Market Overview

No One Cares About Noble Midstream's Q4 Results; Focus Is On New Guidance

No One Cares About Noble Midstream's Q4 Results; Focus Is On New Guidance

Deutsche Bank says investors would ignore Noble Midstream Partners LP (NYSE: NBLX)’s quarterly miss and rather focus on the outlook.

For 2017, the company expects net EBITDA to be $155 million–$175 million, with DPU growth of 20 percent and coverage of 1.7–1.9x.

The company raised its full-year sales volumes estimate to 415–425 MBoe/d, up nearly 5 percent from last year. U.S. onshore oil is anticipated to be up nearly 30 percent year-on-year.

Related Link: Dan Nathan Sees Unusual Options Activity In SPDR S&P Oil & Gas Explore & Prod. (ETF)

Meanwhile, the company sees organic capital expenditures for 2017 to be between $2.3 billion and $2.6 billion. Approximately 75 percent of the total capital program is allocated to U.S. onshore development, primarily focused on liquids-rich opportunities in the DJ Basin, Delaware Basin and Eagle Ford.

Over the long term, Noble projects 2017-2020 CAGRs of +20 percent for net EBITDA, DCF, and the DPU were provided, alongside >1.3x coverage and <2.5x leverage.

Analyst Commentary

“This is all organic (pre-drop), showing a decent step-up from our previous est of organic growth driving a mid-to-high teens DCF CAGR. The drop backlog was guided “above CY17 EBITDA,” analyst Kristina Kazarian wrote in a note.

Kazarian reiterated her Hold rating on the stock, saying the stock has run up YTD (+29 percent vs. AMZ +6 percent) and we could see a pause as investors look for results to catch up with expectations.”

Shares of Noble closed Monday’s trading at $46.57. Kazarian has a price target of $39.

Image Credit: By Nicholas from Pennsylvania, USA - Double Bows, CC BY 2.0, via Wikimedia Commons

Latest Ratings for NBLX

Sep 2019ReiteratesBuy
Sep 2019Initiates Coverage OnSector Perform
Aug 2019MaintainsNeutral

View More Analyst Ratings for NBLX
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Earnings News Guidance Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (NBLX)

View Comments and Join the Discussion!

6 Biggest Foreign Acquisitions Of American Companies In History

Unleash The Lumberjacks! DAPL And Tree Clearing