Spectra Energy Corp
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.
An investor’s guide to Spectra Energy Corp. and its earnings
Spectra Energy Corp. (SE), headquartered in Houston, Texas, owns and operates a large and diversified portfolio of natural gas–related assets in North America.
An investor’s guide to MLPX and its holdings, like Spectra Energy
The Global X MLP & Infrastructure ETF (MLPX) tracks the Solactive MLP & Energy Infrastructure Index. The index consists of midstream energy infrastructure MLPs and corporations.
Will Kinder Morgan benefit from increased 2015 capex?
In 2015, Kinder Morgan (KMI) has put in place a strong project pipeline that can increase capex by 21% to ~$4.4 billion.
Spectra Energy’s Capital Projects Should Fuel Its Dividend Growth
Spectra Energy’s distributable cash flow for 3Q15 was $223 million, compared with $236 million in 3Q14.
Most Midstream Companies Increased Debt in 3Q15
The total debt for Williams Companies (WMB) and Energy Transfer Equity (ETE) grew by 87% and 32%, respectively, on a YoY (year-over-year) basis in fiscal 3Q15.
Why Kinder Morgan’s 2Q15 Earnings per Share Estimate Is Low Again
Kinder Morgan (KMI) beat analysts’ 1Q15 earnings per share estimate, but Wall Street lowered its 2Q15 estimate to $0.191 compared to $0.216 in 1Q15. That’s a decrease of 11.6%.
Sunoco Logistics’ 4Q14 Earnings Fell Short of Estimates
In 4Q14, Sunoco’s adjusted revenues fell short of estimates by ~19%.
Snapshot: Valuing Williams Companies compared to its peers
Enterprise Products Partners (EPD) is the largest company by market capitalization and enterprise value, or EV, among its closest peers. By market cap, Williams Companies (WMB) follows next.
Which Segment Will Drive Plains All American’s 3Q16 Earnings?
PAA’s Transportation segment contributed ~57% to its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in 2Q16.
Phillips 66’s Midstream segment volumes are on track
Midstream’s earnings recovery in year-to-date 2014 was aided by higher natural gas liquids (NGL) prices.
What Analysts Recommend for DCP Midstream Ahead of 2Q16 Results
In this article, we’ll look at what Wall Street analysts recommend for DCP Midstream Partners (DPM).
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.
Spectra Energy sees volume gains and losses
Spectra Energy’s Western Canada segment saw volume increase ~20% in 2014 over the previous year. In 4Q14, volume increased 14% over 3Q14.
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.
Dropdowns Fuel Shell Midstream Partners’ Distribution Growth
Shell Midstream Partners declared a quarterly distribution of $0.22 per limited partner unit for 4Q15—an increase of 7.3% over last quarter’s distribution.
Is Williams Companies Undervalued Currently?
WMB’s valuation has picked up since the merger termination with Energy Transfer Equity (ETE) and a few key announcements in recent months.
Must-know: Williams Companies compared to its peers
WMB’s LTM debt to EBITDA is one of the highest in the group because it has the lowest EBITDA. It also has one of the highest debt levels. This is a concern for investors.
Analyst Ratings: It’s Raining Upgrades for DCP Midstream
Of the analysts covering DCP Midstream, 67% rate it as a “hold,” 22% rate it as a “buy,” and the remaining 11% rate it as a “sell.”
What Should Fixed Income Investors Do in Present Times?
What should fixed income investors do today? Generally, widening spreads provide a buying opportunity for investors, because spreads widen when yield of a security rises.
Must-know: An overview of Williams Companies
Williams Companies Inc. (WMB) engages in the energy transport and processing infrastructure business. WMB’s assets are mainly located in the U.S. However, it has operations in Canada.
Spectra Energy reports mainly strong revenues and profits
From 4Q13 to 4Q14, EBITDA jumped for Spectra Energy Partners and the Western Canada Transmission & Processing segments. But, Field Services recorded a loss.
