Stocks closed mixed on Tuesday, making two weeks worth of losses seem like they do not have to continue. Investors may finally be getting used to the environment of higher interest rates, and this is all ahead of the FOMC Minutes from the July 31 meeting due at 2:00 PM on Wednesday. Latin American stocks were mixed, while European and Asian markets were lower for the most part.
A report from the Chicago Federal Reserve showed that the national activity index was negative in July, and June was revised lower. India remains a challenging spot, as does Brazil. Unfortunately that continues to spell doom and losses for the emerging markets when consider that all of the BRIC nations of Brazil, Russia, India, and China are all running on sub-standard growth.
We also broke out the top Wall Street calls with�analyst upgrades and analyst downgrades.�Here are the closing bell levels for Tuesday:
S&P500 1,652.36 (+6.30; +0.38%) DJIA 15,002.99 (-7.75; -0.05%) NASDAQ 3,613.59 (+24.50; +0.68%) 10YR TNOTE 2.814% (-0.07) Gold $1,371.30 (+5.60; +0.41%) Oil $104.92 (-2.18; -2.04%) after challenging $107 this morning. Dollar/Euro: 1.3421 (+0.0086; +0.64%)Big earnings winners: J.C. Penney Company (NYSE: JCP) up almost 6% to $14.01 despite poor earnings, Best Buy Co. (NYSE: BBY) 13% to $34.80 on its solid turnaround earnings, and Urban Outfitters Inc. (NASDAQ: URBN) up over 8% at $43.19 as it proved why it should have been a private equity buyout two years ago.
Top 5 Safest Companies To Watch For 2015: NGL Energy Partners LP (NGL)
NGL Energy Partners LP is a limited partnership company formed to own and operate a vertically-integrated propane business. The Company operates in three segments: retail propane; wholesale supply and marketing; and midstream. Its retail propane business sells propane to end users consisting of residential, agricultural, commercial and industrial customers. The Company�� wholesale supply and marketing business supplies propane and other natural gas liquids and provides related storage to retailers, wholesalers and refiners. Its midstream business, which consists of its propane terminaling business, takes delivery of propane from pipelines or trucks at its propane terminals and transfers the propane to third-party transport trucks for delivery to retailers, wholesalers or other consumers. The Company�� general partner is NGL Energy Holdings LLC (the General Partner). On October 14, 2010, it executed a series of transactions (the Combination) with NGL Supply, Inc. (NGL Supply). In February 2012, the Company acquired all of the assets comprising the propane and distillate operations of North American Propane. In May 2012, the Company acquired Downeast Energy Corporation. The assets contributed by Downeast are located in Maine and New Hampshire. In November 2012, the Company acquired limited liability company membership interests in Pecos Gathering & Marketing LLC and its affiliated companies (Pecos). In July 2013, NGL Energy Partners LP announced the acquisition of the assets of Crescent Terminals, LLC. Effective July 8, 2013, NGL Energy Partners LP acquired High Roller Wells Big Lake SWD No 1 LP. In August 2013, NGL Energy Partners LP acquired the water disposal and hauling business of Oilfield Water Lines LP. In September 2013, NGL Energy Partners LP acquired the water disposal business of Coastal Plains Disposal #1, LLC owned by WinCo Development, LLC. In November 2013, the Company announced acquisition of all of the equity interests of Gavilon, LLC.
Retail Propane
The Co! mpany�� retail propane business consists of the retail marketing, sale and distribution of propane, including the sale and lease of propane tanks, equipment and supplies, to more than 56,000 residential, agricultural, commercial and industrial customers. It markets retail propane primarily in Georgia, Illinois, Indiana and Kansas through its customer service locations. The Company owns or leases 44 customer service locations and 37 satellite distribution locations, with aggregate above-ground propane storage capacity of approximately four million gallons. It also owns a fleet of bulk delivery trucks and service vehicles.
Wholesale Supply and Marketing
The Company�� wholesale supply and marketing business provides propane procurement, storage, transportation and supply services to customers, through assets owned by it and by third parties. Its wholesale supply and marketing business also obtains the majority of the propane supply for its retail propane business. The Company procures propane from refiners, gas processing plants, producers and other resellers for delivery to leased storage, common carrier pipelines, rail car terminals and direct to certain customers. It has the right to utilize 100% of the ConocoPhillips Blue Line pipeline, which runs from Borger, Texas, to its propane terminals in East St. Louis, Illinois and Jefferson City, Missouri. The Company leases approximately 67 million gallons of propane storage space in various locations to accommodate the supply requirements and contractual needs of its retail and wholesale customers.
