What is XLE? Exploring Midstream Energy Company Exposure
Companies in the midstream sector that are included in the XLE portfolio include Kinder Morgan, Oneok, the Williams Company, and Spectra Energy.
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.
Is ONEOK Stock Currently Overvalued?
ONEOK (OKE) stock is currently trading at a forward EV-to-EBITDA multiple of 14.3x.
Short Interest in ONEOK Has Fallen 9% since July 14
Short interest as a percentage of float in ONEOK (OKE) stock is 3.8%. This is lower than mid-July’s reading of 4.1%.
Will Kinder Morgan Stock Continue to Surge in 2017?
Kinder Morgan stock has risen 44% in the past year, as compared to Enterprise Products Partners’ 32% rise and ONEOK’s 162% rise.
ONEOK’s Natural Gas Pipelines Segment’s Volume Growth
ONEOK’s (OKE) natural gas transportation capacity contracted was 6,593 Mdth/d (thousand dekatherms per day) in 3Q17 up from 6,300 Mdth/d in 3Q16.
ONEOK: Top Institutional Investors’ Increased Positions
The Vanguard Group, State Street Global Advisors, and Neuberger Berman added total net 2.7 million ONEOK shares to their positions.
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.
Here’s What’s Ahead for Oneok Stock in the Short Term
Oneok’s (OKE) 50-day and 200-day moving averages might act as resistance and support, respectively, for the stock in the short term.
Why Kinder Morgan Rose 3% Last Week
Kinder Morgan (KMI) rose 2.9% in the week ended Monday, June 5, 2017, recovering from some of its previous losses.
Key for Investors: The Fractionation Spread Rose Last Week
The Henry Hub–Mont Belvieu fractionation spread rose to $13.0 per barrel in the week ending May 13, 2016. The spread was $12.4 per barrel in the previous week.
Enterprise Products Is Expected to Increase Distributions in 2015
Enterprise Products trades at a distribution yield of ~4.9%. One of the reasons for EPD’s relatively lower distribution yield might be its distribution coverage ratio.
What Institutional Investors’ Activity in ONEOK Indicates
Nearly 75% of ONEOK’s (OKE) outstanding shares are currently held by more than 800 institutional investors.
What Does ONEOK’s Leverage Indicate?
For 2016, ONEOK’s (OKE) consolidated debt-to-EBITDA ratio was 5.1x. The company expects the ratio to fall to 4.7x for 2017.
More than 70% of the Analysts Rate ONEOK as a ‘Hold’
Of the analysts surveyed by Reuters, 71% rated ONEOK (OKE) as a “hold.” Nearly 23% rated ONEOK as a “buy,” while 6% rated it as a “sell.”
Higher Volumes Drive ONEOK’s 2Q16 Earnings Growth
ONEOK (OKE) reported its 2Q16 results on August 2, 2016, after the Market closed. Its 2Q16 analyst-adjusted EBITDA increased 15.2%.
Weekly Wrap-Up: Kinder Morgan Fell Marginally Last Week
Kinder Morgan (KMI) stock fell 0.3% in the week that ended on June 8.
ONEOK Stock Rose Compared to the Energy Sector Last Week
ONEOK (OKE) rose 4.4% for the week ending March 31, 2017. In comparison, the Energy Select Sector SPDR ETF (XLE) rose 2%.
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.
Recommendations for Top Midstream Gainers of 2019
As 2019 comes to a close, let’s look at the top energy midstream gainers. ONEOK (OKE) stock has risen 35% in 2019, outperforming its midstream peers.
PAA, WMB, and OKE: Midstream Stocks Rose Last Week
Last week, Plains All American Pipeline (PAA), Williams Companies (WMB), and ONEOK (OKE) rose 2.5%, 2.3%, and 1.9%, respectively.
Drivers behind Williams Companies’ Recent Market Performance
William Companies (WMB) has recovered slightly after a weak August 2017, and it has risen 2.4% since last week. WMB has fallen 3.3% since the beginning of 2017.
Why Gathering and Processing MLPs Outperformed in 1Q17
Gathering and processing MLPs were the best performing MLPs in the first quarter of 2017. The subgroup rose 14.7%.
