|Bid||20.69 x 1000|
|Ask||20.70 x 900|
|Day's Range||20.30 - 20.95|
|52 Week Range||17.55 - 24.04|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 18, 2020 - Feb 24, 2020|
|Forward Dividend & Yield||2.20 (11.89%)|
|1y Target Est||21.86|
Genesis Energy, L.P. (NYSE: GEL) announced today that it will participate in the Wells Fargo 2019 Midstream & Utility Symposium. The conference is being held December 11 through December 12 in New York, NY.
Genesis Energy, L.P. (NYSE: GEL) announced today that it has entered in to agreements with Murphy Exploration & Production Company – USA ("Murphy"), a subsidiary of Murphy Oil Corporation (NYSE: MUR), and other interest owners, to provide downstream transportation services for 100% of the crude oil and natural gas production associated with the deepwater Gulf of Mexico Khaleesi / Mormont and Samurai field developments through the new King’s Quay floating production system ("King’s Quay FPS"), owned by Murphy and investment funds managed by Ridgewood Energy Corporation.
Big news came out of the energy industry this week, from the Energy Information Administration: in September, the US became a net exporter of petroleum products. It was the first month, since the government began keeping oil industry records in 1949, that the US exported more oil than it imported. The news was hailed as a milestone for the American oil industry.And a milestone it was. The US overall exported 89,000 barrels more than it brought in, a fitting situation for the world’s largest oil producer. In terms of total production, the US has held the leading spot for the last six years, and at almost 18 million barrels per day accounts for some 18% of world oil output. The immense Permian Basin of West Texas – the world’s second largest oil field – accounts for much of the production increase.While American oil – and natural gas – are the direct beneficiaries of the North American oil boom, the energy industry generally shows great potential for investors. Extraction from previously marginal oil patches and moves toward clean energy, bring with them a notoriously high overhead, and companies are always keen to attract new investment. After all, a steady flow of investor cash helps pay for the new infrastructure that generate the cash flow and profits – which in turn help bring in more investors. Many energy companies try to speed that process along by offering high dividends, sharing those profits with their investors.We’ve used the TipRanks Stock Screener to find three energy companies – and not just in the oil business – with buy ratings, solid upside potential, and those huge dividend yields. All three of these stocks are yielding investors more than 11% in dividend paybacks.Kimbell Royalty Partners (KRP)The North American oil boom is real, and the oil and gas exploration and drilling companies have been cashing in big time. There was a joke 40 years ago: How do you tell a pigeon from a Texas oilman? The pigeon can still leave a deposit on a new Mercedes. That’s not a joke anymore, since Texas oilmen are back in a big way.Kimbell Royalty is one of the winners. The company is major player in the Permian Basin and Eagle Ford formations in Texas, as well as the Bakken formation of the Dakotas and the Appalachian oil fields. The company’s major area of operations is the Permian Basin, where it controls over 40,000 rigs – some 43% of its total active wells.KRP’s success can be gauged by its record high revenue in Q3 2019, reported earlier this month. The company showed $33 million in revenues, a 79% gain year-over-year. The gains came after the acquisition of competitors Haymaker and Phillips. Despite the boost in revenues, however, KRP saw a big net loss for the quarter, of 73 cents per share. The company chalked up the loss to a one-time impairment expense charge incurred in a full-cost ceiling test.Kimbell has been using its cash flow to fund a generous dividend of 42 cents quarterly – or $1.68 per share annualized. The yield is 11.7%, more than 5x the average on the S&P 500 index. The company has been raising its dividend over the past year.Analyst Gordon Douthat of Wells Fargo, noted the company’s secure position moving forward in his recent report on KRP. The analyst wrote, “Since going public in 2017, KRP has been an aggressive consolidator in the highly fragmented minerals space, having almost tripled its net acreage position and more than tripling its production over this time period, and we expect M&A activity to remain a critical component of the company’s strategy going forward.”Douthat set a $20 price target on KRP to go with his Buy rating, implying a 32% upside to the stock. (To watch Douthat’s track record, click here)KRP’s Strong Buy consensus rating is based on 4 positive reviews in the last few weeks. The company has been attracting the bulls recently, and the average price target, $20, is in line with Atcheson’s report. (See Kimbell Royalty stock analysis on TipRanks)Gaslog Partners (GLOP)Oil isn’t the only resource pumped out the wells in Texan and other oilfields. Natural gas, and natural gas liquids, are also found in abundance, sometimes in even greater quantities than the petroleum. Gas is in high demand, as a cleaner alternative to oil-based fuels. Gas is used for cooking, heating, and even as an alt-fuel for cars. To get the gas to market, however, requires a specialized infrastructure network, and that is where Gaslog Partners comes in.This company owns and operates liquified natural gas (LNG) carriers, the specialized ships that move gas and gas products, in a pressurized liquid form, across the world’s oceans. The company is 100% owner of 15 LNG carriers, engaged in both active transport and offshore storage.In the recent