Endangered Dividends List

Since our previous issue of Energy and Income Advisor, there have been no distribution cuts in our various coverage universes. That’s likely to have changed by mid-October, following the next round of dividend declarations by Endangered Dividends List companies.

In addition to Antero Midstream Corp (NYSE: AM) discussed above, we’re also adding Dynagas LNG Partners (NYSE: DLNG) and Summit Midstream Partners (NYSE: SMLP), less than a year after they came off the EDL following deep dividend cuts.

As we pointed out in our August 14 Energy Commentary “The Hammer Falls on Sanchez: Who’s Next,” Sanchez Midstream Partners (NYSE: SNMP) has eliminated its quarterly dividend. We now believe there’s a better than even chance it may have to follow its general partner Sanchez Energy (OTC: SNECQ) into bankruptcy.

There have been no dividend cuts in our Energy and Income Advisor coverage universe in the brief time since the previous issue went to post. Rather, the majority of EDL members have elected to maintain the same payout rates for at least another quarter.

There have been no distribution cuts since the previous issue of Energy and Income Advisor. EQM Midstream Partners (NYSE: EQM), its 58.49 percent owner and general partner Equitrans Midstream Corp (NYSE: ETRN), GasLog Partners (NYSE: GLOP), Martin Midstream Partners (NSDQ: MMLP) and Vermilion Energy (TSX: VET, NYSE: VET) have all reported second quarter results and issued guidance.

There have been no distribution cuts since the previous issue of Energy and Income Advisor. We expect that to change over the next few weeks, as the 15 companies currently on the EDL declare payouts.

There have been no distribution cuts since the previous issue of Energy and Income Advisor. Unfortunately, we continue to see elevated risk for a number of companies, and particularly for the 13 currently on our Endangered Dividends List.

The next round of distribution declarations in our Energy and Income Advisor coverage universe isn’t for another month. But Sanchez Midstream Partners LP (NYSE: SNMP) is at elevated risk to announce a cut sooner, now that its parent and largest customer Sanchez Energy (OTC: SNEC) is for all practical purposes bankrupt.

Unfortunately, we continue to see elevated risk for a number of companies, and particularly for the 13 currently on our Endangered Dividends List. For more on where the risk lies at individual midstream energy companies and MLPs, see the comments column in our now updated MLP Ratings table, including analysis of first quarter results, distribution coverage and debt-to-EBITDA figures and prospects for potential roll-up mergers. It’s posted on the Energy and Income Advisor website under the “Portfolios” tab.

Foresight Energy LP (NYSE: FELP) is eliminating its quarterly distribution. That follows a poor first quarter during which the coal mining MLP experienced sharp increases in transportation costs because of flooding and “an accelerated decline in export prices” for its output.