|Bid||0.00 x 900|
|Ask||0.00 x 2200|
|Day's Range||28.39 - 28.73|
|52 Week Range||23.10 - 30.05|
|Beta (3Y Monthly)||1.11|
|PE Ratio (TTM)||21.04|
|Earnings Date||Oct 31, 2018|
|Forward Dividend & Yield||1.73 (6.07%)|
|1y Target Est||33.64|
Oil producers in the Permian Basin have started selling a new stream of light crude, said people familiar with the matter, securing a market for the increasingly less dense oil being pumped from the largest U.S. shale play. Sales of West Texas Intermediate Light, or WTI Light, started in September with deliveries into Midland, Texas, the people said. The new stream is being primarily blended to produce so-called Domestic Sweet crude, WTI Midland or benchmark WTI for delivery at Cushing, Oklahoma, the people said.
Credit Suisse updated its ratings on several MLP and midstream stocks last week. Credit Suisse started coverage on Plains All American Pipeline (PAA), Plains GP Holdings (PAGP), Williams Companies (WMB), Energy Transfer Equity (ETE), Kinder Morgan (KMI), MPLX (MPLX), and Enterprise Products Partners (EPD) with an “outperform” rating.
Midstream stocks, including MLPs, fell in the week ending October 12. Top midstream stocks and MLPs outperformed the broader markets, which fell 4.1% for the week. The Alerian MLP Index fell 3.2% for the week. In comparison, the Energy Select Sector SPDR ETF (XLE) fell 5.4% last week. WTI crude oil futures prices fell ~4.0% for the week.
Oil prices rose on tensions mounting between the U.S. and Saudi Arabia over the disappearance of Saudi journalist and government critic Jamal Khashoggi. News reports indicated that oil traders reacted to what they saw as veiled threats by the kingdom to use its influence over global oil markets to retaliate against outside punishment connected to Khashoggi. Here are five things to know in Texas energy this week: • Houston-based Enterprise Products Partners (NYSE: EPD) has been considering a new fractionation train in Mont Belvieu, Texas, and it recently expanded its potential plans.
Of the 20 analysts surveyed by Reuters covering Kinder Morgan (KMI), nine analysts recommended a “strong buy,” seven recommended a “buy,” and four recommended a “hold.” The mean target price for Kinder Morgan is $21.44, which implies 23% upside from its current price of $17.42.
Recently, the short interest in Kinder Morgan (KMI) stock fell 14% to ~36 million shares on September 28. The short interest in Kinder Morgan was ~41.8 million shares on September 14. The short interest in Kinder Morgan as a percentage of its float is down ~1.9% from ~2.2% on September 14.
Kinder Morgan (KMI) stock has fallen ~4% YTD (year-to-date). Kinder Morgan has been trading mainly sideways for about three months. If the company delivers strong third-quarter earnings, its stock might get a boost. At the same time, broader market sentiments will likely continue to impact the stock. Among Kinder Morgan’s peers, ONEOK (OKE) has risen 23%, while Enterprise Products Partners (EPD) has risen 6% YTD. The Energy Select Sector SPDR ETF (XLE) has risen ~4% YTD.
Over just the last six years, global oil demand per day has jumped by 10.14% according to the International Energy Agency (IEA). The bad news is that global oil production continues to fall behind demand. This glut manifested thanks to members of the Organization of Petroleum Exporting Countries (OPEC) who sought to limit the production gains of the US shale and fracking operations by driving down crude prices to make field investment unprofitable.
The bullishness is a net positive for conservative investors who adopt more or less a buy-and-hold strategy. For those folks, they may want to consider master limited partnerships, or MLPs. Master limited partnerships are typically levered towards the energy market.
Kinder Morgan (KMI) is scheduled to report its third-quarter earnings on October 17 after the market closes. Analysts expect the company’s EPS to rise ~9% sequentially to 21.25 cents per share. The company’s adjusted EPS for the second quarter was 19.5 cents. Kinder Morgan’s expected third-quarter EPS represents a 42% increase YoY (year-over-year). Kinder Morgan beat the EPS estimates in four out of the last ten quarters. The company missed the EPS estimates in three quarters and met the estimates in the remaining three quarters.
