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Update on oil and gas pipeline stocks

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World Pipelines,


Four equities have been lined up by Stock-Callers.com for assessment this morning, and they are: Williams Partners L.P, Enbridge Energy Partners L.P., Frank's International N.V. and Boardwalk Pipeline Partners L.P. Most oil and gas pipeline companies are structured as master limited partnerships (MLPs), which help limit costs by passing tax obligations along to shareholders. Since MLPs are required to distribute the vast majority of their earnings to shareholders, these stocks usually offer very high dividend yields.

Williams Partners

On Monday, shares in Oklahoma-based Williams Partners L.P. recorded a trading volume of 1.15 million shares. The stock ended the day at US$41.03, climbing 0.51% from the last trading session. The company's shares have gained 0.69% in the last one month, 17.72% over the previous three months, and 10.17% on an YTD basis. The stock is trading above its 50 day and 200 day moving averages by 4.16% and 16.14%, respectively. Furthermore, shares of Williams Partners, which operates as an energy infrastructure company, have a relative strength index (RSI) of 56.63.

On 10 February, research firm Deutsche Bank initiated a 'Buy' rating on the company's stock, with a target price of US$47 per share.

On 21 February, Williams announced that its board of directors has approved a regular dividend of US$0.30 per share, or US$1.20 annualised, on the company's common stock, payable on 27 March, to holders of record at the close of business on 10 March. The new amount is a 50% increase from Williams' previous quarterly dividend. Williams has paid a common stock dividend every quarter since 1974.

Enbridge Energy Partners

Texas headquartered Enbridge Energy Partners L.P.'s stock finished yesterday's session 1.06% lower at US$17.72. A total volume of 1.87 million shares was traded, which was above their three months average volume of 1.47 million shares. The company's shares are trading below their 50 day moving average by 17.76%. Furthermore, shares of Enbridge Energy Partners, which owns and operates crude oil and liquid petroleum transportation and storage assets; and natural gas assets in the US, have an RSI of 25.09.

On 21 February, research firm RBC Capital Markets reiterated its 'Sector Perform' rating on the company's stock with a decrease of the target price from US$21 a share to US$20 a share.

As per a SEC filing dated, 28 February, following closing of the Enbridge Inc. merger with Spectra Energy Corp. on 27 February, the company announced that C. Gregory Harper no longer serves as a director of Enbridge Energy Management, L.L.C. (EEM) or Enbridge Energy Company, Inc. (EECI), which is the general partner of Enbridge Energy Partners, L.P. In addition, Noor Kaissi no longer serves as controller and principal accounting officer of EEM and EECI. Allen Capps was appointed controller and principal accounting officer of EEM and EECI.

Frank's

At the close of trading on 6 March, shares in Frank's International N.V. saw a drop of 3.83%, ending the day at US$10.79. The stock recorded a trading volume of 2.37 million shares, which was above its three months average volume of 870 410 shares. The company's shares are trading 12.75% below their 50 day moving average. Moreover, shares of Frank's International, which provides various engineered tubular services for the oil and gas exploration and production companies in the US and internationally, have an RSI of 24.92.

On 23 February, Frank's reported revenues of US$108.0 million and net loss of US$66.2 million, or US$0.30 per share, for 4Q16. The company's adjusted loss per share for 4Q16 was US$0.18. Frank's adjusted EBITDA for 4Q16 was US$5.0 million, or 4.6% of revenue.

Boardwalk Pipeline Partners

Texas headquartered Boardwalk Pipeline Partners L.P.'s shares ended the day flat at US$18.52 with a total trading volume of 338 640 shares. The stock has gained 0.11% in the last month, 9.08% over the previous three months, and 7.26% on an YTD basis. The company's shares are trading 1.62% above their 50 day moving average and 7.92% above their 200 day moving average. Additionally, shares of Boardwalk Pipeline Partners, which through its subsidiaries, provides transportation, storage, gathering and processing services for natural gas, natural gas liquids and other hydrocarbons in the US, have an RSI of 55.03.

On 7 February, research firm RBC Capital Markets reiterated its 'Outperform' rating on the company's stock with an increase of the target price from US$19 a share to Us$21 a share.

Read the article online at: https://www.worldpipelines.com/business-news/09032017/update-on-oil-and-gas-pipeline-stocks/


 

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