MarkWest Energy Partners LP

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  • XLE Outperforms USO Last Week
    Macroeconomic Analysis

    XLE Outperforms USO Last Week

    The Energy Select Sector SPDR ETF (XLE) fell 0.66% in the week ended September 11. XLE tracks a diverse group of 45 of the largest American energy stocks in the S&P 500 Index (SPX).

    By Keisha Bandz
  • Comparison of exchange-traded funds and exchange-traded notes
    Macroeconomic Analysis

    Comparison of exchange-traded funds and exchange-traded notes

    ETFs (exchange-traded funds) have stock-like characteristics, while ETNs (exchange-traded notes) possess bond-like traits.

    By Keisha Bandz
  • MLPs: How They Operate in the Midstream Energy Industry
    Company & Industry Overviews

    MLPs: How They Operate in the Midstream Energy Industry

    Most MLPs operate in the midstream energy industry. They’re mainly involved in gathering, processing, storing, and transporting energy commodities.

    By Kurt Gallon
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    Energy & Utilities

    Why some MLPs are benefitting from increased propane exports

    Significantly higher rates of propane exports have helped to boost propane prices—and the margins of some MLP names.

    By Ingrid Pan
  • uploads///
    Energy & Utilities

    Why debt is now a less attractive financing source for master limited partnerships

    Master limited partnerships rely highly on external capital to fund growth Master limited partnerships or MLPs are specially structured entities that must pay out most of the cash they generate to unitholders. So MLPs rely especially on external funding sources (as opposed to internally generated cash) to execute growth projects and acquisitions. Because of this […]

    By Ingrid Pan
  • Energy & Utilities

    Part 6: Mid Cap Growth MLP, Mark West Energy Partners—overbought?

    MLP’s—have retail investors gone too far? The below graph of Mark West Energy Partners, MWE, reflects exceptional growth against the S&P 400 mid cap index as well as the Morningstar mid cap growth index. This mid cap Master limited Partnership, MLP, has certainly ridden the MLP bull market. Despite the challenges faced by Chesapeake Energy, […]

    By Marc Wiersum, MBA
  • uploads/// Mar Frac
    Energy & Utilities

    Why rising frac spreads are benefitting select MLP names

    Last week, frac spreads traded up slightly, and over the medium term, frac spreads are up significantly. This is a positive catalyst for natural gas processors.

    By Alex Chamberlin
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    Energy & Utilities

    Before you invest in master limited partnerships, read about this risk (Part 1)

    What risk should you know about that could significantly affect MLP valuation? Read on to find out.

    By Ingrid Pan
  • uploads///US crude inv
    Macroeconomic Analysis

    US Crude Oil Inventories Increased More Than Expected, WTI Down

    In its Weekly Petroleum Status Report released on November 4, 2015, the EIA reported an increase of 2.8 MMbbls in crude oil inventories for the week ended October 30, 2015.

    By Keisha Bandz
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    Energy & Utilities

    Must-know: Why is Regency’s acquisition of PVR Energy important?

    Gas prices may be low now, but long-term gas drilling is here to stay in North America Currently, natural gas prices are relatively depressed, and short-term natural gas drilling activity on the whole doesn’t appear to be rising (see Why natural gas rigs aren’t likely to rise much through year-end). However, Regency’s purchase of PVR […]

    By Ingrid Pan
  • uploads///
    Energy & Utilities

    Must-know: Frac spreads get boost from oil price spike

    Fractionation spreads got a boost last week with rising crude oil prices.

    By Ingrid Pan
  • uploads///XLE
    Macroeconomic Analysis

    XLE Rose Despite Weakness in Crude Oil Prices Last Week

    The Energy Select Sector SPDR ETF (XLE) gained 3.45% in the week ended August 14. This ETF tracks a diverse group of ~45 of the largest American energy stocks.

    By Keisha Bandz
  • uploads///BROKER RECOMM
    Earnings Report

    Wall Street analysts’ ratings of MarkWest Energy Partners

    64.7% of the analysts have rated the company as “hold”, while the remaining 35.3% have rated it as “buy”.