earnings report for third quarter CY2019, Gaslog showed a modest revenue beat, as the $96.5 million print was 1.3% higher than the analyst forecast. EPS missed, however, coming in at 43 cents against the 50-cent estimates. Distributable cash flow, however, was up 26% year-over-year, a metric that helps explain the 55-cent quarterly dividend. At $2.20 annually, this makes the dividend yield an impressive 15.1%. Compared to the S&P average of just ~2%, and you can easily see the attraction for investors.Jonathan Chappell, 4-star analyst from Evercore ISI, sees plenty of potential for GLOP to maintain its current performance levels. He said of the company, as the end of October, “The extensive fixed-rate time-charter coverage of its fleet plus the low breakeven levels associated with its well managed capital structure has enabled GLOP to increase its annual distribution by an average of 8% over the last 5 years and should now provide it with the cash flow stability to maintain the current run rate even as legacy charters expire into next year…” Chappell puts a Buy rating on GLOP, and his $24 price target implies a high 65% upside. (To watch Chappell’s track record, click here)Jefferies analyst Randy Giveans is also bullish on GLOP, as he sees the LNG industry generally as a good position. In his recent note on the stock he writes, “We believe the fundamentals for the LNG shipping market will continue to improve significantly as LNG shipping demand growth outpaces LNG shipping supply growth throughout the coming quarters and years.” Giveans sees a $26 price target for GLOP, indicative of a 78% upside. (To watch Giveans’ track record, click here)We have seen the bullish opinions; the bears are cautious due to short-term churn in the LNG carrier industry as four of GLOP’s ship charters will be expiring in coming months. The uncertainty has not hurt views of the company’s profitability, however.Indeed, it’s clear that Wall Street is largely divided between the bulls and the fence sitters when it comes to Gaslog’s market opportunity. That said, the consensus average price target points to $23.25, or nearly 67% upside potential for the stock. This suggests that by consensus expectations, for now, the bulls win on GLOP. (See Gaslog Partners’ price targets and analyst ratings on TipRanks).Genesis Energy LP (GEL)With the third company on our list, we leave the US and head Down Under, where Genesis is the leading power provider on the North Island of New Zealand. Genesis is the country’s largest electricity and gas retailer, and serves more than 650,000 customers.Genesis generates the power it sells at a series of conventional power generation plants and hydroelectric facilities, totaling over 1,600 megawatts of output. The company is also invested in clean energy, and is involved in the development of two large wind farms.The third quarter was difficult for Genesis, as the company saw year-over-year declines in both revenues and earnings. The top line came in at $621.7 million, down 14% from the estimates, while EPS posted a loss of 1 cent per share, 12 cents below the forecasts. Cash flow was also down, at $136.1 million compared to $156.7 million in the year-ago quarter – but despite the drop, cash flow was enough to maintain the company generous dividend of 55 cents per share. At $2.20 annualized, this gives the dividend a high yield of 11.6%. That’s almost 6x higher than the average yield on of S&P listed companies, but more importantly, Genesis has been growing that dividend slowing but steadily for the last two years.TJ Schultz, a 5-star analyst with RBC Capital, is bullish on GEL, seeing the company as generally poised to deliver results. He writes of the stock, “We remain constructive on GEL despite some earnings volatility quarter to quarter… We think GEL is positioned to deliver positive FCF in 2020, which continues our view on meaningful de-levering over the next several years…” Schultz’s price target on GEL, $25, implies an upside of 31%, backing up his Buy rating. (To watch Schultz’s track record, click here.)Overall, the company’s high expenditures in clean energy investments, and its recent earnings volatility, are reasons for caution, but its dominant position in the New Zealand market puts it in a good position.TipRanks suggests optimism with some caution baked into expectations when it comes to Wall Street’s majority perspective on this power stock. Out of 5 analysts tracked in the last 3 months, analysts are split between the bulls and the sidelined on GEL: 3 rate a Buy, while 2 issue a Hold. The 12-month average price target stands at $22.20, marking about 20% in upside potential from where the stock is currently trading. (See Genesis Energy stock analysis on TipRanks)
Genesis Energy, L.P. announced today that it will participate in the Bank of America Merrill Lynch 2019 Leveraged Finance Conference. The conference is being held December 3rd through December 4th in Boca Raton, FL.
Is Genesis Energy, L.P. (NYSE:GEL) a good bet right now? We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage […]
Genesis Energy, L.P. announced today that it will participate in the RBC Capital Markets Midstream Conference. The conference is being held November 20 through November 21 in Dallas, TX.
We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always […]
Genesis Energy, L.P. will announce its earnings for the third quarter ended September 30, 2019 on Wednesday, November 6, 2019, before the market opens.
Genesis Energy, L.P. announced today that, on October 8, 2019, the Board of Directors of its general partner declared a distribution on Genesis’ common units and 8.75% Class A Convertible Preferred Units attributable to the quarter ended September 30, 2019.
