Tag Archives: MLP

Business, Finance, Occupation & Industry

Yorkville High Income Infrastructure MLP ETF (NYSE: YMLI) Declares First Quarterly Distribution

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Yorkville High Income Infrastructure MLP ETF (NYSE: YMLI) Declares First Quarterly Distribution

NEW YORK–(BUSINESS WIRE)– The Yorkville High Income Infrastructure MLP ETF (NYS: YMLI) has declared its first quarterly cash distribution at $0.325948 per share ($1.303792 on an annualized basis.) The distribution will be paid March 21, 2013 to shareholders of record as of the close of business March 18, 2013.

YMLI Cash Distribution:

Ex-Date: Thursday, March 14th

Record Date: Monday, March 18th

Payable Date: Thursday, March 21st

Yorkville ETF Advisors plans to issue future distributions on a quarterly basis. Distributions are scheduled, but not guaranteed, going forward each year in March, June, September and December, with the next distribution occurring in June 2013.

About Yorkville ETF Advisors, LLC

Yorkville ETF Advisors, LLC is an asset management firm and a subsidiary of Yorkville ETF Holdings, LLC.

The firm offers a rules-based investment philosophy with the intention of creating ETFs to track new investable indexes oriented toward income and superior investment solutions. Yorkville ETF Advisors has proven investment management and research that provides investors with innovative investment strategies.

The team at Yorkville ETF Advisors consists of leading industry professionals who have extensive experience in areas such as MLP research and investment management, index derivatives and distribution. This experience gives the firm the necessary resources to develop income-generating ETFs and provide leadership to support the initiatives of the firm and its sister companies within Yorkville ETF Holdings.

To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on the payment date. There is no guarantee that capital gains distributions will not be made in the future. Your own trading will also generate tax consequences and transaction expenses. Past distributions are not indicative of future distributions. Please consult your tax professional or financial adviser for more information regarding your tax situation.

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by visiting yetfs.com. …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

StoneMor Partners Earnings: An Early Look

Leave a comment

By Dan Caplinger, The Motley Fool

Filed under:

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and StoneMor Partners is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

StoneMor is a master limited partnership, but unlike most MLPs, it’s not in the energy or natural resources industries. Rather, it’s a funeral and death-services company, but its structure gives it some of the same tax benefits that more traditional MLPs enjoy. Let’s take an early look at what’s been happening with StoneMor Partners over the past quarter and what we’re likely to see in its quarterly report on Friday.

Stats on StoneMor Partners

 

  

Analyst EPS Estimate

($0.06)

Year-Ago EPS

($0.16)

Revenue Estimate

$62.3 million

Change From Year-Ago Revenue

6.1%

Earnings Beats in Past 4 Quarters

2

Source: Yahoo! Finance.

Will StoneMor Partners make investors some money this quarter?
Analysts have gotten a tiny bit more optimistic about StoneMor over the past few months, raising their consensus earnings call for the just-ended quarter by a penny per share and boosting full-year 2013 projections by $0.02 per share. But even though the company is still expected to lose money throughout 2013, the MLP‘s unit price has risen by more than 20% since early December.

StoneMor owns and operates cemeteries and funeral homes. Although that may not seem like a very lively business, StoneMor actually faces quite a bit of competition, and lately those competitors have seen a lot faster growth and better earnings than the MLP. In particular, Carriage Services‘  share price more than doubled since October as it beat earnings estimates two weeks ago and announced positive guidance. Rivals Matthews International and Stewart Enterprises have also found ways to earn positive income from their death-services operations, as both have tapped into the demographic trends of an aging population to offer both immediate and pre-need arrangements.

Yet StoneMor’s earnings can be somewhat misleading, due to the vagaries of accounting rules that Fool analyst Alex Pape has argued completely distort the reality of the business. With flexibility to take money out of pre-need burial trusts by delivering what it sold, the company has a lot of control over what its financial statements look like, making quarterly results difficult to interpret. What investors can’t argue with, though, is the 9% yield the MLP current pays in dividends.

In its quarterly report, look for StoneMor to give guidance on how it’s doing at integrating its ongoing series of acquisitions. With so many small players in the …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

24/7 Wall St. Closing Bell — March 13, 2013: Markets Hold On for Small Gains (BA, ORCL, WAG, YUM, EPB, DOLE, COOL, PPHM, EXPR, BFAM, MW, VRA, LODE, SOL, SPPI, VLO, EBAY)

Leave a comment

By 24/7 Wall St.

