Monday morning news begins with earnings and we have Boardwalk Partners putting up numbers that technically were 3 cents below estimates but we don't pay to much attention to that. Distortions include a stock offering and the company did raise the distribution last week which is of course more important. And what they say for the rest of 2007 and hopefully they will in the conference call. Alliance Resource Partners (ARLP) puts up strong earnings numbers. Now they did not raise the distribution however they usually only do that in January and July. And one piece of news left from Friday as Holly Energy Partners (HEP) raised its distribution by a penny but the stock has really taken off recently. The yield on this one is down to 5.1% which is pretty low. The float here is very small.
Of course that chart above looks parabolic which is amazing that we're saying that about anything in this group. Meanwhile Boardwalk has been moving sideways since its stock offering in March. We'll see what the impact of the morning news is.
Energy markets remain extremely tight and i paid $3.19 for gas last night. Isn't that fabulous! At least my investments are providing an effective hedge. Those markets are flat but lately they have been sensitive to any breaking news so we'll keep an eye there. In upgrades and downgrades Wachovia cuts Enbridge Energy Partners (HEP) to market perform from outperform. We also have relatively new issue Cheniere (CQP) which Citigroup starts at a hold.
MLPS are hovering just below their all time high set last week when the index went down on one day, mainly due to ex-distribution activity. More ex-distributions set for this week so look for more distortions although the heavy weights like Kinder Morgan for example are already done. So i guess we'll see a challenge to new all time highs today.
joseph cioffi's Source Page - Associated Content
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