MLPs Have Outperformed Broader Markets So Far in 2019
Top MLP and midstream stocks have performed strongly so far in 2019. Stocks surged across the board.
Kinder Morgan Fell 1.8% Last Week—What’s Next?
Kinder Morgan (KMI) fell 1.8% last week (ended October 20), while Enterprise Products Partners (EPD) and ONEOK (OKE) fell ~4.3% and ~0.8%, respectively.
Higher Permian Volumes Drove Plains All American’s 1Q18 Results
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.
Will ONEOK’s 2Q16 Results Contribute to Its Outperformance?
ONEOK (OKE) has generated total returns of 86% so far in 2016. In comparison, KMI, OKS, and WMB have generated total returns of 35%, 40%, and -0.2%, respectively.
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.
Is Kinder Morgan a ‘Buy’ Ahead of Its Q1 Results?
Around 76% of Reuters-surveyed analysts have rated Kinder Morgan (KMI) as a “buy” or a “strong buy” as of April 9.
The Word on the Street: What Analysts Are Saying about Kinder Morgan
The analyst average target price for KMI for the next year is $24.8, which implies a 15% price return, as compared to KMI’s current price of $21.5.
Are Institutional Investors Bullish on ONEOK?
Institutions and strategic entities hold nearly 69.3% of ONEOK’s outstanding shares. ONEOK has 0.4 billion outstanding shares.
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.
ONEOK Stock Continues to Surge, Up 19% Year-to-Date
ONEOK (OKE) stock has continued to build upon its gains in 2018.
Kinder Morgan to Decide on the Trans Mountain Expansion
Kinder Morgan (KMI) stock fell 1.1% in the week ending May 25 and outperformed the Energy Select Sector SPDR ETF (XLE), which fell 4.5% for the week.
Analysts’ Recommendations for Williams Partners
At a broader level, ~50% of analysts surveyed by Bloomberg rate Williams Partners a “buy” and the remaining ~50% rate it a “hold.”
ONEOK Partners: Natural Gas Liquids Segment Generates Most Income
The volume of NGLs transported on ONEOK distribution lines decreased mainly because of diminished optimization activity.
KMI, EPD, ETE, and OKE: Key Midstream Rating Updates
Credit Suisse gave a “neutral” rating to Magellan Midstream Partners (MMP), ONEOK (OKE), and Sunoco (SUN).
Amid the Fall in Crude Oil, ONEOK Ended Positive Last Week
ONEOK (OKE) rose 0.5% during the week ending March 24, 2017. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 1.8% last week.
What Does the Flattening Yield Curve Indicate for Investors?
Bond markets are experiencing rising yields due to higher economic growth expectations. However, the 10-Year Treasury yield was still low at 2.4% on March 29, 2017
How Crude Oil Prices Could Impact Energy MLPs in 2018
In this series, we’ll look at some of the key indicators that impact MLP performance in the long term.
ONEOK Partners’ natural gas gathering and processing segment
ONEOK Partners’ (OKS) natural gas gathering and processing segment provides natural gas gathering, compression, treatment, and processing services to natural gas producers.
Growth Projects Drove TransCanada’s Strong Q3 Results
TransCanada reported its third-quarter results on November 1. The company reported comparable earnings of 902 million Canadian dollars.
Magellan Midstream Reported 15% Growth in 2Q17 Earnings
Magellan Midstream Partners (MMP) reported its 2Q17 earnings on August 2, 2017.
Must-know: Supply-related factors that affect ONEOK Partners
Natural gas, crude oil, and NGL (or natural gas liquid) supply is affected by several factors that could be supply related or demand related.
ONEOK’s 1Q18 Earnings Rose 24% Due to Higher Volumes
ONEOK (OKE) reported its 1Q18 results yesterday. The company’s adjusted EBITDA grew 24% YoY in 1Q18.
Weekly Wrap-Up: Kinder Morgan Rose 1.5% Last Week
Kinder Morgan (KMI) stock rose 1.5% for the week ending July 6. Enterprise Products Partners (EPD) ended the week marginally down.
Kinder Morgan Fell 0.5% in the Week Ending June 15
Kinder Morgan (KMI) fell 0.5% in the week ending June 15. The stock outperformed Enterprise Products Partners (EPD) and ONEOK (OKE).
