MMP - Magellan Midstream Partners, L.P.
64.37 0.00 (0.00%)
After hours: 4:18PM EST
| Previous Close | 65.00 |
| Open | 64.91 |
| Bid | 64.01 x 1100 |
| Ask | 64.29 x 3100 |
| Day's Range | 64.20 - 65.00 |
| 52 Week Range | 56.75 - 67.75 |
| Volume | 807,441 |
| Avg. Volume | 956,204 |
| Market Cap | 14.702B |
| Beta (5Y Monthly) | 0.70 |
| PE Ratio (TTM) | 14.03 |
| EPS (TTM) | 4.59 |
| Earnings Date | Jan 29, 2020 |
| Forward Dividend & Yield | 4.08 (6.28%) |
| Ex-Dividend Date | Nov 04, 2019 |
| 1y Target Est | 69.29 |
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Magellan Midstream to Announce Fourth-Quarter 2019 Financial Results on Jan. 30
Magellan Midstream Partners, L.P. (NYSE: MMP) plans to announce financial results for fourth quarter 2019 before the market opens on Thurs., Jan. 30. Management will discuss fourth-quarter 2019 earnings, annual guidance for 2020 and the status of significant expansion projects during a conference call with analysts at 1:30 p.m. Eastern the same day.
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The 4 Best Energy Stocks for Smart Investors
One of my newsletter editor friends is Doug Casey, whom I've known since the early 1990s. He's the author of numerous books including the seminal Crisis Investing in 1979, which I have an original copy of on my bookshelves. Doug has always been one of the smarter guys in the room -- particularly when it comes to finding bargains in the markets where others are missing them. And one of his tenets is to buy when there's blood in the streets.Source: Kodda / Shutterstock.com I have always marveled at how he can take a market which is deemed to be in trouble and pick through the facts while tossing away the hyped fear. And in turn -- I have enjoyed watching as the facts play out, rewarding him with gains and often lots of income along the way.The energy market is where seemingly no one wants to be an investor right now. With the S&P 500 generating a return year-to-date of 31.1%, the energy market, as tracked by the S&P 500 Energy Index, has recently just managed to recover a bit in December for a return of 12%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSource: Bloomberg -- S&P 500 (White) & S&P Energy (Red) Indexes Total Return The year though, was much worse. From April 23 through Dec. 3, the energy market was down in price by 16.3%. Blood in the StreetsThis makes for a bit of a "blood in the streets" case for the energy market. And then there's the valuation of the S&P 500 compared to the Energy Index. On a price-to-earnings basis, the energy market is at a discount to the S&P 500 by 8%. And on a price-to-sales basis, the Energy Index is at a 49.3% discount to the general S&P 500. Then lastly, on a price-to-book basis, the Energy Index is at a discount of 53.8% to the S&P 500.All of this comes as oil prices are up for the year by 35.9% in West Texas Intermediate (WTI) oil. And while oil is up, it isn't being reflected in the S&P Energy Index's performance.Source: Bloomberg -- S&P Energy Index (White) & WTI Oil Spot (Green) Prices In this week's Barron's, Peter Lynch of Fidelity fame and long-time former manager of its flagship Magellan Fund (NASDAQ:FMAGX) was interviewed. Lynch is another investor who likes to cast off the market chaff to focus on the kernels of facts.One of the more important observations of his was that much of the energy market is making assumptions that the world won't be using oil and gas much longer, let alone for the next year or 20 years. In turn, stocks are being tossed.And yes, wind and solar energy are gaining -- but natural gas is needed when the sun isn't shining or the wind isn't bellowing, as battery costs are still not completely viable.Then for transportation, electric planes are still a pipe dream. And while electric cars and trucks are gaining in number, they are still dwarfed by the continued production of traditional petrol-powered vehicles. My Way to Invest in EnergyOne of the more dependable segments of the energy markets which is less dependent on oil and natural gas prices is the pipeline and related infrastructure industry. This is the segment which acts as a toll-taker to gather and transport oil and gas