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.
Andeavor Logistics, Magellan Midstream Partners, and Plains All American Pipeline, top Alerian MLP Index constituents by market capitalization, are trading at price-to-DCF ratios higher than the peer average.
Noble Midstream Partners (NBLX) stock fell significantly in August and September as Initiative 97 was started and then made it onto the Colorado ballot as Proposition 112.
Anadarko Petroleum’s (APC) DJ Basin upstream operations are to receive $1 billion–$1.5 billion in capex this year. Per Anadarko Petroleum management, free cash flow from the region is expected to surpass $1 billion.
ONEOK has the lowest distribution yield of 4.8% among selected peers, which could be attributed to the partnership’s strong distribution growth guidance supported by its strong earnings growth potential and impressive distribution coverage.
OKE’s strong earnings growth in the first quarter was mainly due to strong throughput volume growth across its Natural Gas Gathering & Processing and Natural Gas Liquids segments.
All four of the peers we’re analyzing in this series—DCP Midstream (DCP), Western Gas Partners (WES), OKEOK (OKE), and Targa Resource Corporation (TRGP)—have leverage ratios within or below the industry standard.
In the previous part of this series, we looked at the recent operating performance for the four peers we’re analyzing: DCP Midstream (DCP), ONEOK (OKE), Targa Resources (TRGP), and Western Gas Partners (WES).
Midstream companies such as Kinder Morgan (KMI), Targa Resource (TRGP), and ONEOK (OKE) are taxed as C-corps, so the revised policy doesn’t apply to them.
In this part of the series, we’ll look at the recent institutional activity for Western Gas Partners (WES), the MLP subsidiary of Anadarko Petroleum Corporation (APC).
Natural gas processing capacity Natural gas processing is the process of separating dry natural gas from natural gas plant liquids (or NGPL). The process involves the removal of water, carbon dioxide, sulfur, and the like because they could potentially cause mechanical issues during pipeline transit. The increase in natural gas production in the Appalachian region has therefore […]
Energy Transfer Equity’s (ETE) distribution income fell to $317 million in 3Q17, compared to $344 million in the same quarter of prior year, a year-over-year fall of 7.8%.
Western Gas Partners was trading at a price-to-DCF multiple of 9.5x at the end of 2Q17. It’s trading at a price-to-DCF multiple of 8.5x as of October 17, 2017.
Western Gas Partners (WES) and its GP (general partner) Western Gas Equity Partners (WGP) are scheduled to release their 3Q17 earnings on October 31, 2017.
The four MLP partners we’ll compare in this series are Energy Transfer Equity, Western Gas Equity Partners, Plains GP Holdings, and Williams Companies.
Western Gas Partners’ moving averages Western Gas Partners (WES) is trading at a significant discount to its short-term (50-day) and longer-term (200-day) moving averages due to recent weakness. The partnership was trading 7.6% below its 50-day SMA (simple moving average) and 14.2% below its 200-day SMA as of August 17, which may indicate a bearish sentiment […]
Western Gas Partners’ price-to-distributable cash flow Western Gas Partners (WES) was trading at a price-to-distributable cash flow ratio of 7.6x on August 17, lower than the 8.8x it stood at in late 2Q17 and its last-ten-quarter average of 8.3x. Peers Crestwood Equity Partners (CEQP), DCP Midstream (DCP), and EnLink Midstream Partners (ENLK) have seen a similar […]
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.
US drilling activity in February 2017 US drilling activity stayed strong in major shale plays in February 2017, driven by the slight recovery in commodity prices and the decline in drilling costs with the usage of efficient drilling methods. According to recent Baker Hughes (BKI) rig data, the US rig count rose for the seventh […]
Anadarko’s 2017 capex plan On March 7, 2016, Anadarko Petroleum (APC) announced its 2017 capex program and guidance. The 2017 capital expenditure budget is $4.5 billion–$4.6 billion, a ~40% increase from its capex of $3.3 billion in 2016. The $2.8 billion reported above does not include its $491 million of capital spending in Western Gas Partners […]
Anadarko Petroleum, Western Gas Partners’ sponsor, recently announced the sale of its Eagle Ford assets to Houston-based Sanchez Energy for $2.3 billion.
DCP Midstream Partners’s (DPM) simplification received a negative reaction from investors. DPM fell 4.3% in two trading sessions following the announcement.
MLPs generally have an LP-GP (limited partner and general partner) model structure in which the LP is a publicly traded entity and owns the majority of the operating assets.
Natural Gas Services DCP Midstream Partners’ (DPM) Natural Gas Services segment mainly provides natural gas gathering, processing, compression, and transportation services. Natural Gas Services is DPM’s largest business segment. It alone accounted for 63.8% of DPM’s 2Q16 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization). The segment’s 3Q16 earnings could be negatively impacted by […]
Western Gas Partners recently announced a new long-term gas-gathering agreement with SWEPI LP, a subsidiary of Royal Dutch Shell, in the Delaware Basin.
Western Gas Partners’ (WES) natural gas volumes stood at 3.9 Bcfpd (billion cubic feet per day) in 3Q16, compared to $4.40 Bcfpd in 2Q15, a year-over-year fall of 12.0%.
APC and other upstream producers are benefiting from declining DC&E (drilling, completion, & exploration) costs in the Delaware Basin. This scenario indirectly benefits WES.
Western Gas Partners’ (WES) distributable cash flow for 2Q16 was $199.3 million compared to $211.7 million in the second quarter of 2015, a YoY fall of 5.9%.
Midcoast Energy Partners (MEP) has generated total returns, including dividends, of 8.5% so far in 2016. Analysts’ median target price for MEP for the next year is $8, and all of the analysts surveyed rated MEP a “hold.”
Buckeye Partners (BPL) reported its 2Q16 earnings on August 5, 2016. Buckeye Partners’ 2Q16 EBITDA (earnings before interest, tax, depreciation, and amortization) increased to $244.6 million from $212.9 million in 1Q15.
The high and low target prices for Western Gas Partners (WES) are $66 and $51, respectively. The median target price of $57 implies a 13.9% return in the next 12 months.
Antero Midstream Partners is the third-largest company in its peer group by enterprise value, preceded by EQT Midstream Partners and Western Gas Partners.
The Henry Hub-Mont Belvieu fractionation spread rose to $11.53 per barrel in the week ending March 25. The spread was $11.37 per barrel the previous week.
The spread between NGL prices and natural gas prices impacts natural gas–processing MLPs involved in fractionation. They typically benefit when the fractionation spread is high.
Western Gas Partners (WES) announced the acquisition of 100% interest in Springfield Pipeline from its sponsor, Anadarko Petroleum (APC), for $750 million.
WMB and WPZ announced their 2016 capex and financing plans in a recent press release. WPZ expects to spend ~$1 billion, or 32%, less than its previous guidance of ~$3 billion.
