Magellan Midstream Partners, L.P.
4 Methods of Investing in MLPs
There are four methods of investing in MLPs. The MLP funds’ market cap reached $54 billion as of April 30, 2014. The number of MLP-focused funds reached 49.
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.
Why Buckeye Partners Is Outperforming Its Peers in 2017
In this series, we’ll do a comparative analysis of four MLPs that provide crude oil and refined products transportation and terminaling services.
Targa Resources’ Valuation Could Indicate a Buying Opportunity
Targa Resources (TRGP) stock has tripled in the last year, outperforming its peers in the sector. Let’s take a look at the stock’s current valuation.
Shell Midstream Trades at a Lower Distribution Yield than Its Peers
Shell Midstream Partners is trading at a forward distribution yield of about 3%. Its forward yield is nearly 5 percentage points lower than its peers.
Plains All American’s 4Q17 Distributable Cash Flow Rose 15%
Plains All American Pipeline (PAA) reported its 4Q17 results on February 6, 2018. The company’s DCF (distributable cash flow) for 2017 fell 7% compared to 2016, while its DCF for 4Q17 rose 15% year-over-year.
Outlook for Plains All American Pipeline: 4Q15 and Beyond
Plains All American Pipeline has revised its mid-point EBITDA guidance for full year 2015 to $2.2 billion, 3% below the $2.3 billion guidance it had previously provided.
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.
Can Enbridge Energy Partners Gain Upward Momentum from Here?
Enbridge Energy Partners (EEP) came close to its short-term 50-day SMA (simple moving average) during last week’s gain.
What Does Buckeye Partners Valuation Indicate?
Buckeye Partners was trading at a price-to-distributable cash flow of 11.1x as of January 31, which is below the average of 13.8x in the last ten quarters.
How US Oil Production Impacts MLPs
Oil production in the US has increased drastically due to new technologies and the application of hydraulic fracturing and horizontal drilling.
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.”
Evaluating MLPs Performance – Distribution Growth and DCF
Distribution growth is the cornerstone of MLP investing because it provides a hedge against inflation. Its preserves the investment’s purchasing power.
WTI Spreads Widened Last Week: Does It Impact MLPs?
The WTI Cushing-WTI Midland spread widened in the week ending June 15—compared to the previous week.
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.”
What Does Spectra Energy’s Moving Average Crossover Mean?
On February 8, Spectra Energy’s 20-day moving average crossed above its 100-day moving average, reflecting a strong rising trend in the stock.
How Plains All American Pipeline’s Segments Could Perform in 1Q16
Plains All American’s Transportation segment contributed ~45% of the total adjusted EBITDA in 4Q15, which was low due to the lower average price per barrel.
Cushing inventories increase for the third week in a row
Cushing, Oklahoma, is the delivery point for NYMEX crude futures contracts. It’s where a lot of supply sources of crude meet a lot of demand sources for that crude.
What Does Energy Transfer Partners’ Valuation Indicate?
Magellan Midstream Partners has the highest EV-to-EBITDA ratio among the MLPs under consideration.
Cushing inventories continue to trend higher
As new pipelines helped drain crude from Cushing inventories—mostly in the latter part of 2014—new pipelines also brought more crude to replenish them.
Key effect: How refiner activity affected Cushing inventories
Increase in crude inventories is likely the result of declining refinery input demand—which decreased by 525,000 bpd—as refineries enter seasonal maintenance to prepare for the upcoming winter.
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.
ETE’s Implied Volatility Rises ahead of Its Earnings
On February 17, 2017, Energy Transfer Equity (ETE) had an implied volatility of 41.6%, the highest among the midstream companies that make up the Alerian MLP ETF (AMLP).
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.
Reading the Top Institutional Holders in MPLX
Among the top institutional holders, 9.33 million positions were added in 3Q17, which indicates a bullish sentiment toward MPLX.
Magellan Midstream Offers Strong Distribution Coverage and Growth
Energy Transfer Partners increased its third quarter 2017 distributions by 2.7% compared to the previous quarter, the most out of the four MLPs.
61% of Analysts Call Magellan Midstream Partners a ‘Buy’
On April 11, 2018, Mizuho cut Magellan Midstream Partners’ (MMP) price target from $72 to $66.
EPD, ETP, WPZ, and MMP: Analyzing Distributable Cash Flow Growth
Why is distributable cash flow important? Distributable cash flow is a commonly used measure of MLP performance. The metric is broadly calculated by subtracting interest, tax, and maintenance capital expenditures from EBITDA (earnings before interest, taxes, depreciation, and amortization). Unlike C-corps, MLPs distribute a substantial part of generated cash flow to investors. As distributions to […]
Buckeye Partners: Analysts’ Recommendations
Suntrust Robinson downgraded Buckeye Partners to “sell” from “hold.” Suntrust Robinson reduced the partnership’s target price to $31 from $43.
Will Kinder Morgan Gain Upward Momentum?
