MPLX LP

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.

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.

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.

The top MLP funds saw net inflows in October. The Alerian MLP ETF (AMLP) had net inflows of $105.7 million for the month.

Despite stable earnings and dividend growth, MLP stocks are depressed. We look at the top midstream energy stocks’ performance in the past 12 months.

The total refiners capacity in the US is around 18.8 million barrels per calendar day. The refinery utilization rate in 2018 was 93%.

In this article, we’ll look at five MLPs with at least 90% buy ratings: EPD, MPLX, Energy Transfer, Viper Energy Partners, and Black Stone Minerals.

MPLX’s average yield for the last five years is ~5.6%.

MPLX (MPLX) has underperformed its midstream peers so far in 2019. The stock is up only ~1% so far in 2019.

On May 8, Marathon Petroleum (MPC), MPLX LP (MPLX), and Andeavor Logistics LP (ANDX) announced that MPLX would acquire ANDX.

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.

Let’s take a look at midstream stocks trading at attractive yields. The stocks have a market capitalization of over $5 billion and yields over 7.0%.

The US crude oil (USO) supply includes domestic production and imports. The supply gets consumed as inputs to refineries and exports.

Energy Transfer (ET) offers a distribution yield of 7.9%, which is higher than its five-year average yield.

Midstream stocks ended mixed last week. The Alerian MLP Index fell 0.3%, while XLE fell 0.5% last week.

According to its latest 13F filing, Tortoise Capital Advisors sold net ~0.9 million shares of MPLX (MPLX) and held 3.4% of its total outstanding shares as of December 31.

Kinder Morgan’s (KMI) normalized EBITDA grew 8% in 2018. The growth follows a fall of 6% in Kinder Morgan’s EBITDA in 2017.

Enterprise Products Partners (EPD) spent ~$4.2 billion on growth projects in 2018.

In this series, we’ll look at the YoY EBITDA growth and capital expenditure for Enterprise Products Partners (EPD), Magellan Midstream Partners (MMP), and MPLX (MPLX).

Magellan Midstream Partners (MMP) reported its fourth-quarter results on January 31. The company reported a DCF of $302 million.

The top midstream sector stocks including Energy Transfer (ET), MPLX (MPLX), and Kinder Morgan (KMI) rose during the week ending February 1.

Among the 23 analysts covering Enterprise Products Partners, 12 rated it as a “strong buy,” ten rated it as a “buy,” and one rated it as a “hold.”

While MLP stock prices might fall, they might still generate positive total returns for investors due to their yield returns.

Enterprise Products Partners, Magellan Midstream Partners, and MPLX are trading at attractive yields of 6.4%, 6.5%, and 7.6%.

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.

Midstream stocks and MLPs continued to gain in the third week of 2019. The Alerian MLP Index rose 1.9% in the week ending January 18.

Energy Transfer (ET) stock was rated a “strong buy” or “buy” by 88% of analysts surveyed by Reuters.

MLPs are performing well in 2019. In this series, we’ll take a look at MLPs trading at a yield higher than 7%.

With simplified structures and greater financial discipline, MLPs look better-equipped to perform in the volatile commodity price environment.

MPLX’s (MPLX) median target price is $41.4, which implies an upside potential of more than 25% from its current price of $33.0.

MPLX’s mean target price is $42. The target price implies an upside potential of ~22% from MPLX’s current price of $34.5.

The yield spread between the Alerian MLP Index yield and the US ten-year Treasury yield contracted to 5.0% at the end of Q3 from 5.1% at the end of Q2.

Andeavor Logistics, Magellan Midstream Partners, and Plains All American Pipeline, top Alerian MLP Index constituents by market capitalization, are trading at price-to-DCF ratios higher than the peer average.

All of the analysts surveyed by Reuters covering Enterprise Products Partners (EPD) and MPLX (MPLX) rated the stocks as “buy.”

Plains All American Pipeline (PAA) has risen ~14% in 2018 and outperformed its MLP peers. Enterprise Products Partners (EPD) has risen 8%.

