MASTER LIMITED PARTNERSHIPS

Wednesday, August 20, 2008

MLP index up over 2 points...maybe a last hour accelleration is setting up???

Take Margo's advice.

14 comments:

Anonymous said...: big seller sitting on the offer on NGLS at 21.25. I've been taking some of those shares, but there are a lot offered.; 8/20/2008 3:08 PM
joewxman said...: 4500 offered at 21.25.

No insider filings yet for today.; 8/20/2008 3:10 PM
Anonymous said...: NGLS is dirt cheap. Growing like crazy. Distribution bumps in double digits. Let the clown sell. In a few days the storm will pass and the price will be higher. It just dumb money selling.; 8/20/2008 3:21 PM
Anonymous said...: NGLS traded over 1 million shares yesterday. Somebody just wants out, probably Lehman or some other levered dunce.

At some point another MLP, like ETP, should just buy Targa.

Alot of value in the name.

I would love to see a takeover or merger of an MLP. We haven't had one in years.; 8/20/2008 3:25 PM
Anonymous said...: Alot of insider buying at NGLS.

Now who knows more about the company? The dumbass seller, who is in a panic for who knows what reason or the insiders we have control over the day-to-day operations? You don't have to be a CSI investigator to answer this!; 8/20/2008 3:29 PM
Anonymous said...: The NGLS seller is the same guy selling WPZ. For some reason the guy just keeps leaning on both of these. If he was smart, (which he clearly isn't) he would go away for a few days and give it some time to breath. He isn't clever enough for that, so he just burns his money on a daily basis. A true trading genius at work here people.

I predict a quick 10% upmove on both names when this imbecile is done.; 8/20/2008 3:32 PM
Anonymous said...: The seller may need cash NOW and have no choice but to sell ASAP.

I wonder how much more the seller will dump in the next few days. This may not be over soon.

Bruce; 8/20/2008 3:37 PM
Anonymous said...: Interesting 13D filing:

MSD Capital bought 2,125,000 shares of SGLP (9.99%); 8/20/2008 3:47 PM
Anonymous said...: Bruce,

The guy is definitely eager to sell NGLS, a bit over eager.

I agree it may take a few days, but I would put my chips alongside the insiders.

Mr. Pipes; 8/20/2008 3:48 PM
Anonymous said...: Behold the wonders of leverage. Forced sellers create an abundance of opportunities.; 8/20/2008 3:52 PM
Anonymous said...: Will Fannie and Freddie make it to Labor day?; 8/20/2008 3:54 PM
Anonymous said...: The NGLS seller still seems like he has more to go. So he won today's battle.; 8/20/2008 4:01 PM
Anonymous said...: SemGroup Energy:'Positive Developments' Since Parent Bankruptcy

DOW JONES NEWSWIRES
August 20, 2008 5:46 p.m.

NEW YORK (Dow Jones)--SemGroup Energy Partners (SGLP) expects to survive the bankruptcy of its former parent and biggest client, executives said in a conference call Wednesday.

The oil pipeline and storage company has found new customers to replace nearly all of the business derived until last month from the private SemGroup LP, CEO Kevin Foxx said in the call.

"We have many positive developments to report," Foxx said.

SemGroup Energy Partners shares lost 75% of their value on July 17 and 18, as its private parent, SemGroup LP reported liquidity problems. The private SemGroup filed for Chapter 11 bankruptcy protection on July 22, citing $2.4 billion in trading losses in the crude oil futures market. SemGroup Energy Partners shares ended Wednesday at $8.17, but were up nearly 3% in after-hours trading.

The public company failed to report second-quarter results last week, and received a delisting notification from the Nasdaq. SemGroup Energy Partners has also demanded in bankruptcy court that its former parent guarantee future payments, claiming the issue had "reached a critical point." The public SemGroup earned 82% of its revenue in the first half of 2008 from its private parent.

"The uncertainty relating to Parent's Bankruptcy Filings may make it more difficult to pursue merger opportunities or enter into storage contracts with third-party customers," SemGroup Energy Partners said in an Aug. 15 filing with the Securities and Exchange Commission.

Executives sounded more upbeat in the conference call. SemGroup will protest the delisting, which is Nasdaq set for August 28, Foxx said. The private former parent also paid SemGroup Energy Partners $2.7 million for services rendered between July 22 and 31, though the public company is still demanding a guarantee for future payments.

The company has contracted nearly 75% of its 6.8 million barrels of oil storage capacity to four unaffiliated customers, representing at least 80% of the volumes once reserved for the private SemGroup LP. About 85% of oil being shipped through the company's pipelines belongs to third parties, as opposed to the bankrupt parent.

Two hedge funds, Alerian Capital Management and Manchester Securities, took over management of the public SemGroup on July 21. The company's new operators said at the time that SemGroup Energy Partners would attempt to find new partners to replace its bankrupt parent, but they didn't rule out selling the company or some of its assets.

On Wednesday, Gabriel Hammond, a managing director at Alerian, said SemGroup hadn't ruled out selling some assets.

He described the new customers as "major industry players."

Executives did not take questions on the call.

-By Brian Baskin, Dow Jones Newswires; 201-938-2062; brian.baskin@dowjones.com; 8/20/2008 6:11 PM
Anonymous said...: UBS Investment Thesis 12-Aug-08 07:20 am
Drop-down Acquisition Vehicle with Natural Gas Exposure

We view NGLS as a potential drop-down acquisition story, with a positive long-term outlook. In our opinion, the partnership possesses several fundamental strengths, which should support distribution growth of roughly 16.0+% for the next several years. These fundamental strengths include: 1) affiliation with Targa Resources, Inc. — a private company and a leading provider of midstream natural gas and NGL services in the U.S.; 2) strategically located assets in the Fort Worth Basin in north Texas — one of the most productive natural gas producing areas in North America; 3) high quality and efficient asset base — formerly of ConocoPhilips and Dynegy; 4) strong producer customer base — consisting of both major oil and gas companies, and independent producers; and 5) a comprehensive package of midstream assets, including gathering, compressing, treating, processing, and selling natural gas, as well as fractionating and selling natural gas liquids (NGLs) and NGL products.
With the recent asset-drop downs from its sponsor (the San Angelo Operating Unit and the Louisiana Operating Unit purchased in 4Q07 for $705 million), organic growth projects currently underway, and additional potential asset drop-downs from its sponsor, we believe NGLS should enjoy above-average distribution growth over the next several years (we currently estimate a 16.0+% compound annual growth rate (CAGR) for 2008-10), thus impacting valuation positively over the next 12-months.
As such, we continue to rate NGLS a Buy. Price appreciation to our new 12-month price target of $30 (from the August 11, 2008 closing price of $21.84), combined with a forecast distribution yield of 7.4%, translates into a 44.8% total return potential.
Risks to story include, but are not limited to, the following: commodity price sensitivity, dependence on acquisitions for growth, dependence on Targa Resources, Inc. for acquisitions; obtaining new supplies of natural gas and natural gas liquids, and interest rates.; 8/20/2008 6:33 PM