Enbridge Acquires Midcoast Energy Partners: Key Highlights
On January 27, 2017, Midcoast Energy Partners (MEP) announced an agreement with Enbridge Energy (EECI), an indirect wholly-owned subsidiary of Enbridge (ENB).
Spectra Energy’s distribution and western Canada assets
In this section, we’ll look into the company’s assets in the distribution and western Canada transmission & processing segments.
What Does the Future Hold for Spectra Energy?
Of the analysts surveyed by Bloomberg, 39% rate Spectra Energy (SE) as a “buy,” and 55.5% rate the stock as a “hold.” Only 5.5% rate it as a “sell.”
Columbia Pipeline Group: On Track to Meet 2015 Guidance?
Columbia Pipeline Group has reaffirmed its 2015 targets in its 2Q15 and 3Q15 earnings releases—its only earnings releases since separating from NiSource.
Why Williams Companies Has the Highest EV-to-EBITDA among Peers
Williams Companies has the highest consensus forward EV-to-EBITDA multiple of 13.0x among its peers.
Game Changer: API Crude Oil Inventory Data and Cushing Stocks
The API crude oil inventory rose for the fourth consecutive week. The rising crude oil inventory will continue to put pressure on crude oil prices.
Why EPD’s revenues fell, but volumes increased in 3Q14
The NGL Pipelines & Services segment’s revenues fell 4.8% to $4.02 billion in 3Q14—from $4.23 billion recorded last year. However, operating profit increased 11.3% to $711.5 million.
What Are Recent Analyst Recommendations for DCP Midstream?
Of the analysts that cover DCP Midstream, 71.0% rate it as a “hold,” 12.0% rate it as a “buy,” and the remaining 18.0% rate it as a “sell.”
Why Are Cushing Crude Oil Stocks Crushing Crude Oil Prices?
The EIA reported that Cushing crude oil stocks rose by 523,000 barrels to 64.7 MMbbls for the week ending February 5, 2016—the highest number since April 2004.
Why Williams Companies bets big on long-term capital projects
Williams Companies (WMB) has $30 billion in total committed and potential capital investments in Williams Partners (or WPZ) and Access Midstream Partners (or ACMP).
A snapshot of Kinder Morgan
Kinder Morgan (KMI), a Houston-based energy company, is one of the largest midstream operators and energy infrastructure companies in the United States.
Kinder Morgan’s 1Q15 Revenues Decrease
In 1Q15, Kinder Morgan’s 1Q15 revenues decreased 11% to $3.59 billion, from $4.04 billion in 1Q14.
An overview of Spectra Energy’s 3Q14 earnings
Spectra Energy’s earnings increased due to expansion projects and higher crude oil transportation revenues.
Kinder Morgan and Spectra Energy above 20-Day Moving Averages
Midstream companies are trading well below their 20-day moving averages except for Kinder Morgan and Spectra Energy Partners.
Spectra Energy: Market is cautious about its valuation
Higher debt-to-equity ratios indicate increased risk associated with the management of debt levels. Spectra Energy has a higher ratio than others.
Phillips 66: Midstream takes a hit on natural gas liquids price
The Midstream segment has been PSX’s most consistent performer since 2013. From 4Q13 to 4Q14, weighted average NGL prices decreased ~31%.
Why new acquisitions and a cold winter drove Spectra’s earnings
On May 7, Spectra Energy reported its quarterly earnings. Revenue for the quarter was $1.84 billion, beating the consensus estimate of $1.82 billion.
Consolidation must-know: A look into Kinder Morgan’s origins
Kinder Morgan Inc. (KMI) was formed in 1997 when current CEO Richard Kinder, and former vice chairman William Morgan acquired the general partner of a small limited partnership—Enron Liquids Pipeline L.P.
What are Spectra Energy’s long-term plans?
Between 2013 and 2020, Spectra Energy plans to invest in growth projects worth $35 billion.
Why the Midstream Business Seems Sustainable to Eversource Energy
Integrated utility holding company Eversource Energy (ES) is planning to sell 1,200 megawatts of its generation business in the next two years.
Will Spectra Energy Keep Outperforming in 2016?
