MLP Protocol 041814

News Items:

  • April 14 – J.P. Morgan suggests five high-yielding MLP energy infrastructure stocks
  • April 14 – Moody’s Changes Plains All American’s (PAA) Outlook To Positive
  • April 14 – USA Compression (USAC) filed a mixed shelf registration
  • April 14 – Mid-Con Energy Partners (MCEP) Announces Borrowing Base Increase of $20 Million to $170 Million
  • April 14 – EV Energy Partners (EVEP), EnerVest Announce Organization Changes and Promotions
  • April 14 – Boardwalk Partners (BWP), Regency Partners (RGP) upgraded at BAML
  • April 15 – Moody’s upgrades Regency Energy Partners (RGP) to Ba2
  • April 15 – Plains All American Pipeline (PAA) sells $700MM of 4.7% Senior Notes due 2044
  • April 15 – Riverstone sells 14.5 million Regency Energy Partners (RGP) units in a private placement
  • April 16 – Oxford Resource Partners (OXF) Announces Sale of Illinois Basin Assets
  • April 16 – Global Infrastructure Partners is exploring a sale of its 50% stake in the Ruby Pipeline, Kinder Morgan Inc. (KMI) owns the other 50% of Ruby
  • April 16 – CVR Partners (UAN) Names Mark A. Pytosh As Chief Executive Officer
  • April 17 – Dynagas LNG Partners (DLNG) Announces New 13-Yr Time-Charter Contract For The Clean Force And Amendment Of Current Contract Expiration Date

Links to the Investor Relations websites for all the MLPs can be found here.

The MLP Protocol Sprint Portfolio Position Report for April 2014 is now available (based on April 4, 2014 closing prices), the May 2014 report will be available the weekend of May 2.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 041814 Snapshot vFree

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MLP Protocol 041114

Key Adjustments:

  • Adjusted Hi-Crush Partners (HCLP) for its 4.25 million common unit offering at $41.29 on April 9 and for the closing of its Augusta Facility acquisition. The offering was a one day marketed deal and was priced at the closing price that day, interestingly the deal price was 2.4% higher than the prior day’s closing price (before the deal was announced).
  • Adjusted Legacy Reserves (LGCY) for its offering of 2 million Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units at $25.
  • Added Enable Midstream Partners (ENBL) to the Gathering & Processing segment after its successful IPO at $20 on April 10.

News Items:

  • April 7 – Evergreen Transloading and Emerge Energy Services (EMES) Announce the Opening of the Sexsmith, Alberta Mega Centre
  • April 10 – Rentech (RTK, RNF) Announces $150 Million Investment from Blackstone’s GSO Capital Partners and Settlement Agreement with Concerned Rentech Shareholders
  • April 10 – Exterran Partners (EXLP) Completes Acquisition of Assets from MidCon Compression
  • April 11 – S&P Affirms ‘BBB’ Corporate Credit Rating on Plains All American Pipeline (PAA) and Revises Outlook to Positive
  • April 12 – MLP Data: Weekly Intelligence For Master Limited Partnership Investors

Links to the Investor Relations websites for all the MLPs can be found here.

Recent IPO Filings:

  • Foresight Energy Partners, LP (FELP) recently filed its 5th amendment to its S-1 and added Barclays as the Left Book Runner (it had been a Citi and Morgan Stanley Joint Books deal prior to this filing).

The MLP Protocol Sprint Portfolio Position Report for April 2014 is now available (based on April 4, 2014 closing prices), the May 2014 report will be available the weekend of May 2.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 041114 Snapshot vFree

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Short Interest Trends for the Kinder Morgan Group 041114

Below please find an update on the total number of shares and units sold short across the four Kinder Morgan entities (as an indicator of how much traction Hedgeye’s short thesis is achieving in the market place). The following chart shows the total number of units or shares sold short for each name since September of 2012. The data is somewhat delayed and the data for March 31 was released on April 9.

