|Bid||37.37 x 900|
|Ask||37.39 x 2900|
|Day's Range||37.25 - 37.52|
|52 Week Range||31.60 - 39.38|
|PE Ratio (TTM)||19.62|
|Earnings Date||Oct 24, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||2.51 (6.73%)|
|1y Target Est||41.94|
All of the analysts surveyed by Reuters covering Enterprise Products Partners (EPD) and MPLX (MPLX) are bullish on the stocks. All of the surveyed analysts have rated both of the stocks as a “buy.” In comparison, 79% of the analysts rated Williams Companies (WMB) as a “buy,” while 71% rated Kinder Morgan (KMI) as a “buy.”
Together, the top ten institutional investors in Kinder Morgan (KMI) sold net 23.5 million shares of the company in the second quarter. The sale of 30.1 million shares by Wellington Management Company was the largest position change. Fidelity Management & Research Company, not among the top ten investors, sold 19.1 million shares of Kinder Morgan. Together, the top ten investors hold 34.4% of Kinder Morgan’s outstanding shares.
The short interest in Enterprise Products Partners (EPD) fell 9.4% from 8.5 million shares on July 13 to 7.7 million shares on July 31. The short interest in Enterprise Products Partners as a percentage of its float is 0.5%. Enterprise Products Partners’ short interest ratio is ~2.0x, which shows that it might take roughly two days to cover all of the open short positions in the stock.
The net debt-to-EBITDA is a popular metric used to analyze MLPs’ leverage position. Using analyst-adjusted numbers, Kinder Morgan (KMI) has the highest net debt-to-EBITDA ratio among the four midstream companies that we’re comparing in this series—Kinder Morgan, Enterprise Products Partners (EPD), Williams Companies (WMB), and MPLX (MPLX).
Enterprise Products Partners (EPD) plans to spend $3.9 billion on capital projects in 2018, which is ~15% higher than its 2017 capital expenditure. The company’s expected spending in 2018 is the highest among the four midstream companies that we’re comparing in this series—Enterprise Products Partners, Kinder Morgan (KMI), Williams Companies (WMB), and MPLX (MPLX).
MPLX’s (MPLX) adjusted EBITDA grew 83% YoY (year-over-year) in the second quarter. The massive growth was mainly driven by earnings from assets acquired from Marathon Petroleum (MPC). Higher pipeline volumes and higher gathering, processing, and fractionation volumes also contributed to the company’s earnings during the quarter.
All of the four companies—Enterprise Products Partners (EPD), Kinder Morgan (KMI), Williams Companies (WMB), and MPLX (MPLX)—are trading at lower forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples than their respective five-year average multiples. Kinder Morgan’s forward EV-to-EBITDA multiple is the lowest among the four peers.
MPLX (MPLX) has shown consistent distribution growth over the last several years. Since its IPO in 2012, MPLX has increased distributions for 22 consecutive quarters. MPLX’s coverage ratio has remained well above one over the last several years. The company intends to maintain a coverage ratio of 1.2x or higher while growing distributions 10% for 2018. Currently, MPLX is trading at an attractive yield of 6.6%.
So far, Enterprise Products Partners (EPD) has risen ~9% in 2018. The company has outperformed its peers in the midstream sector. Other top midstream players by market capitalization, Kinder Morgan (KMI) and Williams Companies (WMB) have fallen ~5% and ~1%, respectively, during the same period. MPLX (MPLX) has risen ~4% YTD (year-to-date). The Alerian MLP ETF (AMLP) is relatively flat, while the Energy Select Sector SPDR ETF (XLE) has risen ~3%.
MLPs’ strong earnings growth continued in the second quarter after a solid first quarter. Of the top 15 limited partnerships by market cap, 13 reported YoY (year-over-year) rises in their quarterly revenues and earnings. Cheniere Energy Partners (CQP) reported the highest YoY EBITDA growth among the MLPs under review. Fourteen of the top 15 MLPs are constituents of the Alerian MLP ETF (AMLP).
The assignments were listed in a company email sent to employees Friday and obtained by the Business Journal.
MLPs’ strong positive momentum continued. The Alerian MLP Index (^AMZ), which includes 44 energy MLPs, ended in the green for five consecutive weeks. AMZ rose 4.0% last week and ended at 285.5—the highest weekly gains in the last seven months. Out of the total 93 MLPs, 55 ended in the green, seven remained unchanged, and 31 ended in the red last week.
Enterprise Products Partners (EPD) saw a string of target price increases after its strong second-quarter results. UBS raised its target price from $36 to $39. Barclays and Stifel both raised their target prices for the stock to $34. SunTrust Robinson raised its target price for Enterprise Products Partners from $33 to $34. RBC raised its target price from $34 to $37.
Enterprise Products Partners’ (EPD) total capital spending in the second quarter was $983 million. The company spent $2.1 billion on capital projects in the first half of 2018. Enterprise Products Partners expects to invest ~$3.8 billion–$4.0 billion on growth projects in 2018. Enterprise Products Partners’ propane dehydrogenation plant, which was completed in 2017, was put in service in April.
HOUSTON, Aug. 03, 2018-- Targa Resources Corp.; NextEra Energy Pipeline Holdings, LLC, an indirect, wholly-owned subsidiary of NextEra Energy Resources, LLC; WhiteWater Midstream, LLC, a portfolio company ...
NEW YORK, Aug. 01, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of US ...
ONEOK (OKE) reported its second-quarter results on July 31 after the markets closed. The company reported an adjusted EBITDA of $601.8 million for the quarter—30% higher compared to the second quarter of 2017. The growth in ONEOK’s earnings was driven by growth in natural gas and natural gas liquids volumes in the STACK and SCOOP areas, the Williston Basin, and the Permian Basin. Higher optimization and marketing activities in ONEOK’s Natural Gas Liquids segment also drove its earnings growth.
Plains All American Pipeline (PAA) has announced a distribution of $0.3 per unit for Q2 2018, which is flat compared to its first-quarter distribution. Plains All American Pipelines is trading at a yield of ~4.8% currently, which is lower than the yields of 5.8%, 5.4%, and 7.0% for Enterprise Products Partners (EPD), Magellan Midstream Partners (MMP), and MPLX (MPLX), respectively. The Alerian MLP Index currently has a yield of ~7.8%.
Plains All American Pipeline (PAA) will release its Q2 results on August 7 after the markets close. Analysts expect the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) for the quarter to be $477 million, 6% higher than its Q2 2017 EBITDA. At the same time, Plains All American Pipeline expects its Q2 adjusted EBITDA to remain flat compared to the year-ago quarter.
Hi-Crush Partners (HCLP), a frac sand producer, was the top MLP gainer last week, which ended on July 27. It saw a massive 40.6% rally, driven by some positive announcements, including the acquisition of FB Industries, a new agreement with an E&P (exploration and production) customer, and a distribution increase. H-Crush announced the acquisition of FB Industries, a company involved in frac sand storage and handling.
The strong positive momentum for MLPs continues. The Alerian MLP Index (or AMZ), which includes 44 energy MLPs, ended in the green last week for the fourth consecutive week. It rose 1.5% to end at 274.9.
In this article, we’ll look at production activity in the regions where Williams Partners (WPZ) has major exposure. Let’s start with the US Appalachia region, which includes the prolific Marcellus and Utica plays. Its natural gas production continued to grow in the second quarter of 2018, by 19.6% YoY (year-over-year). However, drilling activity in the Utica region has remained weak in recent months, which could be a slight concern for the company.