MASTER LIMITED PARTNERSHIPS

Wednesday, October 08, 2008

Kinder Morgan comes out and says it will likely raise its distribution to 1.02 next week. The stock has rallied about 4 points from the lows of the day.

Dear CEO's CFO's I.R, of MLPS,

I know many of you read this blog and for that i am extremely flattered. At this point it might be a good idea to give your investors and the market some clues about guidance and distributions. Your stocks have been give a 50% hair cut...in some cases its come since last Wednesday. Maybe a clue about your access to credit markets might be helpful as well.

Just a suggestion...follow Kinder Morgans lead.

11 comments:

Anonymous said...: Joe,

I think there is a bunker mentality at most GPs and MLPs. It seems like they have no clue how to navigate through tumult. They also never really "say" anything, just boilerplate. I have been speaking with CFOs and IR people for weeks. Nobody seems to sense the panic that the public is suffering through.

I am afraid that most CEOs etc are nothing more than bull market genuises, when the markets are moving higher they pay themselves excessively and tell us how wonderful they are. We will see if they have earned their pay.

Mr. Pipes; 10/08/2008 12:42 PM
Anonymous said...: Joe--

I think that the MLP leadership is concerned about saying something that they think the market will perceive as a problem--e.g., why are they talking about their revolver unless there is something I should be worried about?; 10/08/2008 12:45 PM
Anonymous said...: And this is one week old news but:

BRIEF-El Paso Pipeline Partners to recommend increase in quarterly distribution
Wed 1 Oct 2008 10:12 AM EDT

Oct 1 (Reuters) - El Paso Pipeline Partners LP

* Say completes acquisition of additional interests in assets from El Paso Corporation

* Says intends to recommend to board an increase in quarterly cash distribution to $0.32/unit, beginning with the distribution to be declared and paid in the first quarter 2009

Currently the quarterly dividend is $0.295; 10/08/2008 12:57 PM
joewxman said...: "I think that the MLP leadership is concerned about saying something that they think the market will perceive as a problem--e.g., why are they talking about their revolver unless there is something I should be worried about?"

You maybe right but at this stage of the game...how much more damage could they inflict. Many mlps are down to less than a 10 handle with 20% yields or greater. What could they say to make it worse. It already is worse!; 10/08/2008 1:02 PM
Anonymous said...: Maybe this will end with seller exhaustion, rather than buyers coming in when a clearing price is reached.

At least with DOW stocks, this may be happening now.

HS; 10/08/2008 1:09 PM
Anonymous said...: ENTERPRISE GETTING INVOLVED:

Enterprise Increases Cash Distribution Rate
HOUSTON--(BUSINESS WIRE)--

Enterprise Products Partners L.P. (NYSE:EPD) today announced that the board of directors of its general partner declared an increase in its quarterly cash distribution rate to partners to $0.5225 per common unit, or $2.09 per unit on an annualized basis. The quarterly distribution will be paid on November 12, 2008, to unitholders of record at the close of business October 31, 2008. This distribution represents a 6.6 percent increase compared to the $0.49 per unit quarterly distribution declared for the third quarter of 2007.

"We continue to benefit from our large, diversified asset position across the midstream energy value chain and look forward to the scheduled completion of three large capital growth projects this quarter: the expansion of our Meeker natural gas processing plant and the completion of the Exxon central treating facility in the growing Piceance basin, and the expansion of the Sherman Extension to our Texas Intrastate natural gas pipeline system serving the prolific Barnett Shale area. We expect to continue our disciplined financial strategy of retaining cash flow this quarter, adding to the $212 million of cash retained through the first six months this year," said Michael A. Creel, Enterprise president and chief executive officer.

Enterprise has now increased its cash distribution rate 17 consecutive quarters, representing the 26th increase since its initial public offering in 1998.; 10/08/2008 1:42 PM
Anonymous said...: Are the damn sellers finished?; 10/08/2008 1:50 PM
Anonymous said...: Big Thaw in Credit

By Tony Crescenzi
RealMoney.com Contributor
10/8/2008 1:40 PM EDT

Three major segments of the credit markets are casting compelling signals today, suggesting glimmers of light are peering through the darkness, and investors are beginning to run toward them. All of these signals are coming from reliable and steadfast gauges. Specifically, Treasury yields are spiking higher, the 10-year swap rate is plunging, and Fannie Mae sold T-bills today at rates well below recent levels.

All of these signals suggest a movement toward risk-taking. If 2-year swap rates follow these gauges -- and if Eurodollar and Euribor futures contracts begin to show signs that investors are betting on a decline in LIBOR -- a substantial rally in riskier assets, such as equities and corporate bonds, will likely follow.

I stress that these short-term gauges -- the 2-year swap and the LIBOR indicators -- are essential for any lasting thaw in the credit markets, as improvements on these fronts would clearly indicate that concerns about near-term risks are subsiding. It seems likely that these short-term gauges will, in fact, show improvement given the massiveness of improvement in the three gauges I mentioned.

Exceedingly important is today's sharp rise in Treasury yields, which is massive. Rates on 10-years are up a whopping 27 basis points, for example, and 10s have registered a nearly 3-point decline. Such a move has been more characteristic of less-risky assets of late.

The 10-year swap rate has moved remarkably, partly because Treasury yields are up. The spread between 10-year swap rates, which reflect the interest rate that debt obligors pay to swap out of a floating-rate obligation into a fixed-rate one (they do this when they are worried about credit spreads), is down a whopping 16 basis points to 45.5 basis points, the lowest level since January 2006(!), which is, of course, before the credit crisis bloomed last summer.

As for Fannie Mae's T-bill auctions, today's yield on 3-month bills was 1.55%, down from 2.35% last week and 2.95% two weeks ago. Fannie's 6-month bill yielded 1.84%, down from 3.19% last week and 3.40% two weeks ago.; 10/08/2008 1:53 PM
Anonymous said...: AMZ +16 POINTS FROM THE INTRADAY LOW.

WAS THAT THE CAPITULATION?; 10/08/2008 1:55 PM
Anonymous said...: Lets hope that the "forced" sellers are finally finished and we can begin to repair our portfolios...; 10/08/2008 2:00 PM
Anonymous said...: CEP +25%; 10/08/2008 2:37 PM