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.
Kinder Morgan and Enbridge: Update on Pipeline Projects
Like most of the pipeline companies, Kinder Morgan (KMI) continues to fight legal and regulatory battles to build its pipelines.
Enbridge and TC Energy: Which Stock Do Analysts Recommend?
Around 92% of the analysts surveyed by Reuters covering Enbridge (ENB) rated it as a “buy” or a “strong buy.”
Institutional Activity in TC Energy and Enbridge
Together, the top ten investors in TC Energy (TRP) bought net 5.9 million TC Energy shares in the first quarter.
Enbridge is Trading at a Higher Yield than TC Energy
Enbridge (ENB) stock is trading at a yield of ~5.9%, which is ~120 basis points higher than TC Energy’s (TRP) yield.
Why Enbridge Stock Has Underperformed TC Energy in 2019?
Enbridge (ENB) has risen ~21% in 2019. Enbridge had underperformed TC Energy (TRP), which has risen 38% year-to-date.
Enbridge’s Valuation Compared to Peers
Enbridge (ENB) is trading at a forward PE ratio of ~18x—lower than its five-year average PE ratio of ~22x.
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.
Trump Supports TransCanada’s Keystone XL Pipeline Again
On March 29, President Trump issued a new presidential permit for TransCanada’s (TRP) Keystone XL pipeline project.
TC PipeLines: Short Interest and Analysts’ Recommendations
On March 19, Wells Fargo upgraded TC PipeLines from “market perform” to “outperform.” Wells Fargo has given TC PipeLines a target price of $38.
Enbridge Stock Fell 5.9% Due to Pipeline Delay, Downgrades
On March 4, Enbridge (ENB) fell 5.9% due to the expected delay in its Line 3 Replacement project.
Enbridge’s Line 3 Replacement Project Gets Delayed
On March 1, after the markets closed, Enbridge announced that it received a timeline for the permits for its Line 3 Replacement project.
A Decade of TransCanada’s Keystone XL Project
Pipeline construction delays, though common, have been particularly extended for some projects.
What’s Ahead for Energy Transfer’s Mariner East 2 Project?
Energy Transfer’s (ET) Mariner East system transports Marcellus and Utica NGLs (natural gas liquids) to Pennsylvania, where they are processed and transported to markets.
Pipeline Controversies: Updates on Top Projects
With the halting of permit review for Energy Transfer’s (ET) projects by the Pennsylvania Department of Environmental Protection, pipeline controversies have once again caught midstream investors’ attention.
TransCanada Reported Strong Q4 Results, Raised Dividends 8.7%
TransCanada (TRP) reported its fourth-quarter results on February 14. The company reported 32% growth in its comparable earnings.
Enbridge and TransCanada’s Target Price Updates
Enbridge reported its third-quarter results on November 2. On November 5, GMP raised its target price for Enbridge.
Enbridge and TransCanada Have Fallen 20% in 2018
So far, Canadian midstream giants TransCanada (TRP) and Enbridge (ENB) have each fallen ~20% in 2018.
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.
Natural Gas Demand-Supply Trends Impact Midstream Companies
In the United States, the monthly natural gas production rose from 1.78 trillion cubic feet in January 2009 to 2.43 trillion cubic feet in June 2018.
Enbridge and TransCanada Saw Higher Target Prices
On August 6, RBC raised its target price for Enbridge (ENB) from 54 Canadian dollars to 59 Canadian dollars.
Enbridge Stock Rose 4.5% following Its Pipeline Approval
Enbridge stock closed 4.5% higher on June 28 after the Minnesota Public Utilities Commission approved its Line 3 Replacement project.
TRP, ENB: Canadian Midstream Companies Are in the Red in 2018
TransCanada (TRP) and Enbridge (ENB) have fallen 16% and 19%, respectively, year-to-date. Crude oil prices are up ~11% year-to-date.
TC PipeLines: Uncertainty Rules the Roost
There’s still uncertainty surrounding TC PipeLines’ (TCP) future. The company slashed its 1Q18 distributions 35%.
Short Interest in Enbridge Rose Marginally
The number of Enbridge (ENB) shares shorted rose from ~26.5 million on March 30, 2018, to ~26.6 million on April 13, a rise of ~0.5%.
What Does Rising Natural Gas Production Mean for Energy MLPs?
According to the US EIA (Energy Information Administration), US natural gas production averaged 73.6 Bcf/d (billion cubic feet per day) in 2017.
