MASTER LIMITED PARTNERSHIPS

Friday, October 17, 2008

Looks like they are shrugging their shoulders on the Copano distribution increase (smaller than usual) and the stock is up nearly 1 point.. MLPS are higher by 4 points on the index as they as usual play a little catch up from yesterday and big energy pulls back a little bit. Dow down by about 100 which so far is not bad and they can't seem to take 'em down today at least so far.

Coal mlps showing the way higher with Alliance Resource (ARLP) and Natural Resource (NRP) both up over 1. Also seeing 1 point gains in Oneok (OKS), Atlas Energy Resources (ATN) , Trans Montaigne (TLP) and Williams (WPZ).

4 comments:

Anonymous said...: Anyone have an idea why ETE would yield more than ETP? My only thought would be concern for a distribution cut, which seems highly unlikely.; 10/17/2008 10:59 AM
Anonymous said...: The only reason that ETE would yield more than ETP is complete and utter ignorance on the part of those selling ETE!

I think a distro cut is out of the question.; 10/17/2008 11:26 AM
Anonymous said...: There's a number of GPs where the price is out of sync. I'm a buyer of ETE here.; 10/17/2008 11:49 AM
Anonymous said...: The yield convergence between the MLPs and their associated GPs is fascinating. Possible reasons for this are:

1) Expectations that distribution growth will stop.

2) Anticipated new legislation that would treat GPs less favorably than MLPs for tax purposes.

3) Ignorance of or complete discounting of the leverage to distribution growth at the GP, ie. an inefficient market.

I'm inclined to go with reason 3).; 10/17/2008 1:17 PM