from the field to the end users from refineries to consumers.Oil and gas prices rise and fall, but as long as the pipes are filled, these companies earn their fees and in turn, share the bulk of the profits with shareholders. The real risk for pipe companies is managing counterparty risks. This means they must know their customers well and learn how to survive when prices are low.The best in this segment have been around during the boom and bust times of oil and gas prices. And so, it is pretty straightforward to examine how they fared during times of stress.That said, these names haven't done all that well this year. Pipeline companies, as measured by the Alerian MLP Index, have only returned 8% year-to-date for 2019. U.S. pipeline companies entered into a major slump from July to early December, but have been sharply rebounding since. The Alerian MLP IndexSource: Alerian and Bloomberg -- Alerian MLP Index Total Return Since the start of December, the index has been making a sharp turnaround with a gain of 12.8% -- nearly triple the performance of the S&P 500.There's much to say about the demand for yield as the MLP pipeline segment of the midstream market offers outlier dividend yields. The Alerian Index has an implied yield of 8.9% which is eye-watering in an increasingly lower yield market.And there is some differentiation in the MLP pipes. One of the big stories over the past three years has come from the U.S. government supporting pipeline network expansion, field gathering and marine terminals. With the support for the export of crude and natural gas, pipelines are in a very good space to increase fee income.Source: U.S. Department of Energy & Bloomberg -- U.S. Crude Oil and Petroleum Exports The major Permian Basin continues to be awash in oil and natural gas, depressing local prices for petrol, which continues to be locked out of the market. But with the exports, pipelines are stepping up with expansion plans.One of my favorites in the gas and oil pipes continues to be Enterprise Product Partners (NYSE:EPD). The stock is up 13.8% in price since Nov. 19 and has returned 23.9% year-to-date. Enterprise Product Partners (EPD)E Source: Bloomberg -- Enterprise Product Partners Total Return The company is at the forefront of solving key problems for U.S. oil and gas thanks to its capacity to get more of the products from the fields to the markets. Enterprise has been expanding its capabilities and has just announced this month that it is working on a venture with Enbridge (NYSE:ENB) to develop a deep-water oil export terminal in the Gulf of Mexico for loading "very large crude carriers" or VLCCs.This should further give the company the ability to raise its revenues and profits. EPD stock has trailed the return of the S&P 500 -- but I still see more value here.Revenues are already up on a trailing year basis by 24.9%. And it is very efficient in its operations with operating margins running at 13.5%. This is returning 20.1% on shareholder's equity and an impressive 8% return on the overall capital of the company.It runs a good cash hoard and has limited debts running at 46.2% of assets. This puts the company above the credit profile of some of its lesser peers in the U.S. market.Unit distributions are running near 44 cents per share for a current yield of 6.2%. And the distributions continue to rise with an average annual increase over the past five years running at 4.2%. Compiled estimates for the next distribution going ex-dividend in January shows a further increase.EPD makes for a smart buy in a taxable account as much of the dividend distribution is shielded from current income tax liability. That makes the yield worth even more. Plains GP Holdings (PAGP)Source: Bloomberg -- Plains GP Holdings Total Return Plains GP Holdings (NYSE:PAGP) is a Permian-focused pass-through company deriving revenue from its stake as the general partner of Plains All American Pipeline (NYSE:PAA). It has already turned on new and expanded pipe this year -- and additional capacity is in the works.Revenues are up 29.9% over the trailing year. Operating margins are a bit thinner than for Enterprise at 6.7%. But the return on shareholder's equity is fat at 23.7%. And