Kinder Morgan (KMI) stock surpassed its 50-day moving average on April 18. The stock is currently trading 3% above its 50-day moving average.
Reading Magellan Midstream Partners’ Target Prices after the 4Q17 Earnings
On February 2, Barclays cut Magellan Midstream Partners’ price target from $78 to $76. On the same day, RBC cut MMP’s price target from $81 to $79.
Wall Street Analysts See a 30% Upside for Kinder Morgan
On April 17, 2018, Barclays cut its target price for Kinder Morgan (KMI) from $23 to $20.
Which Volatile Midstream Stocks Have Been Moving Lately?
As we saw in the previous article, Energy Transfer Equity (ETE) had the highest implied volatility among the midstream companies that are part of the Alerian MLP ETF (AMLP).
Top Midstream Stocks Ended Last Week with Gains
The top midstream sector stocks including Energy Transfer (ET), MPLX (MPLX), and Kinder Morgan (KMI) rose during the week ending February 1.
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.
Things Didn’t Look Good for the Alerian MLP ETF (AMLP) Last Week
The Alerian MLP ETF (AMLP) holds midstream MLP companies whose earnings are typically linked to the volumes of energy products they transport.
Will Top MLPs Generate Positive Returns in 2018?
With all of the top four MLPs in the red so far in 2017, investors are wondering how they will perform in 2018.
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.
AMLP Biggest Loser Among Energy Stock ETFs in Week Ended August 7
The Alerian MLP ETF lost 6.36% in the week ended August 7. The ETF tracks an index of 25 midstream MLP companies.
MPLX Had Higher Volumes and Acquired Assets
MPLX’s (MPLX) Logistics and Storage segment’s adjusted EBITDA nearly tripled from $184 million in Q2 2017 to $526 million in Q2 2018.
How Institutional Activity in MMP Trended in 4Q17
The number of institutional holders in Magellan Midstream Partners (MMP) increased to 713 by the end of the fourth quarter compared to 669 in the previous quarter.
What’s Expected for Plains All American Pipeline Stock
Of the 23 analysts covering Plains All American Pipeline (PAA), four recommend “strong buy,” six recommend “buy,” 12 recommend “hold,” and one recommends “strong sell.”
MMP Expects 2.8% Growth in Its 2018 Distributable Cash Flow
Magellan Midstream Partners (MMP) expects its 2018 DCF (distributable cash flow) to be $1.1 billion—2.8% higher than its 2017 DCF. Its DCF rose 7.8% in 2017.
Institutional Activity in Magellan Midstream Partners in Q1 2018
Brookfield Investment Management was the largest buyer in Magellan Midstream Partners during the first quarter.
EPD, ETP, MMP, and WPZ: In-Depth Leverage Analysis
Both Williams Partners (WPZ) and Energy Transfer Partners (ETP) had a net debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of ~5x as of June 30.
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.
Which Midstream Stocks Generated the Most Returns in Q1?
NGL Energy Partners (NGL) generated total returns, including price appreciation and dividends, of ~50% in the first quarter.
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.
Magellan Midstream Has Fallen 11% Year-to-Date—What’s Ahead?
Magellan Midstream Partners (MMP) stock has fallen nearly 11% so far in 2018.
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.
Why High Implied Volatility Midstream Stocks Move More Sharply
NGL Energy Partners (NGL) has risen 127.9% in the last year, which is the highest among high implied volatility midstream stocks.
Buckeye Partners Posted Better-than-Expected 4Q17 Earnings
Buckeye Partners (BPL) announced its fourth-quarter and fiscal 2017 earnings on February 9, 2018.
How MMP’s Organic Projects Are Driving Its Growth
A major chunk of Magellan Midstream Partners’ (MMP) expansion capital spending since 2006 has been on organic projects.
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.
MLPs and Midstream Stocks: Gains and Losses Last Week
Cheniere Energy Partners, Magellan Midstream Partners, and Noble Midstream Partners were among the biggest gains last week.
Magnetar Capital Increases Its Stake in Plains Group Holdings
During 4Q14, Magnetar Capital increased its position in Plains Group Holdings. It represents 2.36% of the fund’s portfolio at the end of the fourth quarter.
Magellan Midstream Reported 15% Growth in 2Q17 Earnings
Magellan Midstream Partners (MMP) reported its 2Q17 earnings on August 2, 2017.
Week Ending September 21, 2015: OIH Tops XOP
OIH was flat in the week ending September 18, 2014. This ETF tracks an index of the top 25 US-listed OFS companies. OIH should mirror XOP’s performance.
Why Analysts Are Bullish on MPLX Stock
Ratings for MPLX On July 18, Jefferies raised MPLX’s (MPLX) rating to “buy” and raised the target price for the stock to $38. Of the analysts surveyed by Reuters covering MPLX, 50% rate the stock as a “strong buy” and 50% rate it as a “buy.” None of the analysts rated MPLX as a “hold” […]
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.