Spectra Energy (SE) has risen 27% since the start of 2016. Will this improvement last?
Kinder Morgan’s 4Q14 earnings fall short of estimates
Kinder Morgan (KMI) released its financial information for 4Q14 and full-year 2014 on January 21, 2015.
What Are Analysts’ Recommendations for Spectra Energy?
Of the analysts surveyed by Bloomberg, 46.7% rate Spectra Energy (SE) as a “buy” and 46.7% rate the stock a “hold.” Only 6.6% rate it a “sell.”
Why Williams Companies’ 3Q14 results are important
Williams Companies (WMB) released its 3Q14 earnings on October 29, 2014. Between 3Q12 and 3Q14, WMB’s adjusted earnings per share (or EPS) decreased ~40%.
Why Dominion is offering a master limited partnership
Recently, Dominion (D) completed the initial public offering (or IPO) of its master limited partnership (or MLP). It offered 17.5 million MLP shares at $21 per stock.
Why Spectra Energy Partners is integral to Spectra Energy Corp.
Spectra Energy Corp. (SE) was borne out of Duke Energy Corporation (DUK), which is an energy utility firm, forming Spectra Energy Partners (SEP) in 2007.
Increasing Appalachian Takeaway Capacity: Can Production Keep Up?
Takeaway capacity in Appalachia As we’ve learned so far in this series, rising natural gas production in the Appalachian region has created the need for new midstream infrastructure, including natural gas processing plants (see the previous article) and pipelines. Several new pipeline projects are being developed to increase takeaway capacities from the Marcellus and Utica supply […]
Looking at DCP Midstream’s Current Valuations
DCP Midstream’s EV-to-adjusted EBITDA ratio using a trailing 12-month adjusted EBITDA is 13.0x.
Williams Companies Underperforms the Sector and SPY
Williams Companies (WMB) has underperformed the sector index, the Alerian MLP Index, over the past three years in terms of total returns.
Enbridge Energy Partners Expects Lower Earnings in 2017
Enbridge Energy Partners (EEP) expects 2017 adjusted EBITDA to be lower than its 2016 estimated adjusted EBITDA.
Why Oneok Was Downgraded after Stellar 2016 Market Performance
Oneok (OKE), the midstream C corporation GP (general partner) of Oneok Partners (OKS), was downgraded by Jefferies from “hold” to “underperform.”
Why DCP Midstream Won’t Resume Distribution Growth in 2017
DCP Midstream Partners (DPM) is expected to keep its distributions flat for all of 2017, even after the simplification transaction.
DCP Midstream Partners to Acquire Assets from GP: Key Highlights
DCP Midstream Partners (DPM) and DCP Midstream LLC announced a simplification of their organizational structures. The combined partnership would have an enterprise value of ~$11 billion.
ETP to Merge into SXL in Unit-for-Unit Deal
Energy Transfer Partners (ETP) has agreed to merge into Sunoco Logistics Partners (SXL) in an all-stock deal.
Enbridge, Spectra Energy Merger Makes History
On September 6, 2016, Enbridge (ENB) and Spectra Energy (SE) announced a stock-for-stock merger agreement, which values Spectra Energy common stock at $28 billion.
What Enbridge Saw in Spectra Energy to Prompt Buy
Enbridge’s (ENB) acquisition of Spectra Energy (SE) offers diversification benefits to Enbridge by expanding into SE’s natural gas business.
Analyzing Spectra Energy Partners’ Contract Portfolio
Spectra Energy’s (SE) Texas Eastern Transmission system connects Texas and the Gulf Coast with markets in the northeastern United States.
What Does Spectra Energy’s Leverage Indicate?
Spectra Energy’s debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 6.8x ratio remained stable in 2Q16 compared to 1Q16.
Why DCP Midstream’s Stock Has Outperformed the Sector in 2016
DCP Midstream Partners (DPM) has risen 40.6% YTD (year-to-date) despite touching a multiyear low in the beginning of 2016.
