|Bid||2.85 x 1300|
|Ask||2.90 x 800|
|Day's Range||2.83 - 2.89|
|52 Week Range||2.70 - 5.48|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.40 (14.04%)|
|1y Target Est||N/A|
The pain this high-yield partnership is feeling today will likely be over in five years, and its distributions to investors should be growing again
With high yields, Ferrellgas and AltaGas are interesting investment options for income investors, but they aren't of equal quality.
Legacy Reserves (LGCY), an upstream MLP involved in crude oil, natural gas, and NGLs (natural gas liquids) production, was the weakest MLP in the week that ended on July 20. LGCY fell 15.4%.
The two propane distributors offer investors high yields of over 9%, but they need to come to grips with the risks climate change poses to their businesses.
Of the eight analysts surveyed by Reuters covering AmeriGas Partners (APU), only one rated the stock as a “buy.” Four analysts rated the stock as a “hold” and three analysts rated it as a “sell.” The median target price for AmeriGas Partners is $44, which implies an upside potential of ~5% from AmeriGas Partners’ current price of $42.02.
UGI (UGI) holds 25.6% of AmeriGas Partners’ (APU) outstanding shares. UGI is AmeriGas Partners’ general partner. OppenheimerFunds, Energy Income Partners, and City National Rochdale hold 4.1%, 3.4%, and 1.6%, respectively, of AmeriGas Partners’ outstanding shares. OppenheimerFunds, Energy Income Partners, and City National Rochdale added 52,655, 59,083, and 21,320 AmeriGas Partners shares to their positions, respectively, according to the latest filings.
Ferrellgas Partners’ (FGP) net debt-to-adjusted EBITDA ratio stood at ~9.9x at the end of fiscal 2017—much higher than desired. Ferrellgas Partners’ Bridger Logistics acquisition in 2015 added to its debt burden. At the same time, issues in Ferrellgas Partners’ midstream business restricted its EBITDA growth and increased its leverage.
AmeriGas Partners (APU) lowered its adjusted EBITDA guidance range for the fiscal year ending September 30 from $650 million–$690 million to $625 million–$645 million. The company’s adjusted EBITDA for fiscal 2017 was $551 million.
Currently, propane MLPs are trading at high yields. AmeriGas Partners (APU), Suburban Propane Partners (SPH), and Ferrellgas Partners (FGP) are trading at yields of 9.1%, 10.3%, and 11.9%, respectively. A fall in their stock prices pushed the yields higher.
Ferrellgas (FGP) expects the recently-acquired Diamond Propane to be accretive to earnings and enable business expansion in northern New York.
Propane distribution companies, apart from Ferrellgas Partners (FGP), have broadly followed the fall in midstream MLPs in 2018. Despite decent volumes and earnings growth, along with some balance sheet improvement, propane distribution companies’ stocks are in the red in 2018. In this series, we’ll analyze propane companies’ performance, financial metrics, and growth prospects.
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Ferrellgas Partners LP.’s (NYSE:FGP) track record on aRead More...
CrossAmerica Partners (CAPL), an MLP involved in wholesale distribution of motor fuel and a lessor of real estate for retail distribution of motor fuel, was the top MLP loser last week. CAPL lost 18.1% last week. CAPL’s stock plunged after its distribution cut announcement. The partnership declared a distribution of $0.53 per unit for 1Q18 compared to $0.63 per unit in the previous quarter, a 16.3% cut.
Sifting through businesses on the road to recovery can lead to big gains for investors. Unfortunately, turnaround stocks can also lead to huge investing mistakes.
Navios Maritime Midstream Partners (NAP) is an MLP involved in the marine transportation of crude oil, refined products, and NGLs. Navios Maritime Midstream Partners was the top MLP gainer for the second consecutive in the week ending April 27. The partnership rallied 6.4% last week. The recent surge in Navios Maritime Midstream Partners’ stock price could be due to a rating upgrade by J.P. Morgan. However, the partnership has lost 52.5% since the beginning of 2018. The fall could be due to Navios Maritime Midstream Partners’ weak operating performance in the previous quarter. ...
Navios Maritime Midstream Partners (NAP), an MLP involved in the marine transportation of crude oil, refined products, and NGLs, was the top MLP gainer in the week ending April 20. Navios Maritime Partners rallied 29.2% due to J.P. Morgan upgrading it to a “buy.” Overall, the partnership has lost 55.4% since the beginning of 2018. The fall could mainly be attributed to the partnership’s weak operating performance in 4Q17. To learn more, read Comparing Crude Tanker Companies’ 4Q17 Performances.
If you are a shareholder in Ferrellgas Partners LP.’s (NYSE:FGP), or are thinking about investing in the company, knowing how it contributes to the risk and reward profile of yourRead More...
Alliance Holdings GP (AHGP), the GP (general partner) of Alliance Resource Partners (ARLP), was the top MLP loss in the week ending April 13, 2018. Alliance Resource Partners is an MLP involved in coal mining and production. Alliance Resource Partners continued to be among the top ten MLP losses for the second consecutive week. Alliance Holdings GP and Alliance Resource Partners fell 4.1% and 1.8% last week. Alliance Holdings GP and Alliance Resource Partners have lost 12.9% and 16.0% since the beginning of this year.
Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. In the past 10 years Ferrellgas Partners LP.Read More...