The Alerian MLP Index is trading at a yield of ~7.9%, which is ~5% higher than US ten-year Treasury yields.

The US crude oil production was 11 million barrels per day for the week ending September 14, according to data from the EIA.

In the September Short-Term Energy Outlook report, the EIA expects WTI crude oil prices to average $67 per barrel in 2018 and $68 per barrel in 2019.

After a 0.4% gain in the previous week, the Alerian MLP Index fell 0.5% last week. The Index is up 1.2% YTD (year-to-date), whereas on a total return basis—which includes distributions—the index is up ~7.3% YTD.

Analysts seem to be bullish on MPLX. Among the 16 analysts tracking MPLX, eight recommended a “strong buy,” while eight recommended a “buy.”

Hi-Crush Partners (HCLP) fell 5% during the week that ended on August 24. The stock has been on a downward trajectory for over a month.

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?

Kinder Morgan’s adjusted EBITDA grew 7% YoY in the second quarter. The EBITDA grew at an average rate of 4% over the last six quarters.

The short interest in Enterprise Products Partners (EPD) fell 9.4% from 8.5 million shares on July 13 to 7.7 million shares on July 31.

Kinder Morgan’s multiple is 27% lower than its five-year average. Kinder Morgan’s lower multiple could be due to analysts’ lower growth expectations.

Enterprise Products Partners and MPLX’s distributions have been on an upward trend. However, MPLX’s distributions grew faster.

So far, Enterprise Products Partners (EPD) has risen ~9% in 2018. The company has outperformed its peers in the midstream sector.

Of the top 15 MLPs by market cap, 13 reported YoY (year-over-year) rises in their quarterly revenues and earnings.

Hi-Crush Partners reported its second-quarter results on July 31 after the markets closed. The company reported an adjusted EBITDA of $81.5 million.

Plains All American Pipeline (PAA) will release its Q2 results on August 7 after the markets close.

Hi-Crush Partners (HCLP), a frac sand producer, was the top MLP gainer last week with a massive 40.6% rally driven by positive announcements.

The strong positive momentum for MLPs continues. The Alerian MLP Index with 44 energy MLPs ended in the green last week.

MPLX’s (MPLX) Logistics and Storage segment’s adjusted EBITDA nearly tripled from $184 million in Q2 2017 to $526 million in Q2 2018.

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” […]

Of the top midstream companies we’ve discussed in this series, only ONEOK (OKE) and Cheniere Energy (LNG) have met analysts’ mean price targets from a year ago.

Of the four MLPs that we’re discussing in this series, Enterprise Products Partners (EPD) received the most “buy” recommendations.

Energy Transfer Partners’ (ETP) net debt-to-adjusted EBITDA stands at ~5.1x—the highest among the four MLPs that we’re discussing in this series.

Energy Transfer Partners is trading at a high yield of ~11.8%. MPLX and Enterprise Products Partners are trading at attractive yields of 7.3% and 6.2%.

Enterprise Products Partners (EPD) is trading at a forward EV-to-EBITDA multiple of ~13x—lower than its five-year average multiple of 14.4x.

So far in 2018, Plains All American Pipeline (PAA) stock has risen nearly 10% and outperformed its peers.

In terms of analysts ratings, MPLX LP (MPLX), a diversified midstream MLP owned by Marathon Petroleum (MPC), places third among the seven midstream companies we’re looking at.

So far, the US Treasury yield has risen by 53 basis points YTD. At the same time, AMZ’s yield has increased by 12 basis points.

MPLX generated total returns, including distributions, of 17% in the last year. Its total returns over five years stand at 28%.

With strengthening oil prices, investor interest in the energy sector is on the rise. Many wonder if now is the right time to invest.

In this article, we’ll look into the institutional activity in Plains All American Pipeline (PAA) during the first quarter.

The number of institutional holders in Enterprise Products Partners fell to 1,063 by the end of the first quarter.

Master limited partnerships or MLPs saw continued strong earnings growth in 1Q18 after a solid fourth quarter of 2017.

Of the analysts covering Kinder Morgan (KMI), 64% recommended “buy,” and 36% recommended “hold.”