the return on the overall capital of the company is also good at 13.5%.Cash is well-managed and debts are even lower at only 34.3% of assets, making it a compelling creditor for further investment as needed.The distribution is currently running at 36 cents per unit for a yield of 7.4% and the distributions are up over the past year by 15%, reflecting the additional capacity.But the key thing about the shares is that they are priced at a 90% discount to sales. It remains another smart buy in a taxable account. Again, just like for Enterprise, it is tax-advantaged.One of the key challenges in the MLP space is that there are plenty of companies which are not in the same good shape as EPD or PAGP. Some are converting into regular corporations which would allow for a broader investor base. Others are consolidating.And in addition, there are a growing number of private equity and other institutional funds which are circling the midstream space. It's clear that the space is a good value proposition with the ability to add debt to generate more cash flows and distributions. This may well aid the quality companies in the toll-taker space.This is particularly true in some of the specific sectors of the pipeline markets such as refined products. New regulations are providing opportunities for pipes, storage and marine terminals. Magellan Midstream Partners (MMP)Source: Bloomberg -- Magellan Midstream Total Return This is where Magellan Midstream Partners (NYSE:MMP) is a prime pick for me. MMP operates in the refined products and marine storage segments. Revenues are up 35.1% over the trailing year and operating margins are a whopping 42.3%. Those margins in turn deliver a return on equity of 40.2%.Dividends provide a yield of 6.5% and the distributions are rising with the five-year annual average running at 10%. MMP has returned a positive 16.2% year-to-date.Magellan Midstream is a further smart buy in a taxable account. Alerian MLP ETF (AMLP)Source: Bloomberg -- Alerian MLP ETF Total Return This brings in the Alerian MLP ETF (NYSEARCA:AMLP) which is modest, with a year-to-date return of 8.5%. But this is not as reflective of the performances and fundamentals of its core holdings, which include Enterprise Products, Plains All American and Magellan. However, the exchange-traded fund does have many lesser MLPs represented, but they are marginal in terms of their allocations in the fund.This provides a further opportunity to buy into the prime MLPs. The ETF yields a big dividend overall at just under 9%. It remains a smart index buy which can be done in a tax-free account given the ETF structure.Neil George was once an all-star bond trader, but now he works morning and night to steer readers away from traps -- and into safe, top-performing income investments. Neil's new income program is a cash-generating machine … one that can help you collect $208 every day the market's open. Neil does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post The 4 Best Energy Stocks for Smart Investors appeared first on InvestorPlace.
- Zacks
Magellan Gauges Shipper Interest for West Texas Pipeline
Magellan Midstream's (MMP) extended open season is for the shippers willing to carry oil through the to-be-expanded pipeline.
- PR Newswire
Magellan Midstream Extends Supplemental Open Season for West Texas Refined Products Pipeline Expansion to Jan. 3
Magellan Midstream Partners, L.P. (NYSE: MMP) announced today an extension of the supplemental open season to solicit additional commitments for transportation volume on the western leg of its refined petroleum products pipeline system in Texas. Binding commitments are now due by 5:00 p.m. Central Time on Jan. 3, 2020. The extension provides interested shippers additional time to make commitments.
- Insider Monkey
Hedge Funds Are Crazy About Magellan Midstream Partners, L.P. (MMP)
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
- PR Newswire
Magellan Midstream to Present at Wells Fargo Midstream Symposium
Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that Michael Mears, chief executive officer, is scheduled to present at the Wells Fargo Midstream Symposium at 3:25 p.m. Eastern on Wed., Dec. 11 in New York City.