Bull and Bear figures

Filed under:

U.S. equity markets opened slightly lower this morning following on some poor data on eurozone industrial production, which fell more than expected. Non-farm payrolls fell more than expected in France and the country’s CPI rose less than analysts had forecast. There was no data out of Asia this morning, but there are worries that China will tighten lending requirements for home purchases as the country tries to cool off the real estate market. In the U.S., retail sales came in better than expected (more coverage here), but new applications for mortgages fell as interest rates rose (more coverage here). The Business Roundtable released its economic outlook for spring, which suggests that sales and capital spending will rise, but hiring will remain slow (more coverage here).

The U.S. dollar index rose 0.34% today, now at 82.865. The GSCI commodity index is up 0.1% at 649.62, with commodities prices mostly lower today. WTI crude oil closed down fractionally today, at $92.52 a barrel, following the release of the EIA’s inventory report (more coverage here). Brent crude trades down 1.2% at $108.40 a barrel. Natural gas is up 1% today at about $3.68 per million BTUs. Gold settled down 0.2% today at $1,588.40 an ounce, largely due to the stronger dollar.

The unofficial closing bells put the DJIA up more than 5 points to 14,455.28 (0.04%), the NASDAQ rose nearly 3 points (0.09%) to 3,245.12, and the S&P 500 rose 0.13% or about 2 points to 1,554.52.

There were a several analyst upgrades and downgrades today, including Boeing Co. (NYSE: BA) reiterated as ‘buy’ with a price target of $100 at BofA/Merrill Lynch; Oracle Corp. (NASDAQ: ORCL) raised to ‘buy’ at Canaccord Genuity; Walgreen Co. (NYSE: WAG) raised to ‘buy’ at UBS; Yum! Brands Inc. (NYSE: YUM) maintained as ‘outperform’ and price target raised to $70 at Credit Suisse; and El Paso Pipeline Partners LP (NYSE: EPB) cut to ‘neutral’ and price target raised to $44 at Credit Suisse (more coverage of MLP ratings here).

Earnings reports since markets closed last night resulted in several price moves today, including these: Dole Food Company Inc. (NYSE: DOLE) is down 8.8% at $10.70; Majesco Entertainment Co. (NASDAQ: COOL) is down 16.3% at $0.60; Peregrine Pharmaceuticals Inc. (NASDAQ: PPHM) is down 8.2% at $1.45; and Express Inc. (NYSE: EXPR) is down 2.7% at $18.35 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear from Bright Horizons Family Solutions Inc. (NYSE: BFAM), Men’s Wearhouse Inc. (NYSE: MW), Vera Bradley Inc. (NASDAQ: VRA), Comstock Mining Inc. (NYSEMKT: LODE), and ReneSola Ltd. (NYSE: SOL).

Some standouts among heavily traded stocks today include:

Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI) is down 37.6% at $7.76 after posting a new 52-week low of $7.73 earlier today. The drugmaker lowered full-year guidance today by 40%, and the shorts had a field day.

Valero Energy Corp. (NYSE: VLO) is down 4.4% at $43.53. The oil refiner received an analyst downgrade today linked to the rising cost of renewable fuel credits.

eBay Inc. (NASDAQ: EBAY) is down …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Barclays Launches the Barclays ETN+ Select MLP Exchange Traded Note

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Barclays Launches the Barclays ETN+ Select MLP Exchange Traded Note

New Barclays ETN+ Select MLP ETN (ticker: ATMP) provides investors with exposure to a select group of partnerships and companies in the MLP space

NEW YORK–(BUSINESS WIRE)– Barclays Bank PLC announced today the launch of the Barclays ETN+ Select MLP Exchange Traded Note (“ETN”) on the NYSE Arca stock exchange under the ticker symbol ATMP. The ETN is designed to provide investors with exposure to a basket of midstream US master limited partnerships (“MLPs”), limited liability companies (“LLCs”) and corporations by tracking the volume weighted average price (“VWAP“) of the Atlantic Trust Select MLP Index (the “Index”). Additionally, the Index will also provide exposure to general partners of US MLPs in Canada.

