Posts for Ticker ‘SGLP’

The Plot Thickens at SemGroup, L.P. (SGLP, BX)

Not every piece of SemGroup, L.P. was included in the company’s Chapter 11 filing back in July.  The company’s publicly traded midstream subsidiary, SemGroup Energy Partners LP (NASDAQ:SGLP), was spared, as was SemGroup’s SemLogistics Milford Haven subsidiary in England.

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Posted on: October 16, 2008 – 9:30 am in Oil & Gas, ,

Did SemGroup Drive the Fall in Crude Prices? (SGLP, TYG, TYN, TYY)

Late yesterday afternoon, a bankruptcy court in Delaware has approved SemGroup LP’s Chapter 11 filing. One of the company’s subsidiaries, SemGroup Energy Partners LP (NASDAQ:SGLP), is publicly traded and not included in the bankruptcy filing. The court has permitted SemGroup to liquidate its assets (estimated at about $211 million) and to withhold about $50 million to pay suppliers.

A group of lenders challenged SemGroup’s plan to use some of the cash to stay in business. The lenders argue that the protections being granted "are not commensurate with the substantial amount of cash being made available to debtors."

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Posted on: July 24, 2008 – 9:00 am in Oil & Gas, , , ,

Top Pre-Market Analyst Upgrades (AKS, BHI, IPI, NAT, PSYS, SGLP, SNN, SYNA, ULTA)

AKS, BHI, IPI, NAT, PSYS, SGLP, SNN, SYNA, ULTA
These are some of the top upgrades or positive analyst calls we are seeing this Wednesday morning in early pre-market hours:

  • AK Steel (AKS) Raised to Overweight at JPMorgan.
  • Baker Hughes (BHI) raised to Buy at UBS.
  • Intrepid Potash (IPI) Started as Outperform at BMO Capital.
  • Nordic American Tanker (NAT) Raised to Overweight at JPMorgan.
  • Psychiatric Solutions (PSYS) Started as Buy at Stanford Group.
  • Semgroup Energy (SGLP) Raised to Market Perform at Wachovia.
  • Smith & Nephew (SNN) Raised to Buy at Piper Jaffray.
  • Synaptics (SYNA) Raised to Outperform at Oppenheimer.
  • Ulta Salon (ULTA) Started as Outperform at Oppenheimer.

Jon C. Ogg
July 23, 2008

Posted on: July 23, 2008 – 6:33 am in Analyst Calls, , , , , , , , ,

52-Week Low Club (AYE, AXL, APL, AUO, CHB, CMLS, GAP, MAC, MIR, RRI, SGLP, SWY, VRTU)

52_week_low_image_2Its Friday, and despite a fairly stable market today there were of course many 52-week lows.  Some look like a mid-city explosion from news, and some are just the normal selling.  As a reminder, some of these stocks are not under the 52-week lows at the time this published but these would have hit prior 52-week lows or traded under them on an intra-day basis. 

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Posted on: July 18, 2008 – 2:29 pm in HI/LOW, , , , , , , , , , , , ,

52-Week Low Club (T, CCE, CHB, EBAY, GGC, GLBL, IGT, PAA, RRI, SGLP, TXT, VCLK)

52_week_low_imageWe’ve had essentially a 500 point rally in the DJIA in just the last two days and oil is starting to lose its mo-mo.  Yet some companies just refuse to participate in the rally because of news, and many look like they were caught in a mid-city explosion (hence the image). 

Regardless of how the market does you can always count on many news-driven or sector driven events causing new lows.  One thing is for sure during a weak economy and during choppy earnings, there will be many more stocks in the coming weeks hitting 52-week lows.  Some will continue hitting new lows over and over.

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Posted on: July 17, 2008 – 2:35 pm in HI/LOW, , , , , , , , , , , ,

Devon Energy Forms MLP To Pay Down Debt (DVN, SGLP)

Devon Energy (NYSE:DVN) shares traded up more than 4% after announcing that it will form a master limited partnership (MLP) in the third quarter of 2007 by issuing partnership units in the company’s U.S. midstream and onshore marketing assets. The chief asset is Devon’s gathering and pipeline system around the Barnett Shale natural gas play near Ft. Worth, Texas. All told, DVN owns midstream assets including 2,700 miles of pipeline, two gas processing plants with a total capacity of 680 MMcf/d, and an NGL fractionater with a capacity of 15,000 b/d.

Devon’s Fiscal 2006 margin from its marketing and midstream operations totalled $448 million, essentially flat with FY2005. It expects the margins to be roughly the same in 2007, from revenue of $1.71B – $2.1B, and expenses of $1.31B – $1.67.

This is pretty small beer, as pipeline MLPs go. But investors seem to like them because an MLP’s tax advantage: income is not taxed at the corporate level, only the individual partner pays income tax. Current shareholders also get a nice present from the sale of partnership units.

Still, the company directors and officers are the ones who really score.  Devon will retain ownership of its new MLP’s general partner (GP) and a majority stake in it. The GP typically gets a 2% distribution and, on top of that, what are called "incentive distributions" that could equal as much as 50% of the MLP’s income. All that will be spelled out in the registration documents that Devon files with the SEC later this quarter.

In its announcement, Devon said it would use a "significant portion" of the proceeds from the sale of partnership units to pay down the parent company’s debt and to repurchase shares of DVN’s common stock. It’s pretty easy to see why company officers and directors like MLPs, and even company shareholders get a nice one-time dividend.

But why do other investors buy in? The tax benefit is surely attractive, and MLPs do offer guaranteed returns because pipelines are subject to federal and state rate regulation.  Unitholders often pay dearly for these benefits and the secondary supply of shares or units is somewhat limited, so anyone wanting in on new MLP usually tries to get in early.  If you don’t believe it, take a look at how well SemGroup Energy Partners, L.P. (NASDAQ:SGLP) did in its trading debut today.

Paul Ausick
July 18, 2007

Posted on: July 18, 2007 – 6:45 pm in IPOs, Oil & Gas, ,