- TipRanks
Goldman Sachs: 3 Stocks with Double-Digit Potential in 2020
2019 has been a fantabulous year for stock investors, with the S&P 500 returning 24% year to date. But here's the bad news: all good things must come to an end, and the clock's ticking down to the end of 2019.But here's the good news, too: 2020 might also be not too shabby a year for stocks. At least, not according to the stock pickers at investment bank Goldman Sachs.In a market forecast report released last week, Goldman Sachs suggested that with growth trends stabilizing, there's every chance 2020 will be a "decent" year for "risky" assets such as stocks. Albeit, Goldman prefers to buy "quality" equities when possible, because earnings growth on average could be "subdued" this coming year.So where do you find such stocks high on quality -- but ideally, stocks just "risky" enough that their valuations might still be depressed, leaving potential for upside in 2020? Utilizing the Stock Screener at TipRanks, we've sought out stocks rated highly by none other than Goldman Sachs itself, and have come up with three such. Let's get to know them, beginning with...ProSight Global (PROS)We begin our search today in Morristown, New Jersey, where over the last 10 years, ProSight Global has built itself a business as a specialty insurer offering commercial auto, general liability, workers' comp, and other lines of insurance.Despite the company being around for a decade, ProSight may not be a name familiar to most investors, inasmuch as it only IPO'ed back in July of 2019. But with a trailing price-to-earnings ratio of less than 3, this might be a stock you'll want to get to know.Last week, Goldman Sachs analyst Yaron Kinar upgraded ProSight Global from "neutral" to "buy," assigning the shares a $22 price target that implies about 25% upside in the shares. (To watch Kinar's track record, click here)Why does Kinar share a bright view of ProSight? The analyst explains: "Specialty insurers tend to have higher expense ratios than standard carriers," a fact that may be acting to depress ProSight's stock price. But ProSight's expense ratio is improving while its "loss ratio remains stable," and premiums are growing, too -- all trends that could help the stock price to grow in the new year."While not cheap in absolute terms, PROS shares’ 1.5x price to book multiple is below the ROE regression-implied valuation and peers , with PROS shares down by 11% since our initiation in August. We believe that this provides a more compelling risk-adjusted return and more attractive entry point," Kinar concluded.Other analysts are even more optimistic. Indeed, the average price target on Wall Street is $23.50 -- implying nearly 34% upside! And over the last three months, no one on the Street has assigned ProSight shares anything less than a "buy" rating. In addition to Kinar's upgrade last week, ProSight won an endorsement from 5-star-rated (on TipRanks) analyst Mark Hughes of SunTrust Robinson just last month. (See ProSight stock analysis on TipRanks)Magellan Midstream Partners (MMP)Moving on to what is perhaps a more familiar name (or not), midstream (that means transportation, storage, and distribution) oil and gas company Magellan Midstream Partners is no stranger to income investors. Its 7% dividend yield easily trumps the 2% average dividend of other S&P 500 stocks, while its very reasonable 12.8 P/E ratio is barely half the 23 P/E of the S&P as a whole.It's no surprise, then, that Goldman Sachs likes the stock. Last week, Goldman analyst Michael Lapides slapped a "buy" rating on the shares, initiating Magellan with a $69 target price that implied 22% upside -- versus 16% profit potential for the rest of the oil and gas industry as a whole. (To watch Lapides' track record, click here)Hewing to Goldman's expressed preference for higher quality stocks in 2020, Lapides highlighted Magellan's "lower risk profile relative to most midstream stocks." Among other things, he likes the company's "exposure to refined products pipelines and terminals," which generated "roughly 60%" of the company's earnings before interest, taxes, depreciation, and amortization, as well as the company's "stronger balance sheet," about 33% less leveraged than other midstream players.Despite these advantages, Lapides notes, Magellan stock "trades now slightly below its historical trend" both "on an absolute" basis, and also relative to its peers, suggesting there's room for upside as that valuation gap closes -- and the rest of Wall Street agrees.Over the past month alone, "buy" ratings have outnumbered "sells" four-to-one on Magellan, and the average target price on Wall Street is just a smidge short of Goldman's targeted $69 price -- $68.83 on average, across all analysts surveyed by TipRanks. Assuming they're right