“In response to the growing demand for yield, this MLP ETN offers the potential for income along with upside appreciation via a more focused exposure to a subset of general partners and limited partners in the MLP space, developed by the Atlantic Trust team,” said Ian Merrill, Head of Barclays ETNs, Americas. “We are pleased to have been able to extend our range of Barclays ETN+ ETNs through this partnership.”

“The objective of the Index is to focus on a select group of midstream MLPs, as defined by credit ratings, size and other criteria, and their respective general partners,” said Adam Karpf, Portfolio Manager and Managing Director at Atlantic Trust. “Within the MLP sector, we believe that investment grade midstream MLPs offer an attractive opportunity set to capitalize on the secular trends in the energy industry. The inclusion of midstream general partners in the Index, structured as both MLPs and corporations, provides additional exposure to a fast growing and attractive sub-sector in the energy infrastructure industry.”

The ETN prospectus can be found on EDGAR, the SEC website at: www.sec.gov, as well as on the product website at www.etnplus.com.

Barclays ETN+ ETNs are senior, unsecured, unsubordinated debt securities issued by Barclays Bank PLC. Barclays Bank PLC is the issuer of Barclays ETN+ ETNs and Barclays Capital Inc. is the issuer’s agent.

Barclays moves, lends, invests and protects money for customers and clients worldwide. With over 300 years of history and expertise in banking, we operate in over 50 countries and employ over 140,000 people. We provide large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Our clients also benefit from access to the breadth of expertise across Barclays. We’re one of the largest …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Best Dividends in Energy

Leave a comment

By Travis Hoium, The Motley Fool

HE Net Income TTM Chart

Filed under:

Stable dividends can be an investor’s best friend and the energy sector is one of the most stable for supplying those dividends. Energy usage on all levels varies very little from year to year and regulated markets can provide very stable businesses for investors. With that in mind, I’ve assembled a list of five companies that supply great dividends that I think will be stable in the long term.

Seadrill 
Oil drilling can be a very volatile business. A better than expected well can send your stock through the roof and a dry well can send your stock crashing down. But supplying equipment to a growing market can be extremely stable and lucrative.

Right now, one of the best equipment businesses in offshore drilling, and even more specifically ultra-deepwater offshore drilling, is Seadrill. The company owns a large fleet of deepwater rigs and has 22 more rigs under construction, seven of which are ultra-deepwater drillships. This will be a stable business because of the overall trends in the oil market.

Oil is harder and harder to find both onshore and offshore, so drillers are going to greater lengths to find it. That’s led companies to oil fields in water up to two miles deep off the coasts of the U.S., Brazil, Africa, and other parts of the world. As more drilling takes place, more oil is found, creating a reinforcing loop for ultra-deepwater rig owners.

For shareholders, Seadrill trades at just 10 times this year’s earnings estimates, and with new rigs coming online over the next few years, profits should continue to grow. The stock‘s 9% dividend yield is among the highest on the market, but I think it’s safe in this growing energy market.

Kinder Morgan
Another play on the energy market that’s safer than betting on explorers is with the companies transporting oil and gas from place to place. Kinder Morgan owns oil and gas pipelines, processing stations, terminals, and other energy assets. The company makes money by moving oil and gas from processing sites to refiners, in many cases in regulated markets, providing stable returns. As shale production in the U.S. increases there will be expanded opportunities for Kinder Morgan to grow and diversify its assets.  

The stock pays a 4% dividend yield; with the stability of the oil and gas markets investors can count on payouts for a long time to come. Another way to play this company is with Kinder Morgan Energy Partners , which pays a 6% dividend yield. The difference is, Kinder Morgan Partners is an MLP so it has different tax consequences than its parent Kinder Morgan, something you can learn more about here.

Total
In the oil production space, Total is one of the biggest players and it is well-positioned for a changing energy landscape in the future. The company is one of the largest players in liquefied natural gas, supplying an increasing amount of the …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

USA Compression Partners Announces Addition of Forrest E. Wylie to its Board as Independent Director

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

USA Compression Partners Announces Addition of Forrest E. Wylie to its Board as Independent Director

AUSTIN, Texas–(BUSINESS WIRE)– USA Compression Partners, LP (NYS: USAC) announced today that Forrest E. Wylie has joined the Board of Directors of its general partner as an independent director.

