Oppenheimer: The Party In Energy Is Over For Now

Oppenheimer reviewed earnings on energy MLPs Tuesday and highlighted current trends in the industry. Analyst Bernard Colson commented that "2015 will be a difficult year for the industry as production growth slows and as oil & gas prices remain depressed, causing reductions in capital spending, slowing distribution growth and increasing financial leverage." Colson noted that the industry had experienced a five-year boom due to high energy prices, increased production and low interest rates with easy access to credit. The analyst suggested that the current environment may be viewed as a period of "normalization to a more sober environment." Based on shrinking capital budgets, the analyst expected continued capex reductions in 2015 which did not "bode well for 2016 growth." Colson concluded that the "party is over for now." Below are current ratings on the names Oppenheimer covers in the energy MLP space. BreitBurn Energy Partners L.P. BBEP - Underperform EV Energy Partners, L.P. EVEP - Perform Legacy Reserves LP LGCY - Perform LRR Energy LP LRE - Perform Mid-Con Energy Partners LP MCEP - Perform Memorial Production Partners LP MEMP - Underperform New Source Energy Partners LP NSLP - Perform Vanguard Natural Resources, LLC VNR - Perform EnLink Midstream Partners LP ENLK - Outperform, $32 price target EQT Midstream Partners LP EQM - Outperform, $97 price target Marlin Midstream Partners LP FISH - Perform Western Gas Partners, LP WES - Outperform, $81 price target Western Gas Equity Partners LP WGP - Outperform, $70 price target Enbridge Energy Partners, L.P. EEP - Perform Genesis Energy, L.P. GEL - Perform Plains All American Pipeline, L.P. PAA - Outperform, $58 Plains GP Holdings LP PAGP - Outperform, $32 price target Tesoro Logistics LP TLLP - Outperform, $67 price target Enterprise Products Partners L.P. EPD - Outperform, $39 price target Energy Transfer Partners LP ETP - Perform Oneok Partners LP OKS - Perform ONEOK, Inc. OKE - Outperform, $49 price target Crossamerica Partners LP CAPL - Outperform, $48 price target Seadrill Partners LLC SDLP - Outperform, $19 price target Western Gas Equity Partners LP WGP - Outperform, $70 price target