Why TCP, EEP, and SEP Fell after FERC Tax Ruling
MLPs had a bad Thursday after the FERC (Federal Energy Regulatory Commission) revised its income tax policy for MLPs.
TRP’s Dividends: Key Drivers
TransCanada Corporation (TRP) is an energy infrastructure company in North America. Its revenue grew 11% in both 2016 and 9M17.
87% of Wall Street Analysts Rate TransCanada a ‘Buy’
Of the analysts surveyed by Reuters, ~87% rated TransCanada (TRP) a “buy” and 13% rated it a “hold.” None of the surveyed analysts rated TRP a “sell.”
TransCanada, Enbridge: Capital Projects Should Drive Growth
TransCanada’s (TRP) Leach XPress project was placed in service on January 1. On January 2, the company announced that the FERC (Federal Energy Regulatory Commission) had issued a “public convenience and necessity” certificate…
EMLP Generated the Highest Total Returns among the Top MLP ETFs
The First Trust North American Energy Infrastructure Fund (EMLP) generated total returns of 42% over a five-year period, the highest among the top five MLP ETFs that we are discussing in this series.
Why Wall Street Analysts Are Bullish on TransCanada
TransCanada (TRP) has risen nearly 10.0% so far in 2017. It has outperformed Targa Resources (TRGP), ONEOK (OKE), and Enbridge (ENB) year-to-date.
What Nebraska’s Approval for Keystone XL Means for TransCanada
On November 20, the Nebraska Public Service Commission approved TransCanada’s (TRP) Keystone XL Pipeline project. The pipeline would transport oil from Alberta’s oil sands reserves to Nebraska.
TC PipeLines Reports Flat Earnings in 3Q17
Earnings in 3Q17 TC PipeLines (TCP), TransCanada’s (TRP) midstream MLP subsidiary, posted flat earnings in 3Q17. The partnership reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $103 million, which represents a marginal 1.0% rise from 3Q16. Moreover, the partnership missed its EBITDA estimate by 7.5%. The slight increase in its adjusted EBITDA was […]
Enbridge and TransCanada’s Business Segments
With the completion of the merger with Spectra Energy in February 2017, Enbridge’s business mix has become more diversified.
TransCanada Has Risen 11% in 2017 in a Weaker Energy Sector
Canadian midstream giant TransCanada (TRP) has risen 11% YTD in 2017. TransCanada’s Canadian peer Enbridge (ENB) has fallen 5% YTD.
What Conflict Lies ahead for TransCanada’s Keystone XL Pipeline Project?
After years of protests and roadblocks, the US State Department issued a presidential permit authorizing the Keystone XL pipeline in March 2017.
Behind the Opposition to ETP’s Dakota Access Pipeline
On August 15, North Dakota regulators granted ETP’s request to postpone hearings on its alleged violation of state rules with its Dakota Access Pipeline.
Controversy in the Pipelines of KMI, ETP, TRP, ENB
Pipeline projects in the US have attracted a lot of attention in recent years.
Is Williams Companies a ‘Buy’ at Current Price Levels?
Williams Companies’ forward EV-to-EBITDA multiple was 11.7x as of July 18, 2017—below the historical five-year average of 13.2x.
TransCanada: An Overview of Assets and Operations
TransCanada (TRP) was founded more than 65 years ago, and its operations spread across seven Canadian provinces, 38 US states, and Mexico.
Why Williams Companies’ Current Valuation Looks Attractive
Williams Companies (WMB) was trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 12.8x on June 29.…
Williams Companies Recovered Slightly after Last Week’s Plunge
Williams Companies (WMB) has recovered slightly following last week’s plunge due to the general weakness in the midstream sector amid weakness in crude oil prices.
Are Wall Street Analysts Bullish on Williams Companies?
In this article, we’ll look at what Wall Street analysts recommend for Williams Companies (WMB).
Williams Companies’ Winning Streak Continued Last Week
Williams Companies (WMB) continued its winning streak last week with a rise of 2.6%.
Analyzing Williams Companies’ Valuation since Last Week’s Gains
Williams Companies’ EV-to-adjusted EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio using a trailing-12-month adjusted EBITDA is 12.6x.
Does Williams Companies’ Valuation Mean a Buying Opportunity?
In the previous part of this series, we saw the technical indicators for Williams Companies (WMB).
