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Tuesday, May 03, 2011


It wasn't that long ago (last August) that you could have had Atlas Pipeline Partners for under 14 bucks a share. Today we sit in the mid 30s as the company has restructured itself, shed its debt and increased its distributable cash flow aggressively. Today the company announces earnings and some other changes that will continue to increase distributable cashflow. The company is almost (but not quite) back to its old pre 2008 highs. Another 10 points on the stock price and we're there. Its hard to hold in the bad times but it paid off for this mlp.

Enterprise Products Partners (EPD) is also making news this morning as it is expanding its pipeline in Eagle Ford Shale by 80 miles. UBS is cutting Boardwalk Partners (BWP) to hold from buy after its earnings yesterday which were a bit sub-par.

Markets are a little softer this morning ahead of the open with energy leading the way. Crude is down a dollar and change and and nat gas is up a few ticks. MLPS took a hit yesterday on news that the Obama Administration is readying a proposal to tax MLPS which makes absolutely no sense. As pointed out by one of our regular readers, this administration is doing everything to discourage new supply of energy by pushing money toward alternatives. Here is what it boils down to. It costs 22 cents per kilowatt hr to get energy through solar. It costs 6 cents per hour with coal. Now is the administration going to make energy cheaper by raising the coal cost to 23 cents per hr? The bottom line is alternative energy continues to be years away from practical use and expensive compared to everything else. Meanwhile we're paying 4.20 for regular here in the people's republic of the state of N.Y. Taxing mlps will yield very little money relatively speaking and discourage expansion of infrastructure. What do you think will happen to energy prices if we have no way of getting it from where it is to where it needs to be?


Max said...


Please don't tout APL. It's getting it's butt kicked today (-6%) I wonder if there was some negative news that came out on the conference call?

Grant said...

I understand that this tax proposal may be coming out and all but since when does the Administration get what it wants passed?

If the House were pre-midterms I'd worry about something like this. There is no way all the Republicans let anything like this through.