Deals, Deals, Deals
This week brought rush of third-quarter earnings and three acquisitions involving midstream MLPs. Here’s our take on this flurry of deal announcements.
Midstream Takeover Targets
The midstream segment appears ripe for consolidation, as well-heeled utilities seek to leverage their low cost of capital and pull on the demand side to add exposure to gas pipelines.
Upstream Takeover Targets
Some of the biggest winners from mergers and acquisitions activity in the US upstream space have been the acquirers. Deal flow will continue to focus on assets and private-equity outfits monetizing their investments. We prefer names with solid balance sheets and exposure to franchise assets with low production costs; these names will continue to take market share, outperform their and grow their inventories of potential drilling locations.
Natural-Gas Pipelines: Pump up the Volumes
The best-positioned natural-gas pipelines have benefited from surging production in the Marcellus Shale as well as growing demand for the thermal fuel among utilities, thanks to ultra-low prices and the retirement of coal-fired power plants. This tailwind looks set to continue in coming years, which helps to explain the accelerating pace of merger and acquisition activity targeting these assets. But not all pipelines are created equal. We highlight some of our favorite midstream operators.
The Canadian Invasion and Other Trends in MLP M&A
We delve into some the recent trends in mergers and acquisitions involving master limited partnerships and other midstream operators.
Key Quotes from Midstream MLPs’ Second-Quarter Earnings Calls
Second-quarter earnings season is done and dusted for midstream master limited partners (MLP) that own pipelines, processing and fractionation capacity.
Deal Talk: Energy M&A
As with every down-cycle, the collapse in energy prices will bring an uptick in mergers and acquisitions once visibility improves and bid-ask spreads. Investors should continue to focus on quality; all too often, distressed sales result in take-unders.
MLPs: Evolution, Not Extinction
The recent wave of general partners acquiring the master limited partnerships under their auspices doesn’t reflect a fatal flaw in the structure or this relationship.
09/29/15: Digesting Yesterday’s Big Midstream Deal
Energy Transfer Equity LP finally prevailed in its pursuit of Williams Companies. Here’s our take.
Takeover Time in MLP Land
A number of trends suggest that the MLP space is poised for consolidation. Here’s how to play it.
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Live Chat with
Elliott and Roger on Aug. 29, 2017
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Experts
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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Peter Staas
Managing Editor: Capitalist Times and Energy & Income Advisor