MLPs Are Muddling Through the Earnings Season

Source: Hinds Howard, MLP HINDSight (7/30/12)

"Stick with the news, because more earnings reports are coming this week. Good luck out there."

MLPs 5 week streak ends, MLPs down 1.2% on a total return basis this week, compared with +1.7% for the S&P 500, and +2.8% for gold. MLPs were dragged down by oil, natural gas and NGL price declines. The MLP Index has returned a total of 4.4% year to date and 16.0% year over year, compared with 11.5% (YTD) and 8.6% (year over year) for the S&P 500. Even with its decline this week, natural gas prices have actually increased this year, compared with -9.7% for oil, -35.8%for propane and -52.9% for ethane.

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I'm way behind this week, so will just stick with the news. Lots of earnings coming this week. Good luck out there.

News of the (MLP) World

Northern Tier Energy LP (NTI) prices IPO at $14.00 per unit, well below the $19.00 to $21.00 price range

NTI is a variable distribution MLP
NTI finished the week up 4.6%

Busy week for CMLP

$90mm acquisition of Barnett Shale gathering and processing assets from Devon for $90mm (press release)

20-year fixed-fee gathering, processing and compression agreement with 20,500 acre dedication with Devon
Assets in western portion of Johnson County in Texas

Follow on equity offering raises $104mm, to reduce borrowings on revolving credit facility, which will then be used to borrow funds to fund acquisition above (press release)
2Q Earnings pre-announcement (press release)

EBITDA guidance for 2Q between $28 to $29mm compared with estimates of around $30.3mm
Lower 2Q EBITDA a result of lower gathering volumes quarter over quarter, which was a result of combination of production related factors

Updated full year guidance (press release)

Now expects $125mm to $130mm in EBITDA for 2012, compared with prior guidance of $135mm to $140mm
Lower EBITDA result of delays in well completions and moderated drilling activity in dry gas areas

OKS announces $1.0bn in new growth projects (press release)

Projects announced last week include: new NGL fractionator at Mt. Belvieu, new natural gas processing facility in Bakken Shale, expansion of Bakken NGL Pipeline, and new Ethane / Propane splitter at Mt. Belvieu
Announced growth projects through 2015 now total $5.7bn to $6.6bn for OKS, including:

$1.8-$1.9bn for natural gas gathering and processing projects
$2.4-$2.9bn for NGL projects
$1.5-$1.8bn for crude oil projects

EBITDA multiples expected to be 5x to 7x
$2.0+ bn of additional unannounced growth projects currently being evaluated by OKS

CVR Energy Corporate News

CVR Energy, Inc. (CVI), parent of UAN, finds no buyer after searching for 60 days, Carl Icahn to maintain his stake (press release)
CFO Frank Pici resigns and is replaced by internal promotion of assistant treasurer and chief accounting officer Susan Bell (press release)

Notable Earnings

LINE disappoints on lower NGL realizations, coverage at 0.97x in 2Q, expected to increase through the end of the year
PVR earnings disappoint on weaker coal results, despite strong growth from midstream segment
ARLP earnings beat expectations, but cuts guidance on weaker met coal demand
NS earnings disappoint, EBITDA lower than expected, asphalt loss weighs on results, better 2H expected

Hinds Howard
MLP HINDSight

NGL Energy Shares Rise 21% as It Seeks to Raise $2.05 Billion from Senior Secured Note Offering
Source: Streetwise Reports (01/21/2021)

Shares of NGL Energy Partners LP traded higher after the firm made a series of announcements over the past three days regarding an update on financial operations, a settlement with a customer in bankruptcy, a quarterly Class D unit distribution and a $2.05 billion senior secured debt offering.

Western Midstream Posts 99% YoY Increase in Q3 Earnings, Announces $250 Million Buyback Program
Source: Streetwise Reports (11/10/2020)

Shares of Western Midstream Partners traded 23% higher after the company reported Q3/20 financial results that included a nearly 100% growth in Net income. The firm also provided FY/21 guidance and announced a $250 million buyback program.

Altus Midstream Shares Flow Higher on Q3 Earnings and Plans for $1.50/Share Dividend in Q1/21
Source: Streetwise Reports (11/05/2020)

Shares of Altus Midstream Co. traded 170% higher after the firm reported Q3/20 financial results and announced plans to pay a quarterly dividend of $1.50 per share beginning in March 2021.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

NGL Energy Partners Shares Rise 80% as the Firm Confirms 2020 Guidance
Source: Streetwise Reports (03/19/2020)

Shares of NGL Energy Partners traded higher after the company confirmed its fiscal 2020 EBITDA guidance and provided an update on current operations and capital expenditure reductions.

Tallgrass Energy Shares Rise 20% on Blackstone Partners Acquisition Deal
Source: Streetwise Reports (12/17/2019)

Shares of Tallgrass Energy LP traded 20% higher after the firm advised that it entered into a definitive merger agreement with Blackstone Infrastructure Partners to acquire all of the company's publicly held outstanding class A shares for $22.45 per share in cash.

Analyst: Outlook Positive for 'Water-Driven Turnaround Story'
Source: Streetwise Reports (01/04/2019)

This master limited partnership's presentation to analysts provided Raymond James with multiple reasons for long-term investment.

Simplification: A Positive Change for MLP Industry, Investors
Source: Adam Karpf for The Energy Report (05/30/2017)

The master limited partnership (MLP) industry, focused on energy infrastructure, is in the process of a major transformation known as "simplification," where limited partners have merged with or acquired the interests of the general partner. Adam Karpf, portfolio manager for MLP strategies at CIBC Atlantic Trust Private Wealth Management, discusses the trend toward simplification and the benefits for management teams and investors.

A Year of Tips for Winning the Natural Resource Investment War
Source: The Energy Report Staff (12/29/2015)

Energy investors are no strangers to boom-and-bust cycles. In fact, a number of the experts interviewed by The Energy Report in 2015 took a certain amount of glee in the opportunities they knew would open up in low-price markets for oil and gas, uranium and lithium.

Three Upstream MLPs with the Discipline to Succeed in the Coming Recovery: RBC Analyst John Ragozzino
Source: JT Long of The Energy Report (04/29/2015)

RBC's John Ragozzino is anticipating an oil price recovery that could bode well for upstream master limited partnerships, and knows which had the strength to hedge at the right times and which are liquid enough to take advantage of growth opportunities that could be right around the corner.