KM Short Interest Trend 041114

(Click to view)

The vertical black dashed lines under the “X’s” mark the Ex-Dividend or Ex-Distribution dates for the entities. You may notice that some of the short positions tend to get covered prior to the Ex dates so they do not have to pay the dividends/distributions. Technically the data is as of the close on the date shown and not continuous data for every day, so the entire short position could be covered by the Ex date and then put back on the following day.

Two week change in the amount of units/shares sold short:

  • KMI: Up 14.5% – New High in Number of Shares Sold Short
  • KMP: Up 14.1% – New High in Number of Units Sold Short
  • KMR: Up 10.5%
  • EPB: Up 44.6% – New High in Number of Units Sold Short

Hedgeye’s short thesis continues to gain traction with market participants.

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ENBL IPO Preview Apr 2014

Enable Midstream Partners, LP (ticker ENBL) is currently out on its IPO roadshow and looking to raise $500 million by selling 25 million common units (before the over-allotment) at a mid-point price of $20 with an indicated mid-point yield of 5.75%. They expect to price the deal Thursday April 10.

ENBL is a large-scale, growth-oriented master limited partnership formed to own, operate and develop strategically located natural gas and crude oil infrastructure assets. ENBL serves key current and emerging production areas in the United States, including several premier, unconventional shale resource plays and local and regional end-user markets in the United States. Its natural gas gathering and processing assets are strategically located in four states and serve natural gas production from some of the most productive shale developments in the Anadarko, Arkoma and Ark-La-Tex basins. These basins have experienced a strong increase in investment and drilling activity by exploration and production companies in recent years. ENBL also owns an emerging crude oil gathering business in the Bakken shale formation that commenced initial operations in November 2013. ENBL is continuing to construct additional crude oil gathering capacity in this area. ENBL’s natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Alabama and from Louisiana to Illinois.

IMPORTANT: ENBL will provide investors with a K-1 (instead of a 1099-DIV), which makes ENBL appropriate for taxable accounts. Here is the key language from the “Risks” section of the Prospectus (page 57) telling you that it does not really belong in an IRA (or any tax advantaged account):

Tax-exempt entities and non-U.S. persons face unique tax issues from owning our common units that may result in adverse tax consequences to them.

Investment in common units by tax-exempt entities, such as employee benefit plans and individual retirement accounts (known as IRAs), and non-U.S. persons raises issues unique to them. For example, virtually all of our income allocated to organizations that are exempt from federal income tax, including IRAs and other retirement plans, will be unrelated business taxable income and will be taxable to them. Distributions to non-U.S. persons will be reduced by withholding taxes at the highest applicable effective tax rate, and non-U.S. persons will be required to file U.S. federal income tax returns and pay tax on their share of our taxable income. If you are a tax-exempt entity or a non-U.S. person, you should consult a tax advisor before investing in our common units.

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Top 10 MLP Funds Apr 2014

The following chart shows the top 10 MLP focused funds, ETFs, ETNs, etc. ranked by their trailing twelve month (“TTM”) total returns as of April 4, 2014. I also included the MLP Protocol Sprint Portfolio and the Alerian MLP Total Return Index for comparison purposes.

MLPP TTM TR Rank April 2014(Click to view)

Top 10 TTM Total Return data as per MLP Data. MLP Protocol Sprint Portfolio total return as per Covestor.

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MLP Protocol 040414

Key Adjustments:

  • Adjusted Tallgrass Energy Partners (TEP) for its Trailblazer Acquisition
  • Adjusted Memorial Production Partners (MEMP) for its acquisitions
  • Adjusted DCP Midstream (DPM) for the closing of its drop-down acquisition

News Items:

