Vmbook Online ordering
Marlin Midstream Partners Lp
Marlin Midstream Partners, LP, a publicly traded company listed on the US stock exchange under the ticker symbol "FISH," is a master limited partnership that owns, operates, and develops midstream energy infrastructure assets in the United States. Here's an overview of the company's fundamentals, financial performance, and growth prospects:
1. Business Description: Marlin Midstream Partners, LP is a midstream energy company that provides crude oil and natural gas gathering, processing, and transportation services in the United States. The company operates in two segments: (i) Gathering and Processing, and (ii) Terminal and Pipeline. The company's assets are located in the Permian Basin, the Eagle Ford Shale, and the Williston Basin.
2. Financial Performance:
a. Revenue: In 2020, Marlin Midstream Partners reported total revenue of $135.9 million, down from $141.4 million in 2019. The decline in revenue was primarily due to decreased production and reduced demand for crude oil and natural gas due to the COVID-19 pandemic.
b. Net Income: The company reported a net income of $29.4 million in 2020, compared to $36.9 million in 2019.
c. Distributable Cash Flow: Distributable cash flow (DCF) is a critical metric for master limited partnerships (MLPs) like Marlin Midstream Partners, as it reflects the company's ability to generate cash available for distribution to unitholders. In 2020, Marlin Midstream Partners reported DCF of $53.5 million, down from $62.6 million in 2019.
d. Distribution Coverage Ratio: The distribution coverage ratio is a metric used to evaluate an MLP's ability to pay its distribution to unitholders. Marlin Midstream Partners' distribution coverage ratio was 1.36x in 2020, indicating that the company had 1.36 times the cash available to pay its declared distribution.
e. Unit Performance: Marlin Midstream Partners' unit price has fluctuated in tandem with the energy sector and the broader market. In 2020, the unit price ranged from a low of $13.55 to a high of $20.70. As of March 2023, the unit price has partially recovered and is trading around $18.00.
1. Growth Prospects: Marlin Midstream Partners has several growth projects in its pipeline, including the development of a new cryogenic natural gas processing plant in the Permian Basin and the expansion of its DJ Basin gathering system. The company's focus is on growing its footprint in the Permian Basin, where it sees significant opportunities for crude oil and natural gas gathering, processing, and transportation.
2. Valuation: As of March 2023, Marlin Midstream Partners trades at a forward price-to-earnings (P/E) ratio of around 10.4x, lower than the industry average of approximately 15.5x. The company's price-to-distributable cash flow (P/DCF) ratio is around 8.3x, which is slightly lower than the industry average of around 9.5x. The relatively low valuation multiples might indicate that the market perceives limited growth opportunities for the company.
3. Dividend Yield: Marlin Midstream Partners has a high distribution yield of around 8.7%, which is significantly higher than the industry average of around 5.5%. This could be attractive to income-seeking investors, but it's important to note that a high distribution yield can sometimes indicate a decline in the company's unit price.
4. Management: Marlin Midstream Partners' management team has extensive experience in the midstream energy industry. The CEO, Michael E. Mercer, has over 30 years of experience in the energy sector, including leadership positions at Crosstex Energy, L.P. and Eagle Rock Energy Partners, L.P. Other key executives have similar expertise in the midstream and energy sectors.
As of December 2022, institutional ownership of Marlin Midstream Partners is prominent, with firms such as Goldman Sachs, JPMorgan Chase, and Wells Fargo holding significant stakes in the company.
In summary, Marlin Midstream Partners, LP is a midstream energy company with a focus on gathering, processing, and transporting crude oil and natural gas in the Permian Basin, the Eagle Ford Shale, and the Williston Basin. While the company's financial performance has been impacted by decreased demand due to the COVID-19 pandemic, it has a solid distribution coverage ratio and growth projects in its pipeline. Marlin Midstream Partners trades at a discounted valuation compared to its peers, with a high distribution yield that may be attractive to income-seeking investors. However, the company's growth prospects, asset footprint, and management expertise all contribute to its potentially attractive investment opportunity.
Keep in mind that this information is subject to change and doesn't consider market conditions, external factors, or any recent news that may influence the company's performance. This overview solely provides general information and shouldn't be regarded as investment advice. Always do your own research and consider consulting financial advisors before making investment decisions.