| MarkWest Energy Hikes Q2 Distribution After Merger Deal - Analyst Blog | |
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Natural gas processor and distributor MarkWest Energy Partners L.P. MWE has declared an increase in quarterly cash distribution. This follows the partnership’s merger announcement with MPLX LP MPLX – a partnership controlled by independent oil refiner and marketer Marathon Petroleum Corporation MPC.
MarkWest has announced second quarter distribution of 92 cents per unit ($3.68 annualized). This marks a 4 cent or 4.5% increase from the second quarter of 2014 and a 1 cent or 1.1% hike sequentially. The partnership added that this new distribution will be paid on Aug 14 to uniholders of record as on Aug 6.
MarkWest has a track record of consistent distribution growth. Its new quarterly distribution of 92 cents marks an increase of 268% from its distribution rate of 25 cents per unit at the time of its 2002 IPO. Moreover, with the proposed MPLX merger, the combined entity will likely witness a 25% compound annual distribution growth rate through 2017.
The merger with MPLX is expected to positively impact MarkWest’s financials though enhanced scale of operations and greater expansion and growth opportunities. Additionally, the new partnership will benefit from Marathon Petroleum’s robust balance sheet.
Despite these positives, investors should note that the distribution offered by the combined entity would be much lower than MarkWest’s current distribution.
Currently, MarkWest Energy carries a Zacks Rank #3 (Hold).
A better-ranked player from the Oil and Gas Production/Pipeline MLP industry is NuStar Energy L.P. NS, which sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NUSTAR ENERGY (NS): Free Stock Analysis Report MARKWEST EGY PT (MWE): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report MPLX LP (MPLX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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MarkWest Energy Partners LP
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CODE : MWE |
ISIN : US5707591005 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
MarkWest Energy est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. MarkWest Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 11,1 milliards US$ (9,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 01 mai 2009 à 10,05 US$, et son plus haut niveau récent le 25 septembre 2015 à 48,00 US$. MarkWest Energy possède 231 560 000 actions en circulation. |