude oil prices. A recovery in oil prices could mean a higher MMP stock price.
Why Continued Low Commodity Prices May Prevent an ONEOK Revival
ONEOK’s (OKE) stock price and the near-month WTI crude oil futures price have had a correlation coefficient of 0.64 over the last 15 years. This indicates a positive correlation between the two.
Key Drivers of Spectra Energy’s Stock Price
One factor impacting Spectra Energy’s stock price is the value of the Canadian dollar. Nearly 60% of SE’s 2014 revenues came from its Canadian operations.
10-Year Treasury and MLP Yields Diverged
In the long term, if Treasury yields fall and the spread doesn’t change, energy MLP yields should also fall. This could mean a rise in MLP unit prices.
Week Ended October 30: Cushing Inventories Fell 3 Weeks in a Row
The EIA reported that Cushing crude oil inventories fell by 212,000 barrels to 53.1 MMbbls in the week ended October 30, 2015. That was the third weekly fall in Cushing inventories.
Half of Analysts Rate Enbridge Energy Partners a ‘Hold’
Of the analysts surveyed by Bloomberg, 43% rated Enbridge Energy Partners (EEP) a “buy,” 50% rated it a “hold,” and 7% of analysts rated it a “sell.”
Cushing Inventories Up on June 26: More Bad News for WTI
Cushing crude oil inventories increased by 123,000 barrels to 56.37 MMbbls (million barrels) in the week ended June 26.
How Crude Oil Prices Impact Energy MLPs
While upstream energy MLPs are directly impacted by the fluctuations in crude oil prices, the impact on midstream companies is more indirect.
Must-Know: The 7 Regions for Oil and Gas Production in the US
The EIA (Energy Information Administration) monitors seven key tight oil and gas regions in the US.
Oil Services ETF OIH Overperformed XOP in the Week of July 2
The VanEck Vectors Oil Services ETF (OIH) lost 3.86% in the week ended July 2.
Natural Gas Prices Rose Last Week on Warm Weather Forecasts
Natural gas prices mostly rose in the week ended July 3. They increased 1.76% on a weekly basis. Prices closed at $2.822 per MMBtu…
XOP Is a Better Trade than USO in June 26 Week
XOP holds many US energy companies that have exposure to oil prices due to their upstream operations. ETFs like XOP are usually a safer option for investors.
The Advantages and Disadvantages of Investing in MLPs
MLPs clearly stand out when compared to other asset classes because of their structure, yields as compared to other asset classes, and stability of cash distribution.