    By Keisha Bandz
  • uploads///Natural Gas GandP
    Energy & Utilities

    Why natural gas gathering and processing are important for MLPs

    Natural gas gathering and processing is a significant part of the operations of many midstream master limited partnerships.

    By Ingrid Pan
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    Energy & Utilities

    Rates inched up, but debt remains cheap for most MLP names providing cash for growth

    Corporate debt rates for MLPs increased slightly over the past two weeks, but from a long-term perspective debt funding still remains extremely cheap.

    By Ingrid Pan
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    Energy & Utilities

    Higher propane prices help frac spreads and natural gas processors

    Frac spreads traded up slightly last week and have been relatively range-bound over the past several months.

    By Ingrid Pan
  • Energy & Utilities

    Overview: An introduction to MarkWest Energy Partners

    MarkWest Energy Partners L.P., (MWE) is a master limited partnership (or MLP) that provides natural gas gathering, processing, and transportation services to natural gas producers.

    By Keisha Bandz
  • uploads///Total Returns MLPS vs AMZI
    Macroeconomic Analysis

    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).

    By Keisha Bandz
  • uploads///NG PROD
    Macroeconomic Analysis

    US Natural Gas Production Flat in July, but Up Year over Year

    Based on data from Bentek Energy, the EIA reported that total US natural gas production remained flat in the seven days leading up to September 30, 2015.

    By Keisha Bandz
  • uploads///EXLP stock
    Earnings Report

    Why Is Exterran Partners’ Stock Performance Improving?

    After Exterran (EXLP) announced its 4Q14 earnings, its stock jumped from $22.84 to $ 23.42. Since then, its stock performance has mostly been on the rise.

    By Keisha Bandz
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    Energy & Utilities

    Why higher natural gas liquids prices help natural gas processors

    Fractionation spreads increased on the back of higher natural gas liquids prices, a positive for natural gas processor master limited partnerships.

    By Ingrid Pan
  • uploads///Total Marcellus Processing Capacity
    Energy & Utilities

    The Marcellus is a key focus area for MarkWest’s 2014 investments

    MWE is the largest processor in the prolific Marcellus Shale, with well-integrated midstream assets including processing, fractionating, and storage assets.

    By Keisha Bandz
  • uploads///Regencys Marcellus Segment
    Energy & Utilities

    Regency’s PVR Midstream acquisition means Marcellus Shale exposure

    Regency recently acquired a foothold in the Marcellus by buying PVR Partners LP in March this year in a deal worth $5.6 billion, specifically to boost its footprint in the Appalachian Basin.

    By Keisha Bandz
  • Energy & Utilities

    Why the pace of natural gas production remains steady

    Despite the lower natural gas prices, natural gas production growth has remained steady over the past few years. According to the EIA, in 2013, total U.S. natural gas production increased by 1%.

    By Keisha Bandz
  • uploads///
    Energy & Utilities

    Cheap ethane affects profits and growth for some upstream MLPs

    Ethane prices dropped because while ethane supply grew, mostly from increased natural gas drilling with a significant natural gas liquids component, demand for ethane could not keep pace.

    By Ingrid Pan
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    Energy & Utilities

    Spread between MLP yields and corp credit widened 9 bps last week

    The spread between the BofAML BBB Corporate Credit Index and the Alerian MLP Index widened by 9 bps last week.

    By Ingrid Pan
  • uploads///natural gas prices
    Macroeconomic Analysis

    Natural Gas Prices Rose and Impacted MLPs

    NYMEX near-month Henry Hub natural gas futures contracts rose last week. Natural gas prices closed at $2.21 per MMBtu on November 27.

    By Rekha Khandelwal, CFA
  • uploads///natural gas prices
    Macroeconomic Analysis

    Falling Natural Gas Prices Continue to Impact Energy MLPs

    Natural gas prices closed at $2.14 per MMBtu (British thermal units in millions) on November 20 after closing the previous week at $2.36 per MMBtu.

