Harvest Fund Advisors and CIBC Atlantic Trust Private Wealth Management added major positions in Plains All American Pipeline during the fourth quarter.
Williams Partners (WPZ) has been one of the best-performing energy stocks since the start of this year. WPZ, which is the midstream MLP subsidiary of Williams Companies (WMB), has gained 11.4% in the first nine trading sessions of the year.
Earnings in 3Q17 In 3Q17, Spectra Energy Partners (SEP), which is mainly involved in natural gas and NGL (natural gas liquid) transportation and storage, posted strong 10.4% and 18.1% YoY revenue and EBITDA (earnings before interest, tax, depreciation, and amortization) growth, respectively. Moreover, SEP, which is now owned by Enbridge (ENB), beat its 3Q17 EBITDA estimate […]
MLPs have seen a series of major sell-offs due to significant weakness in crude oil prices. The Alerian MLP ETF (AMLP) has fallen 7.5% since the beginning of June 2017.
Teekay LNG (TGP) stock has risen 55.5% in the past year as of April 4. TGP is the Alerian MLP ETF (AMLP) constituent with the highest implied volatility.
According to the recent rigs report published by Baker Hughes (BHI), the region’s rig count had risen to 41 as of March 10, 2017, compared to its all-time low of 21 in August 2016.
On January 27, Enbridge Energy Partners announced its financial outlook and strategic update. Its implied volatility rose 34.5%, while its stock fell 17.6%.
While NGL Energy Partners rose the most among midstream stocks with high implied volatility in the past five days, EnLink Midstream (ENLC) lost the most.
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).
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.
The Alerian MLP ETF (AMLP) was trading at a yield of 8.8% at the end of the week ending July 22, 2016. The yield fell marginally compared to the previous week.
BWP has returned 26.6% since the beginning of 2016. Spectra Energy Partners, Cone Midstream Partners, and TC Pipelines have returned 4.4%, 44.4%, and 10.5%.
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.
Magellan Midstream Partners (MMP) is currently trading 17% below its 52-week high and 30% above its 52-week low. On a YTD (year-to-date) basis, the stock has risen 4.4%.
Large-cap midstream companies are trading 23.4% below their respective 100-day moving averages. Kinder Morgan trades 30% below its 100-day moving average.
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.
Kinder Morgan Energy Partners and Williams Companies were trading 48% and 62%, respectively, below their 100-day moving averages as of January 13, 2016.
Spectra Energy Partners trades at a forward distribution yield of ~5.7%. This is lower compared to its five-year average forward distribution yield of 6.2%.
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.
Spectra Energy Partners manages its business through its US Transmission and Liquids segments. Its US Transmission segment contributes nearly 85% of EBITDA.
Kinder Morgan reported its 3Q15 earnings on October 21, 2015. Its 3Q15 revenue fell to $3.7 billion from $4.3 billion in the third quarter of last year.
Williams Partners (WPZ) is expected to release its 3Q15 earnings on October 29, 2015. The company has generated total returns of -34.4% since the start of this year.
Kinder Morgan is the largest midstream energy company in the United States. The company has generated a total return of -22.9% since the beginning of this year.
Energy Transfer Corporation would be taxed as corporation for federal tax purposes. Holders of ETC shares would receive an IRS Form 1099 rather than a Schedule K-1.
Energy Transfer Equity’s (ETE) 2Q15 distributable cash flow rose to $335 million from $218 million in 2Q14. This is a YoY (year-over-year) increase of 53.60%.
ETP has missed revenue estimates in seven out of the last 12 quarters. After a ~19.6% miss in 4Q14, it again missed its 1Q15 revenue estimate by a huge margin—a ~29.1% miss.
Enterprise Products Partners’ NGL Pipelines & Services segment’s EBITDA declined by 11% year-over-year in 1Q15, primarily because of lower sales margins and natural gas processing margins.
The Terminal Facilities segment provides crude oil, refined products, and NGL storage and distribution services. It acquires and markets refined products and NGLs.
MLPs normally pay out all the available cash to the unit holders in the form of quarterly cash distribution. They hold only the maintenance capital expenditure.
Having a C-Corp as a parent company helps the MLP grow when there is fierce competition for new acquisitions and when new projects are difficult to build.
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.
From 4Q13 to 4Q14, EBITDA jumped for Spectra Energy Partners and the Western Canada Transmission & Processing segments. But, Field Services recorded a loss.
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.
Spectra Energy Corp. (SE), headquartered in Houston, Texas, owns and operates a large and diversified portfolio of natural gas–related assets in North America.
The tracking error of MLPA is 3.96%. This means the standard deviation for excess average weekly returns for the benchmark index over MLPA for the past year is 3.96.
