However, the largest North American midstream stocks by market cap have all underperformed the energy sector. Enbridge stock is up just 5.2% over the last three years, making it a major loser during an otherwise decent time for the midstream industry and an excellent time for the energy sector. Enbridge believes the deal is a win for shareholders, but investors didn’t react favorably, sending the stock down 5.9% to a two-year low.
Engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. It also provides pipeline capacity and tank storage services, as well as terminalling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing, and data services to shippers. Was incorporated in 2000 and is headquartered in Tulsa, Oklahoma. Magellan’s refined product pipelines are high-quality assets that have contributed to earnings stability as well as steady increases in distributions over time. The pipelines connect refineries to end markets such as gas stations and railroads.
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All told, Enbridge’s strategy is going against Canada’s emission-reduction targets. And buying Enbridge stock is a bet on the sustained relevance of oil and natural gas. And it has the cash flow and balance sheet to support dividend raises.
In connection with the proposed transaction, on July 25, 2023, ONEOK and Magellan Midstream Partners, L.P. Each of ONEOK and Magellan commenced mailing copies of the joint proxy statement/prospectus to shareholders of ONEOK and unitholders of Magellan, respectively, https://1investing.in/ on or about July 25, 2023. This communication is not a substitute for the joint proxy statement/prospectus or for any other document that ONEOK or Magellan has filed or may file in the future with the SEC in connection with the proposed transaction.
- The pipelines connect refineries to end markets such as gas stations and railroads.
- Copies of documents filed with the SEC by Magellan, including the joint proxy statement/prospectus, are available free of charge from Magellan’s website at under the “Investors” tab.
- Magellan Midstream Partners’ stock was trading at $50.21 on January 1st, 2023.
- Oneok will acquire Magellan Midstream, but investors in only one oil and gas stock are positive about the deal.
Enbridge is taking a contrarian approach to the energy transition. Enbridge is providing essential services and getting good deals on its acquisitions. Due to fixed contracts and less dependence on oil and gas prices, the midstream industry typically outperforms the broader energy sector during downturns and underperforms it during growth cycles. But companies built out so much infrastructure in the 2010s that there hasn’t been as much opportunity for growth aside from assets related to natural gas exports. Additionally, many midstream companies have a lot of debt, making them particularly sensitive to interest rate changes.
Add it all up, and it’s not too surprising to see extreme underperformance from companies like Enbridge in recent years. There are some companies that are diversifying their businesses by selling fossil fuel assets and investing in renewable energy. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year.
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Transaction delivers full value to Magellan unitholders and provides unitholders with ownership in a stronger combined company Combined company better positioned to address secular risks and achieve s… Magellan urges unitholders to vote “FOR” the pending merger today TULSA, Okla. , Sept. 7, 2023 /PRNewswire/ — Magellan Midstream Partners, L.P. Sign-up to receive the latest news and ratings for Magellan Midstream Partners and its competitors with MarketBeat’s FREE daily newsletter. The technique has proven to be very useful for finding positive surprises.
Oneok will acquire Magellan Midstream, but investors in only one oil and gas stock are positive about the deal. Magellan Midstream Partners saw a increase in short interest in August. As of August 15th, there was short interest totaling 6,940,000 shares, an increase of 28.3% from the July 31st total of 5,410,000 shares. Based on an average daily trading volume, of 1,300,000 shares, the short-interest ratio is presently 5.3 days.
As Energy Transfer expands its shale footprint with a key acquisition, investors should take note of the healthy dividend yield, and consider buying this energy stock on the dip. Pipeline operator Magellan Midstream Partners said on Thursday it expects exports of U.S. crude and refined products to grow on increasing global demand for U.S. energy. Magellan Midstream Partners issued an update on its FY 2023 earnings guidance on Thursday, August, 3rd. The company provided earnings per share (EPS) guidance of $5.05-$5.05 for the period, compared to the consensus estimate of $4.56.
NewsMagellan Midstream Partners L.P.MMP
11 analysts have issued twelve-month target prices for Magellan Midstream Partners’ shares. Their MMP share price forecasts range from $49.00 to $69.00. On average, they expect the company’s share price to reach $60.70 in the next year. This suggests that the stock has a possible downside of 12.3%.
Canada doesn’t have the oil and natural gas export infrastructure that the U.S. has. And Canada’s liquefied natural gas (LNG) industry has been largely stalled compared to a booming U.S. More natural gas exports means more natural gas production and thus, more pipelines. Canada also has an aggressive goal to reduce emissions by 40% to 45% relative to 2005 levels by 2030 and then achieve net-zero emissions by 2050. Betting big on LNG is a step in the wrong direction toward achieving that goal. The energy sector has been on a tear for the last three years and is up 164.8% over that period.
MMP’s historical performance
against its industry peers and the overall market. Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of MMP’s
Magellan Midstream Files Investor Presentation Highlighting Benefits of Pending ONEOK Transaction
These returns cover a period from January 1, 1988 through July 31, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.
The upstream industry, and to a lesser extent the downstream industry, have been contributing the bulk of the gains in oil and gas stocks, while the midstream industry has been sitting on the sidelines. Enbridge claims that this valuation is a good deal and that it is on the short list of companies that could even afford a deal of this size. But all because a large company can do a deal doesn’t mean it should, especially at the expense of its balance sheet.
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View analysts price targets for MMP or view top-rated stocks among Wall Street analysts. 11 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Magellan Midstream Partners in the last year. There are currently 3 sell ratings, 7 hold ratings and 1 buy rating for the stock.
Research & Ratings Magellan Midstream Partners L.P.(MMP)
Midstream corporation ONEOK announced last month it will acquire … Magellan Midstream Partners Chief Executive Aaron Milford said he is confident the pipeline operator’s planned sale to larger peer ONEOK Inc for $18.8 billion will gain approval from its investors des… Follows recommendation from Glass Lewis that unitholders vote “FOR” the transaction TULSA, Okla. , Sept. 7, 2023 /PRNewswire/ — Magellan Midstream Partners, L.P.
The sell-off pole-vaulted Enbridge’s dividend yield to 7.9%, making it an intriguing high-yield dividend stock. Let’s look at the impact of the deal, what it means for Enbridge, and if the stock is worth buying now. Copies of documents filed with the SEC by Magellan, including the joint proxy statement/prospectus, are available free of charge from Magellan’s website at under the “Investors” tab. Canadian pipeline giant, Enbridge (ENB 2.91%), dropped big news on Sept. 5 when it announced the $14 billion acquisition (including debt) of three natural gas utilities from Dominion Energy (D 1.59%). The deal makes Enbridge North America’s largest natural gas utility franchise. Magellan investors are encouraged to visit for additional information about our pending merger, including transaction benefits, tax considerations and unitholder voting instructions in advance of our Sept. 21 virtual special meeting.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Over the previous 90 days, Magellan Midstream Partners’s stock had 1 downgrade by analysts. The most recent change in the company’s dividend was a decrease of $0.8005 on Monday, September 11, 2023.
Dominion Energy, a utility, is shifting its focus away from fossil fuel assets toward renewable energy. It is aggressively investing in offshore wind to produce electricity from renewable energy. In 2020, it sold several oil and gas assets to Warren Buffett’s Berkshire Hathaway (BRK.A 0.68%) (BRK.B 0.46%) Energy for a bargain-bin price. And now, it’s selling a swath of gas utilities to Enbridge for 16.5 times 2023 estimated earnings.
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