    By Rekha Khandelwal, CFA
  • uploads///USO
    Macroeconomic Analysis

    XOP Was a Better Bet than USO in the Week Ended November 6

    The United States Oil ETF (USO) tracks prompt WTI crude oil futures. The fund fell ~4% in the week ended November 6, 2015.

    By Keisha Bandz
  • uploads///crude oil prod
    Macroeconomic Analysis

    US Crude Oil Production Stays Flat, Imports Fall

    The EIA estimates that US crude oil production remained flat at 9.1 MMbpd in the week ended October 30, 2015, compared to the previous week. This is 2% higher than last year’s level of 8.9 MMbpd.

    By Keisha Bandz
  • uploads///natural gas prices
    Macroeconomic Analysis

    Natural Gas Prices Rose Last Week: Impact on Energy MLPs

    Natural gas prices closed at $2.32 per MMBtu (British thermal units in millions) on October 30 after closing the previous week at $2.29 per MMBtu.

    By Rekha Khandelwal, CFA
  • uploads///ebitda versus consensus estimates
    Earnings Report

    Can Enbridge Energy Partners Match Its 3Q15 Earnings Estimates?

    Analysts expect that Enbridge Energy Partners’ 3Q15 EBITDA will be more than triple the 2Q15 EBITDA and 18% higher than its 3Q14 EBITDA.

    By Rekha Khandelwal, CFA
  • uploads///EBITDA vs consensus estimates
    Earnings Report

    Will ONEOK Partners Match Higher 3Q15 Earnings Estimates?

    Analysts expect ONEOK Partners’ (OKS) 3Q15 EBITDA to be 7% lower than its 3Q14 EBITDA and 15% higher than its 2Q15 EBITDA. ONEOK Partners missed its 2Q15 EBITDA estimates by 2%.

    By Rekha Khandelwal, CFA
  • uploads///NG PROD
    Macroeconomic Analysis

    US Natural Gas Production Was Up Slightly Last Week

    Total US natural gas production rose ~0.14% in the seven days leading up to October 21, 2015, compared to the seven days that ended on October 14.

    By Keisha Bandz
  • uploads///NG PROD
    Macroeconomic Analysis

    US Natural Gas Production Fell Slightly Last Week

    The U.S. Energy Information Administration reported that total US natural gas production fell ~0.2% in the seven days leading up to October 14, 2015.

    By Keisha Bandz
  • uploads///EBITDA Estimates
    Earnings Report

    Why Have Analysts Increased Williams Partners’ EBITDA Estimate?

    Wall Street analysts have increased WPZ’s 3Q15 EBITDA estimates despite the company’s significant misses in recent quarters.

    By Kurt Gallon
  • uploads///Crude oil and natural gas forecast
    Earnings Report

    How Will KMI’s Commodity Price Exposure Affect 3Q15 Performance?

    Kinder Morgan (KMI) operates like a toll road or a fee-based business with limited commodity price exposure.

    By Kurt Gallon
  • uploads///EBDA Breakdown
    Earnings Report

    Which Segment Will Drive Kinder Morgan’s 3Q15 Performance?

    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.

    By Kurt Gallon
  • uploads///nat gas prod
    Macroeconomic Analysis

    What Happened to US Natural Gas Production Last Week?

    US natural gas production increased slightly by ~0.15% in the seven days leading up to September 23 compared to the seven days ended September 16.

    By Keisha Bandz
  • uploads///nat gas prod
    Macroeconomic Analysis

    US Natural Gas Production Falls 1.42% Last Week

    US natural gas production Based on data from Bentek Energy, an energy market analytics company, the EIA (U.S. Energy Information Administration) reported that total US natural gas production fell ~1.42% in the week ended September 16 compared to the week ended September 9. However, supply levels remain ~3% greater than they were in the corresponding week last year. […]

    By Keisha Bandz
  • uploads///ng prices
    Macroeconomic Analysis

    US Natural Gas Prices Fall 1.52% in Week Ended September 17

    US natural gas prices fell 1.52% between Friday, September 11, and Thursday, September 17. Prices closed at $2.652 per MMBtu on September 17. On September 4, prices closed at $2.693 per MMBtu.