ONEOK Is Expected to Post Higher 2Q16 Earnings
ONEOK (OKE) and ONEOK Partners (OKS) are scheduled to report their 2Q16 results on August 2. Here’s what you need to know.
Commodity Prices, Weak Canadian Dollar Could Hurt Spectra in Q1
SEP’s 4Q15 EBITDA growth mainly came from expansion projects in its natural gas transmission business. These projects should continue to contribute to the segment’s EBITDA in 1Q16.
What Will Drive ONEOK’s 1Q16 Earnings?
ONEOK (OKE) and ONEOK Partners (OKS) are scheduled to report their 1Q16 results on May 3, 2016.
Why Is DTE Energy Expecting Better Sales This Year?
In 2015, non-utility operations contributed nearly 40% to DTE Energy’s (DTE) operating revenues. This is expected to increase due to DTE’s aggressive focus on its midstream segment.
Where Does Kinder Morgan Stand Compared to Its Peers?
Kinder Morgan (KMI) is the largest company in the peer group by enterprise value (or EV).
How Could Natural Gas Prices Impact Midstream Companies?
Compared to crude oil, natural gas prices seem to have a lesser impact on the selected midstream stock prices, even though many of them have significant natural gas operations.
API Crude Oil Inventory: 6th Increase in 7 Weeks?
Last week’s API report showed that the US crude oil inventory had risen by 7.1 MMbbls (million barrels) for the week ending February 19, 2016.
Did the Distillate Inventory Diverge from Crude Oil Prices?
On February 24, 2016, the EIA (U.S. Energy Information Administration) reported that the US distillate inventory fell by 1.7 MMbbls (million barrels) to 160.7 MMbbls for the week ending February 19, 2016.
Which US Regions Affected the Overall EIA Crude Oil Inventory?
The EIA reported that the US crude oil inventory rose by 3.5 MMbbls (million barrels) to 507.6 MMbbls for the week ending February 19, 2016.
Wait and Watch? Why 47% of Analysts Rate ONEOK a ‘Hold’
Of analysts surveyed by Bloomberg, 40% rated ONEOK (OKE) a “buy,” 47% rated it a “hold,” and 13% rated it a “sell.” The consensus target price for ONEOK in one year is $28.10.
Higher Natural Gas Liquids Volumes Drive ONEOK’s 4Q15 Growth
ONEOK Partners’ (OKS) EBITDA growth in 4Q15 was driven by increased NGL (natural gas liquids) gathering and fractionating volumes from recently connected natural gas processing plants.
API Crude Oil Inventory: Up, Up, Up, and Up Again
On February 9, 2016, the API published its weekly crude oil inventory report. API crude oil inventory rose for the fourth straight week.
Non-OPEC Unplanned Supply Disruptions Impact Oil Prices
Non-OPEC unplanned supply disruptions are expected to average around 0.4 MMbpd in January 2016. They averaged almost 0.4 MMbpd in 2015.
Lower Investments in Oil and Exploration: Implications?
US investments in mining and exploration fell by 35% in 2015. Barclays estimates that investments will fall by 15% in 2016. It fell by 23% in 2015.
Spectra Energy Stock Rose by 11% in January 2016
On January 5, 2016, Spectra Energy increased its quarterly dividends from $0.37 per share to $0.41 per share—a quarter-over-quarter rise of 9.5%.
Downstreams Trade 17% below Their 100-Day Moving Averages
The midstream Kinder Morgan trades 39% below its 100-day moving average. During the last rate hike in December 2015, KMI traded in the range of $15 to $16.
Reading the Moving Averages and Analyst Estimates for Midstream Energy Companies
As of January 26, midstream giants Kinder Morgan and Williams Companies were trading 36.2% and 40.1%, respectively, below their 100-day moving averages.
Nearly Half of Its Analysts Rate Plains All American a “Buy”
About 46% of the analysts surveyed have rated Plains All American a “buy,” while 50% have rated it a “hold,” and 4% have rated it a “sell.”
MPLX: On Track to Meet 29% Distribution Growth Target for 2015
About 70% of the analysts surveyed have rated MPLX a “buy,” while 30% have rated it a “hold.” None of the analysts have rated it a “sell.”