Midstream
The Company�� midstream business, which consists of its propane terminaling business, takes delivery of propane from a pipeline or truck at its propane terminals and transfers the propane to third party trucks for delivery to propane retailers, wholesalers or other customers. The Company�� midstream assets consist of its three propane terminals in East St. Louis, Illinois; Jefferson City, Missou! ri, and S! t. Catharines, Ontario. The Company is a service provider at each of its terminals, which have a combined annual throughput in excess of 170 million gallons of propane.
Advisors' Opinion:- [By Garrett Cook]
NGL Energy Partners LP (NYSE: NGL) shares tumbled 7.14 percent to $42.41 after the company priced an offering of 8 million shares at $43.85 per share.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on NGL Energy Partners (NYSE: NGL ) , whose recent revenue and earnings are plotted below.
Top Oil Companies To Buy For 2014: Magellan Midstream Partners L.P.(MMP)
Magellan Midstream Partners, L.P., together with its subsidiaries, engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. Its pipeline system transports petroleum products and liquefied petroleum gases from the Gulf Coast refining region of Texas through the Midwest to Colorado, North Dakota, Minnesota, Wisconsin, and Illinois. The company owns and operates marine terminals, which store and distribute refined petroleum products, blendstocks, crude oils, heavy oils, and feedstocks, as well as inland terminals that consist of storage tanks connected to third-party interstate pipeline systems to deliver refined petroleum products. Its ammonia pipeline system transports ammonia from production facilities in Texas and Oklahoma to terminals in the Midwest. The company also stores, blends, and distributes biofuels, such as ethanol and biodiesel. As of March 31, 2011, it operated approximately 9, 600 miles of petr oleum products pipeline system and 51 terminals; 6 marine petroleum terminals located along the United States Gulf and East Coasts; a crude oil storage in Cushing, Oklahoma; 27 petroleum products inland terminals located principally in the southeastern United States; and a 1,100-mile ammonia pipeline system and 6 associated terminals. The company also provides ancillary services, such as heating, blending, and mixing of stored petroleum products and additive injection services. Its customers comprise independent and integrated oil companies, wholesalers, retailers, railroads, airlines, and regional farm co-operatives. The company serves various markets, including retail gasoline stations, truck stops, farm co-operatives, railroad fueling depots, and military and commercial jet fuel users. Magellan GP, LLC serves as the general partner of the company. The company was founded in 2000 and is based in Tulsa, Oklahoma.
Advisors' Opinion:- [By Vanina Egea]
The natural upside to any midstream operation is the strong cash flow, a resource which if well used can help finance an important capital investment. Most importantly, the assets built can then be sold to oil and gas producers in order to reward those who trusted management with initial investments. That's it. There is not much of a secret behind midstream oil and gas companies. Hence, from this analyst�� point of view, the key element to success is quality leadership. Such a characteristic allows the business model to identify market trends, and transform synergies into real growth. Magellan Midstream (MMP) may just be the case that exemplifies the argument. However, gurus have not been too enthusiastic about the stock and trading volumes remain low. Let us see why, and if you should take a position.
- [By Robert Rapier]
The total market cap of the ANGI is $190 billion, and the one-, three- and five-year total returns are 29 percent, 52 percent and 249 percent. The index yield is 6 percent.
The Alerian Large Cap MLP Index (ALCI) is another subset of the AMZ. It’s an equal-weighted basket of the 15 largest energy MLPs by market capitalization, all of which are also in the AMZ. The top performer since the most recent quarterly rebalancing has been Magellan Midstream Partners (NYSE: MMP), which comprises 7.4 percent of the index at present. At the bottom since the latest rebalancing is Enbridge Energy Partners (NYSE: EEP), at 6.47 of the overall index.
The total market cap of the ALCI is $232 billion, and the one-, three- and five-year total returns are 20 percent, 39 percent, and 167 percent. The index yield is 5.1 percent.
- [By Marc Bastow]
Refined petroleum products distributor Magellan Midstream Partners (MMP) raised its quarterly dividend 4.9% to 58.5 cent per share, payable on Feb. 14 to shareholders of record as of Feb. 7.
MMP Dividend Yield: 3.53% - [By Richard Stavros]
Focusing on the energy infrastructure segment of the MLP market can provide a high level of cash flow stability while preserving inflation-hedging and diversification benefits. There is an explicit hedge against inflation in certain MLP contracts��or example, interstate crude oil pipeline companies, are allowed to increase their prices explicitly.