What Will Drive Shell Midstream Partners’ Growth in 2016?
Shell Midstream Partners (SHLX) has generated total returns of -13% since the start of 2016.
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).
What’s Next for Energy Transfer Partners?
Energy Transfer Partners (ETP) mainly provides natural gas midstream services including transportation and storage.
KMI, OKE, and WMB: Top S&P 500 Dividend Stocks
Kinder Morgan (KMI), Williams Companies (WMB), and ONEOK (OKE) are currently trading at yields of ~4.5%, 4.6%, and 5.0%, respectively.
How Analysts Rate Kinder Morgan ahead of Its 3Q17 Results
Wall Street analysts look bullish on Kinder Morgan (KMI) ahead of its 3Q17 results.
Buckeye Partners: Wall Street Recommendations after 4Q17 Earnings
Amid the backwardation market conditions and significant inventory draws, Buckeye Partners’ (BPL) terminal capacity utilization is expected to remain a challenge in 2018.
Kinder Morgan’s 6.8% Fall Last Week Wiped Out Its 2018 Gains
Kinder Morgan (KMI) was one of the worst-performing stock last week, which ended February 2, 2018. The broader markets fell 4%, and Kinder Morgan fell 6.8%, a 3% fall year-to-date.
Why 3Q17 Was Good for MLPs
In this series, we’ll review 3Q17 earnings results for some mid-to-large cap limited partnerships.
MPLX: Why Are Analysts So Bullish?
Analysts seem to be bullish on MPLX. Among the 16 analysts tracking MPLX, eight recommended a “strong buy,” while eight recommended a “buy.”
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%.
MLPs’ Strong Earnings Growth Continued in 4Q17
After a solid 3Q17, master limited partnerships’ strong earnings performances continued in 4Q17.
Plains All American Pipeline Expects Flat Earnings for Q2
Plains All American Pipeline (PAA) will release its Q2 results on August 7 after the markets close.
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.
Which MLPs Could Continue Strong Distribution Growth in 2017?
Out of 117 MLPs, 37 managed to grow their distribution while 68 MLPs kept their distribution unchanged until 3Q16.
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: An investor’s guide to the Alerian MLP ETF (AMLP)
The Alerian MLP ETF (AMLP) is one of the top ETFs tracking the US energy and natural resources sector. This series provides a key overview of AMLP and its top four components.
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.
Could Magellan Midstream Generate Positive Returns in 2018?
In this series, we’ll analyze MMP in depth, looking at its price targets, segmental performance, fee-based business, leverage, distributable cash flow, capital expenditure, and distribution growth.
Most MLPs Today Focus on the Oil and Gas Sector
Currently close to 130 MLPs that trade on major exchanges have a primary focus on oil and gas midstream and downstream activities.
Why Plains All American Missed 3Q15 Consensus Revenue Estimates
Plains All American Pipeline’s (PAA) revenues of $5.5 billion in 3Q15 were 22% lower than analysts’ consensus estimate. It has missed consensus revenue estimates in six out of the last ten quarters.
What Drove Shell Midstream Partners’ EBITDA Growth in 4Q15?
Shell Midstream Partners (SHLX) reported 4Q15 adjusted EBITDA of $65.5 million, which is more than double its adjusted EBITDA of $31.8 million in 4Q14.
Can Magellan Midstream Partners Gain Upward Momentum?
Last week, MMP went above its short-term (50-day) moving average, driven by its recent gains. That might indicate a bullish sentiment in MMP.
MLPN Gained 2%, Underperformed MLPI Last Week
The Credit Suisse X-Links Cushing MLP Infrastructure ETN (MLPN) rose 2.0% in the week ended October 2, 2015. MLPI and AMJ rose 3.6% and 3.8%, respectively.
Why 93% of Analysts Rate Enterprise Products Partners a ‘Buy’
Of analysts surveyed by Bloomberg, ~93% rate Enterprise Products Partners (EPD) a “buy,” ~3.5% rate the MLP a “hold,” and ~3.5% rate it a “sell.”
Did Magellan Midstream Partners’ Fall Make It Attractive?
Magellan Midstream Partners (MMP) reported its fourth-quarter results on January 31. The company reported a DCF of $302 million.
Why Should Investors Include MLPs in Their Portfolios?
Investors looking to take advantage of the recent US shale energy boom can invest in energy-oriented MLPs. They represent the majority of the MLP universe.
What Do Shell Midstream Partners’s Price Targets Indicate?
Of the analysts surveyed by Reuters, 60% rated Shell Midstream Partners (SHLX) as a “buy,” and 40% rated it as a “hold.”
5 Dividend Stocks for an Uncertain Market
The ongoing trade war and geopolitical uncertainties are keeping the stock markets volatile. This may attract investors to dividend stocks.
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.
Cushing inventories decline for first time in five weeks
As new pipelines come online to bring more crude from Canada and the Bakken in North Dakota to Cushing, the downward trend in inventories may not persist.
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.