    By Keisha Bandz
  • uploads///nat gas prod
    Macroeconomic Analysis

    Natural Gas Production Falls Slightly as of September 9

    US natural gas production fell 0.4% in the week ended September 9 compared to the previous week. However, supply levels remain 4% greater than they were in the corresponding week last year.

    By Keisha Bandz
  • uploads///NG prices
    Macroeconomic Analysis

    EIA Report Supports Natural Gas Prices Last Week

    Natural gas prices rose 1.05% from Friday, September 4, to Thursday, September 10. Prices closed at $2.683 per MMBtu on September 10, up from $2.655 per MMBtu on September 4.

    By Keisha Bandz
  • uploads///USO
    Macroeconomic Analysis

    USO Gained with WTI, but XOP Down in the Week Ended September 4

    Tracking prompt WTI crude oil futures, USO shares trade on the New York Stock Exchange like company stock. The ETF gained 1.3% in the week ended September 4.

    By Keisha Bandz
  • uploads///nat gas prod
    Macroeconomic Analysis

    Key Trends: US Natural Gas Production Rose in June

    The EIA reported that total US natural gas production remained flat in the week ended September 2 compared to the week ended August 26.

    By Keisha Bandz
  • uploads///XLE
    Macroeconomic Analysis

    XLE Was Up, but USO Was the Winner in the Week Ended August 28

    The United States Oil Fund (USO) was the biggest gainer in the week ended August 28. The fund rose by 12.47%.

    By Keisha Bandz
  • uploads///uso
    Macroeconomic Analysis

    XOP Was Up, but USO Was the Winner Last Week

    The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) holds many American energy companies that have exposure to oil prices due to their upstream operations.

    By Keisha Bandz
  • uploads///NG prices
    Macroeconomic Analysis

    Bearish Inventory Pulls Down Natural Gas Prices despite Weather

    Natural gas prices fell by 1.42% between Friday, August 21, and Thursday, August 27. Prices closed at $2.638 per MMBtu (British thermal units in millions) on August 27.

    By Keisha Bandz
  • uploads///NG Prod
    Macroeconomic Analysis

    What Are the Short-Term and Long-Term Trends for Natural Gas?

    The EIA reported that total natural gas supply increased ~1.7% in the week ended August 19 compared to the week ended August 12.

    By Keisha Bandz
  • uploads///NG prices
    Macroeconomic Analysis

    Why Did the Weather Overshadow Bullish Inventories?

    Cooler weather reduces power demand for cooling purposes. Natural gas is a major fuel for power generation.

    By Keisha Bandz
  • uploads///NG Prod
    Macroeconomic Analysis

    Natural Gas Supply Falls, but What’s the EIA Forecasting?

    Total natural gas supply decreased 2% in the week ended August 12 compared to the week ended August 5.

    By Keisha Bandz
  • uploads///ng prices
    Macroeconomic Analysis

    Weather Supported Natural Gas Prices, but Inventories Didn’t

    Natural gas prices fell by ~0.4% between Friday, August 7, and Thursday, August 13. Prices closed at $2.787 per MMBtu.

    By Keisha Bandz
  • uploads///EBITDA Breakdown
    Earnings Report

    Which Segments Drove Williams Partners’ 2Q15 Performance?

    The Atlantic Gulf is Williams Partners’ (WPZ) largest business segment in terms of adjusted EBITDA. In 2Q15, it accounted for 39% of the company’s total EBITDA.

    By Kurt Gallon
  • uploads///XLE
    Macroeconomic Analysis

    Week Ending August 7: UNG Gains, XLE Loses, but Less than USO

    The Energy Select Sector SPDR ETF (XLE) lost 3.39% in the week ended August 7. XLE tracks a diverse group of ~45 of the largest American energy stocks that constitute the S&P 500 Index.

    By Keisha Bandz
  • uploads///NG PRICES
    Macroeconomic Analysis

    Natural Gas Prices Rose Last Week then Leveled off—Why?

