BP Midstream Partners CFO Craig Coburn said the company is weighing an expansion of its Mars crude oil pipeline to accommodate new volumes from offshore oil fields, Reuters reports. Coburn said that the pipeline, which has a mainline capacity of roughly 400,000 barrels per day, would possibly be expanded to move increased crude volumes from Gulf of Mexico fields such as Vito and Power Nap, the report notes. Reference Link
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. HP Inc. (HPQ) downgraded to Neutral from Buy at Citi with analyst Jim Suva saying positive PC data points offset mixed Print data points and offer limited positive catalysts. 2. Las Vegas Sands (LVS) downgraded to Hold from Buy at Argus with analyst John Staszak saying the stock should produce "limited growth" over the next 12 months. 3. Hain Celestial (HAIN) and McCormick (MKC) downgraded to Underweight from Neutral at JPMorgan. 4. Itron (ITRI) downgraded Outperform at Credit Suisse with analyst Pavel Molchanov saying having started the year on a "sour" note amid the margin headwinds from components tightness, the stock has shrugged off those issues and is currently at its highest level since early 2018. 5. BP Midstream (BPMP) downgraded to Neutral from Overweight at JPMorgan while Shell Midstream (SHLX) was downgraded to Underweight from Neutral. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
BP Midstream, Shell Midstream Partners downgraded at JPMorgan. As previously reported, JPMorgan analyst Jeremy Tonet downgraded BP Midstream (BPMP) to Neutral with a lowered price target of $17 from $19 and Shell Midstream Partners (SHLX) to Underweight with a lowered price target to $22 from $23. The analyst notes that while the liquid Transportation & Service MLPs have fared better than the broader MLP space thanks to the less cyclical end market pull demand, he is concerned that a "large part of the market" is shunning incentive distribution right structures and believes these can impede a re-rating in these relatively richer valued stocks.
BP Midstream initiated with a Buy at Mizuho. Mizuho analyst Gabriel Moreen started BP Midstream Partners with a Buy rating and $19 price target. The analyst calls the company a "diamond in the rough" and believes the market has unfairly discounted its potential for future drop-down assets, "world-class" sponsor, and "stable" assets.