Master Limited Partnerships
Sand in the Gears: Elevated Downside Risk for High-Flying Proppant Producers
Thanks to rapid development of unconventional fields such as North Dakota’s Bakken Shale and Eagle Ford Shale in South Texas, US oil production has soared buy more than 60 percent over the past five years,...
IPO Analysis: Hess Midstream Partners LP (NYSE: HESM)
Hess Corp (NYSE: HES) last month closed the sale of $860 million in liquids terminals and related assets to MLP Portfolio holding Buckeye Partners LP (NYSE: BPL) as part of the company’s effort to monetize...
IPO Analysis: PES Logistics Partners LP (NYSE: PESL)
PES Logistics Partners LP (NYSE: PESL) owns a 45 percent interest in North Yard Logistics, an operating company whose cornerstone asset is a rail unloading terminal that can accommodate up to three 120-railcar unit trains...
IPO Analysis: PennTex Midstream Partners LP (NYSE: PTTX)
PennTex Midstream Partners LP’s (NYSE: PTXP) initial asset base will consist of gas-gathering pipelines and -processing plants in Northern Louisiana that operate under long-term contracts with primary customer, Memorial Resource Development Corp (NSDQ: MRD). These...
IPO Analysis: Columbia Pipeline Partners LP (NYSE: CPPL)
Columbia Pipeline Partners LP’s (NYSE CPPL) initial asset base comprises midstream infrastructure accumulated by NiSource (NYSE: NI) when the utility industry consolidated in the 1990s. Whereas Dominion Midstream Partners LP (NYSE: DM) received only a...
IPO Analysis: Ocean Rig Partners LP (NSDQ: ORLP)
Offshore contract driller Ocean Rig UDW (NSDQ: ORIG) has followed SeaDrill (NYSE: SDRL) and Transocean’s (NYSE: RIG) lead and filed an initial registration statement for an MLP that will own rigs that operate under longer-term...
IPO Analysis: Mammoth Energy Partners LP (NSDQ: TUSK)
Unlike most MLPs, Mammoth Energy Partners will pay a quarterly distribution that varies based on the cash flow generated by the smattering of oil-field services businesses arrayed under its banner. In other words, investors seeking...
IPO Analysis: USD Partners LP (NYSE: USDP)
USD Partners LP completed its initial public offering (IPO) on Oct. 8, 2014, pricing at $17 per unit—below the targeted range of between $19 and $21. The MLP expects to generate the bulk of its...
MLP Class of 2014, Part 3
Investors flock to MLPs for their above-average yields and exposure to the US shale oil and gas revolution. But instead of simply picking the highest-yielding stocks, investors should consider the potential for price appreciation. From...
New MLPs on the Seas
Transocean Partners LLC (NYSE: RIGP) Like Aggressive Model Portfolio holding SeaDrill Partners LLC (NYSE: SDLP), Transocean Partners LLC owns ultra-deepwater drilling rigs that earn fixed day-rates from multiyear contracts. A spin-off of contract drilling giant...
The Midstream Bunch
Dominion Midstream Partners LP (NYSE: DM) Dominion Midstream Partners LP made its public debut on Oct. 14, in the middle of an intense selloff in the energy sector. Despite the headwinds in the broader market,...
Midstream Madness
The Alerian MLP Index dipped to an intraday low of 435 on Tuesday morning—an almost 20 percent decline from the all-time high reached in late August 2014. This pullback reflects the indiscriminate selloff that engulfed...
Buying the Selloff: Upbeat on Downstream Operators
At the end of every year, we publish our detailed outlook for commodity prices, stocks and the broader economy in the year ahead. Market predictions, even over short time frames, are inherently fallible. Although we...
Five Myths about SeaDrill That Could Cost You Real Money
We first recommended SeaDrill (NYSE: SDRL) in 2007 and pounded the table for the contract driller’s stock after the Macondo oil spill in 2010. But we dropped SeaDrill from our Focus List in September 2013...
09/19/14: The Turnaround Continues
Model Portfolio and MLP Portfolio holding Enbridge Energy Partners LP (NYSE: EEP) yesterday announced that its general partner, Canadian pipeline giant Enbridge (TSX: ENB, NYSE: ENB), had proposed dropping down a 66 percent interest in...
Offshore Contract Drillers: Lessons from the Tanker Industry
Between 1998 and 2008, global demand for crude oil expanded rapidly, driven by surging consumption in China, India and other emerging markets. Over this 10-year period, global imports from emerging markets soared by 8.7 million...
Q2 in Review: Aggressive MLP Portfolio
Alon USA Partners LP (NYSE: ALDW)After paying a distribution of $0.69 per unit in the first three months of 2014, V-MLP Alon USA Partners LP generated $8.4 million in cash available for distribution in the...
Q2 in Review: Conservative MLP Portfolio
Buckeye Partners LP (NYSE: BPL)Although Buckeye Partners LP raised its second-quarter distribution by 5 percent relative to year-ago levels, disappointing results meant that the master limited partnership (MLP) generated enough distributable cash flow to cover...
08/11/14: Our Take on the Kinder Morgan Mega-Deal
Last night, Kinder Morgan Inc. (NYSE: KMI) announced plans to acquire all outstanding equity interests in Kinder Morgan Energy Partners LP (NYSE: KMP), Kinder Morgan Management LLC (NYSE: KMR) and El Paso Pipeline Partners LP...
Enterprise Products Partners LP: Great Company, Not a Great Stock
Since its initial public offering (IPO) 16 years ago, Enterprise Products Partners LP (NYSE: EPD) has been an outstanding investment. An investor who bought the stock at the close of the master limited partnership’s (MLP)...
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Drill, Baby, Drill!
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