Midstream Takeover Targets
The midstream segment appears ripe for consolidation, as well-heeled utilities seek to leverage their low cost of capital and pull on the demand side to add exposure to gas pipelines.
MLP Equity Issuance: Past and Present
Overall equity issued by energy-focused master limited partnerships (MLP) declined by 58 percent last year; we expect this trend to continue in 2016.
Get out of My Dreams and into My Portfolio
There’s more pain coming for MLPs in the near term, creating a real buying opportunity for investors with a longer time horizon. To help you out, we’ve created a list of Dream Buy Prices for our favorite MLPs in an effort to take advantage of any panic that might ensue if our forecast pans out and oil prices suffer another leg down.
Changes to the MLP Portfolio
We’ve opted to trim some of the fat from our MLP Portfolio, selling names that look like dead money to raise dry powder for the once-in-a-lifetime buying opportunity that should emerge down the road.
MLP Class of 2014, Part 3
Over the past three years, investors seeking differentiated returns have found recent initial public offerings (IPO) in the MLP space to be a fruitful hunting ground.
In 2011, two fledgling MLPs–Golar LNG Partners LP (NYSE: GMLP) and Tesoro Logistics LP (NYSE: TLLP)–cracked the list of that year’s top 10 performers. This number increased to six in 2012 and four in 2013. And thus far in 2014, IPOs that priced within the past 12 months have accounted for four of the top-performing MLPs.
Why do newly listed publicly traded partnerships tend to outperform?
MLPs often grow their distributions at an accelerated rate in their first two years as a publicly traded entity. These rising quarterly payouts, coupled with a raft of positive research reports from Wall Street analysts, tend to attract investors’ attention and drive the stock price higher.
At the same time, brokerage and financial websites often misreport recently listed MLPs’ yield until the firm has paid a full year’s worth of distributions. This quirk gives investors an opportunity to buy these stocks before the herd realizes how much the units yield.
In the past, investing in fledgling publicly traded partnerships has proved to be a winning proposition and an opportunity to find value. However, investors should be forewarned selectivity is critical to this strategy’s success.
MLP IPOs Still Hot, But Selectivity is Key to Outperformance
Investors still flock to initial public offerings of master limited partnerships.
Midstream Madness
Midstream names have regained a good chunk of their losses over the past few days, but investors still have questions about the extent to which the recent retrenchment in crude-oil prices will affect their growth prospects. We highlight our favorites.
Q2 in Review: Conservative MLP Portfolio
Our Conservative MLP Portfolio has delivered an average total return of 29.2 percent since its inception in mid-November 2013, outperforming the 23.8 percent return generated by the Alerian MLP Index. Here’s our assessment of each holding’s second-quarter results and our updated outlook for their future prospects.
More Thoughts on the Kinder Morgan Mega-Deal and Its Implications
Rather than regarding Kinder Morgan Inc.’s consolidation of its associated limited partnerships as a referendum on the MLP structure or the end of an era, investors should regard this move as a fresh start for the midstream giant–an opportunity to reshape itself to meet the demands of the marketplace and competitive environment.
Four Takeaways from the Year’s Biggest Acquisition in the Energy Patch
On June 16, 2014, Williams Companies announced an agreement to acquire Global Infrastructure Partners’ 50 percent general-partner interest and 27 percent equity interest in Access Midstream Partners LP for $5.995 billion. We examine four key takeaways from this deal for MLP investors.
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Live Chat with
Elliott and Roger on Jul. 27, 2017
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Coverage Universe
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLP Ratings
Our assessment of every energy-related master limited partnership.
International Coverage Universe
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Peter Staas
Managing Editor: Capitalist Times and Energy & Income Advisor