“Forrest’s extensive senior executive and director-level experience in the energy sector will provide additional industry perspective to our Board of Directors,” said Eric D. Long, President and Chief Executive Officer of USA Compression Partners. “His understanding of the midstream MLP sector in particular and of the unique issues related to operating publicly traded limited partnerships should help him make valuable contributions to the partnership.”

Mr. Wylie most recently served as Chairman of the Board, CEO and a Director of Buckeye GP LLC, the general partner of Buckeye Partners, L.P., from June 2007 to February 2012 and subsequently as Non-Executive Chairman of the Board of Directors of Buckeye GP LLC since February 2012.

Previously, Mr. Wylie was Vice Chairman of Pacific Energy Management LLC, an affiliate of Pacific Energy Partners, L.P., a refined product and crude oil pipeline and terminal partnership, from March 2005 until Pacific Energy Partners merged with Plains All American, L.P. in November 2006. Earlier, he was President and CFO of NuCoastal Corporation, a midstream energy company, from May 2002 until February 2005. He has previously served on the Board of Directors of Coastal Energy Company and Eagle Bulk Shipping Inc.

ABOUT USA COMPRESSION PARTNERS, LP

USA Compression Partners, LP is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of compression services in terms of total compression unit horsepower. The company partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas. USA Compression focuses on deploying large-horsepower infrastructure applications primarily in high volume gathering systems, processing facilities and transportation applications. More information is available at www.usacpartners.com.

Dennard-Lascar Associates
Jack Lascar, 713-529-6600
jlascar@dennardlascar.com
or
Anne Pearson, 210-408-6321
apearson@dennardlascar.com

KEYWORDS:   United States  North America  Texas

INDUSTRY KEYWORDS:

The article USA Compression Partners Announces Addition of Forrest E. Wylie to its Board as Independent Director originally appeared on Fool.com.

Try …read more
Source: FULL ARTICLE at DailyFinance

Everything Under the Sun

3 Pipeline Deals to Watch

Leave a comment

By Aimee Duffy, The Motley Fool

Filed under:

Energy Fools who haven’t been able to tear themselves away from the “will we, won’t we?” Keystone XL drama have missed a fair bit of pipeline news already this week. Though the micro story is limited to the companies involved, the details can point to a bigger picture that can affect all energy investors. Let’s look at some of this week’s action.

Natural gas exports
Kinder Morgan petitioned the Federal Energy Regulatory Commission for authorization to increase its shipments of natural gas from Texas to Mexico. The company’s Mier-Monterrey pipeline currently ships 425 million cubic feet of gas per day to the Mexican border, where it connects with a Pemex-owned system. Kinder Morgan wants to boost that amount to 700 mmcf per day. The company hopes to have a decision in hand by June 1.

Mexico will be happy to have the gas. Despite the existence of extensive natural gas reserves — the Eagle Ford Shale doesn’t stop at the border, after all — the country doesn’t have the means to produce the commodity for less than it would cost to buy it from the United States. Until Pemex opens its doors to foreign exploration and production investment, the country will have to be content buying gas from across the border.

NGLs on the go
Boardwalk Pipeline Partners is tag-teaming with Williams to build a natural gas liquids pipeline system from the Utica and Marcellus shales down to the Gulf Coast. The Bluegrass Pipeline would connect Pennsylvania, West Virginia, and Ohio to the petrochemical and refining hubs in Louisiana and Texas. The system would be part new construction and part conversion of an existing natural gas line, with an initial capacity of 200,000 barrels per day.

The fact that part of the planned route already exists enables the joint venture partners to target a completion date sometime in the second half of 2015. Alan Armstrong, the CEO of Williams, anticipates that liquids production in the two shale plays will overwhelm existing infrastructure by 2016.

1 more MLP?
Western Refining is the latest company to announce that it may pursue a midstream spinoff of its oil and logistics assets. The company is currently evaluating its prospects, and if management decides to pursue this option, Western would file a registration statement with the SEC sometime this year.

The market is ripe for MLP spinoffs, and they’re proving particularly popular with refiners. Marathon Petroleum has succeeded in its spinoff of MPLX, and Phillips 66 isn’t far behind. Western has said its extensive retail network won’t be included in the potential MLP. Instead, potential assets for spinoff include four refined products terminals, four asphalt terminals, and crude oil and products pipelines.

