Posting drought

Sorry for the posting drought this week, been buying MLPs as they crater from all time highs. The sector as of writing is off 6.6% since last Thursday. Earnings haven't been great for most MLPs, but they are far from bad. Crude and energy weakness is probably good for volume demand for MLPs (unless crude weakness is from lack of demand). Tax scare is a

Week Thoughts on MLPs

Equity offerings, earnings releases, distribution announcements, and some M&A…busy week for MLPs. I’m still digesting it all, and if my son didn’t throw up all over himself (and the car-seat) on the way to school and if my mother in law didn’t break my kitchen sink this afternoon, I might have had more time to read today, and have more

8 Decade Secular Trend

I’m trying to figure out if there are any conclusions to be drawn from the U.S. Census data for 2010, see if I can get my tax money's worth out of it....  Massachusetts grew in population by 3.1% from 2000 to 2010, and the New England region as a whole grew in population by 3.2%.  By comparison, Texas grew its population by 20.5% in the last ten years,

Where Does Your Gas Come From?

Where does your gas come from?  I use natural gas to heat my home in Waltham, Massachusetts.  The company that supplies the gas sources most of its natural gas from two pipelines, Tennessee Gas Pipeline (owned by El Paso Corporation) and Algonquin Gas Transmission (owned by Spectra Corp).  Those two large pipelines are interconnected to supplies as far

General Thoughts on General Partners

Investment bankers created the GP product as a way to solve the principal dilemma of the successful founder of an MLP: how do I monetize a piece of the value I have created at the GP level of an MLP, particularly when MLP valuations are at all-time highs?  The answer at the time was either a sale of the GP or a large loan to the GP owners backed by ongoing

Week Thoughts

Happy almost tax day!  This week, as MLP investors everywhere are paying their recapture ordinary income taxes for MLPs sold in 2010, the market didn't do much, and neither did MLPs.  The S&P 500 finished the week slightly lower than the previous week, while MLPs barely moved, down or 0.1%.   Interest rates were down this week as well. The

Institutional Ownership Stats

Someone recently brought up to me that given how few MLPs there are (80 or so), and given all the new money flowing into the space, doesn't that necessarily mean that valuations get out of whack.  The classic case of two much money chasing too few ideas, particularly when the mandate of these funds is specific to MLPs.  So, I am trying to figure out just

2011 MLP Conference

I got the registration email for the MLP conference today, thought I'd pass it along to you.  Come on down to Greenwich May 25-26.  The conference is always an interesting time to wander the halls and get a feel for the very real cliques among the investors in the space as well as the lawyers, bankers and brokers.  There will be bankers wining and dining

Bigger They Are…?

When the market cratered for a few days last month and it seemed like the end of days came a year early, it was interesting to see EPD (on no news) trade off significantly more than the smaller and less liquid MLPs.  There was even a few minutes when stink bids were getting hit for EPD at $10 below the previous trade.  I didn’t see any of that from the