MLP IN THE MEDIA
*Midcoast Energy Partners, L.P. Reports 2015 Earnings and Announces 2016 Financial Guidance – Oil & Gas 360
Midcoast Energy Partners, L.P. (NYSE: MEP) (“Midcoast Partners” or “the Partnership”) reports adjusted EBITDA and distributable cash flow for the three months ended December 31, 2015 of $26.6 million and $16.5 million, respectively. Full-year 2015 adjusted EBITDA and distributable cash flow were $104.1 million and $73.4 million, respectively. – Read More
*Energy-pipeline stocks surge after ‘overreaction’ hurt the sector – Market Watch
It’s been a painful ride since then, with the J.P. Morgan Alerian MLP Index AMZ, (which tracks all energy MLPs, not just pipeline operators) down 31% through Monday. (With dividends reinvested, the decline was 28.2%.) But something curious has happened. The index rose 5.3% on Wednesday, bringing a gain to 13.1% from a week earlier. So investors have made a clear statement that the plunge for this energy subsector was overdone. – Read More
*Pipeline Fights Send Oil Woes Downstream – Fortune
Within weeks, two low-profile legal disputes may determine whether an unprecedented wave of bankruptcies expected to hit U.S. oil and gas producers this year will imperil the $500 billion pipeline sector as well. In the two court fights, U.S. energy producers are trying to use Chapter 11 bankruptcy protection to shed long-term contracts with the pipeline operators that gather and process shale gas before it is delivered to consumer markets. – Read More
*Plains Oil Pipelines in Santa Barbara County Could Switch to State Oversight – NewsHawk
Plains All American Pipeline plans to cancel its crude oil tariff through the Federal Energy Regulatory Commission, which means the Santa Barbara County Line 901 — which was shut down after causing the Refugio Oil Spill — could stop being designated as an interstate pipeline and instead be a state-regulated intrastate pipeline if and when it starts operations. – Read More
*State order means delays for oil pipelines – Minnesota Public Radio
Two proposed oil pipelines through northern Minnesota have been delayed by two years. Enbridge Energy has proposed building the Sandpiper line from North Dakota through northern Minnesota to its facility in Superior, Wis. The Canadian company also wants to replace an aging line from the Alberta oil sands region. Last month the Minnesota Public Utilities Commission said the company can’t proceed with permitting until an environmental analysis is completed. Enbridge has challenged that order. – Read More
*David Tepper, Warren Buffett Embrace Pipeline MLPs – NewsMax
Midstream oil and gas pipeline MLPs have been just about the most despised asset class in recent memory. Yes they just got a major shot in the arm from two legendary investors, Warren Buffett and David Tepper. – Read More
*MLPs Can Fund Payouts Even as Oil Prices Slide – Barron’s
Investors fear MLPs will cut their hefty distributions, but many companies can avoid that fate. As of this writing, master limited partnerships were falling toward their 2009 lows as measured by the Alerian MLP Index. What could have been a garden-variety market correction after a remarkable six-year rally has deteriorated into what might appear to be a full-blown meltdown, that has erased much of the price gains made during that period. Some journalists and financial advisors are questioning the MLP business model, asking how it will weather this storm. – Read More
*Oil Price Drop May Add to Tax Bills for Popular Energy Investments – New York Times
Master limited partnerships, as these complex vehicles are known, are common in the energy industry. They’ve been around since the 1980s, but it wasn’t until recently that they took on star status among individual investors. (Pension funds usually steer clear of these partnerships because they create tax liabilities for them.) Because these partnerships must distribute all of their excess cash flow to investors, their quarterly payments are generous. Regular savers whose fixed-income investments have been ravaged by the Federal Reserve’s zero-percent interest rate policy have found these entities’ payouts of 6 percent or more especially attractive. – Read More
*Pipelines, tankers, and barges convey transportation fuels from Gulf Coast to East Coast – EIA
Midstream oil and gas pipeline MLPs have been just about the most despised asset class in recent memory. Yes they just got a major shot in the arm from two legendary investors, Warren Buffett and David Tepper. – Read More
*A Case For MLP Investing – Forbes
A 35-year industry perspective on the longevity of the midstream sector of the energy value chain. By Kevin Birzer, Chief Executive Officer, Tortoise Capital Advisors: After graduating from college in 1981, one of my first assignments as an auditor for Peat Marwick, now KPMG, was to assist on the Panhandle Eastern Pipeline audit. With that brief experience, I became intrigued with pipelines, and remain so 3 1Ž2 decades later. – Read More
*Enable Midstream Partners Announces Closing of $363 Million Private Placement of Preferred Equity – Business Wire
OKLAHOMA CITY–(BUSINESS WIRE)–Enable Midstream Partners, LP (NYSE:ENBL) announced today that it has closed the previously announced private placement with CenterPoint Energy, Inc. (NYSE: CNP) under which CenterPoint Energy purchased $363 million of 10% Series A Fixed-to-Floating Non-Cumulative Redeemable Perpetual Preferred Units at a price of $25.00 per unit. In connection with the private placement, Enable redeemed $363 million of notes scheduled to mature in 2017 payable to a subsidiary of CenterPoint Energy Resources Corp. – 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.