(Bloomberg Opinion) -- As the fight for Marathon Petroleum Corp.’s future intensifies, collateral damage looms for an already battle-scarred asset class: master limited partnerships.Elliott Management Corp.’s call for splitting Marathon in three has garnered support from a couple of other shareholders now pushing CEO Gary Heminger to step down. Marathon’s board says it stands behind Heminger, but the persistent discount in the stock versus its sum-of-the-parts value should keep the issue of a corporate overhaul alive. While the future of retail arm Speedway looks like the most contentious area, Elliott’s suggestion of converting Marathon’s MLP, called MPLX LP, into a regular C-Corp and spinning it off looks less controversial.Such conversions have become commonplace. Problems with governance, debt, tax reform and general energy exposure have crushed MLP valuations, eroding their main reason for existing, namely as a cheap source of capital. MPLX now sports a distribution yield of about 9.5%. Converting to a C-Corp, as many others have done, would open up a wider pool of investors.That could be great for MPLX; less so for MLPs.I wrote here back in May about the shrinking MLP pool. Since then, a few partnerships have disappeared, including Andeavor Logistics LP, which was bought by MPLX. Meanwhile, Tallgrass Energy LP has received a buyout offer (of sorts), and Kinder Morgan Canada Ltd. should disappear by the end of the year. Plus, with Occidental Petroleum Corp. trying to pay off the debt from its acquisition of Anadarko Petroleum Corp., Western Midstream Partners LP also could be exiting the scene.Here are updated charts breaking down 83 North American energy infrastructure companies (not including utilities) into their respective groups, weighted by market cap and free float. The dominance of the C-Corps is pretty clear: An MPLX conversion would have a big impact. With a market cap of roughly $30 billion(1), MPLX represents about 11% of North American energy partnerships’ aggregate value. It’s also the largest member of the Alerian MLP Index. Assume MPLX converts and is spun off, plus Buckeye Partners LP(2), Tallgrass, Kinder Morgan Canada and Western Midstream all disappear. Under that scenario, C-Corps would jump from about 62% of the aggregate free float of energy infrastructure firms to more than two-thirds. Meanwhile, outside of C-Corps and the big four, we would be left with a long tail of 61 companies with a combined free float of just $48 billion, averaging less than $800 million each.And the dwindling ranks of the Alerian MLP index would thin further; MPLX, Tallgrass and Western Midstream account for a fifth of its weighting. The relative weighting of smaller partnerships with lower-quality midstream assets would increase. For example, all else equal, Genesis Energy LP, which houses everything from soda-ash production to pipelines to shipping, could enter the top 10 of the index’s holdings.A vicious cycle is at work here. As generalist investors have withdrawn, so MLP valuations have remained subdued despite some recovery in energy prices and continued growth in U.S. physical energy flows. This, along with governance concerns, persuades more partnerships to either sell out or give up on the structure, reducing the pool of available investments, which in turn leads to investment mandates and specialist funds migrating away.Earlier this month, large pension funds in Iowa and Oklahoma effectively eliminated asset allocations to MLPs, with Teachers’ Retirement System of Oklahoma noting a number of drawbacks, including an “extremely small universe of securities relative to other asset classes.” In his latest weekly roundup of the sector, Hinds Howard at CBRE Clarion Securities noted that after a year of trying to deal with weak performance and growing concentration, institutions are “throwing in the towel,” with allocations “being diverted to listed infrastructure strategies, private equity or just plain old global equities.” He adds:MLPs have lost the special designation as a separate allocation within real assets that the sector has enjoyed over the years. That fund flow headwind is the biggest impediment to midstream performance [for] the rest of 2019, especially if oil prices are going to remain a headwind.Of course, even if MLPs are shrinking in importance, the hard assets they own remain and can be invested in under other structures. BP Capital Fund Advisors LLC is touting the catchily named UBS E-TRACS NYSE Pickens Core Midstream Index ETN, which includes allocations to C-Corps, with a recent report subtitled: “Is your midstream exchange traded product still relevant?” Some funds have taken an holistic approach to energy infrastructure for years, notably the First Trust North American Energy Infrastructure Fund, which mixes partnerships with C-Corps and even utilities, and the Voya CBRE Global Infrastructure Fund, which extends beyond energy-related infrastructure.Looking at the relative performance, it isn’t hard to see why. And as more MLP constituents either change identity or leave altogether, more institutional money will follow.\- With graphics by Elaine He (1) All data are as at the market close on September 26, 2019.(2) IFM Investors agreed to buy Buckeye for $11.1 billion (including assumed debt) in May 2019, with completion expected by the end of the year.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Genesis Energy LP and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
DALLAS , Aug. 9, 2019 /PRNewswire/ -- Alerian reported, as of June 28, 2019 , total products directly tied to and tracking the Alerian indices was $13.7 billion . Exchange traded funds, exchange traded ...
Not only will conservative investors seek them out, growth-oriented investors will also try to gain from the price surge in high-yield stocks.
Genesis Energy LP expects its third-quarter earnings will be negatively impacted following a longer-than-expected delay in restarting U.S. Gulf of Mexico production in the wake of Hurricane Barry, which swept through the region last month, Chief Executive Grant Sims told investors on Tuesday. The Gulf fully restored oil and gas production about nine days after the storm passed, instead of an expected four days, which lowered volumes on Genesis' pipeline systems. A third-party internet connectivity provider experienced issues restarting service in the region, Sims said.