MASTER LIMITED PARTNERSHIPS

Monday, September 29, 2008

Not sure what is going on with Eagle Rock Energy Partners (EROC) but the stock is up 1.55 on 60,000 shares. Could be end of quarter stuff going on but when your up on a morning like this it does tend to stand out.

The mlp index is down 4 points with the dow down 203. Wachovia is toast this morning so that seems to be driving mood.

9 comments:

Anonymous said...: My guess is forced short covering; 9/29/2008 9:58 AM
Anonymous said...: 3 page piece on NS on thestreet.com, has anyone seen it?; 9/29/2008 9:59 AM
Anonymous said...: The Bondholders at WB are now C's problem, but they still have some value.

A whole bunch of regional banks NCC, etc look like they probably will fail soon.

MS looks weak as well.

Lousy day for sure. And we'll sweat out today's bailout vote and debate.

Perhaps today's turmoil will force some of our congressmen to take a long hard look at the abyss, and step back from the brink.

HS; 9/29/2008 10:08 AM
Anonymous said...: Cost of New Money for Moran Stanley.

MS is down $3.66 to $21.09 as I write this.

Mitsubishi UFJ (MTU:mitsubishi ufj finl group in sponsored adr
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Last: 8.55-0.54-5.94%

10:13am 09/29/2008

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MTU 8.55, -0.54, -5.9%) (JP:8306: news, chart, profile) is buying 9.9% of Morgan Stanley's (MS:morgan stanley com new
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Last: 20.79-3.96-16.00%

10:18am 09/29/2008

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MS 20.79, -3.96, -16.0%) common shares at $25.25 apiece, for an estimated total of $3 billion, the two companies said early Monday. It also purchased $6 billion of perpetual non-cumulative convertible preferred stock with a 10% dividend and a conversion price of $31.25 a share.; 9/29/2008 10:20 AM
Anonymous said...: MLPs have only one problem right now-access to capital. Can the MLPs/GPs still get capital? Without it, they sink like everything else...; 9/29/2008 10:23 AM
Anonymous said...: The market liked the Paulson plan before the Congressional brain-trust loaded it with provisions which create disincentives for financial companies to participate in the program.

Yep, the gasbags really protected us by creating doubt about the effectiveness of the plan.

Brilliant!!

Bruce; 9/29/2008 10:25 AM
Anonymous said...: "Can the MLPs/GPs still get capital? "

So far, at least, the answer has been a resounding "YES."

Bruce; 9/29/2008 10:26 AM
Anonymous said...: There will be a new calculation imho of profits for companies that have access to capital in the form of debt.

Probably the average cost of capital
( just a guess ) might go up 100 basis points a year on average until this crisis ebbs, depending of course what % of the debt needs to be rolled over.

Also since pipelines will be less profitable on an operating basis because of the higher interest rates, that will cut into distributable income.

Dropdowns will be less profitable to the oil companies because the higher cost of capital makes deals less acretive to MLPs, reducing the price MLPs will pay.

HS; 9/29/2008 10:42 AM
Anonymous said...: does anyone know why XTXI has such short interest relative to other MLPs?; 9/29/2008 10:51 AM