Foolish takeaway
These deals are important for the companies involved, but the big picture matters, too. This week alone we’re reminded that Mexico needs our gas, and if any U.S. E&P ever gets in there it will make …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Energy Transfer Is Poised to Keep Rallying

Leave a comment

By Brian Pacampara, Pacampara, The Motley Fool

Filed under:

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, natural gas transporter Energy Transfer Partners has earned a coveted five-star ranking.

With that in mind, let’s take a closer look at Energy Transfer and see what CAPS investors are saying about the stock right now.

Energy Transfer facts

Headquarters (Founded)

Dallas (2002)

Market Cap

$14.1 billion

Industry

Oil and gas transportation and storage

Trailing-12-Month Revenue

$15.7 billion

Management

CEO Kelcy Warren (since 2007)
CFO Martin Salinas Jr. (since 2008)

Return on Equity (Average, Past 3 Years)

13.3%

Cash/Debt

$311.0 million / $16.2 billion

Dividend Yield

7.5%

Competitors

DCP Midstream Partners
El Paso
Enbridge

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 920 members who have rated Energy Transfer believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, NarGuy, offered a cautiously bullish take on the Energy Transfer opportunity:

[T]he fundamentals and growth prospects of this company can’t really be beat. Not to mention the dividend. My only concern is that its performance will be tied to commodities of course, which is not something I love. I prefer companies that are more diversified. But this looks like a winner in the MLP space.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Energy Transfer may not be your top choice.

If that’s the case, we’ve compiled a special free report for investors called “The 3 Dow Stocks Dividend Investors Need,” which uncovers a few other juicy income opportunities. The report is 100% free, but it won’t be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Energy Transfer Is Poised to Keep Rallying originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends DCP Midstream Partners. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

(function(c,a){window.mixpanel=a;var b,d,h,e;b=c.createElement(“script”);
b.type=”text/javascript”;b.async=!0;b.src=(“https:”===c.location.protocol?”https:”:”http:”)+
‘//cdn.mxpnl.com/libs/mixpanel-2.2.min.js’;d=c.getElementsByTagName(“script”)[0];
d.parentNode.insertBefore(b,d);a._i=[];a.init=function(b,c,f){function d(a,b){
var c=b.split(“.”);2==c.length&&(a=a[c[0]],b=c[1]);a[b]=function(){a.push([b].concat(
Array.prototype.slice.call(arguments,0)))}}var g=a;”undefined”!==typeof f?g=a[f]=[]:
f=”mixpanel”;g.people=g.people||[];h=[‘disable’,’track’,’track_pageview’,’track_links’,
…read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Contrarian Energy MLP

Leave a comment

By Tyler Crowe, The Motley Fool

Filed under:

With natural gas prices falling, we’ve seen several companies try to move their portfolios more toward liquids. Vanguard Natural Resources is going in the opposite direction. What does this company see that the others don’t? Let’s look at this company bucking the industry trend and see what it means for investors.

You say goodbye (to gas), and I say hello
The best way to understand the contrarian approach of Vanguard is to look at Chesapeake Energy . Before the natural gas boom, Chesapeake had gobbled up millions of acres in these emerging shale plays. Then, when natural gas prices sank in 2012, the value of these assets tumbled and the company struggled to service its debt load. So Cheaspeake has gone to great lengths to change its drilling strategy toward a more liquids approach, which is starting to pay off. Chesapeake has increased its liquids produciton by more than 41,000 barrels of oil equivalent in 2012.

Then you have Vanguard. Before 2011, the company was highly leveraged to oil production in mature, proven fields and was producing only 35% natural gas. With so many companies looking to offload their gas assets based on current prices, Vanguard has been a buyer. In 2012, it purchased more than $760 million in assets from both Antero Resources and Bill Barrett in the Arkoma, Piceance, Wind, and Powder River basins. The combination of these two purchases increases Vanguard’s natural gas production to about 65% of total production in 2013.

Why does this make sense? Simply put, the purchase price. These assets were purchased when the market value for natural gas was at its near lows, so the price to produce from them is much lower. Lease operating expenses for Vanguard dropped from $17 per Boe in the fourth quarter 2011 to just over $9 per Boe at the end of 2012. This means the company generates a return at lower natural gas prices. 

Echoes of another MLP?
Since the end of the previous quarter, Vanguard has come to an agreement with Range Resources to purchase $275 million of producing assets in the Permian Basin. This would make for just over a billion in purchases over the past 12 months. According to the company’s most recent conference call, that pace may not slow either. Vanguard’s management hinted that it expects to close on as many deals as in 2012, potentially even more.

