Insights at a Glance: MMP Analyst Day Highlights Resilient Business Model
03/27/20 | Insights
Yesterday, Magellan Midstream Partners (MMP) updated investors on its business by holding a virtual Analyst Day. Management provided helpful commentary on the outlook for the MLP given the current environment. Today’s Insights at a Glance covers some of the highlights from the presentation, including financial guidance, distributable cash flow sensitivity, and contract details.
Insights at a Glance: Updating MLP Yield Scenario Analysis and Midstream Insider Buying
03/26/20 | Insights
In today’s dynamic market, research has a relatively short shelf life. Today’s piece updates two popular data points featured last week – yield scenario analysis and midstream insider buying. The yield scenario analysis reflects the outcome of the Alerian MLP Infrastructure Index’s (AMZI) quarterly rebalancing and incorporates recent distribution cuts as well.
MLP Consolidation and Conversion Update: Structure Questions Likely to Subside for Now
03/25/20 | Insights
While MLP structure questions are one of many issues taking a backseat to oil (and other) headlines today, there have been some notable transactions and developments in recent months in the ongoing MLP vs. C-Corp debate. Today’s piece provides an update on consolidations and conversions as well as an outlook for structure changes this year.
Insights at a Glance: How MLPs Make Money by Segment
03/24/20 | Insights
In order to appreciate the fee-based nature of midstream cash flows, it’s helpful to understand what underlying businesses drive these fees. Most people associate MLPs with pipelines, but midstream is not limited to pipelines. Even among pipelines, there are notable distinctions to make. In today’s Insights at a Glance, we provide 2019 segment operating income data for the constituents of the Alerian MLP Infrastructure Index (AMZI) to provide more color on how MLPs make money.
Insights at a Glance: A Review of MLP Distributions During the Financial Crisis
03/23/20 | Insights
As broader markets continue to decline and MLP yields remain elevated, trends from the 2007-09 financial crisis can provide helpful context on the stability of MLP distributions during a downturn, even though much has changed since then. Today, we examine how the distributions of current and former constituents of the Alerian MLP Infrastructure Index (AMZI) fared from 2007 through 2009 and discuss how company-level improvements leave MLPs better positioned for today’s challenges.
Insights at a Glance: Highlighting MLP/Midstream’s Fee-Based Exposure in Today’s Tough Tape
03/20/20 | Insights
In addition to updated financial guidance, midstream companies have also provided more disclosure around the nature of their cash flows. Specifically, there has been increased commentary around counterparties, minimum volume commitments, and the portion of cash flows coming from fees. While more updates are likely to come, today’s piece provides these data points by midstream...
Insights at a Glance: Midstream Updates Point to More Stability Than Price Action Implies
03/19/20 | Insights
With the oil price landscape having changed dramatically, midstream investors are anxiously awaiting updated company outlooks, even if it is reaffirming past guidance. Several companies across midstream have provided updates over the past week, mostly cutting back on capital spending in response to the changing plans of producers. Of the 13 companies included below, maintained...
Insights at a Glance: Robust Midstream Insider Buying Amid Market Volatility
03/18/20 | Insights
With MLP index yields at all-time highs, several management teams are utilizing this downturn as a buying opportunity, reflecting confidence in their underlying businesses. Today’s short post details recent insider purchases across midstream. Despite the fee-based nature of their businesses, midstream companies have been pressured in recent weeks as the sell-off in oil prices has...
Midstream MLPs: Examining AMZI Constituent Debt Profiles and Index Yield Scenario Analyses
03/17/20 | Insights
In the current market environment, balance sheets and MLP distributions garner much of an investor’s attention. To that end, today’s piece looks at the debt profiles and near-term debt maturities of Alerian MLP Infrastructure Index (AMZI) constituents, as well as various scenario analyses of index yields if companies cut their distributions.
Addressing MLP Investor Questions as Oil Falls: Distributions, Leverage, and Counterparty Risk
03/10/20 | Insights
With oil and broader markets in turmoil, today’s piece addresses key investor questions surrounding midstream MLPs given the recent move in oil prices, namely the outlook for distributions, company-level leverage, and counterparty risk by company.
Midstream MLPs and Corporations: Prepared for Energy’s Perfect Storm
03/05/20 | Insights
While a virus outbreak was probably not on their radars, midstream management teams have been improving their businesses based on lessons learned in the oil downturn from 2014-16. Today, we explore these improvements, the possible read-through for midstream of lower commodity prices, the long-term outlook for the space, and potential near-term catalysts.
An Introduction to Alerian’s Midstream Dividend Indexes
03/04/20 | Insights
The Alerian Midstream Energy Dividend Index (AEDW) and the Alerian MLP Infrastructure Dividend Index (AMDW) are two fundamentally-weighted indexes based on the liquid, dividend-paying portion of the North American energy infrastructure universe. AEDW includes both midstream MLPs and North American C-Corporations, while AMDW only includes midstream MLPs. This piece will provide an introduction to the new indexes and the implications of weighting by dividend payments rather than the more traditional weighting by market capitalization.
4Q19 Midstream Distribution Coverage and Payout Ratios: Comfort Amid Macro Headwinds
03/03/20 | Insights
Today’s piece focuses on distribution coverage for the MLPs of the Alerian MLP Infrastructure Index (AMZI) and payout ratios for both the AMZI and Alerian Midstream Energy Select Index (AMEI). The ability of midstream companies to afford their distributions is likely top of mind for investors given the dive in interest rates and elevated midstream yields. The data behind distributions may provide some peace of mind for midstream investors.
An Introduction to Alerian’s Midstream Dividend Indexes
03/03/20 | White Papers
The Alerian Midstream Energy Dividend Index (AEDW) and the Alerian MLP Infrastructure Dividend Index (AMDW) are two fundamentally-weighted indexes based on the liquid, dividend-paying portion of the North American energy infrastructure universe. AEDW includes both midstream MLPs and North American C-Corporations, while AMDW only includes midstream MLPs. This piece will provide an introduction to the...