21.11 0.00 (0.00%)
After hours: 4:06PM EDT
|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||20.75 - 21.29|
|52 Week Range||18.38 - 31.93|
|PE Ratio (TTM)||22.22|
|Earnings Date||May 7, 2018 - May 11, 2018|
|Forward Dividend & Yield||1.20 (5.70%)|
|1y Target Est||24.96|
Master limited partnerships took a hit last week following news that they would no longer be able to "recover an income tax allowance in cost of service rate." As a result, Williams (WMB) fell to the bottom of the S&P 500 on Thursday, and the Alerian MLP ETF (AMLP) sold off more than 5%. Analysts have been arguing that investor worries are overblown, and Mizuho’s Brian Zarahn echoed that today. Yes, the decision raised concerns about the impact on MLP cash flows, but companies have also come out saying that the impact wont’ be as bad as feared, Zaharan says. As such, he called the weakness a buying opportunity, especially for some of his favorite names, Energy Transfer Partners (ETP), Enterprise Product Partners (EPD), Plains All American Pipeline (PAA), and Valero Energy Partners (VLP).
In an unprecedented move, FERC (the Federal Energy Regulatory Commission) revised its income tax policy for MLPs. MLPs, which aren’t taxed at the corporate level and which operate as pass-through entities, allocate their income to investors. To compensate investors for the income tax burden, MLPs have been receiving an income tax allowance from customers on FERC-regulated pipelines.
In its 2018 Analyst Conference presentation, Enterprise Products Partners (EPD) discussed the correlation of its stock price with distribution growth. According to the company, the correlation coefficient between EPD’s stock price and distribution growth was 0.93 from January 2010 to August 2014. It fell to just 0.32 in the TTM (trailing-12-month) period. The correlations of Enterprise Products’ stock price with its distribution growth over the 2010–2014 and TTM periods are shown in the graphs above.
Zacks Industry Outlook Highlights: NuStar Energy, Plains All American Pipeline, NGL Energy Partners, Archrock Partners and Boardwalk Pipeline Partners
Energy Secretary Rick Perry said that he wasn't sure that Trump has made up his mind "with clarity" about tariffs and that the conversation was "ongoing."
Energy executives say the Trump administration's proposed steel and aluminum tariffs could bump up the cost of big-ticket projects needed for rapidly rising U.S. shale oil and gas output by three to 10 percent. Higher construction costs could slow growth in production and exports of crude and natural gas from shale that has made the United States the world's largest gas producer and second largest oil producer. President Donald Trump's proposal is emerging as a potential spoiler for new U.S. pipelines, drilling rigs, offshore platforms and refineries to handle coming oil and gas production.
Plains All American Pipeline (PAA) was trading 1.5% below its 50-day simple moving average and 4.5% below its 200-day simple moving average as of March 2, 2018, which might indicate bearish sentiment in the stock. In comparison, Buckeye Partners (BPL) and Enbridge Energy Partners (EEP) were trading 20.3% and 17.4% below their long-term moving average. Gains in crude oil prices, an increase in drilling activity, and the successful completion of the open season for its Cactus II pipeline project could push Plains All American Pipeline above its long-term moving average, which could result in bullish sentiment.
TULSA, Okla., March 6, 2018 /PRNewswire/ -- Velocity Midstream Partners, LLC ("Velocity") announced that it has completed the construction of a 45-mile, 12" crude oil pipeline loop of its existing condensate pipeline through the fairway of the South Central Oklahoma Oil Province ("SCOOP"). The crude oil loop project is supported by expanded commitments from Continental Resources Inc. (CLR), an Oklahoma City-based exploration and production company, and CVR Refining, LP (CVRR) ("CVR"). Velocity also announced that it has started construction of a 22-mile, 12" crude oil pipeline extension linking the core of the Merge play to its SCOOP pipeline assets.
Plains All American Pipeline has $1.5 billion in projects that use a lot of steel, including 26-inch pipes that can only be imported, the CEO said Monday,
President Trump's steel tariffs may hit the US energy industry hard just as the US is poised to lead world oil supply. Pipelines rely on foreign steel.
Plains All American Pipeline LP (NYSE:PAA) files its latest 10-K with SEC for the fiscal year ended on December 31, 2017.