Its pace of acquisitions is reminiscent of another exploration and production MLP: Linn Energy . With such a similar appetite for acquisitions, it makes it a little less surprising that Vanguard has stated that it’s considering a move similar to Linn’s spin-off of LinnCo . This move not only allowed Linn to generate a large chunk of capital to fund some of its investments, but it also gave the company a vehicle for institutional investors to invest in the company. As of right now, Vanguard’s management believes that it can fund most of its acquisitions through more conventional methods. In the event that it plans to start going after …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

A High-Yielding Energy Company for Income Investors

Leave a comment

By Aimee Duffy, The Motley Fool

Filed under:

The midstream industry, those companies responsible for carting oil and gas to and fro, is known among dividend investors for its high-yielding investment opportunities. Many of these businesses are structured as master limited partnerships (or MLPs), a designation that requires the entity to pass its earnings through to its partners, which is where the high yields come from. The company I’m looking at today is Martin Midstream Partners . It boasts an 8.9% yield and an annualized distribution of $3.08 per unit.

The story behind the yield
Martin Midstream is an MLP based in Kilgore, Texas. Things are going quite well for the company right now. Operating income in 2012 came in at $73.84 million, a significant increase from 2011’s $47.35 million. At the center of its business are four distinct operating segments:

  • Terminals and storage
  • Natural gas services
  • Sulfur services
  • Marine transportation services

We are accustomed to think of midstream players as pipeline operators, but many companies in the industry make a great deal of money from energy-related businesses outside of pipelines. Kinder Morgan Energy Partners has its terminals and CO2 business; Enbridge has wind and solar, etc.

From an earnings perspective, Martin’s sulfur business is its most lucrative, generating $12.5 million in net income in the fourth quarter of 2012 and $41.9 million for the full year. Its marine transportation segment is the weakest, generating a loss of $612,000 in the same quarter, though it was profitable for the full year, generating $6.75 million over the course of 12 months. I expect both of these segments to do well in the future so let’s take a closer look.

Sulfur
If there is anyone in the world who would equate the smell of rotten eggs with cash money, they most certainly work at Martin Midstream. The company processes and distributes sulfur produced by Gulf Coast oil refineries. Most of it winds up in fertilizer or industrial chemicals. Martin has six sulfur-based fertilizer plants and one emulsified sulfur blending plant. It also has four sulfur prillers, which are facilities that form molten sulfur into pellets. The combined capacity of these plants is about 5,000 tons per day.

Sulfur sales have grown from 62,000 tons in 1997 to 306,000 tons in 2012. Earnings for this segment have really taken off in the last few years, climbing from $15.7 million in 2009 to $37.2 million in 2012. This trend should continue if the U.S. petrochemical industry grows the way many think it will over the course of the next few years. As it is, domestic and foreign demand for sulfur remains high.

Marine Transportation Services
Martin Midstream‘s marine transportation services segment has seen better days. EBITDA has declined since reaching $22.7 million in 2010.

The partnership operates 54 inland marine tank barges, 29 inland marine push-boats, four offshore tank barges, and four offshore tugboats. It transports asphalt, fuel oil, gasoline, sulfur, and other bulk liquids around the Gulf Coast, East Coast, and the …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Kayne Anderson MLP Investment Company Enters Into $250 Million Revolving Credit Facility

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Kayne Anderson MLP Investment Company Enters Into $250 Million Revolving Credit Facility

HOUSTON–(BUSINESS WIRE)– Kayne Anderson MLP Investment Company (the “Company”) (NYS: KYN) announced today that it has entered into a $250 million unsecured revolving credit facility (the “Credit Facility“) with a syndicate of lenders. The Credit Facility replaces the previous unsecured revolving credit facility having a commitment of $200 million. The Credit Facility has a three-year commitment terminating on March 4, 2016.

Outstanding loan balances will accrue interest daily at a rate equal to the one-month LIBOR plus 1.60% based on current asset coverage ratios. The interest rate may vary between LIBOR plus 1.60% and LIBOR plus 2.25%, depending on asset coverage ratios. The Company will pay a fee equal to a rate of 0.30% on any unused amounts of the Credit Facility. The Company currently has $37 million borrowed under the Credit Facility. A copy of the new credit agreement is available on the Company’s website at www.kaynefunds.com/kyn/other-material-documents.