Spectra Energy Partners Maintains Conservative Leverage
Spectra Energy Partners’ debt-to-equity ratio has remained below 1 over the last two years. A ratio of below 1 is considered pretty conservative for MLPs.
Must-Know: How Spectra Energy Partners’ Segments Are Performing
Spectra Energy Partners manages its business through its US Transmission and Liquids segments. Its US Transmission segment contributes nearly 85% of EBITDA.
Will Spectra Energy Partners Exceed Its 2015 Guidance?
Spectra Energy Partners’ distributable cash-flows for the nine months ended September 30, 2015, are $945 million.
ONEOK Trades at a Higher Yield Compared to Peers
Despite an expected dividend growth close to the peer average, ONEOK has a higher forward yield compared to the average for its peers.
Why ONEOK’s Leverage Is a Key Concern for Investors
Despite a decrease in the last two quarters, ONEOK’s (OKE) debt-to-equity ratio is still 2.2x. It had a total outstanding debt of $8.7 billion at the end of 3Q15.
ONEOK Is on Track to Meet 2015 Guidance
ONEOK’s cash flow available for dividends for the nine months ended September 30, 2015, is $474.7 million. So it’s on track to meet its guidance for cash flow available for dividends.
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.
SE Trades at a Low Forward Yield Compared to Its Peers
Spectra Energy (SE) is trading at a high yield compared to its historical average. However, the stock is trading at a low yield compared to its peers.
SE Trades at a High Yield Compared to Its Historical Average
Spectra Energy (SE) currently trades at a forward dividend yield of 5.6%. This is high compared to its three-year average dividend yield of 4.3%.
Low Commodity Prices, Weak Canadian Dollar Drag SE’s Earnings
SE carries out operations through four segments: Spectra Energy Partners, Distribution, Western Canada Transmission & Processing, and Field Services.
Spectra Energy Is Trading below Its 50-Day Moving Average
Spectra Energy has generally been trading below its 50-day moving average since mid-2014, when energy prices began falling.
Spectra Energy: On Track to Meet Its 2015 Guidance
Spectra Energy’s performance in 2015 up to the third quarter is in-line with the guidance for the year provided in the company’s February analyst meeting.
Kinder Morgan’s 3Q15 EPS Estimate Is the Lowest in Last 12 Quarters
Wall Street analysts’ 3Q15 consensus EPS estimate for Kinder Morgan (KMI) is ~$0.186, similar to the ~$0.188 they estimated in the previous quarter.
Will Kinder Morgan Miss Revenue Estimates Again?
Kinder Morgan’s 2Q15 revenue estimate was ~$4.0 billion while the 3Q15 estimate is ~$3.8 billion, a decrease of ~4.8%.
Kinder Morgan’s Dividends Are Expected to Grow in 2015
According to Wall Street analysts’ estimates, Kinder Morgan’s dividend is expected to grow 3.7% quarter-over-quarter in 3Q15 and ~15% year-over-year.
Spectra Energy Partners: Best Midstream Performer on August 5
Spectra Energy Partners (SEP) was the best performer among midstream MLPs at the end of trading on Wednesday, August 5. It rose 1.54%.
US Crude Production Dropped in Week Ended July 24, but Why?
According to data from the U.S. Energy Information Administration, US crude production dropped to 9.4 million barrels per day in the week ended July 24.
Storage and Transportation Subsector Rose Marginally Last Week
The storage and transportation subsector within XLE rose by 0.66% during the week. Spectra Energy (SE) and Kinder Morgan (KMI) were the best and worst performers, respectively, in this subsector.
What to Expect from Kinder Morgan in 2015
Kinder Morgan expects higher oil and gas prices in 2015. Its crude oil and natural gas estimates are 27% and 47% higher than current prices, respectively.
Magnetar Capital’s New Position in Devon Energy
During 4Q14, Magnetar purchased around 1.4 million shares in Devon Energy (DVN). The position represented 1.61% of the fund’s portfolio.