    Higher natural gas prices are positive for natural gas producers such as Chesapeake Energy (CHK), Southwestern Energy (SWN), QEP Resources (QEP), and Cabot Oil & Gas (COG).

    By Keisha Bandz
  • uploads///MWE MPLX spread
    Miscellaneous

    The MarkWest-MPLX Merger: Trading at a Negative Spread

    If investors set up the MarkWest-MPLX merger spread and wait for the deal to close, they’ll make a -6.1% return. This means investors expect a competing bidder or a bump in the consideration.

    By Brent Nyitray, CFA, MBA
  • uploads///Organizational Struc
    Miscellaneous

    MarkWest-MPLX Merger: Big News for the Midstream Energy Sector

    In a press release published on July 13, 2015, MarkWest Energy Partners (MWE) and MPLX LP (MPLX) announced that the two MLPs have agreed to merge.

    By Kurt Gallon
  • uploads///natural gas liquids spot prices
    Macroeconomic Analysis

    Why the Natural Gas-NGL Price Spread Impacts Energy MLPs

    Natural gas processing MLPs typically benefit when the price of NGLs is high relative to natural gas.

    By Rekha Khandelwal, CFA
  • uploads///US Natural gas inv
    Macroeconomic Analysis

    Natural Gas Inventories Rose Last Week in Line with Expectations

    For the week ended June 26, natural gas inventories increased by 69 billion cubic feet to 2,577 bcf.

    By Keisha Bandz
  • uploads///How is cash flow calculated
    Company & Industry Overviews

    The Importance of the Distribution Coverage Ratio

    The distribution coverage ratio is the most important ratio for MLPs, as it highlights the cash available to the LP unit holders divided by the cash distributed to LP unit holders.

    By Victor Cheng
  • uploads///P MidCo
    Macroeconomic Analysis

    Midstream Movers: Targa Resources and MarkWest Energy

    Midstream movers last week included top gainer Targa Resources Partners (NGLS), with a ~7.4% increase, and top loser, MarkWest Energy Partners (MWE).

    By Manas Chowgule, CFA
  • uploads///IDRs
    Company & Industry Overviews

    IDRs: How Do They Impact MLPs?

    IDRs entitle the GP to receive a higher percentage of incremental cash distributions after certain target distribution levels have been achieved for the LP unitholders.

    By Kurt Gallon
  • uploads///guidance
    Earnings Report

    MarkWest Energy’s key 2015 forecasts

    MWE is forecasting distributions of approximately $3.70 in 2015 and $3.97 for 2016. From then on it expects distribution to grow at an annual growth rate of 10% for 2017 to 2020. The company’s 2014 distribution was $3.54.

    By Keisha Bandz
  • uploads///SW processed volumes
    Earnings Report

    MarkWest Energy’s operating income grows in Marcellus and Utica

    The Marcellus segment reported operating income of $139.9 million, which is 56.4% higher than the prior year’s operating income of $89.5 million.

    By Keisha Bandz
  • uploads///MWE ops
    Earnings Report

    MarkWest Energy’s key operational updates

    MarkWest Energy Partners’ (MWE) operations are divided into four business units—Marcellus, Utica, Northeast, and Southwest.

    By Keisha Bandz
  • uploads///MWE DCF
    Earnings Report

    Markwest Energy Partners increases its distributable cash flow

    Distributable cash flow (or DCF) is the amount of cash left over for an MLP to distribute to its unitholders or shareholders.

    By Keisha Bandz
  • uploads///
    Energy & Utilities

    Why master limited partnerships rely on external capital

    Master limited partnerships are a specially structure entity, and they don’t pay corporate-level taxes. This tax benefit allows MLPs to be valued at a higher multiple.

    By Ingrid Pan
  • uploads///
    Energy & Utilities

    Relative value: Spread between corporate credit and MLP yields

    Through the month of July, the spread between the yield on the Alerian MLP Index and the BofAML BBB Corporate Credit Index widened. Expectations that debt yields will rise could spell an opportune moment to shift assets into yielding stocks such as MLPs and out of corporate credit.

    By Ingrid Pan
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