The Federal Energy Regulatory Commission (FERC) regulates pipelines and has established tariff rates that are adjusted on an annual basis to the PPI for finished goods plus 2.65%. MLPs also own real assets that provide value over replacement costs that generally increase during inflationary periods. Additionally, some MLPs considered to be ��idstream��also have diversified business lines with commodity exposure through upstream operations and experience increased revenues during periods of inflation due to higher commodity prices.
As Morgan Stanley explains in a report, looking at the fixed income side, many MLPs have a ��oll-road��business model, resulting in cash flow stability. These MLPs receive a fee, or ��oll,��for handling a customer�� product on their infrastructure system.
The MLP does not own the commodity, virtually eliminating commodity price exposure and smoothing out its cash flows. For example, natural gas pipelines receive stable income (essentially rental fees) from pipeline capacity reservations, independent of actual throughput, largely via ��hip-or-pay��contracts.
Other product pipeline revenues typically depend on throughput, as noted above, but are protected by inflation escalators that act as a hedge. Finally other midstream assets have similar fee-based contracts that vary in risk depending on their position in the energy value chain. That’s why a potential MLP investor that wants to hedge against inflation will have to find the right combination of exposure to the commodity and its “toll-road” earnings.
And MLP price perfo
Top Oil Companies To Buy For 2014: Williams Partners L.P.(WPZ)
Williams Partners L.P. focuses on natural gas transportation, gathering, treating and processing, storage, natural gas liquid fractionation, and oil transportation activities in the United States. The company operates in two segments, Gas Pipeline, and Midstream Gas and Liquids. The Gas Pipeline segment owns and operates approximately 13,900 miles of pipelines with annual throughput of approximately 2,700 trillion British thermal units of natural gas and delivery capacity of approximately 13 million dekatherms of gas. This segment also owns interests in joint venture interstate and intrastate natural gas pipeline systems. The Midstream Gas and Liquids segment includes natural gas gathering, processing, and treating facilities; and crude oil gathering and transportation facilities that serve the producing basins in Colorado, New Mexico, Wyoming, the Gulf of Mexico, and Pennsylvania. Williams Partners GP LLC serves as the general partner of the company. Williams Partners L.P . was founded in 2005 and is based in Tulsa, Oklahoma.
Advisors' Opinion:- [By Aaron Levitt]
When it comes to natural gas, Williams Partners (WPZ) is simply one of the biggest players. The firm is one of the leading midstream players in the prolific Marcellus shale. That dominance has WPZ�� network of pipelines carrying roughly 14% of all the natural gas consumed in the U.S.
- [By Paul Ausick]
Large MLPs with geographically diversified operations will fare better because they can shift assets around and make sure that all their distribution-paying subsidiaries meet the payroll, so to speak. Here are the seven largest MLPs by market cap:
Enterprise Product Partners LP (NYSE: EPD) – $61.23 billion Kinder Morgan Energy Partners LP (NYSE: KMP) – $35.13 billion Williams Partners LP (NYSE: WPZ) – $21.95 billion Plains All American Pipeline LP (NYSE: PAA) – $19.3 billion Energy Transfer Partners LP (NYSE: ETP) – $17.78 billion Magellan Midstream Partners LP (NYSE: MMP) – $15.52 billion Oneok Partners LP (NYSE: OKS) – $12.95 billionSize is not the only thing that matters, but size can help overcome some of the cash flow issues these MLPs face. The differentiating factor is a company�� distribution coverage ratio which is the cash the MLP has to distribute to its limited partners divided by its maintenance capex and interest on the company�� debt. Anything number larger than 1 is solid.
Top Oil Companies To Buy For 2014: Susser Petroleum Partners LP (SUSP)
Susser Petroleum Partners LP is primarily engaged in fee-based wholesale distribution of motor fuels to Susser Holdings Corporation (SHC) and third parties. SHC operates over 540 retail convenience stores under its Stripes convenience store brand. In addition to distributing motor fuel, the Company also distributes other petroleum products, such as propane and lube oil, and it receive rental income from real estate that it lease or sublease. In January 2014, Susser Petroleum Partners LP announced the acquisition of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores, Inc. and 3W Warren Fuels, Ltd.
During the year ended December 31, 2011, the Company distributed 789.6 million gallons of motor fuel to Stripes convenience stores and 522.8 million gallons of motor fuel to other customers. It also distributes Chevron, CITGO, Conoco, Exxon, Mobil, Phillips 66, Shamrock, Shell, Texaco and Valero branded motor fuel, as well as unbranded motor fuel. In addition to distributing motor fuel, it also distributes other petroleum products, such as propane and lube oil.
