Lots of earnings out today. Teppco reported this morning as did Duncan Partners and TC Pipelines. Enterprise Products Partners also posted quarterly numbers. Nustar GP (NSH) was cut to hold from buy at Citigroup. Its down aboujt 30 cents as of this posting.
The MLP index dropped down over 2 points at one juncture this morning. There are a few distortions going on. Oneok is ex distribution today as is Teppco and Kinder Morgan Partners so they are all dragging the pure number on the MLP index. Actually most MLPS are higher today.
Holly Partners (HEP) is ripping the cover off the ball today up 1.50. No news. Oneok LP is up 70 cents after you adjust for the distribution. And there are lots of fractional gainers on the board.
No surprise to see downgrades of Hiland LP (HLND) and Hiland GP (HPGP) but i wonder if most of the selling was done yesterday. Both are down 1 and change but Hiland LP beginning to stablize in here. We'll see.
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- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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3 comments:
Genesis (GEL) announced the acquisition of some private mid-stream assets today. This will approximately triple its present market cap. This is exactly what CEO Sims said they were going to do (buy assets to grow the company) in his presentation at the March Investor Conference.
mike
Also wanted to mention the arrangement in place with the GEL general partner (Denbury). For every dollar GEL spends on an acquisition, Denbury will match it 50 cents in the form of an existing asset dropdown.
So by my math, GEL has an existing market cap of around $250M. The acquisition announced today is for roughly $560M. Denbury then drops down $260M as per the agreement, causing GEL to quadruple in size in just one deal. Note that Denbury has this dropdown value immediately available.
Guess we'll hear more in the conference call that is about to start.
mike
thanks mike. Stock is up 3.86
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