Momentum Stock Watch: Shell Midstream Partners, L.P. (SHLX)

Company Profile:

Shell Midstream Partners, L.P. is a fee-based, growth-oriented midstream master limited partnership formed by Royal Dutch Shell plc to own, operate, develop and acquire pipelines and other midstream assets. Its assets include interests in entities that own crude oil and refined products pipelines and terminals that serve as key infrastructure to (i) transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and (ii) deliver refined products from those markets to major demand centers. The company was founded in 2014 and is based in Houston, Texas.

Recent News:

For the second quarter of 2018, the company reported net income attributable to the partnership of $110.7 million, compared to $64.0 million for the prior quarter.
Total cash distribution declared was $113.4 million resulting in a healthy coverage ratio of 1.2x.

the Board of Directors of its general partner declared a cash distribution of $0.3650 per limited partner unit for the second quarter of 2018. This represents an increase of 4.9 percent over the previous quarterly distribution of $0.3480 per unit and a 20 percent increase over the distribution paid with respect to the second quarter of 2017.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SHLX’s strengths can be seen in its strong growth and robust profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, RSI is strong in the bullish zone and MACD is trying to cross back up. We rate Shell Midstream Partners, L.P. (SHLX) a STRONG BUY.

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