  • March 31 – S&P Raises El Paso Pipeline Partners (EPB) Ratings to ‘BBB’ From ‘BBB-’
  • March 31 – Moody’s Rates Exterran Partners (EXLP) Proposed Notes B1; Stable Outlook
  • March 31 – Fire and Explosion at a Williams (WMB) Natural Gas Plant near Plymouth
  • March 31 – Constellation Energy Partners (CEP) Announces Settlement of the PostRock Litigation
  • March 31 – Exterran Partners (EXLP) Prices Private Offering of $350 Million of 6% Senior Notes
  • March 31 – Targa Resources (NGLS) Provides Update on Financial Outlook and Announces New Growth Projects
  • April 1 – Crestwood Midstream (CMLP) Announces Permian Delaware Basin Gathering and Processing Expansion Project
  • April 1 – Martin Midstream Partners (MMLP) Completes Private Placement Add-On of $150 Million of 7.250% Senior Notes Due 2021 and Redemption of 8.875% Senior Notes Due 2018
  • April 1 – Tallgrass Energy Partners (TEP) Announces Completion of the Trailblazer Acquisition and an Increased Distribution for the First Quarter of 2014
  • April 1 – Memorial Production Partners (MEMP) Announces Closing of Acquisition of Oil and Gas Properties
  • April 1 – DCP Midstream Partners (DPM) closes on the previously announced dropdown acquisition
  • April 1 – Keep Calm and Carry On: IRS “Pauses” for Internal Study of MLP Qualifying Income
  • April 2 – MLP Data: 2014 Q1 Quarterly Market Intelligence For MLP Investors
  • April 2 – TransMontaigne Partners (TLP) Announces Changes to the Board of Directors of Its General Partner
  • April 2 – Canada Regulator to Hold Public Hearings on Kinder Morgan Pipeline (KMP) Expansion
  • April 3 – Haynes and Boone’s Newsroom: IRS Suspends MLP Qualifying Income Private Letter Rulings
  • April 3 – Jeffrey R. Armstrong Appointed to the Tallgrass Energy Partners (TEP) Board of Directors
  • April 3 – StoneMor Partners (STON) Signs Agreements to Acquire Funeral Homes & Cemeteries/Crematories From Service Corporation International
  • April 4 – SunCoke Energy Partners (SXCP) Coke Production Estimated to Be 414 Thousand Tons in First Quarter 2014
  • April 4 – OCI Partners (OCIP) Announces Closing of $398 million Term Loan B Re-Pricing Transaction
  • April 5 – MLP Data: Weekly Intelligence For Master Limited Partnership Investors

Links to the Investor Relations websites for all the MLPs can be found here.

Recent IPO Filings:

  • PBF Logistics, LP initial S-1
  • Memorial Resource Development Corp. initial S-1 (GP / Parent of MEMP)
  • Enable Midstream Partners (ENBL) is also out on its IPO roadshow planning to price this Thursday night (S-1, Roadshow Video)

Links to the Investor Relations websites for all the MLPs can be found here.

The MLP Protocol Sprint Portfolio Position Report for April 2014 is now available (based on April 4, 2014 closing prices), the April 2014 report will be available the weekend of May 2.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 040414 Snapshot vFree

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MLP Protocol 032814

Key Adjustments:

  • Adjusted Exterran Partners (EXLP) for its 5.4 million common unit offering at $28.26 (4.2% discount) on March 27 and made pro forma adjustments for their MidCon Compression acquisition.

News Items:

  • March 25 – Memorial Production (MEMP) Acquires Eagle Ford Properties for $173 Million
  • March 25 – Kinder Morgan (KMP) to Invest Approximately $1 Billion to Expand Vast CO2 Network
  • March 26 – Calumet Specialty Products (CLMT) to acquire ADF Holdings for $235 Million
  • March 26 – Calumet Specialty Products (CLMT) Announces Pricing of $900 Million Upsized Private Placement of 6.5% Senior Notes due 2021
  • March 26 – Legacy Reserves (LGCY) Announces Two Bolt-On Acquisitions
  • March 27 – Ferrellgas (FGP) Acquires Country Boys Gas
  • March 29 – MLP Data: Weekly Intelligence For Master Limited Partnership Investors

Links to the Investor Relations websites for all the MLPs can be found here.

The MLP Protocol Sprint Portfolio Position Report for March 2014 is now available (based on March 7, 2014 closing prices), the April 2014 report will be available the weekend of April 4.

MLP Protocol Weekly Snapshot report: (click to open) MLPP 032814 Snapshot vFree

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