Mariner Investment Group Powers Up On Energy Stocks In Q2

EQT Midstream Partners LP (NYSE:EQM)

– Shares Owned by Mariner Investment Group (as of June 30): 91,190

– Value of Mariner Investment Group’s Holding (as of June 30): $7.32 Million

The asset manager founded by William J. Michaelcheck snatched up a new equity stake in EQT Midstream Partners LP (NYSE:EQM) during the three-month period ended June 30, which was comprised of 91,190 shares valued at $7.32 million at the end of June. The American oil and gas company that develops and acquires midstream assets in the Appalachian Basin has seen its market cap increase by a mere 1% since the beginning of the year. The company’s gathering revenue increased by $17.8 million year-over-year to $94.3 million during the second quarter, driven by production development in the Marcellus Shale, while transmission and storage revenue grew by $9.6 million year-over-year to $77.72 million, due to higher usage fees under firm and interruptible contracts and higher contracted firm capacity. Stuart J. Zimmer’s Zimmer Partners had 508,788 shares of EQT Midstream Partners LP (NYSE:EQM) among its holdings at the end of March.

Magellan Midstream Partners L.P. (NYSE:MMP)

– Shares Owned by Mariner Investment Group (as of June 30): 99,140

– Value of Mariner Investment Group’s Holding (as of June 30): $7.54 Million

Magellan Midstream Partners L.P. (NYSE:MMP) was yet another addition to Mariner Investment Group’s set of holdings during the second quarter of 2016. The New York-based asset manager acquired a stake of 99,140 shares of the company, which were worth $7.54 million at the end of June. The shares of the limited partnership engaged in the transportation, storage and distribution of refined petroleum products and crude oil are 3% in the green in 2016. The midstream operator recently increased its quarterly cash distribution for the 57^th time since going public in 2001, and is currently paying $3.28 per share on an annualized basis, amounting to an annual yield of 4.68%. The current yield may be viewed as low for an MLP, but it is attractive compared to most dividend-paying stocks. The second quarter distribution was increased to $0.82 per unit of common stock from $0.74 paid in the second quarter of 2015. Bernard Selz’s Selz Capital reported ownership of 434,650 shares of Magellan Midstream Partners L.P. (NYSE:MMP) in its 13F for the second quarter.

Enterprise Products Partners L.P. (NYSE:EPD)

– Shares Owned by Mariner Investment Group (as of June 30): 259,900

– Value of Mariner Investment Group’s Holding (as of June 30): $7.61 Million

Mariner Investment Group upped its position in Enterprise Products Partners L.P. (NYSE:EPD) by 202,000 shares during the three months ended June 30, ending the second quarter with 259,900 shares. The increased position was valued at $7.61 million at the end of the quarter and accounted for 2.6% of the value of the hedge fund’s portfolio, ranking as the fund’s fifth-largest position overall. The leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals, and refined products has seen its stock advance by 6% since the beginning of the year. The company recently announced that three liquefied petroleum gas (LPG) cargo loadings from its Houston Ship Channel export terminal were cancelled in July and an additional five cargo loadings have been cancelled in August, as Asian buyers find it cheaper to pay large fees to cancel Gulf Coast contracts and then purchase spot cargo from the Middle East. John Zaro’s Bourgeon Capital owns 57,775 shares of Enterprise Products Partners L.P. (NYSE:EPD) as of the end of the second quarter.

Disclosure: None