Why Is ONEOK Outperforming Its Peers in 2018?
ONEOK (OKE) stock is up nearly 4% so far in 2018.
Magnetar Capital starts new positions in DNR, OKE, LAMR, and KMI and sells PFE and ZTS—13F Flash C
In this six-part series, we’ll go through some of the main positions Magnetar traded this past quarter. Why buy Lamar Advertising Co. (LAMR)?
KMI, WMB, and OKE: Understanding Their Key Business Focus
Kinder Morgan transports natural gas, refined petroleum, crude oil, condensate, CO2, and other products through its network of pipelines.
Weakness in ONEOK Continues, Stock Fell 2.8% Last Week
ONEOK (OKE) fell 2.8% in the week ending March 17, 2017. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 0.3% last week.
Top MLP Funds Have Generated Negative Returns in 2018
The Kayne Anderson MLP Investment Company is the largest closed-end MLP fund with assets under management of more than $3 billion.
Kinder Morgan Fell 8.5% Last Week, Hit New 52-Week Low
With a 2.3% fall on Friday, March 23, Kinder Morgan (KMI) was down 8.5% for the week.
Natural Gas Pipelines Drove Kinder Morgan’s Earnings Growth
Kinder Morgan (KMI) reported its second-quarter results on July 18 after the markets closed. The company reported an EPS of -$0.08.
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.
Are Analysts Bullish on Williams Companies?
About 78.0% of analysts rate Williams Companies (WMB) a “buy,” while the remaining 22.0% rate it a “hold” as of August 21, 2017.
ONEOK Reports Strong Q3 Results, Beats Estimates
ONEOK reported its third-quarter results on October 30 after the markets closed. The company’s EPS of $0.75 beat the consensus estimates.
Teekay Offshore Partners’ Upgrade Last Week
Teekay Offshore Partners (TOO) was the only MLP to see a rating update last week. Let’s take a closer look.
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.
Why ONEOK Has Outperformed Its Peers in 2018
ONEOK (OKE) stock has risen ~21% so far in 2018, outperforming its peers in the midstream sector.
Explaining the Rising US Natural Gas Inventories and Falling Prices
The EIA report for the week ending September 25 showed that US natural gas inventories increased by 98 Bcf, rising to 3,538 Bcf that week.
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.
Enterprise Products Trades 6.5% below 50-Day Moving Average
Enterprise Products Partners (EPD) is currently trading 6.5% below its 50-day moving average and 21% below its 200-day moving average. EPD stock has fallen 33% since the start of 2015.
ONEOK: What Are Analysts’ Recommendations?
Nearly 60% of the analysts surveyed by Reuters rated ONEOK (OKE) as a “hold,” 33% rated it as a “buy,” and the remaining 7% rated it as a “sell.”
What Does Increased Short Interest in ONEOK Indicate?
For ONEOK, the short interest is ~23.4 million shares, while the average daily trading volume over the last 30 days is ~2.9 million shares.
How a Fall in Fractionation Spread Impacted MLPs
The Henry Hub–Mont Belvieu fractionation spread fell to $8.10 per barrel in the week ended January 1, 2016. The spread was $10.60 per barrel in the previous week.
Will Energy Pipeline Stocks Meet Analysts’ Ratings?
The analyst ratings are based on rigorous analysis of fundamentals. Let’s take a look at these ratings and price targets for top energy stocks.
ONEOK Institutional Investors and Analyst Ratings
Let’s take a look at what institutional investors are doing with their ONEOK holdings. We’ll also see analyst ratings for the stock.
Why ONEOK Partners acquires Permian assets from Chevron
On October 27, ONEOK Partners (OKS) announced that it agreed to acquire Chevron Corporation’s (CVX) natural gas liquids (or NGLs) pipeline assets.
Why ONEOK Stock Is Outperforming Its Peers This Year
This year, ONEOK (OKE) stock has risen roughly 32%, while peers Kinder Morgan (KMI) and Williams Companies (WMB) are up 26% and 3%, respectively.
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.
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%.
ONEOK Has Fallen 7% in 2017: What’s Next?
ONEOK (OKE) is trading 3% below its 50-day moving average and 3.5% above its 200-day moving average.
