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Wednesday, April 13, 2011


While almost all mlps have recovered the losses of the bear market of 2008 there have been one or 2 that have lagged behind. This morning Eagle Rock Energy Partners (EROC) is looking to join the land of the living again. The company is making a major acquisition this morning which not only more than doubles production, but the company will raise its distribution to a rate of 75 cents annual beginning in q2 of 2011 and projecting going to a buck annual in 2012. The stock is up 52 cents in the pre market.

A few bullish pieces out there this morning as Plains Natural Gas Storage (PNG) gets a bullish goose from Seeking Alpha. Since no one is using nat gas it has to be stored someplace. Since its ipo the stock hasn't done much. And Motley Fool tells us that based on margins, Energy Transfer Equity (ETE) is doing just fine thank you.

MLPS lost 3 yesterday but came way off the lows which were down around minus 8. The stock is sitting right on important support in the stairstep uptrend that has seen us take trips down into the rising moving average support lines.
365 on the MLP index is an important inflection point and ultimately 350 is "the" support level in my view. But no worries about seeing either one of those levels today (at least based on this morning's open) as stock futures are up 80 points on the dow which gets back most of yesterday's lows. Crude sold off hard yesterday but its up this morning as is nat gas now after being lower earlier. And interest rates are up on stronger than forecast retail sales ex gasoline. MLPS are within striking distance of getting back to all time highs but we seem to be failing when we get there. Let the morning trades begin!

1 comment:

mike said...

Nice development with EROC, but it's still got work to do just to get back to its IPO pricing. This illustrates how devastating a distribution cut can be in this's all about the distribution. No pay, no play!