Expectations For M&A In Midstream Oil & Gas: Raymond James Downgrades Holly Energy And Crestwood Equity Amid Acquisition Deals
Portfolio Pulse from Lekha Gupta
Raymond James analyst Justin Jenkins has downgraded the ratings of Holly Energy Partners LP (HEP) and Crestwood Equity Partners LP (CEQP) to Market Perform from Outperform due to separate acquisition deals. Crestwood Equity is merging with Energy Transfer LP (ET) for around $7.1 billion, a deal seen as more rewarding for ET. Holly Energy is acquiring HF Sinclair Corporation (DINO) in a deal involving common stock and cash. Both deals are expected to close in Q4 FY23.
August 25, 2023 | 7:30 pm
News sentiment analysis
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NEGATIVE IMPACT
Crestwood Equity's merger with Energy Transfer is seen as more rewarding for ET. The deal is expected to close in Q4 FY23.
The merger deal is seen as more rewarding for ET, which could negatively impact CEQP's stock price. The downgrade by Raymond James could also have a negative impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
HF Sinclair is being acquired by Holly Energy in a deal involving common stock and cash. The deal is expected to close in Q4 FY23.
The acquisition deal could stabilize DINO's stock price. However, the specifics of the deal involving common stock and cash could have varying impacts.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 75
NEUTRAL IMPACT
Holly Energy's acquisition of HF Sinclair is seen as a fair outcome for HEP. The deal is expected to close in Q4 FY23.
The acquisition deal is seen as a fair outcome for HEP, which could stabilize its stock price. However, the downgrade by Raymond James could have a negative impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Energy Transfer's merger with Crestwood Equity is seen as more rewarding for ET. The deal is expected to close in Q4 FY23.
The merger deal is seen as more rewarding for ET, which could positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 75