MASTER LIMITED PARTNERSHIPS

Tuesday, January 22, 2008

Sunoco Logistics (SXL) turns higher after being down as much as 5 points earlier. MLPS are recovering with the rest of the market which is down just 90 points on the dow. There are still a lot of MLPS down 1 dollar or more. But we are making progress.

3 comments:

Anonymous said...: Selling MLP's in an environment were the fed is cutting rates and will continue to cut rates is just plain stupid. Investors will begin to scramble for yield.; 1/22/2008 1:17 PM
Anonymous said...: Yes, ASSUMING the distributions are secure. That will depend on how severe the downturn is.

Some E&P MLP's may be the most at risk.

Bruce; 1/22/2008 1:33 PM
Anonymous said...: The E&P MLP distributions should be very secure.

Most E&P MLPs are hedged going at least 3 years out at much lower energy prices. Even if energy prices are down 3 years from now, the current distributions are based on those much lower energy prices. If prices are up in 3 years the E&P group should be able to raise distributions significantly based on higher prices.

Some of the shipping MLPs are a totally different story with their exposure to volatile shipping rates.; 1/22/2008 7:36 PM