Advisors' Opinion:- [By Robert Rapier]
Susser Petroleum Partners (NYSE: SUSP) engages in fee-based wholesale distribution of motor fuels. The partnership also distributes petroleum products like propane and lube oil, and receives rental income from real estate.
- [By Robert Rapier]
Susser Petroleum Partners (NYSE: SUSP) debuted in September 2012, and has appreciated by 50 percent since. Susser engages in fee-based wholesale distribution of motor fuels. The partnership also distributes petroleum products like propane and lube oil, and receives rental income from real estate.
Top Oil Companies To Buy For 2014: Next Generation Energy Corp (NGMC)
Next Generation Energy Corp., incorporated on November 21, 1980, is an independent oil and natural gas company engaged in the exploration, development, and production of natural gas properties located onshore in the United States. On March 22, 2011, the Company purchased all of the membership interests of Knox Gas, LLC. Knox Gas, LLC owns a lease of 100 acres, which contains five drilled wells; a lease of 20.2 acres, which contains two drilled wells; a lease of 700 acres which contains no wells, and a lease of 400 acres, which contains three drilled wells.
The wells owned by Knox Gas were part of a larger field of 135 wells that was developed by Heartland Resources, Inc. and its subsidiaries (collectively Heartland), and were operated by Heartland Operating Company, Inc., a subsidiary of Heartland Resources, Inc. During the year ended December 31, 2011, the Company had no revenues.
Advisors' Opinion:- [By Peter Graham]
Next Generation Energy Corp (OTCMKTS: NGMC) and Dutch Gold Resources, Inc (OTCMKTS: DGRI) are the latest small cap stocks to announce their entry into the marijuana business while peer Endocan Corp (OTCMKTS: ENDO) sees some paid promotions or investor relations activities, but otherwise remains quiet. So will investors and traders alike achieve a high with any of these small cap marijuana stocks? Here is a quick reality check:
Top Oil Companies To Buy For 2014: Hi Crush Partners LP (HCLP)
Hi Crush Partners LP, formerly Hi-Crush Partners LP, is a domestic producer of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The Company reserves consist of Northern White sand, a resource existing in Wisconsin and limited portions of the upper Midwest region of the United States. It owns, operates and develops sand reserves and related excavation and processing facilities and will seek to acquire or develop additional facilities. The Company's 561-acre facility with integrated rail infrastructure, located near Wyeville, Wisconsin, enables it to process and deliver approximately 1,600,000 tons of frac sand per year. In June 2013, Hi Crush Partners LP announced the completion of its acquisition of D&I Silica, LLC (D&I).
The Company�� frac sand production is sold to investment grade-rated pressure pumping service providers under long-term, contracts that require its customers to pay a specified price for a specified volume of frac sand each month. The Company owns and operates the Wyeville facility, which is located in Monroe County, Wisconsin and, as of December 31, 2011, contained 48.4 million tons of proven recoverable sand reserves of mesh sizes it has contracted to sell. From the Wyeville in-service date to March 31, 2012, it had processed and sold 555,250 tons of frac sand.
Advisors' Opinion:- [By Matt DiLallo]
Three months ago I used my favorite investment strategy, writing puts, in an attempt to�add units�of�Hi-Crush Partners� (NYSE: HCLP ) �to my portfolio. In one sense, that strategy was a failure as units of Hi-Crush stayed well above my strike price, meaning I won't be purchasing units when the puts expire next week. However, I was able to keep the full put premium which equated to a very nice 12% return for my capital at risk. Because I still want to add Hi-Crush to my portfolio, I'm going back to the well and writing puts again.
- [By Dan Burrows]
It sounds like a soft-drink company, but Hi-Crush Partners (HCLP) is racking up profits through the revolution in oil extraction.
This tiny company with a market cap of just $917 million makes the sand used in fracking — and as anyone in an oil-boom state like North Dakota can tell you, business is good.
- [By Robert Rapier]
Hi-Crush Partners (NYSE: HCLP) was the year’s best-performing energy MLP with a rally of 130 percent. HCLP is a pure-play supplier of monocrystalline sand that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells that have been hydraulically fractured. Its reserves consist of Northern white sand, predominantly found in Wisconsin and portions of the upper Midwest region of the US. At the most recent closing price, the annualized yield based on the the last quarterly distribution is 4.9 percent.
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