MLPs

In the news  …

A New York bankruptcy judge said Tuesday that Sabine Oil & Gas Corp. can ditch contracts it inked with natural gas and condensate gathering companies, a development that could have repercussions throughout the midstream oil and gas industry as the drillers they contract with flounder amid low oil prices.

MLPs

S&P In the news …

We are affirming our ‘BBB-‘ corporate credit and senior unsecured debt ratings on WPZ and removing the ratings from CreditWatch with negative implications. At the same time, we are affirming our ‘BBB-‘ corporate credit and senior unsecured debt ratings on WPZ’s wholly owned subsidiaries, Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co. LLC, and
removing the ratings from CreditWatch with negative implications. The outlook is negative.

MLPs

In the news …

“Enterprise Products Partners L.P. (NYSE:EPD) Director Randa Duncan Williams acquired 3,830,256 shares of the firm’s stock in a transaction dated Monday, January 4th. The shares were purchased at an average cost of $26.11 per share, with a total value of $100,007,984.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission.”

Note that the significance of the report and the underlying filings are confusing.

Energy

In the news …

Credit Suisse’s John Edwards has upgraded to Outperform, while hiking his targets for OKS and OKE by $4 apiece, to $38 and $40.

MLPs

In the news …

Credit Suisse downgraded Teekay Corp. (NYSE: TK) from Outperform to Neutral with a price target of $20.00 (from $41.00).Analyst Gregory Lewis commented, “TK took the axe to its quarterly distribution, dropping it 90% to $0.055 from $0.55 which puts TK’s distribution yield at 1.3%. We are downgrading TK to Neutral from Outperform and cutting our target price to $20 (from $41). Management acted conservatively in cutting distributions at TK, TOO, and TGP but with TK only yielding 1% and the prospect of distribution increases at least a year away we are moving to the sidelines.”


RBC Capital downgrades TK to Sector Perform from Outperform and lowers its price target to $16 from $52, as difficult but necessary distribution cuts put the company in a holding pattern for foreseeable future; the firm also lowers its price targets for TOO to $11 from $20 and TGP to $23 from $29.


MoneyShow says: Valuations Are Attractive but No Near-term Catalysts

Although the MLP sector looks attractive from a historical perspective, there are no near-term catalysts in sight. We do, however, expect to see a rally once the technical selling pressure is over.

Over the long-term, we expect to see MLPs trade much higher than current levels as organic and inorganic growth drive investors to the companies that have the most visible path to creating long-term value.

Remain Constructive on Long-term Outlook

We continue to prefer MLPs with geographically diverse asset portfolios, stable/visible cash flow profiles, ample liquidity to capitalize on growth initiatives, low-risk organic growth projects, manageable capital needs, and experienced management teams.
Some of the partnerships that we expect to outperform the market on a longer-term basis are: Antero Midstream Partners LP(AM), Enterprise Products Partners LP (EPD), Energy Transfer Equity LP (ETE), Rose Rock Midstream (RRMS), Plains GP Holdings (PAGP), Tesoro Logistics (TLLP), Targa Resources Corp. (TRGP), and Vanguard Natural Resources (VNR).

MLPs

MLPs in the news by UBS …

We believe many of the midstream names offer attractive upside potential. However, we believe those with stronger coverage, long-term contracts/minimum volume commitments, lower leverage and minimal commodity exposure will outperform. Thematically, we prefer those exposed to basins likely to grow such as the Permian/ Marcellus as well as assets which are demand driven (closer to the customer vs the wellhead). We highlight SHLX, SXL, MMP, EPD, GEL, WES and C-corp CPGX, SE as we believe those are names investors will gravitate towards. Strategically we continue to sit on the sidelines for most of the G&Ps; however, this is likely the first group to recover on a commodity rebound.

MLPs

Jeffries on MLPs …

Sighinolfi said. “As a reminder, our top MLP picks (alphabetical) are APU, EPD, SUN, and WPZ and our favorite C Corp. names are CPGX & NFG.”

MLPs

Although technically no longer an MLP.  In the news …

“Kinder Morgan Inc. (KMI) is holding a board meeting Tuesday to consider slashing its dividend, which would be an unprecedented step for the massive energy company that just one year ago was promising unfettered growth.”

MLPs

In the news …

Toronto, December 07, 2015 — Moody’s Investors Service affirmed Plains All American Pipeline, L.P.’s (PAA) Baa2 senior unsecured rating and changed the outlook to negative from stable. Moody’s also affirmed the
Prime-2 rating assigned to PAA’s and Plains Midstream Canada ULC’s (PMC) US commercial paper program.


For Action Alerts PLUS, we will be buying EOG Resources (EOG) Energy Transfer Partners (ETP). Following the trade, EOG will represent roughly 2.91% of the portfolio and ETP will represent about 1.98% of the portfolio.


Jefferies on KMI: No change to Hold rating but the price target was chopped by more than half from $33 to $15.

KMI stock price target cut to $25 from $39 at Credit Suisse.

MLPs

Consensus price targets from Thomson Reuters in the news.

KMP, $86.00.
PAA, $87.03.
OKS, $61.42.
ETP, $50.00.