Kayne Anderson MLP Investment Company is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, whose common stock is traded on the NYSE. The Company’s investment objective is to obtain a high after-tax total return by investing at least 85% of its total assets in energy-related master limited partnerships and their affiliates, and in other companies that, as their principal business, operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains “forward-looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the Company’s historical experience and its present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; MLP industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in the Company’s filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.
…read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

What Sets These MLPs Apart?

Leave a comment

By Matt DiLallo, The Motley Fool

Filed under:

While most investors these days are familiar with midstream MLPs and the generous distributions paid, far fewer are familiar with the growing number of upstream oil and gas MLPs. These companies pay the same large distributions but, instead of transporting oil and gas around the country, they’re taking it out of the ground.

Traditional exploration and production companies still do most of the heavy lifting. An upstream MLP simply buys up mature producing wells to squeeze out every last drop of oil and gas from them while distributing virtually all of the profits to investors. To help you better determine which upstream MLP you might want to buy, I’ve compiled the top reason why you’d want each company in your portfolio.

If you want to own the top dog
LINN Energy , and by association LinnCo , is by far and away the top dog in the upstream MLP segment. Though, as some might point out, LINN‘s not exactly an MLP as its true structure is that of an LLC. That aside, LINN is not only the largest company in the space that it created, but it is bigger than every one of its peers combined: 

Source: LINN Energy investor presentation

LINN‘s not just big, but it’s also the most hedged operator in the energy industry. It has hedged its natural gas output until 2017 and its oil production is hedged through 2016. This enables LINN and LinnCo to lock in cash flow to investors, allowing both companies to pay an 8% distribution. Bottom line here, if you want to earn income from oil and gas production, LINN‘s could be the safest way to play.

If you want to be paid monthly
If you want a slightly larger yield hitting your brokerage account a bit more often Vanguard Natural Resources‘ monthly distribution might be for you. Like its upstream peers, Vanguard’s lifeblood is its ability to acquire mature, long-life production. Just last week the company announced a $275 million deal to acquire oil and gas properties in the Permian Basin from Range Resources . The deal added 136 billion cubic feet equivalent of liquid-rich reserves and has an estimated reserve life of nearly 20 years. It’s a great MLP-type asset that should help Vanguard to keep its growing distribution flowing to investors. 

If you want a bit more growth
While both LINN Energy and Vanguard are known for slower growth and rising distributions, EV Energy Partners is more of a faster growth story. The company operates in less mature plays like the Barnett Shale and the Utica Shale. It also has a growing midstream business in the fast-growing Utica. Because of the focus on growth, its distribution has been relatively flat over the first few years. 

With this growth comes a lot of upside. The company is currently marketing its 100,000 acres in the Utica which could be worth upwards of $10,000 an acre …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Analysts Remain Very Bullish on MLPs (EVEP, MEMP, LGCY, BBEP, KYN, SRV, CS, BAC)

Leave a comment

By 24/7 Wall St.

oil pipeline

Filed under: ,

The MLP research team at Credit Suisse Group (NYSE: CS) are still firm believers in their “catch-up” rally slogan. Master limited partnerships (MLPs) underperformed the S&P 500 in 2012 for the first time since 1999, with the Alerian MLP Index (AMZX) gaining 4.8% versus 16.1% for the broader market. MLPs have made up ground thus far in 2013 and look to continue their solid progress. In a report issued today, Credit Suisse upgraded one MLP, and we also highlight other favorite MLP stocks to buy.

EV Energy Partners L.P. (NASDAQ: EVEP) gets the nod today as it is raised to Outperform from Neutral. The Credit Suisse team also raises their price target to $57.50 from $52.50. This is way below a very aggressive Wall St. consensus price target of $68. The current yearly distribution is $3.07 per year, for a 5.90% yield. MLP distributions often include return of principal.

The MLP analysts at Bank of America Corp. (NYSE: BAC) also have joined the growing chorus of those suggesting MLP stocks for their customers seeking solid, dependable income streams. In a recent research piece, the analysts pointed out that MLPs are attractive from an income and growth perspective, providing investors yield and return potential. They were positive on higher yielding MLP names. Here are three of them.