about that, investors in Magellan today stand to rake in better than a 17% profit over the next year -- and a 7% dividend yield besides. (See Magellan Midstream stock analysis on TipRanks)TIM Participacoes (TSU)And now for something completely different... as we dive way south of the border to investigate Brazilian telecommunications giant (and Goldman pick) TIM Participacoes.Despite carrying an $8 billion market capitalization, TIM is actually a very reasonably priced telco stock, costing less than 12 times earnings at last report. By way of comparison, a share of Verizon will set you back more than 15 times earnings, while AT&T stock is fetching closer to 17x earnings.Goldman Sachs analyst Diego M. Aragao reiterated his buy rating on TIM in the wake of a Q3 earnings report, noting "TSU reported good numbers, beating our estimates from top to bottom."As Aragao explained, though, TIM's earnings were somewhat depressed by a one-time "monetary correction on tax credit and labor, tax and civil contingencies of R$66mn." Meanwhile, revenues did resume rising, with average revenue per user of TIM's mobile services up a healthy 6% -- and fixed line revenues were up 7%.Forecasting an even "brighter outlook ... for the Brazilian sector" in 2020, Aragao likes TIM's valuation of just 3.5 times estimated 2020 EBITDA, and sees the stock rising potentially 24% to his target price of $20 a share. (To watch Aragao's track record, click here)The only other analyst to rate the stock in the last six months -- Mathieu Robilliard of Barclays -- is nearly as optimistic, rating TIM a "buy" with a $19 target price. So overall, the analysts, on average, think the stock could go even higher, perhaps as high as $21 -- 30% upside from today's prices. (See TIM Participacoes stock analysis on TipRanks)
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Here's Why Magellan Midstream (MMP) is a Lucrative Choice Now
Magellan Midstream (MMP) outperforms the energy sector on the back of its strong midstream operations with more room to run.
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Is Magellan Midstream Partners, L.P. (MMP) Stock Outpacing Its Oils-Energy Peers This Year?
Is (MMP) Outperforming Other Oils-Energy Stocks This Year?
- GuruFocus.com
Incredibly Attractive Dividend Yield From Magellan Midstream Partners
As a whole, the midstream industry has suffered from poor returns Continue reading...
- PR Newswire
Magellan Midstream Launches Supplemental Open Season for West Texas Refined Products Pipeline Expansion
TULSA, Okla., Nov. 11, 2019 /PRNewswire/ --Â Magellan Midstream Partners, L.P. (MMP) announced today a supplemental open season to solicit additional commitments for transportation volume on the western leg of its refined petroleum products pipeline system in Texas. Magellan is in the process of expanding the capacity of its west Texas refined products pipeline system to approximately 175,000 barrels per day (bpd) from its current capacity of 100,000 bpd. In addition, the partnership is currently building a new refined products terminal in Midland, Texas.
- TheStreet.com
Pump Up Your Portfolio With This MLP
Magellan Midstream Partners is a good example of a high-quality master limited partnership to consider including in your portfolio -- if you're OK with the taxes that come with the investment. It has premier oil and gas assets in the U.S., a long history of steady distribution increases, and a nearly 7% yield, which make it a buy for income investors. Magellan Midstream Partners has the longest pipeline system of refined products in the U.S., which is linked to nearly half of the total U.S. refining capacity.
- MoneyShow
3 Midstream Favorites for Rising Quarterly Payouts
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5 Dividend Stocks for an Uncertain Market
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- Thomson Reuters StreetEvents
Edited Transcript of MMP earnings conference call or presentation 31-Oct-19 5:30pm GMT
Q3 2019 Magellan Midstream Partners LP Earnings Call
- Zacks
Magellan Midstream (MMP) Q3 Earnings Beat, Revenues Miss
Magellan Midstream (MMP) reported that its distributable cash flow (DCF) for third-quarter 2019 came in at $306.8 million, up 8.9% from the year-ago quarter.
- PR Newswire
Magellan Midstream Reports Third-Quarter 2019 Financial Results
Increases Annual Distributable Cash Flow Guidance to $1.26 Billion TULSA, Okla. , Oct. 31, 2019 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) today reported net income of $273.0 million ...
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Magellan (MMP) to Report Q3 Earnings: What's in the Cards?
A transporter of gasoline and diesel fuel, Magellan's (MMP) straight-forward fee-based business model makes it less susceptible to volatile commodity prices.