Which MLP Stocks Were the Biggest Losers in February 2017?
Biggest MLP losers of February 2017 CVR Partners (UAN), the MLP formed by CVR Energy (CVI) to own and operate its nitrogen fertilizer business, was the worst performing MLP last month. The huge decline in UAN’s stock price can be mainly attributed to its weak 4Q16 earnings. UAN’s 4Q16 earnings were negatively impacted by lower […]
Victory for Energy Transfer’s DAPL: US Army to Provide Easement
On February 8, the US Army stated that it would provide the easement to the Dakota Access Pipeline to drill under Lake Oahe. This action followed President Trump’s executive order to expedite the review and approval process for DAPL.
How Did MLP Stocks React to Trump Removing the Blockade?
Shares of TransCanada, the owner of the Keystone pipeline project, rose 3.5% following President Trump’s executive orders to revive the project.
Analyzing TransCanada’s Keystone Project
The Keystone XL pipeline will have the capacity to transport 830,000 barrels of oil per day. It’s expected to create job opportunities in the US.
Analyzing TC PipeLines’ Distributions and Capital Expenditures
TC PipeLines’ (TCP) 3Q16 distribution per unit of $0.94 didn’t change from its 2Q16 distribution. It rose 6% from its 3Q15 per unit distribution of $0.89.
KMI, ENB, TRP: What Are Analysts Recommending?
Analysts’ average target price for Kinder Morgan (KMI) for the next year is $24.8.
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.
Are Analysts Uncertain about Columbia Pipeline Partners’ Prospects?
The merger between Columbia Pipeline Group and TransCanada could impact Columbia Pipeline Partners’ future growth.
Columbia Pipeline’s Assets Complement TransCanada’s Footprint
Columbia Pipeline Group has extensive assets in the attractive Marcellus and Utica shale regions. TransCanada expects to benefit from this presence.
TransCanada Acquired Columbia Pipeline Group for $13 Billion
On March 17, TransCanada announced the acquisition of Columbia Pipeline Group in an all-cash deal. TransCanada will pay $25.5 per Columbia Pipeline Group share.
Why Did Cushing Crude Oil Stocks Hit a New Record?
The U.S. Energy Information Administration reported that Cushing crude oil stocks rose by 36,000 barrels to 65 MMbbls for the week ending February 12, 2016.
Investment-Grade Bond Funds Keep Seeing Outflows
Flows into investment-grade bond funds were negative for the week ending January 20, with outflows of $442 million—down from $740 million last week.
Issuances of Investment-Grade Corporate Bonds Fell in the Week Ending January 22
Investment-grade corporate bonds worth ~$28.8 billion were issued in the week ending January 22—down from ~$62.5 billion the prior week.
Was the FOMC Being Hawkish or Giving Itself Room to Maneuver?
Most of the voting members of the present FOMC are doves who tend to err on the side of caution when making policy decisions.
Investment-Grade Bond Funds Saw Outflows after 3 Weeks of Inflows
Flows into investment-grade bond funds were negative for the week ended November 4, after three consecutive weeks of inflows.
Inventory Gains at Cushing Slowed the Week Ending April 17
Unlike 2015, inventories in 2014 consistently fell before turning upward toward the latter part of the year.
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.
Magnetar Raises Its Position in Williams Companies
Magnetar raised its stake in Williams Companies during the fourth quarter by purchasing 1.5 million shares. It represents 2.59% of the fund’s 4Q14 portfolio.
Magnetar Increases Its Position in TransCanada
In 4Q14, Magnetar Capital added to its position in TransCanada by purchasing 2.6 million shares. It accounts for 6.68% of the fund’s fourth quarter portfolio.
Magnetar Raises Its Stake in Alibaba
In 4Q14, Magnetar Capital increased its position in Alibaba (BABA) by purchasing 1.7 million shares. Currently, the position accounts for 7.6% of the fund’s portfolio.
Magnetar Capital’s Increased Positions in 4Q14
Magnetar Capital was established in 2005 by Alec Litowitz and Ross Laser. Currently, the hedge fund manages assets in excess of $12 billion.
How Do Cushing Inventory Levels in 2015 Compare to Last Year?
The decline in Cushing inventory levels in 2014 was mostly a result of new infrastructure coming online, which enabled more crude to move out of Cushing.
