|Bid||35.86 x 1400|
|Ask||35.88 x 1100|
|Day's Range||35.78 - 36.42|
|52 Week Range||30.88 - 39.38|
|PE Ratio (TTM)||22.26|
|Forward Dividend & Yield||2.47 (6.84%)|
|1y Target Est||N/A|
So far in this series, we’ve looked into the institutional activity in four major MLPs: Enterprise Products Partners (EPD), MPLX LP (MPLX), Energy Transfer Partners (ETP), and Energy Transfer Equity (ETE).
The number of institutional holders in Enterprise Products Partners (EPD) fell to 1,063 by the end of the first quarter compared to 1,069 in the previous quarter.
MLPs have been on a recovery path due to improvements in their financial positions, prudent capital spending, and—most importantly—recovery in earnings growth resulting from strong US production growth and strong crude oil prices.
According to a Reuters’ survey, 75.0% of the analysts rated Energy Transfer Partners (ETP) as a “buy” as of May 15, while the remaining 25.0% rated it as a “hold.” MPLX LP (MPLX), Enterprise Products Partners (EPD), and Williams Partners (WPZ) have “buy” ratings from 94.4%, 100.0%, and 80.9% of the analysts, respectively.
Of the analysts covering Kinder Morgan (KMI), 64% recommended “buy,” and 36% recommended “hold.” Their price target for Kinder Morgan is $21, implying a 28% upside to its current price of $16.45.
The number of Enterprise Products Partners (EPD) shares shorted fell ~37.5% from ~17.3 million on April 13 to ~10.8 million on April 30. According to data released on May 9, short interest in Enterprise Products Partners as a percentage of its float is ~0.8%. Enterprise Products’ short interest ratio is 2x, which shows that it would take nearly two days to cover all open short positions in EPD.
Master limited partnerships or MLPs saw continued strong earnings growth in 1Q18 after a solid fourth quarter of 2017. Of the top 15 limited partnerships by market capitalization, 14 reported YoY (year-over-year) growth in quarterly revenue and EBITDA (earnings before interest, tax, depreciation, and amortization). Seven of these limited partnerships reported QoQ (quarter-over-quarter) growth in revenue while nine reported QoQ growth in adjusted EBITDA. ...
According to recent filings, the top ten investors in Kinder Morgan (KMI) added net 20.3 million Kinder Morgan shares to their positions. According to a March 9 filing, Richard Kinder added 0.5 million KMI shares to his position. Kinder owns nearly 246 million KMI shares, which represent 11.1% of KMI’s total outstanding shares. BlackRock Institutional Trust disclosed an addition of 0.6 million KMI shares in a March 31 filing.
Kinder Morgan’s (KMI) net debt stood at $37.0 billion at the end of 1Q18, $331 million higher quarter-over-quarter. Of the $331 million increase, nearly $100 million was associated with increased debt at Kinder Morgan Canada (KML.TO). Notably, Kinder Morgan’s net debt has fallen ~$5.8 billion since the end of 1Q15.
All four companies we’re analyzing—Enterprise Products Partners (EPD), Kinder Morgan (KMI), Williams Partners (WPZ), and MPLX (MPLX)—raised their capital expenditure YoY (year-over-year) in 2017. Enterprise Products Partners’ capital spending rose 11% in 2017 while Williams Partners’ rose 24%.
All four midstream companies we’re analyzing in this series—Enterprise Products Partners (EPD), Kinder Morgan (KMI), Williams Partners (WPZ), and MPLX (MPLX)—are trading at attractive yields. Enterprise Products Partners and MPLX are trading at yields of 6.4% and 7.1%, respectively, while Williams Partners is trading at a yield of ~6.7%. Kinder Morgan’s recent 60% dividend increase has raised its yield to ~5.0%.
MPLX’s (MPLX) EBITDA (earnings before interest, tax, depreciation, and amortization) grew 80% YoY (year-over-year) in 1Q18, boosted by drop-down assets from parent Marathon Petroleum (MPC). MPLX’s EBITDA grew 41% YoY in fiscal 2017.
Enbridge Energy Partners, L.P. is one of the MLPs deeply impacted by a recent policy change.
Plains All American Pipeline (PAA) reported its 1Q18 results on May 8 after the market closed. Plains All American reported 16% YoY (year-over-year) growth in its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for the quarter. The adjusted EBITDA excludes gains from derivative activities. Plains All American reported $285 million in gains from derivative activities in 1Q17.
Just when investors were going to get answers about its recent drop down from Marathon Petroleum, another acquisition has people wondering what the company's future will look like.
So much is expected to change because of this monumental transaction that some may simply overlook a less-than-awesome quarter.
ONEOK (OKE) reported its 1Q18 results on May 1. The company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 24% YoY (year-over-year) in 1Q18. ONEOK’s 1Q18 EBITDA exceeded analysts’ expectations for the quarter. The growth was driven by higher volumes in the STACK and SCOOP plays and the Williston and Permian basins. Optimization and marketing activities in ONEOK’s Natural Gas Liquids segment also contributed to the earnings growth.
Operating loss from Marathon Petroleum's (MPC) Refining & Marketing segment was $133 million compared with $70 million in the year-ago quarter.
MPLX (MPLX), the MLP subsidiary of Marathon Petroleum (MPC), reported its 1Q18 results on April 30, 2018. The company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose 80% to $760 million in 1Q18 from $423 million in 1Q17.
Moody's Investors Service, ("Moody's") affirmed Marathon Petroleum Corporation's (MPC) Baa2 senior unsecured debt rating with the outlook remaining stable, and placed Andeavor's (ANDV) Baa3 senior unsecured debt rating under review for upgrade. Moody's also placed Andeavor Logistics LP's (ANDX) Ba1 Corporate Family Rating (CFR) and Ba1 senior unsecured notes rating under review for upgrade.
Consent decree also includes $2.6 million in improvements that will be made.
So far in this series, we have discussed the performance of the broader MLP sector, top MLP gainers, and top MLP losses in the week ending April 20. In this part, we’ll discuss last week’s MLP rating updates.
So far in this series, we’ve looked at the earnings growth expectations for six midstream companies, including Noble Midstream Partners (NBLX), MPLX (MPLX), Phillips 66 Partners (PSXP), Antero Midstream Partners (AM), Andeavor Logistics (ANDX), and Energy Transfer Partners (ETP). In this part, we’ll look at the earnings expectations for Genesis Energy (GEL).