Kinder Morgan’s (KMI) net debt stood at $37.0 billion at the end of 1Q18, $331 million higher quarter-over-quarter.

Plains All American Pipeline reported its 1Q18 results on May 8 after the market closed. The company reported 16% YoY growth in the adjusted EBITDA.

About 72% of the analysts surveyed by Reuters rate Energy Transfer Equity (ETE) a “buy” as of May 1, and 28% rate it a “hold.”

ONEOK (OKE) reported its 1Q18 results yesterday. The company’s adjusted EBITDA grew 24% YoY in 1Q18.

Genesis Energy is expected to post 27.4% YoY EBITDA growth in the first quarter of 2018 compared to 1Q17.

In this series, we’ll look at the top ten midstream companies based on earnings growth expectations for 1Q18.

Energy Transfer Partners and Energy Transfer Equity are among the top midstream companies that offer high upside potentials.

On March 21, 2018, Bank of America upgraded Kinder Morgan (KMI) stock to “buy” from “neutral,” with a price target of $20.00.

MLPs on average are currently trading at an EV-to-EBITDA multiple of 9.0x.

Midstream companies such as Kinder Morgan (KMI), Targa Resource (TRGP), and ONEOK (OKE) are taxed as C-corps, so the revised policy doesn’t apply to them.

About 78.9% of analysts rate MPLX LP as a “buy,” and the remaining 21.1% rate it as a “hold.”

MPLX LP (MPLX) expects its 2018 capital expenditure to be ~$2.4 billion, which represents a 47.0% increase compared to the previous year.

Harvest Fund Advisors and CIBC Atlantic Trust Private Wealth Management added major positions in Plains All American Pipeline during the fourth quarter.

Energy Transfer Partners (ETP), the MLP subsidiary of Energy Transfer Equity (ETE), saw massive buying from institutional investors for the second consecutive quarter.

Bank of America Merrill Lynch and Citi Investment Research were the biggest sellers in MLPX LP (MPLX) during the fourth quarter.

The Alerian MLP Index (AMZ), which consists of 50 energy MLPs, lost 2.8% during the fourth quarter despite strong crude oil prices.

After a solid 3Q17, master limited partnerships’ strong earnings performances continued in 4Q17.

75.0% of analysts surveyed by Reuters rate Energy Transfer Partners (ETP) a “buy” as of February 21, 2018, and the remaining 25.0% rate it a “hold.”

Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) have been very volatile since the start of this year.

In the week ending February 9, MPLX LP (MPLX) was on Wall Street analysts’ radar for the second consecutive week.

The yield spread between the Alerian MLP Index (^AMZ) and the ten-year Treasury has widened due to the recent correction.

ONEOK (OKE), an S&P 500 midstream C corporation, has the second-highest correlation with crude oil among midstream companies.

Williams Partners, the largest natural gas gatherer in the Marcellus and Utica regions, is expected to see strong volume growth in the regions in the fourth quarter.

Antero Midstream Partners has lost 8.4% since the beginning of this year.

Among the top institutional holders, 9.33 million positions were added in 3Q17, which indicates a bullish sentiment toward MPLX.

In this series, we’ll review 3Q17 earnings results for some mid-to-large cap limited partnerships.

Of the analysts surveyed by Reuters, 71.0% recommend a “buy” for Energy Transfer Equity (ETE), and the remaining 29.0% of analysts recommend “hold.”

CVR Partners (UAN), the MLP mainly involved in the production of nitrogen fertilizers, was the top MLP gainer last week. CVR Partners rose 7.7%.

MPLX’s (MPLX) Gathering and Processing segment contributed 62% of MPLX’s 3Q17 operating income.

MPLX’s “buy” rating percentage has risen from 68% at the end of 2016 to 94% as of September 28, 2017.

Antero Midstream Partners, Viper Energy Partners, and Hoegh LNG Partners have the most “buys” among all the publicly traded limited partnerships.

MPLX (MPLX) declared a distribution of ~$0.56 per common share for 2Q17. That represents a 4.2% sequential increase and a 10.3% increase over 2Q16.