Memorial Production Partners L.P. (NASDAQ: MEMP) is a Houston-based MLP that has one of the highest distributions currently available. Paying $2.03 per unit, that translates to a 11.00% yield. The Thomson/First Call consensus price target is $21.50.

Based in west Texas, with properties in the Permian Basin, Mid Continent and the Rocky Mountain regions, Legacy Reserves L.P. (NASDAQ: LGCY) is another top Bank of America MLP pick. With a solid 8.60% distribution to unit holders, it has a consensus price target of $31.

Breitburn Energy Partners L.P. (NASDAQ: BBEP) another high yielding name, is a West Coast-based MLP that pays unit holders $1.88 per year, which equals a 9.80% yield. The consensus price target is $22.

As we have pointed out before, the advantage to owning MLPs in an investor portfolio is that they often present one of the best total return opportunities. These three high-yielding individual names could offer just that. Investors seeking diversification in the space may also want to look at the Kayne Anderson MLP Investment Co. (NYSE: KYN) or the more aggressive Cushing MLP Total Return Fund (NYSE: SRV). Both are exchange traded funds (ETFs) that offer a basket of MLPs.

Filed under: 24/7 Wall St. Wire, Analyst Calls, Oil & Gas Tagged: BAC, BBEP, CS, EVEP, KYN, LGCY, MEMP, SRV

Read | Permalink | Email this | Linking Blogs | Comments

…read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

1 Canadian High-Yielder You Should Consider

Leave a comment

By Aimee Duffy, The Motley Fool

Filed under:

While Candian midstream giants Enbridge and TransCanada make noise with their contentious pipeline projects, another Canadian midstream company is growing quietly behind the scenes. Pembina Pipeline is Canada‘s third-largest midstream outfit. After successfully integrating its acquisition of Provident Energy and posting record performances in 2012, the company is poised to continue its strategic growth initiatives and bring further gains to investors in 2013.

2012 review
Last year was a big one for Pembina, as the company closed on its acquisition of Provident Energy in April of last year and listed shares on the New York Stock Exchange for the first time.

Pembina generated full-year operating margin of $676.2 million in 2012, a marked improvement over 2011’s $417.1 million. The Provident assets had the biggest impact on Pembina’s midstream segment, growing operating margin from $93.2 million in 2011 to $288.5 million in 2012. These assets will continue to have an impact as NGL prices rebound sometime next year.

Full-year earnings benefited not just from the acquisition, but also from increased transportation and processing volumes. Earnings grew from $165.7 million in 2011 to $225 million in 2012.

Canada’s best bet?
Pembina’s increased volumes are a reminder that the U.S. isn’t the only place where energy is booming. There is an awful lot of oil and gas buried in Canada, which makes the country’s midstream industry an intriguing investment idea. Let’s see how Pembina stacks up compared with its Canadian peers:

Company

Market Cap

EPS

P/E

Yield

Pembina

$8.44 billion

0.89

32.75

5.60%

TransCanada

$33.05 billion

1.88

24.97

3.80%

Enbridge

$36.05 billion

0.80

56.23

2.80%

Source: Yahoo! Finance.

Though Pembina is Canada‘s third-largest midstream company, it is significantly smaller than Enbridge and TransCanada, but what it lacks in size it makes up for in yield. None of these Canadian companies is an MLP, the business structure that allows for extremely high distribution yields and is quite common with their American midstream cousins. Still, Pembina manages a 5.6% yield and an annualized payout of $1.59 per share.

Looking ahead
A high yield is great, but it means nothing if the company’s future growth can’t sustain it. Let’s look at a handful of projects Pembina has on its radar for 2013 and 2014:

  • Expand the currently maxed-out Peace Pipeline to 250,000 barrels per day.
  • Complete construction of full-service terminal at Judy Creek, Alberta, by April.
  • Spend $120 million on a two-phase NGL system expansion.
  • Develop and expand crude oil storage and terminals, including oil-by-rail on-loading potential.

Pembina plans to spend $965 million on capital growth projects in 2013. It is the largest capital spending program in the company’s history. Much of the work is dedicated to expanding facilities and increasing efficiency across the Pembina footprint. Over the next two years, Pembina will point close to $2 billion at projects that generate fee-based revenue. That stable income will go a long way in ensuring an equally stable dividend.

Foolish takeaway
Pembina may not have the name recognition of TransCanada …read more
Source: FULL ARTICLE at DailyFinance