Midstream Stocks Approach 52-Week Lows: Time to Buy?
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.
Top Midstream Energy Stocks: What Analysts Got Wrong
Despite stable earnings and dividend growth, MLP stocks are depressed. We look at the top midstream energy stocks’ performance in the past 12 months.
What Makes Kinder Morgan Stock Attractive?
Kinder Morgan (KMI) currently trades at an attractive yield of about 5%. It expects to raise its dividends by 25% in 2020.
Energy Stocks: Operational Metrics, Valuation, Outlook
Production volumes, production costs, and finding and development costs are key metrics to consider when analyzing energy stocks’ upstream operations.
The US Energy Sector: An Overview
To understand the US energy sector, it’s essential first to understand the country’s energy needs. The US uses various energy sources to meet its energy needs.
Why These Three Dividend Stocks Are a Buy Now
Let’s take a look at three C-corp dividend stocks in the midstream sector that offer attractive total return potential, with very attractive yields.
Which Top Midstream Companies Have an Attractive Upside
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.
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.
Kinder Morgan’s Q1 Earnings Meet Estimates
Kinder Morgan (KMI) reported its first-quarter results after the markets closed yesterday.
Kinder Morgan’s Q1 Earnings Are Expected to Rise 9%
Kinder Morgan (KMI) is expected to report its earnings results for the first quarter of 2019 on April 16.
Enbridge: 74% of the Analysts Recommend a ‘Buy’
Around 74% of the Reuters-surveyed analysts have rated Enbridge as a “buy” or “strong buy,” while the remaining analysts rate it as a “hold.”
Enbridge: Why Income Investors Are Attracted to the Stock
Enbridge has paid dividends for more than 64 years. Enbridge has increased its dividends for 24 consecutive years.
Midstream Stocks Outperformed Broader Markets in Q1
Crude oil prices rose ~32% in the first quarter. The strength in crude oil prices and strong fourth-quarter performances drove midstream stocks.
Rising Gas Production Should Benefit Midstream Stocks
US natural gas production continues to surge. It rose by 11% in 2018, the highest ever annual increase.
Will KMI, WMB, and OKE Maintain Their Rally?
So far, midstream stocks Kinder Morgan (KMI), ONEOK (OKE), and Williams Companies (WMB) have each risen ~30% in 2019.
Investing in MLPs: Why Yield Isn’t Everything
As investors, it can be difficult to escape from the lure of high yields. The idea of high and regular income looks attractive.
Why Crude Oil Prices Drive Midstream Stocks
So far, US crude oil prices have risen ~25% in 2019. The strength in oil prices is reflected in energy stocks’ year-to-date performance.
ONEOK and AmeriGas Partners: Target Price Revisions Last Week
On March 1, Stifel raised its target price for ONEOK from $58 to $69. On February 27, Mizuho raised its target price from $70 to $73.
Will Kinder Morgan Maintain Its Upward Momentum?
Kinder Morgan (KMI) and Williams Companies (WMB) have each risen ~24% in 2019. In comparison, ONEOK (OKE) has risen ~27%.
Key MLP and Midstream Rating Updates Last Week
On January 16, Barclays raised its rating for Williams Companies (WMB) from “equal weight” to “overweight.”
OKE, VNOM, and NGL: Top MLP and Midstream Gains Last Week
Hi-Crush Partners (HCLP), Viper Energy Partners (VNOM), and Dorchester Minerals (DMLP) were among the top MLP gainers last week.
Midstream Stocks Gained for the Third Straight Week
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.
How Top Midstream Stocks Could Perform in 2019
With simplified structures and greater financial discipline, MLPs look better-equipped to perform in the volatile commodity price environment.
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.
OKE, HCLP, SUN: Key Midstream and MLP Rating Updates Last Week
Of the 18 analysts covering ONEOK, five have rated the stock as a “strong buy,” four have rated it as a “buy,” and the remaining nine have rated it as a “hold.”
VNOM, EEQ, OKE, LNG: Top MLP and Midstream Gains Last Week
Royalty interest owner partnership Viper Energy Partners (VNOM) and Enbridge Energy Management (EEQ) were among the top gainers in the MLP and midstream space last week, rising 7.9% and 7.8%, respectively.