Enterprise Products (EPD) intends to develop two NGL fractionation trains at Mont Belvieu, with the cost of the project estimated at $789.7 million.
Facebook may be mired in a series of controversies, but the Menlo Park-based social media giant has long made its founders and early investors fabulously wealthy. Forbes, which produces an annual ranking of the wealthiest Americans, more recently broke out a list of the youngest billionaires on this year's Forbes 400. You can see the 12 youngest billionaires on the 2018 Forbes 400 in the gallery above Of the 12 people on that list, three are from Facebook.
Houston-based Enterprise Products Partners LP (NYSE: EPD) has increased the scope of a potential investment in Mont Belvieu, Texas. Enterprise is now considering a $789.7 million total spend on a natural gas fractionation project near Houston, up from $557.2 million it was considering in August, according to a Chapter 313 tax incentive application published by the Texas Comptroller Oct. 8. The increase comes because Enterprise plans to build two NGL fractionation trains as part of the project instead of one, according to the Comptroller filing.
DALLAS , Oct. 11, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing ® Asset Management, LP announce an upcoming interim change to constituents of The Cushing ® MLP High Income Index (the "Index"). ...
The yield spread between the Alerian MLP Index yield and the US ten-year Treasury yield contracted to 5.0% at the end of Q3 from 5.1% at the end of Q2. The AMZ yield fell until the middle of August but rose again to 8.0% at the end of Q3, the same level as at the end of Q2. However, the ten-year Treasury yield rose to 3.07% at the end of Q3 from 2.85% at the end of Q2. The rise in Treasury yield contributed to the shrinking of the spread between AMZ and the Treasury yield.
The Alerian MLP Index, a benchmark index for energy MLPs, rose 4.5% in the third quarter of 2018. The index ended with gains for the second straight quarter. It rose 9.5% in the second quarter. The gains in Q2 and Q3 were, however, largely offset by the index’s fall in the first quarter. Year-to-date, the index was down 0.1% at the end of the third quarter. In comparison, the SPDR S&P 500 ETF (SPY) rose 7.2% in the third quarter. Crude oil prices fell ~1.2% in the third quarter. Oil prices are up ~21% year-to-date.
Enterprise Products Partners LP's Seaway crude pipeline will not achieve a targeted increase in capacity to 950,000 barrels per day because of issues unrelated to the expansion, the company said on Tuesday. Enterprise and its joint venture partner, Canadian pipeline operator Enbridge Inc, originally expected to begin taking an additional 100,000 bpd in September. The crude production surge in the Permian basin of West Texas and New Mexico, the biggest oilpatch in the United States, has outpaced the region's pipeline capacity, causing bottlenecks and depressing prices in the region.
In the week ending October 5, the top midstream stocks included Kinder Morgan (KMI), Enterprise Products Partners (EPD), MPLX (MPLX), and Plains All American Pipeline (PAA). MPLX rose 2.6%, Enterprise Products Partners and Kinder Morgan each rose 1.9%, and Plains All American Pipeline rose 1.8%. The Energy Select Sector SPDR ETF (XLE) rose 1.9%, while the Alerian MLP Index rose 1.8% for the week. In comparison, the S&P 500 Index fell 1% during the week.
Houston-based Enterprise Products Partners LP (NYSE: EPD) plans to raise $3 billion in debt across three different agreements. The company reached an agreement with several underwriters to issue $750 million, $1 billion and $1.25 billion in debt that matures in 2022, 2028 and 2049, respectively, according to a filing with the U.S. Securities and Exchange Commission Oct. 5. Enterprise Products plans to use the proceeds of the offering to pay down existing debt and grow organically, according to the filing.
Williams Companies (WMB) stock has fallen almost 15% from its peak in August this year. It is currently trading at a forward EV-to-EBITDA valuation of 12.4x, considering its 2019 earnings. Enterprise Products Partners (EPD) and Kinder Morgan (KMI) are trading at forward EV-to-EBITDA multiples of 13x and 10.5x, respectively.