CS Take on MLPs
Weekly Analysis
MLPs Are Garnering More Attention
23 pages, 35 exhibits
Download Link: sendspace.com
NAPTP Takeaways: 1) Strong interest remains in MLPs – conference had a
record of about 700 attendees, 2) No near-term tax law changes likely,
3) Opportunities around NGL infrastructure development remain strong,
4) NGL supply/demand dynamics should remain in balance, as
petrochemical demand keeps pace with increasing supplies, 5) More crude
oil infrastructure is needed, especially around the Eagle Ford shale,
6) Additional midstream infrastructure opportunities may be provided by the
development of the Niobrara Shale, 7) Longer-term, demand for natural gas
could accelerate, given liquefied natural gas export opportunities and coal to
gas switching at utilities (2015+ events).
Bottom Line: We continue to like MLPs with exposure to the NGL markets
and those well-positioned to participate in the continued NGL infrastructure
build-out. Top picks under coverage exposed to these themes include EPD
and DPM (investment grade) and NGLS. Another notable NGL player under
coverage is OKS, rated Neutral.
OKS Dinner Takeaways: Last Wednesday, we hosted a dinner in
Connecticut with OKS management. 1) More infrastructure opportunities to
emerge from the Bakken Shale, 2) NGL market should remain in balance
even in 2013 after several Mont Belvieu fractionators come online,
3) Conway to Mont Belvieu E/P price spread should remain wide until OKS’s
pipeline projects come on stream, 4) OKS continues to realize better
margins as it re-contracts bundled midstream services.
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OT:
FUNDamental Insights
CEF Highlights
31 May 2011 ¦ 28 pages
citigroupgeo.com
In this report, we aim to provide investors with a regular update and our latest views
of the closed-end fund (CEF) sector. |
