Why Are These Five Stocks Surging Today?

The bulls are piling into Oneok Partners LP (NYSE:OKS) again, as its stock continues to rally after yesterday’s disclosure that Oneok expects to maintain its current dividend distribution and achieve distribution coverage of 1x or higher next year. In addition, management expects to sustain the company’s investment grade rating and not dilute shares for capital raising purposes next year. The status quo is music to the bull’s ears, as it means Oneok Partners LP (NYSE:OKS)’s dividend yield of nearly 10% is safe. Shares of the natural gas processor and transporter now trade North of $30 per share after trading for $22 a share a week ago.

Not to be left out, Plains GP Holdings LP (NYSE:PAGP), which owns an interest in the incentive distribution rights and general partner of Plains All American Pipeline, L.P. (NYSE:PAA), is also up 13.19% today. Investors are buying because the entire midstream sector is well in the green today as WTI forward month contracts rally and as energy infrastructure investors become more optimistic after Oneok Partners LP (NYSE:OKS) announced it will maintain its dividend, credit rating, and share count. Hedge funds have become more optimistic on Plains GP Holdings LP (NYSE:PAGP), with the number of elite funds long the stock rising by four quarter-over-quarter to 27 at the end of September.

Peabody Energy Corporation (NYSE:BTU) is trying to put in a rally of sorts, with shares up 14.44% today, on the hopes that the coal producer will successfully restructure some of its debt under favorable terms. Peabody has around $6.3 billion in debt, with $1.5 billion due in 2018, and could use some relief given the brutal energy climate as low natural gas prices have absolutely destroyed demand for thermal coal. Cliff Asness’ AQR Capital Management owned 2.11 million Peabody Energy Corporation (NYSE:BTU) shares at the end of September.

Disclosure: none