Cushing Inventories in 2015 Follow a Different Trend than in 2014
While new pipelines helped drain crude oil from Cushing, some new pipelines also brought crude into Cushing and helped refill inventories there.
A must-read overview of Cushing inventories in the past year
As new infrastructure came online, inventories at Cushing had been in a declining trend for the better part of 2014.
Analyzing movement in Cushing inventories in the past year
As new infrastructure came online, inventories at Cushing had been on a declining trend for the better part of 2014. This enabled more crude to move out of Cushing.
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.
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.
Overvaluation and decreasing affordability drive a housing bubble
Housing bubbles are primarily fueled by rising house prices. When prices reach a point above the equilibrium level, the market is in a state of overvaluation.
Declining commodity prices drag the loonie down
Declining commodity prices directly impact export revenues and affect the top line for Canadian firms operating in the energy sector.
Cushing inventories continue to trend higher
As new pipelines helped drain crude from Cushing inventories—mostly in the latter part of 2014—new pipelines also brought more crude to replenish them.
Cushing: Another bearish number in this week’s EIA inventory report
Unlike total US crude stocks, crude stocks at Cushing increased for the fifth consecutive week by 1.3 MMbbls to ~32.1 MMbbls in the week ended January 2.
An overview of Spectra Energy’s 3Q14 earnings
Spectra Energy’s earnings increased due to expansion projects and higher crude oil transportation revenues.
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.
Magnetar decreases stakes in American Airlines
Magnetar reduced its position in AAL in the third quarter. The position accounts for 1.17% of the fund’s total portfolio in the third quarter.
Magnetar Capital’s new position in Alibaba Group
Magnetar started a new position in BABA in 3Q14. The position accounts for 4.05% of the fund’s total portfolio in the third quarter. BABA is the largest e-commerce player in China.
Why Cushing inventories decreased for the first time in 4 weeks
Crude stocks at Cushing decreased by 694,000 barrels to ~23.9 MMbbls in the week ending November 28. This is the first decrease since the refinery maintenance season ended.
Cushing inventories increase for the third week in a row
Cushing, Oklahoma, is the delivery point for NYMEX crude futures contracts. It’s where a lot of supply sources of crude meet a lot of demand sources for that crude.
Cushing inventories decline for first time in five weeks
As new pipelines come online to bring more crude from Canada and the Bakken in North Dakota to Cushing, the downward trend in inventories may not persist.
Why the long-term declining trend at Cushing may not continue
Crude stocks at Cushing, Oklahoma increased by 716,000 barrels to 19.6 million barrels (or MMbbls) in the week ending October 10.
Why Cushing inventories could strongly support crude oil prices
Crude stocks at Cushing, Oklahoma, decreased by 1.58 MMbbls (million barrels) to 18.9 mmbbls in the week ended October 3. Cushing, Oklahoma is an important hub where West Texas Intermediate (or WTI) crude oil is priced.
Key effect: How refiner activity affected Cushing inventories
Increase in crude inventories is likely the result of declining refinery input demand—which decreased by 525,000 bpd—as refineries enter seasonal maintenance to prepare for the upcoming winter.
TransCanada’s controversial Keystone XL Pipeline project
The Keystone XL Pipeline project is a proposed 1,179-mile pipeline. It begins in Alberta, Canada and extends south to join the existing Keystone Pipeline in Steele City, Nebraska.
Why TransCanada’s major projects are part of its capital program
TransCanada Corp’s (TRP) growth strategy includes a $38 billion capital program. The $38 billion capital program includes $12 billion in small to medium-sized projects and $26 billion in large scale projects.
TC PipeLines—TransCanada’s important subsidiary
TC PipeLines LP (TCP) is a master limited partnership (or MLP) that owns or has ownership in six interstate natural gas pipelines. TransCanada Corp. (TRP) owns ~28.9% equity interest in TCP.
The story behind the Canadian giant—TransCanada Corp.
TransCanada Corporation (TRP) is based in Canada. It’s one of North America’s leading natural gas pipeline network owners. TransCanada also provides natural gas storage services.
An introduction to TransCanada Corp.
TransCanada Corp. (TRP) is an energy infrastructure company. It owns a network of natural gas and crude pipelines across North America. TransCanada also provides natural gas storage.
Why Western Canada and Bakken development help TC PipeLines
In 2013, TCP’s Northern Border pipeline delivered steady results despite its lower rates, which were instituted on January 1, 2013. Demand for its service has remained strong.