Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
February 8, 2016

MLP Scorecard is our weekly distribution of information emerging from the world of master limited partnerships.

This week’s Scorecard report delivers 33 comparative metrics on 71 MLPs in the industry. All of the MLPs in the list have traded publicly for at least four quarters. The EnerCom MLP group includes 11 E&Ps and 60 Midstream and Other operations. Market capitalization ranges from under $1 million to more than $45 billion. Dividend yields range from 5.5% to 19.5% in the E&P list, and 3.1% to 45.7% in the ‘Midstream & Other’ list.

Download the full EnerCom MLP Scorecard by clicking on the icon below.
The following data & analysis is from EnerCom’s Energy Industry Data & Trends, January 2016

*Energy Opportunities are in the Sights of Private Equity Firms: An Exclusive Interview with Jason Downie, Co-Founder of Tailwater Capital – Oil & Gas 360®

The energy space has changed. But with change comes opportunity, and private equity companies are chomping at the bit to use their dry powder in a market starved for capital. One of those firms is Tailwater Capital, a Dallas-based enterprise founded in 2013. Under the leadership of Jason Downie and Edward Herring, Tailwater’s co-founders, the firm has established itself across the United States in both the midstream and upstream segments. – Read More

*Dollar Could Be Signaling End of Oil Rout – Forbes

While all eyes have been on OPEC, the market is quietly telling us something. Yesterday the dollar gave the markets a signal that the end of the oil price crash could be upon us. The dollar technically cracked, and oil put in a very intriguing technical reversal signal. Of course, an end to the oil price crash is critical for the global economy and global financial markets. – Read More

*After rapid growth, U.S. energy MLPs running out of road – Reuters

Investment vehicles that funneled more than $100 billion into U.S. pipelines, storage and other facilities during the shale boom now face an existential crisis after oil tumbled so low that it upended assumptions about risks and returns they offer. Those tax-protected structures were the Holy Grail of energy investing during the upswing, combining hefty payouts made possible by fast growing energy bloodstream with some protection against oil’s ups and downs offered by the “midstream” segment. – Read More

*MLPs in a World of $30 Oil: An exclusive interview with Alerian President and CEO Kenny Feng – Oil & Gas 360®

Master Limited Partnerships (MLPs) have become a popular financial structure for investors in the energy space. The MLP structure avoids a corporate tax, allowing the MLP to distribute more of its cash flow in dividends to unitholders compared to traditional C-corporations. MLPs tied to midstream infrastructure offer companies a vehicle to maximize the payout from long-life assets, which are generally tied to fee-based infrastructure. – Read More

*Energy Transfer Tumbles as Chief Financial Officer Replaced – Bloomberg

Energy Transfer Equity LP, the pipeline conglomerate that’s agreed to buy Williams Cos., fell as much as 36 percent after announcing the replacement of its chief financial officer amid investor concern that the deal is in trouble, analysts said. Units of Energy Transfer, based in Dallas, were down 26 percent to $5.20 at 10:36 a.m. in New York, after touching $4.44, the lowest since 2009. Shares of Williams dropped 24 percent to $13.05 after touching $10.41, also the lowest price since 2009. – Read More

*PetroQuest Energy’s Debt Exchange Works to Build Long-Term Value – Oil & Gas 360®

On January 14, 2015, PetroQuest Energy (ticker: PQ) took appropriate steps addressing its current $350 million senior unsecured 10% high-yield issue (CUSIP 716748AA6) due in September 2017. PetroQuest will seek to offer to exchange up to $300 million of the $350 million for up to (i) $75 million of cash, (ii) $202.5 million aggregate principal amount of its newly issued 10% Second Lien Senior Secured Notes due 2021, and (iii) 6,000,000 shares of its common stock. – Read More

*Sources: Chesapeake Energy hires restructuring lawyers – Reuters

Natural gas producer Chesapeake Energy (CHK.N) has hired restructuring lawyers from Kirkland & Ellis, people familiar with the matter told Reuters. The company’s shares (CHK.N) plunged 51 percent to $1.50 in early trading. Chesapeake, which has more than $10 billion in debt, has been hit by a steep fall in both oil and gas prices. Many energy-related companies have hired financial and legal advisors to help them manage heavy debt loads. – Read More

*Private equity may be Wall Street’s canary – CNBC

Last year was bad for private equity. 2016 isn’t shaping up to be any better. Private equity firms’ shares have underperformed market benchmarks to begin the year as investors price in recession fears and the rising cost of credit for deals. Leveraged buyout firms did a paltry 116 deals globally in January, according to data from Dealogic, which tracks and analyzes mergers and acquisitions. – Read More

*MPLX LP Pulls Back the Reigns, Cuts Dividend Growth in Half – Oil & Gas 360®

Just 63 days after the close of a transformative purchase of MarkWest Energy Partners, Marathon Petroleum, the General Partner of MPLX LP (ticker: MPLX), is downwardly adjusting its dividend growth plan for the MLP – plans that it made public during the company’s Analyst Day presentation on December 3, 2015. MPLX, the limited partner of Marathon Oil Corporation (ticker: MPC), closed the acquisition of MarkWest Energy Partners on December 2, 2015, but not without its fair share of hurdles. – Read More

*The Yield Curve Inverted! – The Wall Street Journal

A small part of the yield curve inverted Tuesday. Indicative bid yields on one-year Treasurys briefly dipped below yields on six-month Treasurys, reversing the customary pattern and producing what’s known as a yield curve inversion. Specifically, the indicative yield on the one-year was at 0.462% while the yield on the six-month was at 0.464% between 10:08 and 10:16 a.m. during the New York trading day. – Read More

*Conflicting Economic Indicators Challenge Fed’s Policy Makers – The New York Times

The contrast between the improving health of the labor market and the weakness of other economic indicators poses a challenging quandary for the Federal Reserve. Janet L. Yellen, the Fed’s chairwoman, and other officials have said the Fed must raise its benchmark interest rate as job growth continues to prevent higher inflation down the road. The strength of the January jobs report — including faster wage growth — suggests the Fed’s policy-making committee still could raise rates as soon at its next meeting in March. – Read More

*Exploration and Production: Which Companies Shall Investors Not Worry About? – Oil & Gas 360®

Continued pressure from low oil prices has prompted Moody’s Investor Service to put 264 companies in its lowest credit rating, just shy of a record high 291 in April 2009. The growing number of companies included in Moody’s lowest credit rating represents a 44% increase over the past 12 months. “The majority of new additions come from oil & gas, followed by metals & mining, chemicals and coal,” Moody’s said in its report. – Read More

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable.  This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note.  This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results.  EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services.  In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies.  As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note.  The company or companies covered in this note did not review the note prior to publication.